Natixis

Caisse Centrale du Crédit Immobilier de France is alone in the European senior unsecured bond market on Tuesday, and is set to sell its latest government guaranteed deal.

UK insurer Aviva and French bank BPCE are out with euro denominated tier two deals on Thursday as the FIG market recovers from a slight sell-off following the shock revision of US first quarter GDP figures showing a 2.9% contraction.

Mauser, the German industrial packaging group, has set price guidance on $1.5bn of loans to back its buyout by Clayton Dubilier and Rice.

The covered bond market had one of its busiest weeks this year as six borrowers from five countries raised €5bn. With outright yields continuing to decline, and investors scrambling to hit return targets, supply was slanted to the long end, where more yield was on offer. Even so, several deals offered coupons that set new lows.

Barclays is set to issue £2.27bn equivalent of CRD IV-compliant additional tier one securities after completing its offer to exchange old-style tier one bonds on Friday, bringing the bank’s total outstanding volume of new-style AT1 to more than half its £7bn target.

Sodexo, the French catering, support and care services group, made a rare visit to the bond market on Tuesday and raised €1.1bn at spreads in line with comparable issuers.

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Mediobanca was the sole covered bond issuer to put its head above the transaction parapet on Tuesday morning — the first deal following Mario Draghi’s speech on June 5. Offering a €750m five-year single-A trade to a supply-hungry market, the deal was priced at least 3bp through fair value, according to a lead banker on the deal — a clear signal that the periphery tightening story is not over yet.

The European Financial Stability Facility enjoyed ideal market conditions to print long three year debt this week, with the order book swelling to over twice subscribed despite the issuer offering only the skinniest of new issue premiums.

Covered bonds maintained primary market momentum this week, but issuers adopted very different pricing strategies and delivered contrasting outcomes. The degree of hesitancy that had been evident in the run up to last week’s European Central Bank meeting disappeared with a robust bid returning for higher yielding bonds. In contrast, low beta deals that offered a negligible spread were only just subscribed.

This week's European corporate bond issuance continued to pick up the pace on Thursday, as four deals came to the mainstream euro and sterling markets, plus an Austrian retail-targeted issue for Novomatic, which makes gambling machines.

Goodman Hong Kong Finance opened the books for its inaugural dollar bond on Thursday following the establishment of an EMTN programme.