Natixis

A growing sector of the medium term note market could receive an extra injection of diversity, after a new report from Moody’s this week predicted that swingeing cuts to French local and regional governments’ budgets will increase debt levels.

The primary covered bond market is set to pick up next week, with deals from issuers in the UK, Germany and New Zealand in the offing. Yorkshire Building Society announced its intention to go on the road and bring its first euro deal in five years, Westpac New Zealand has said it also launch a roadshow next week to market the first covered bond since the country enacted a legal framework and Dexia Kommunalkreditbank is set to return with its first deal since 2011.

Financials shrugged off a short week to print €4.5bn of senior euro debt in just two days, as issuers looked to hit the market ahead of next week’s ECB meeting. The promise of more attractive new issue premiums than in recent weeks helped to buoy the trades, with issuers showing growing willingness to pay up slightly to grab investors’ attention.

Two corporate bonds were issued in Europe on Tuesday and, unusually, both were 12 year euro bonds from single-A issuers – French property company Unibail-Rodamco and Energie Baden-Württemberg, the German power generator. Both were also priced at 72bp over mid-swaps.

Two corporate bonds were issued in Europe today, and, unusually, both were 12 year euro bonds from single-A rated issuers. Both were also priced at 72bp over mid-swaps.

Middle East-focused oil trader BB Energy has launched a $125m one year refinancing loan into syndication.

French insurer CNP Assurances highlighted the scale of demand for sub debt from insurance companies on Tuesday, drawing a monster order book for its first deal in almost a year.

Spanish lender Bankinter is set to continue a run of successful trades from the eurozone’s periphery on Tuesday afternoon, surprising market sources with the scale of demand for five year paper at what some see as a punchy price.

Danish savings bank Nykredit will sell tier two debt on Friday afternoon, receiving strong demand for a Coco print.

Vitol’s self-arranged $2.05bn loan to fund the acquisition of Royal Dutch Shell’s Australian business has wrapped up with commitments from 18 lenders.

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Storming conditions in dollars this week led to a series of blow-out deals — but a large amount of supply in the last two weeks, plus uncertainty over the outcome of upcoming European elections and what the European Central Bank will do at its next meeting could mean that issuance conditions won’t be red hot for much longer. Those problems could also affect euros — where issuers considering deals at the 10 year part of the curve have the added difficulty of offering a sufficiently enticing yield.