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European corporate bond investors had only one corporate bond deal to consider in August before LafargeHolcim brought its €750m 12 year deal on Tuesday. But that lean period looks to be over as ISS Global followed with a €600m 10 year transaction on Wednesday.

Outside observers may have been surprised to see European bond markets reopen after a short summer break this week. However, those involved in the market thought it a sensible move, write Nigel Owen, Craig McGlashan and Tyler Davies.

The two new issues that were priced in the European corporate bond market this week have both tightened from their reoffer spreads. The success of these deals has accelerated the thinking of some issuers and two more roadshows were announced on Thursday.

Dongfeng Peugeot Citroën Auto Finance sealed a single tranche Rmb3bn ($451m) ABS deal on August 22, just five days after Bond Connect investors tapped the asset class for the first time. But the originator showed little interest in seducing the newcomers and stuck with the local investor base instead.

European corporate bond investors had only had one corporate bond deal to consider in August before LafargeHolcim brought its €750m 12 year deal on Tuesday. But that lean period looks to be over as ISS Global followed with a €600m 10 year transaction on Wednesday.

On Tuesday LafargeHolcim became the first issuer for nearly two weeks to launch a corporate bond in Europe. The €750m 12 year deal received strong demand, which may lead other issuers to bring forward their plans.

Ford Automotive Finance (China) has pulled off an impressive return to China’s auto ABS market. The company raised an eye-catching Rmb3.46bn ($518.4m) from its latest deal — and brought in the first crop of foreign investors tapping Chinese ABS through Bond Connect.

While the European markets surprised no one in registering a blank week in terms of new corporate bond issuance, the US market pushed the upper end of expectations, going beyond $25bn. A lower total is expected next week, but the Federal Reserve symposium in Jackson Hole will mean there is still plenty to watch.

The State Council publishes a series of policies to attract foreign investment, a People’s Bank of China (PBoC) advisor said China will unlikely follow the Federal Reserve in hiking rates this year, and the Ministry of Commerce (MofCom) criticises an US investigation into intellectual property rights in China.

Amazon dominated US corporate bond issuance this week, but aside from the online retailer’s $16bn jumbo deal, there was over $8bn of paper from five other issuers. However, bankers believe this will be the last week of material supply before the annual two week break in the US market.

Amazon priced the third jumbo M&A financing bond issue in a month in the US corporate bond market on Tuesday. The $16bn seven tranche package was the fourth-largest new issue of 2017, but the summer of 2017 could signal the high point of M&A related issuance for some time, writes Nigel Owen.

Amazon provided something for all investors with a seven tranche $16bn new issue on Tuesday. Tenors ranged from three years to 40 years and new issue premiums were judged to be attractive.