Nomura

European Investment Bank and Export Development Canada showed their Australian dollar appeal this week, selling hefty deals in the belly of the curve. Japanese demand propelled the EIB to success, allowing the issuer to sell its largest Kangaroo deal in three years.

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.

Eurozone periphery issuers showed themselves to be resilient when tackling choppy markets, as borrowers printed a series of strong deals despite yields pogoing over the course of the week.

Kutxabank opened books for a €1bn seven year Cédulas Hipotecarias on Monday, Spain’s fourth covered bond of this year. The issuer priced the deal through its curve even as Spanish government bonds underperformed.

Carlsberg Breweries returned to the euro bond market after an 18 month gap today with a successful €1bn 10 year bond, though it had to contend with a market that has lost a little of its rude bullishness in the past week.

Nordea will return to the Samurai market after an absence of a year this week, selling three and five year fixed rate notes. The lender may also add floating rate tranches, given enough investor demand.

Syndicate bankers hailed a return to form for senior debt this week, following a string of blowout deals. Given a week with no holidays to disrupt the market, financials reacted with gusto and printed around €12bn of senior debt, with investors stepping up to absorb the tide of issuance.

Citi is set to continue a run of highly oversubscribed 10 year bonds, announcing a self-led trade on Thursday morning. Like deals from BNP Paribas and Crédit Agricole earlier in the week, the deal has drawn a bumper book, even as the 10 year bonds from the two French banks continue to trade wide of initial levels.

Five FIG issuers took to the subordinated markets to take advantage of months of undersupply this week, with the results highlighting not just the feverish grab for yield but also just how far banks have come since the crisis of 2008 in building their capital levels.

Rabobank and Banque Fédérative du Crédit Mutuel are taking full advantage of one of the best windows for subordinated issuance so far this year to print €4.2bn equivalent in tier two capital across three deals, as total European FIG issuance this week surpasses the €10bn mark.

A burst of opportunistic corporate bond issues came to the European bond market on Tuesday, as issuers leapt on near-perfect market conditions after a very strong Monday, led by GDF Suez’s €2.5bn green bond issue.

Tokyo Metropolitan Government came back to the market on Monday with a five year issue. The trade has gotten off to a strong start, with books oversubscribed half an hour after opening.