Pre-migration untagged articles

Dollar swap spreads remain at elevated levels, but off the wides seen at the beginning of the week.

Banca Popolare di Milano revived the primary covered bond market when it priced a Eu1bn three year at 50bp over mid-swaps on Monday, the first since Caja de Ahorros del Mediterráneo’s two year in mid-June. Today Banco Espírito Santo opened the books on a benchmark two year at 45bp over mid-swaps, continuing issuers’ focus on the short end.

It is another frustrating week for bankers in the financial institutions bond markets, as the hoped-for period of stability has failed to materialise. Stable markets on Monday helped Westpac and Skandinaviska Enskilda Banken successfully price deals, but a bleaker tone prevailed on Tuesday before markets started Wednesday on a positive note. If it lasts, who will take advantage? Read EuroWeek on Friday to find out.

New benchmark bond issues from the European Investment Bank and KfW both benefited as yesterday’s equity and credit sell-off drove investors into safe assets. Dollars is the currency of choice for borrowers now considering deals. Spain and the Council of Europe are both in the market, with Spain said to have over $2bn of orders for its three year, while Germany and Italy are also rumoured to be considering deals. KfW priced a $3bn five year at mid-swaps less 20bp yesterday and this morning EIB sold a Eu3bn three year Earn at mid-swaps less 24bp. Read EuroWeek on Friday to find out how these deals fared.

Sovereign borrowers increased their activity in the commercial paper market substantially this week.

Several issuers and investors took the opportunity to do business in the Swiss franc bond market this week before the summer holidays start in earnest.

“Bearish sentiment is sinking all boats”

An external review at Moody’s revealed this week that employees had breached internal policies when rating constant proportion debt obligations.

Borrowers had to live with small trades at short maturities, as European demand remained stunted. But Japanese and other Asian investors continue to buy new issues in a desolate landscape that has many market participants worried.

Dealers of private EMTNs: Non-syndicated deals for less than $250m excluding financial repackaged SPVs, self-led deals and issues with a term of less than 365 days.