Pre-migration untagged articles

Supra/sovereign/agency issuers will be out in force in January, to get their 2006 funding programmes off the ground. First mover honours should go to the European Investment Bank, which is expected to issue a $3bn three year global bond in the first week of the year. As January 2 is a bank holiday in the UK and in the US, a January 3 launch is predicted.

The EuroCP market enjoyed busy flows this week, during a normally quiet time of year.

Analysts are expecting a thoroughbred year for covered bonds in 2006 after issuance for this year of Eu135bn beat the previous high of just over Eu120bn in 1999 by a clear length. A consensus of estimates from analysts surveyed by EuroWeek was Eu145bn-Eu155bn of supply next year, up between 7.5% and 15%. And having broken through the Eu600bn level this year, outstandings are expected to reach more than Eu700bn, with redemptions only eating into gross issuance in the Pfandbrief sector.

Financial institutions squeezed the last drop of liquidity out of the European bond market this week by bringing a few more deals.

The Region of Friuli Venezia Giulia issued its first fixed rate bond this week, a Eu387m amortising 15 year, led by Citigroup, Depfa, Dexia, Nomura and UniCredit Banca Mobiliare. While the issuer is no newcomer to the bond market, it had previously only issued floaters. "Ninety-five percent of our debt is in variable format but we wanted to cover ourselves ahead of possible future rate increases," said Claudio Kovatsch, the region's chief financial officer. "The market is expecting further rate increases in the future, which encouraged us to choose the fixed rate format. Furthermore, we wanted to rebalance our debt. The fact that we could print a 3.56% coupon for a 15 year transaction gives us comfort and tranquillity."

The world of investment banking moves in mysterious ways, but even the best spin doctors in the business have been unable to convince current or potential employees that it is the most fun place in which to work.

Europe's bond markets had more or less shut down for the December break by yesterday (Thursday), with one exception — asset backed securities.

Europe's bond markets had more or less shut down for the December break by yesterday (Thursday), with one exception — asset backed securities.

The Asian bond market responded warmly this week to Advance Agro's $250m bond, at B3/CCC believed to be the region's lowest rated new issue.

Investment banks and rating agencies have started to issue their forecasts for the European credit markets in 2006. Those that have uttered so far agree on one thing: the market could be in for a tough ride next year.

Investors dumped Argentina's bonds yesterday (Thursday) afternoon on news that President Nestor Kirchner had decided to sever the country's 22 year ties with the IMF and pay back the entire $9.8bn it owes.