RBC Capital Markets

Swiss Re and UniCredit are looking to be the first out of the door in the post-summer subordinated debt market, taking advantage of the recent rally in credit after European Central Bank president Mario Draghi’s comments earlier in the week gave investors confidence that the bank would enhance its measures to boost weak eurozone inflation.

BMW reopened the European benchmark investment grade corporate bond new issue market today with a punchy €1.75bn deal that proved one thing and suggested another. The market is fully open for business after the summer – that is certain. And the signs are that spreads – and especially yields – for corporate issuers are set for a very tight autumn.

Kangaroos and Kauris — not dollars and euros — could grab the attention of supranational agencies in the coming months, with price rather than prodigious volumes likely to be the issuers’ focus as they flirt with near-completed funding targets. Jonathan Breen and Nathan Collins report.

A pair of supranationals enjoyed strong liquidity at the short end of the curve. The Asian Development Bank priced a long two year early in the week, days after the World Bank printed a similar maturity with both deals attracting enough demand to be increased from the minimum target size.

More issuers could follow Bank Nederlandse Gemeenten into the New Zealand dollar market as the country’s rising interest rates create yield grabbing opportunities in the currency, according to niche currency bankers. The Australian dollar market has also produced activity, with L-Bank taking to the long end with a rare print in the currency on Tuesday.

A favourable basis swap and attractive opportunities at the far end of the curve are likely to spur European agencies to take to the far end of the curve in Australian dollars in the coming weeks. Opportunities also exist in the belly of the curve, however, with the Inter-American Development Bank benefiting from an attractive spread over local public sector paper for a long five year this week.

Royal Mail Group's debut €500m 10 year bond tightened as much as 15bp on Thursday after being priced on Wednesday at 108bp over mid-swaps. That was well inside initial price thoughts of 120bp-125bp.

Royal Mail Group's debut €500m ten year bond tightened as much as 15bp on Thursday after being priced on Wednesday at 108bp over mid-swaps. That was well inside initial price thoughts of 120bp-125bp.

Royal Mail Group priced its debut bond today with a €500m 10 year senior unsecured deal, nine months after its privatisation via IPO.

A tinge of risk-aversion crept into the US corporate bond market on Thursday, as investors digested the US government’s decision to broaden its sanctions on Russia over the situation in Ukraine.

The European Investment Bank, which is over 75% funded for the year, went strategic this week by dipping into South African rand with a curve extending eight year deal. Elsewhere, the International Finance Corporation and KfW picked up funding in Australian and New Zealand dollars.

Royal Mail Group, the UK national postal service that was controversially privatised last year, finished the roadshow on Tuesday this week for its first bond issue.