Rentenbank

A queue of SSA issuers is forming to take advantage of an under supplied dollar market with a flood of supply in September, according to bankers. Although tight spreads and low yields will make conditions tough for the very best credits in shorter dates, duration and cheaper names should be able to take advantage of a hungry investor base.

Germany plans to give Rentenbank an explicit and direct guarantee, putting the issuer on a par with KfW. Renten’s secondary levels will tighten as a result, but it won’t threaten KfW’s status in capital markets, said market participants.

Rentenbank tapped an eight year Kangaroo bond on Friday, rounding off an already busy week for Aussie dollars. However, the deal failed to reach full subscription at the time of pricing.

FMS Wertmanagement, which bankers expect to see in benchmark format next week, left market participants bewildered when it priced a €500m new issue to capitalise on reverse enquiry for its name. Rentenbank also took advantage of reverse enquiry to tap 2019 debt.