It was dead quiet in the market, with just $2.3 billion in investment grade supply priced. Average deal size continues to trend down (just $314 million for the week) reflecting the fact that the calendar is dominated by smaller, off-the-run issuers. The sudden drop in supply reflects the reluctance of issuers to test the primary market in size during the current market turmoil. This is particularly true of the beleaguered telecom sector where Deutsche Telekom is waiting on the sidelines to launch a deal that will reportedly be in the EUR5-8 billion range. In investor presentations in Europe last week and the US this week DT has confirmed that the deal, when launched, will be split between dollars and euros but has made few other references to potential structure or confirmed timing, acknowledging that the market mindset is currently too distracted to ensure a successful reception.
For additional information, please visit www.CreditSights.com or call 212-340-3888 to speak to a CreditSights representative.