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Portugal and KfW lead euro supply with five year as dollar market focuses on second AfDB hybrid
◆ Tightest 10 year Länder bond this year ◆ Big book leads to 4bp spread move ◆ Deal still three times covered, green element was key
◆ One deal was judged ‘relatively tight’... ◆ And the other ‘definitely cheap’... ◆ ... though fair value tough to spot
Issuance recovers from last week’s wobble but concerns linger after issuers like KfW widen
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The dollar market for SSAs kept up this week’s sizzling form on Wednesday, as another issuer mandated for a benchmark — bringing the total for what is historically a quiet week to four deals.
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Warrington Borough Council has become the first UK local authority outside London to enter the bond market for more than 10 years — and more British councils could be set to come with deals.
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A pair of public sector borrowers — including a super rare issuer in dollars — have nipped in ahead of a data laden September to bring deals this week, following the lead of Denmark’s KommuneKredit.
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Public sector issuers should hit the market hard later this month — no matter when they expect a US rate rise, said sovereign, supranational and agency bankers.