TD Securities

Issuers stormed out of the blocks with a set of deals across the curve this week, with factors including an increase in swap spreads on the short end, a positive feeling towards the US market since Janet Yellen’s statements in March and the start of the Japanese fiscal year all credited.

Rating: Aa2/A+

The African Development Bank and L-Bank on Thursday added to a surge of deals at the short end of the dollar curve, as issuance rode on a wave of dovish central bank outlooks.

The World Bank increased a January 2021 New Zealand dollar note on Thursday with a tap that is largest issue in the Kauri market so far this year, according to a banker on the deal.

L-Bank and the African Development Bank are set to be the latest issuers this week to take advantage of rising short end dollar swap spreads, mandating for deals on Wednesday after Finland printed a short dated deal of its own.

Asian Development Bank printed a A$225m ($170.8m) 10 year bond on Thursday, the largest issue size in this tenor from an SSA borrower in the Australian dollar market since 2014.

Asian Development Bank (ADB) has a launched a new 10.5 year Kangaroo note on Wednesday, highlighting the demand for high grade names in that market.

With spring finally arriving in London, public sector bankers were warming up for an expected burst of dollar issuance as the second quarter kicks in next week — with a full rainbow of maturities available for the first time since the summer, writes Craig McGlashan.

The International Finance Corporation proved that there is demand for the tightest of issuers at the 10 year part of the dollar curve, after it printed a $700m April 2026 global green bond on Wednesday.

Issuers have nipped into the euro market after Easter with some canny deals. Meanwhile the dollar market was watching US Federal Reserve chairperson, Janet Yellen, who on Tuesday said that the possibility of further rate hikes was “not a plan set in stone”.

The International Finance Corporation is set to extend its green — and conventional — curve with its first 10 year dollar syndication for over 20 years, in what bankers suggest will be the strongest indicator so far for the level of demand returning to the tenor.

The sterling SSA primary bond market is set to have a record breaking first quarter in terms of issuance volumes, which currently stand at £12.25bn. There have been a number of notable deals from inaugural issuers and those returning to the market after a long break, but also regular issuers have achieved much bigger volumes. From the demand side, the breadth of participation has also been apparent, with the three big investor bases — central banks, bank treasuries and UK real money — all participating in good size. We look into the reasons why and whether it will continue.