Weekly Covers

Report on secondary objective also questions regulators' role in economic growth

Investors hope a government more open to fiscal tightening will come to power in 2026

Strong conditions and looming US tariff deadline set to lure more issuers next week

◆ Investors eager to buy capital from big and smaller banks ◆ Bankinter places largest AT1 at reset under 400bp ◆ Much smaller Optima bank from Greece also debuts

◆ Hyundai’s US arm drums up blowout response in euros ◆ Telefónica rings in solid trade ◆ SEB proves unrated spreads can be modest

Islamic Development Bank deal sold inside the curve

◆ Italian bank prints €1bn in first tier two since January 2024 ◆ Demand for higher yielding deals outweighs Middle East escalation ◆ Other new financial issuers of capital line up deals

◆ Hybrids fight for attention alongside SLBs and green bonds ◆ Books remain well subscribed ◆ But pressure is building for market sentiment to sharply turn

Borrower monitoring market windows ahead of novel European sovereign sustainability-linked bond

◆ Functioning market for debut and lower tier borrowers despite spike in political volatility ◆ Kommunalkredit Austria prints rare tier two as mBank prepares debut ◆ Malakoff Humanis raises €750m for growth

◆ Investors offered identical deals at each end of the rating spectrum ◆ Sanofi appears to come flat to fair value ◆ Both get more demand for seven year tranches

Fair value might in the low 200bp area over swaps