Weekly Covers

Demand let A rated sovereign cut spread by 35bp

◆ Hybrids and Reverse Yankees on offer ◆ Market waiting for Iran's response to US strikes ◆ New issue concessions still in single digits

Slovenia will be the first European sovereign to issue an SLB

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