Last week added a more than EUR11bn of supply across senior and subordinated notes in the EUR primary market. We saw multiple times oversubscribed order books, issues with very low coupons and very large hybrid tranches.
Increasing risk appetite and the bridge-financing agreement reached for Greece led to significant spread tightening across all indices (especially the high beta part of the market). iTraxx Main and Crossover tightened 6bp and 30bp respectively during last week.
The very hot current temperature of the credit markets can be seen by the hybrid deals issued by Total and TDC respectively (see key terms in publication). Vestas (DBM shadow rating of BBB-) announced its plan to go on a pan-European roadshow. Depending on investor feedback a euro-denominated bond issue may follow.
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