Last week the European credit market moved more or less sideways. iTraxx Main was unchanged at 71bp, while iTraxx Crossover widened marginally to 329bp.
Thursday was one of the busiest day on the European corporate issue front this year with a total issuance volume of more than EUR7.4bn according to Bloomberg. We saw prints from amongst others Apple (NASDAQ:AAPL) and Shell (LONDON:RDSa). Also Energais de Portugal (EDP) came to the market with a corporate hybrid bond of EUR750m (NC 5.5) and with a issue spread of approximately 545bp.
In the Nordic region we saw issuances from the Finnish real estate compan CityCon Oyj with a 7-year EUR300m senior unsecured bond printing at MS+175bp. Danske Bank came with a 5 year USD1bn senior unsecured bond printing at 5-year US Treasury+125 bp. AB Fortum Värme printed a total of SEK2b of senior unsecured bonds.
The main event this week is the FOMC meeting on Thursday. We believe the current uncertainty will stop the Fed from hiking at this meeting but that Fed chairman Janet Yellen will signal that a hike is coming later this year if global developments do not push the US economy off course.
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