Last week continued the positive tone on credit markets following fairly dovish statements by the Fed and a relatively strong US non-farm payrolls report, which beat consensus by 10,000.
European credit indices closed tighter, with iTraxx Main tightening 3bp to close at 73bp, while iTraxx Crossover tightened some 15bp to close at 305bp.
Despite the recent rally in credit markets, eurozone investor confidence still has some way to go. This was underlined by the recent Sentix Investor confidence index coming in weaker than expected for April, only slightly higher than the February and March levels and the lowest since the beginning of 2015.
New issue activity in the Nordic region was focused mainly on financials, with Danske Bank, Sparebank 1 Boligkreditt and Obos Banken coming to the market. Danske Bank printed EUR1bn Fixed with a five-year maturity.
Aside from financial issuers, we also saw names within the Nordic real estate sector come to the market, with Vasakronan and Hemsö Fastigheter printing a SEK550m FRN and SEK400m Fixed, respectively.
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