Overall, European credit indices have been trading range-bound during the past week, with the European main and cross over indices being broadly unchanged compared to last week. Thus, iTraxx Main widened 1bp to 68, while iTraxx Crossover widened 3bp to 308bp.
In the Nordic region, we saw issuances from among others: Danske Bank with two senior unsecured bonds both with an issue size of USD500m and with a maturity of five years and a seven-year senior unsecured bond with an issue size of USD1bn. Akademiska Hus with a five-year SEK800m senior unsecured bond, Citycon with a 10-year EUR350m senior unsecured bond and FastPartner with a four-year SEK600m senior unsecured bond.
The US labour market report for August was released on Friday. Non-farm payrolls rose 151,000 in August, just marginally above the increase in April, which is considered a weak month. Although our view is that the Fed will stay on hold until H1 17, we cannot rule out a hike later this year, most likely in December following the presidential election, if we see some recovery in the US activity data and continued job growth in coming months.
Yesterday, we published an overview of the structure of the Nordic Corporate bond market (see Structure of the Nordic Corporate Bond Market , 5 September 2016). In recent years, the Nordic corporate bond markets have grown significantly. The growth has been especially impressive in Sweden and Norway. Most of this market growth has occurred in the unrated segment. Investors have been comfortable investing in credits without official ratings. Most of these bonds have been designated so-called shadow ratings by the banks and brokerages in the Nordics.
To read the entire report Please click on the pdf File Below