SSAR
US DOLLARS
CDPQ ROWS AGAINST THE TIDE
IN DOLLAR RETURN
CDP FINANCIALû#$01 ûMANAGEDûTOûCIRCUMVENTû
tight swap spreads and low Treasury yields
to bring a US$2bn two-year dollar
benchmark, though investor response was
more muted than its last foray in the
currency.
Books closed in excess of US$2.35bn
through lead managers BMO Capital Markets,
Citigroup, Goldman Sachs and HSBC.
The deal’s reception was at odds with
#$01Sû53BNûTHREE
YEARûPRICEDûINû
&EBRUARYûnûITSûlRSTûBENCHMARKûSINCEûûnû
that came at 23bp over mid-swaps on more
than US$3.8bn of demand.
“They got just shy of US$2bn, so that’s not
bad, especially for a name that’s not really
widely followed,” a banker away from the
deal said.
h4HERESûDElNITELYûMOREûPUSH
BACKûFROMû
investors because of where swap spreads are
and where Treasury yields are, although this
was never going to be a litmus test for the
market.”
Two-year US dollar swaps have been on a
relentless tightening path since the start of
the year, while the two-year Treasury yield
has also been trending down for most of
2019.
“All the issuers thought swap spreads
were going to go wider, but that’s just not
happened, they just keep going tighter,” a
$#-ûBANKERûSAID
Leads set the spread in line with the mid-
SWAPSûPLUSûBPûAREAû)04S ûWHICHûSOMEû
BANKERSûSAIDûOFFEREDûAROUNDûBPnBPûOFûNEWû
issue premium.
They said they were reluctant to draw any
conclusions from the deal’s outcome, given
#$01SûINFREQUENTûAPPEARANCES
“I don’t think it’s a bellwether, and we
need to see a trade from one of the frequent
issuers to give us an insight into the
MARKET vûTHEû$#-ûBANKERûSAIDûh"UTûTHEû
problem is, no one wants to crystallise the
levels now that they’re wider.”
!û53BNûTHREE
YEARûTHATûPRICEDûATûBPû
OVERûMID
SWAPSûINû-AYûFROMûTHEû7ORLDû"ANKû
was bid at 7.3bp over, according to
Tradeweb.
“I don’t think it’s anything to do with
OUTRIGHTûSELLING vûTHEûlRSTûBANKERûSAIDûh"UTû
traders are marking levels wider in the
context of swap spreads moving.”
#$0û&INANCIALûISûAûWHOLLYûOWNEDû
subsidiary of the Caisse de depot et
PLACEMENTûDUû1UEBECIDB JOINS FLOATER FRAY BUT
FALLS BEHINDINTER-AMERICAN DEVELOPMENT BANK jumped on
THEûmOATERûBANDWAGONûONû4HURSDAYûWITHûAû
SHORTûTHREE
YEARû53ûDOLLARû'LOBAL ûBUTûLOOKSû
to have struggled with no book updates
communicated during execution.
3%+Sû$ECEMBERûû&2.ûONû7EDNESDAYû
by contrast started off as US$500m but
FOUNDûENOUGHûINTERESTûFORûANûINCREASEûINûSIZEû
to US$650m.)$"ûSKIPPEDûTHEûGUIDANCEûSTAGE ûGOINGû
STRAIGHTûFROMû)04SûTOûTHEûlNALûSPREADûnûNOTûASû
unusual an approach as it may seem.
h3OMETIMESûTHEûMOREûYOUûDElNEûAûTRADE û
the more accounts prefer because there are
fewer questions on what the spread will be,”
one banker said.
Another banker reckoned terms were not
enticing enough.
h&2.SûAREûUSUALLYûNOTûTHATûINTERESTINGûANDû
slow. This one is also a bit on the tight side,”
said a third banker.BONDS SSAREUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING JUNE 7 2019
Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover
Jun 4 2019 Austria €650m 0.50 Feb 20 2029 0.073 1.95
Jun 4 2019 Austria €550m 2.40 May 23 2034 0.441 2.11
Jun 4 2019 Germany (i) €367.6m 0.50 Apr 15 2030 -1.15 1.61
Jun 4 2019 UK £3bn 1.00 Apr 22 2024 0.612 2.12
Jun 5 2019 Finland €972m 0.50 Apr 15 2030 0.102 1.50
Jun 6 2019 Spain €1.335bn 0.05 Oct 31 2021 -0.361 2.60
Jun 6 2019 Spain €1.11bn 0.25 Jul 30 2024 -0.096 2.55
Jun 6 2019 Spain (i) €476m 1.00 Nov 30 2030 -0.283 3.06
Jun 6 2019 France €875m 2.75 Oct 25 2027 -0.08 5.77
Jun 6 2019 France €3.998bn 0.50 May 25 2029 0.14 2.57
Jun 6 2019 France €1.578bn 1.25 May 25 2036 0.66 2.64
Jun 6 2019 France €2.546bn 1.50 May 25 2050 1.16 1.63
Source: IFR
ALL INTERNATIONAL BONDS (ALL CURRENCIES)
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 532 142,772.76 7.7
2 Citigroup 509 131,563.67 7.1
3 Barclays 427 117,531.87 6.4
4 HSBC 483 105,478.48 5.7
5 BAML 425 101,548.25 5.5
6 Deutsche Bank 378 89,514.59 4.8
7 Goldman Sachs 328 85,509.86 4.6
8 BNP Paribas 336 82,476.09 4.5
9 Credit Agricole 254 62,939.61 3.4
10 Morgan Stanley 277 62,294.01 3.4
Total 2,486 1,847,678.14
Including Euro, foreign, global issues. Excluding equity-related debt,
US Global ABS/MBS.
Source: Refinitiv SDC code: J1ALL BONDS IN EUROS
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 178 44,585.63 7.1
2 JP Morgan 127 42,637.52 6.8
3 Credit Agricole 159 39,725.75 6.3
4 Barclays 131 39,190.04 6.2
5 HSBC 176 38,080.87 6.0
6 SG 130 36,360.97 5.8
7 Deutsche Bank 149 36,111.01 5.7
8 UniCredit 165 32,400.38 5.1
9 Citigroup 111 29,082.93 4.6
10 BAML 87 24,308.85 3.9
Total 760 630,314.45
Including Euro-preferreds. Excluding equity-related debt,
US Global ABS/MBS.
Source: Refinitiv SDC code: N1ALL INTERNATIONAL GREEN BONDS
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Credit Agricole 24 4,472.24 7.8
2 HSBC 33 4,257.19 7.4
3 BAML 18 3,812.28 6.6
4 BNP Paribas 15 3,022.80 5.3
5 JP Morgan 16 2,367.69 4.1
6 UniCredit 9 2,251.15 3.9
7 Citigroup 16 2,070.17 3.6
8 SG 11 1,909.28 3.3
9 Barclays 13 1,857.99 3.2
10 Goldman Sachs 9 1,822.45 3.2
Total 110 57,422.77
Excludes social bonds and mixed use of proceeds.
Source: Refinitiv SDC code: JG1