IFR International - 20.10.2018

DISCOUNTûMARGINûANûOUTCOMEûTHATû
CONTRASTEDûWITHûTHEûPOSITIVELYûPRICEDû.27
"ANK
4HEû7ASHINGTONûSUPRANATIONALûSENTû
INITIALûPRICINGûTHOUGHTSûATûTHEûBPûAREAû
THROUGHûTHREE
MONTHû,IBORûFORûAû53Mû
THREE
YEARûTRADEûLASTû4UESDAYûFORûAûNEXT
DAYû
EXECUTIONûTHROUGHûCitigroupûANDûTD Securities
h)ûDONTûTHINKûTHEREûAREûTOOûMANYû53û
DOLLARû&2.SûTHATûAREûISSUEDûATûNEGATIVEû
DISCOUNTûMARGINSûTHEûDEALûISûPUSHINGû
BOUNDARIESûANDûBREAKINGûNEWûFRONTIERSvû
SAIDûAûBANKER
h(ISTORICALLYûITûISûAûPRODUCTûTHATûHASûSEENû
INVESTORûRESISTANCEûATûNEGATIVEûSPREADSûxû
53MûATûNEGATIVEûSPREADûISûNOTûTOûBEû
SNIFFEDûATû4HEûLASTûNEGATIVEû&2.ûWEûHADûWASû
Aû7ORLDû"ANKû'REENûBONDûINû*ANUARYûû
THATûCAMEûATûLESSûBPv
(OWEVERûDEMANDûWASûSLOWûTOûGATHERû
WITHûOVERNIGHTûBOOKSûEXCEEDINGû53Mû
FORûAû53MûTRADEûANDûTHEû4RIPLEû!ûRATEDû
ISSUERûSETûGUIDANCEûINûLINEûWITHû)04Sû3IXû
HOURSûANDûNOûBOOKûUPDATESûLATERûTHEûISSUERû
WASûNOTûABLEûTOûMOVEûFROMûGUIDANCEû
LANDINGûmATûTOû)04S
h4HEREûISûMOREûRESISTANCEûINûBUYINGû
NEGATIVEû&2.SûUNLIKEûlXED
RATEvûTHEû
BANKERûSAID
h)NûlXEDû;RATE=ûBONDSûTRADEûWHEREûTHEYû
TRADEû)NûmOATINGûBIDSûSTARTûTOûDISAPPEARû
WHENûYOUûGETûCLOSEûTOûNEGATIVEûLEVELSûTHEREû
SEEMSûTOûBEûAûmOORûAROUNDûTHATû
.EVERTHELESSûWEûHAVEûSEENûSOMEûACTIVITYû
ANDûJUSTûBECAUSEûNOTûEVERYONEûWANTSûTOûBUYû
ITûDOESNTûMEANûNOûONEûWANTSûTOûBUYûITv
)TûISûTHEûSECONDûTIMEûTHEûISSUERûHASûFAILEDû
TOûENTHUSEûINVESTORSûINûTWOûMONTHSû4HEREû
WASûNOûBOOKûUPDATEûFORûAûû53MûFOUR
YEARû%DUCATIONû9OUTHûANDû%MPLOYMENTû
%9% ûBONDûVIAûCredit AgricoleûJP Morganû"$ û
ANDûNomuraûINû3EPTEMBER
h)TûISûNOTûGENEROUSûBUTûFAIRvûANOTHERû
BANKERûSAIDûh4HEREûHASNTûBEENûAûHUGEû&2.û
SUPPLYûINûTHEûTHREE
YEARûPARTûOFûTHEûCURVEû
WHICHûISûALWAYSûTHEûDEEPESTûPOOLûOFû

INVESTORSûINûTHEû&2.ûMARKETû3OûTHEREûISûAûLOTû

TOûLIKEûABOUTûITûBUTûISûNOTûAûGIVE

AWAYvûHEû

SAID

4HINGSûTURNEDûOUTûDIFFERENTLYûFORû.27

"ANKûWHICHûGREWûAûMINIMUMû53Mû

TWO

YEARûTRADEûTOû53BNûONûBOOKSûTHATû

TOPPEDû53BN

)TûALSOûHADûROOMûTOûMOVEûLANDINGûBPû

TIGHTERûTHANûINITIALûPRICINGûTHOUGHTSûOFûTHEû

BPûAREA

,EADSûWEREûBarclaysûBMOûNomuraûANDû

Scotiabankû"$ 

-UNICIPALITYû&INANCEûFOLLOWEDûMARKETINGû

AûTWO

YEARû53MûDEALûLASTû4HURSDAY

7ITHû-UNIlNSûBOOKSûEXCEEDINGû

53MûATûTHEûLASTûUPDATEûTHEû!A!!û

RATEDûISSUERûPRICEDûINûLINEûWITHûINITIALûPRICINGû

THOUGHTSûOFûTHEûBPûAREAûOVERûTHREE

MONTHû

,IBOR

4HEûOUTCOMEûLOOKSûTOûBEûSIMILARûTOû)$"Sû

53MûTHREE

YEARûTHATûCAMEûATûBPû

THROUGHû,IBORûONûBOOKSûTHATûWEREûOVERû

53MûATûTHEûLASTûUPDATE

,OOKINGûATû-UNIlNSûOUTSTANDINGûEUROû

lXEDûCURVEûTHISûNEWûISSUANCEûCAMEûmATûTOû

ITSûõMûû/CTOBERûûWHICHûWASûBIDû

LASTû4HURSDAYûATûLESSûBPûACCORDINGûTOû

4RADEWEB

)TûALSOûCAMEûSLIGHTLYûINSIDEûITSû53ûDOLLARû

lXEDûCURVEûLOOKINGûATûITSû53BNûû

3EPTEMBERûûWHICHûBIDûATûBPûOVERûMID

SWAPSûACCORDINGûTOû4RADEWEB

,EADSûWEREûJP MorganûNomuraûANDûTD

Securities

EUROS

ANDALUCIA SHINES ON PUBLIC RETURN

4HEûAUTONOMOUS COMMUNITY OF ANDALUCIA

BROUGHTûAûMOREûTHANûTWICEûSUBSCRIBEDûõMû



YEARûLASTû7EDNESDAYûINûWHATûWASûITSûlRSTû

FORAYûINûTHEûPUBLICûMARKETûFORûSEVENûYEARS

!ûBOOKûINûEXCESSûOFûõBNûENABLEDûLEADSû

BarclaysûBBVA "$ ûCredit AgricoleûHSBC

ANDûSantander TOûUPSIZEûFROMûTHEûEXPECTEDû

õMûAMOUNTûINITIALLYûMARKETED

!NDALUCIAûISûTHEûLATESTû3PANISHûPUBLIC

SECTORûISSUERûSELLINGûBONDSûASûVOLATILITYûINû

)TALYûCONTINUESûTOûSTALKûMARKETSû&ONDOûDEû

!MORTIZACIONûDELû$ElCITû%LECTRICOû&!$% û

SOLDûAûõBNû$ECEMBERûûISSUEûTHEûWEEKû

BEFORE

h3PAINûISûIMMUNEûCOMPLETELYûISOLATEDû

FROMû)TALYûASûWEûHAVEûSEENûLASTûWEEKûWITHû

&!$%ûANDûWITHûTHEû3PANISHûLINKERûLASTû

MONTHvûSAIDûAûLEADûBANKER

,EADSûSTARTEDûMARKETINGûTHEû"AA"""

"""

ûRATEDûREGIONûLASTû4UESDAYûATûMID

Sû

AREAûOVERûTHEûû/CTOBERûû"ONOû

'UIDANCEûFOLLOWEDû7EDNESDAYûMORNINGûATû

BPûAREAûBEFOREûAûREVISIONûTOûBPûAREAû

ANDûTHENûAûTIGHT

ENDûPRINT

h4HISûTRADEûGIVESûYOUûANûIDEAûOFûTHEû

STRENGTHûOFûTHEûMARKETvûSAIDûAûBANKERû

AWAY

h)TûISûNOTûAûNAMEûTHATûYOUûSEEûALLûTHEû

TIMEûANDûTHEYûHAVEûMANAGEDûTOûTIGHTENûBYû

BPû)FûTHEûMARKETûWASNTûINûDECENTûSHAPEû

YOUûWOULDNTûSEEûTHISûDEALûCOMINGûATûALLû)Fû

YOUûTALKûABOUTûCONTAGIONûFROMû)TALYûTHEREû

ISûABSOLUTELYûZEROû)TûSHOWSûTHATûINVESTORSû

DONTûFEARûAûDOOMSDAYûSCENARIOûORûAREûNOTû

WORRIEDûABOUTû3PAINv

7ITHûTHEûFAVOURABLEûMARKETûCONDITIONSû

!NDALUCIAûSAWûANûOPPORTUNITYûTOûCHANGEû

HOWûITûFUNDSûITSûBUDGETûHAVINGûOPTEDûFORû

LOANSûSINCEûITSûLASTûINTERNATIONALûMARKETû

OUTINGûINû

h4HEYûHADûTWOûOPTIONSûEITHERûTOûGOûANDû

LAUNCHûITûONûTHEûOPENûMARKETSûORûTOûTAKEû

LOANSûFROMûTHEûSTATEûVEHICLEûOPTIONSûSETûBYû

THEû3PANISHû4REASURYvûSAIDûTHEûLEAD

"ECAUSEûOFûTHEûLACKûOFûANûOUTSTANDINGû

CURVEûLEADSûUSEDûAûSLIGHTLYûTIGHTERû-ADRIDû

'REENûBONDûASûTHEûCLOSESTûCOMPARABLEû4HATû

õBNûû!PRILûû"AA""""""   û

CAMEûATûBPûOVERû"ONOSûINû&EBRUARYûANDû

WASûBIDûATûROUGHLYûTHEûSAMEûLEVELûONû

7EDNESDAY

BNG BUNGED UP BUT KFW GREEN

BOND FLIES

BNG BANKûAPPEAREDûTOûHAVEûSTRUGGLEDûTOûGETû

MUCHûTRACTIONûINûTHEûEUROûMARKETûLASTû

7EDNESDAYûFORûAûõMû*ULYûû

TRANSACTIONûWITHûBOOKSûLASTûHEARDûATûOVERû

õMûINûSHARPûCONTRASTûWITHûAûRAREû'REENû

BONDûFORûKFWûTHATûmEWûOUTûOFûTHEûDOOR

4HEûRECEPTIONûFORûEUROûDEALSûHASûBEENûHITû

ANDûMISSûINûRECENTûWEEKSûASûTHEûLOOMINGûENDû

TOûTHEû%#"û1%ûANDû)TALIAN

LEDûVOLATILITYûEATû

AWAYûATûINVESTORSûCONlDENCE

".'û"ANKûSTARTEDûMARKETINGûAûEUROû

BENCHMARKûVIAûBank of America Merrill Lynchû

CommerzbankûANDûNatixisûATûBPûAREAûOVERû

MID

SWAPSûWHEREûITûEVENTUALLYûLANDEDû

OFFERINGûLITTLEûINûTHEûWAYûOFûAûNEW

ISSUEû

PREMIUM

ALL SOVEREIGN BONDS IN EUROS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues €(m) (%)

1 Barclays 18 13,017.18 11.3

2 JP Morgan 18 11,544.17 10.0

3 Citigroup 19 10,346.38 9.0

4 BNP Paribas 15 9,182.61 7.9

5 HSBC 12 7,836.83 6.8

6 SG 15 7,549.52 6.5

7 NatWest Markets 7 7,419.18 6.4

8 Goldman Sachs 9 4,996.03 4.3

9 Credit Agricole 8 4,973.49 4.3

10 Santander 5 4,589.15 4.0

Total 44 115,510.11

Excluding ABS/MBS.

Source: Refinitiv SDC code: N4

ALL INTERNATIONAL US$ BONDS
BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 588 163,676.35 9.6
2 Citigroup 584 153,588.20 9.0
3 BAML 490 136,236.02 8.0
4 Barclays 354 111,807.56 6.6
5 Goldman Sachs 345 103,871.97 6.1
6 Morgan Stanley 344 92,643.14 5.5
7 HSBC 346 92,397.38 5.4
8 Wells Fargo 308 82,343.58 4.8
9 Credit Suisse 302 77,229.02 4.5
10 Deutsche Bank 292 69,452.27 4.1
Total 2,009 1,698,628.61
Including Euro, foreign and global issues. Excluding equity-related debt,
US Global ABS/MBS.

Source: Refinitiv SDC code: O1