SSAR
US DOLLARS
SPREADS REMAIN TIGHT AS DEALS FLYThe SSA market is still going strong, with
US dollar issuers achieving tight levels as
ORDERûBOOKSûWEREûlLLEDûRAPIDLY
EXPORT DEVELOPMENT CANADA, which
typically issues two or three transactions
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TRADEûOFûTHEûYEAR ûAû53BNûlVE
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Global.
The Triple A rated export credit agency
revised guidance by 1bp to mid-swaps plus
10bp, ultimately pricing at that level via
Bank of America Merrill Lynch, BMO, Credit
Agricole and JP Morgan.
“It seems very tight to Treasuries at 15bp-
16bp, and they still managed to get over
US$1.85bn in (peak) demand,” said a banker
AWAYûFROMûTHEûDEALû4HEûlNALûBOOKûWASû
US$1.55bn.
A lead said he estimated fair value at
9bp-10bp over swaps, which he thought
was fair considering recent trades such
as Inter-American Development Bank’s
US$3.75bn 2.5% January 2023s, which
were trading at swaps plus 9.7bp, according
to Tradeweb.
DEXIA CREDIT LOCAL was also in the market
last week, following a €2bn seven-year trade
on with a US$1.5bn three-year deal.
Leads Barclays, Citigroup, Goldman Sachs,
HSBC and Societe Generale set the spread at
27bp over mid-swaps for the Aa3/AA/AA-
rated Reg S/144A transaction.
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DOLLARûMARKET= vûSAIDûTHEûlRSTûBANKER
“My only concern would be if one of the
jumbos tried to crystallise tightening, would
that work? I’m a bit wary of how tight things
can get before the pendulum swings the
other way.”
Another banker said that different types
of investors are being drawn to the dollar
market.
“Sporadically, we’ve seen the hedgies
come in the US dollar trades,” said a senior
syndicate banker.INTERESTING INTERPLAY
“There’s an interesting interplay between
yield levels and swaps spreads and where
the SSAs are printing. You’ve seen volatility.
A lot of these hedge funds want to trade
treasuries and swaps, if you want to take a
view, you can take that view in a slightlyhigher yielding asset like European SSAs
coming in US dollars.”
Bankers remain optimistic, with Triple A
rated KOMMUNINVEST also tightening by 2bp to
4bp over mid-swaps via Citigroup, Nomura,
Nordea and TD.
“It was a great outcome for Kommuninvest
in the dollar benchmark market, with one of
the lowest spreads we have had in recent
years,” said Christian Ragnartz, head of debt
management at Kommuninvest.
The Swedish Local Government Debt
/FlCEûDREWûINDICATIONSûOFûINTERESTûOFûOVERû
US$2.1bn for the US$1bn no-grow three-year
Reg S/144A transaction.
“There isn’t much three-year supply. The
new issues have performed quite well and
many are a couple of basis points tighter,”
said a lead.
INTERNATIONAL FINANCE CORP followed the
lead of others in the market, also issuing a
three-year, via Bank of America Merrill Lynch,
Citigroup, JP Morgan and TD.
The US$2bn trade, IFC’s largest US dollar
debt offering since 2016, was priced with a
spread of 1bp through mid-swaps.
“As the tightest SSA print of the year to
DATE ûTHISûDEALûREmECTSûTHEûRARITYûVALUEûOFûTHEû
IFC name in the US dollar global market,”
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origination and syndication at TD.BONDS SSAREUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING JANUARY 18 2018
Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover
Jan 17 2018 Germany €1.2614bn 1.25 Aug 15 2048 1.280 1.37
Jan 18 2018 France €3.53bn 0.00 Feb 25 2021 –0.240 2.05
Jan 18 2018 France €2.68bn 0.00 Mar 25 2023 0.100 2.14
Jan 18 2018 France €1.287bn 2.25 May 25 2024 0.230 2.48
Jan 18 2018 France (ei) €783m 0.25 Jul 25 2024 –1.120 2.03
Jan 18 2018 France (i) €377m 0.10 Mar 1 2028 –0.580 2.91
Jan 18 2018 France (ei) €585m 0.70 Jul 25 2030 –0.520 2.20
Jan 18 2018 Spain €1.05bn 0.45 Oct 31 2022 0.324 3.60
Jan 18 2018 Spain €1.391bn 2.35 Jul 30 2033 2.098 1.54
Jan 18 2018 Spain €1.651bn 2.90 Oct 31 2046 2.691 1.40
Jan 18 2018 UK £2.5bn 0.75 Jul 22 2023 0.996 2.07
Source: IFR
ALL US DOLLAR FIXED-RATE GLOBALS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Goldman Sachs 5 3,999.97 12.0
2 Deutsche Bank 6 3,690.47 11.1
3 TD Securities 6 2,790.35 8.4
4 HSBC 3 2,429.11 7.3
5 Citigroup 9 2,307.65 6.9
6 Morgan Stanley 4 2,169.79 6.5
7 BNP Paribas 4 2,099.47 6.3
8 JP Morgan 7 1,919.29 5.8
9 Barclays 2 1,774.58 5.3
10 BAML 6 1,586.83 4.8
Total 16 33,316.06
Excluding equity-related debt, ABS/MBS.Source: Thomson Reuters SDC code: O5ALL INTERNATIONAL BONDS (ALL CURRENCIES)
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 62 16,584.75 6.0
2 Barclays 40 15,906.11 5.7
3 JP Morgan 47 15,488.93 5.6
4 BNP Paribas 39 15,190.20 5.5
5 Goldman Sachs 34 14,869.62 5.4
6 HSBC 56 14,662.17 5.3
7 Deutsche Bank 50 12,362.74 4.5
8 BAML 43 10,294.24 3.7
9 UBS 30 10,275.40 3.7
10 UniCredit 27 9,954.14 3.6
Total 298 277,179.13
Including Euro, foreign, global issues. Excluding equity-related debt,
US Global ABS/MBS.
Source: Thomson Reuters SDC code: J1
ALL BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 19 8,278.11 7.2
2 UniCredit 24 7,963.89 7.0
3 Barclays 17 7,602.21 6.6
4 Credit Agricole 19 7,335.37 6.4
5 JP Morgan 14 7,197.19 6.3
6 SG 20 6,899.28 6.0
7 UBS 13 5,516.33 4.8
8 Goldman Sachs 8 5,186.41 4.5
9 NatWest Markets 10 5,074.55 4.4
10 Citigroup 17 4,903.43 4.3
Total 89 114,584.57
Including Euro-preferreds. Excluding equity-related debt,
US Global ABS/MBS.
Source: Thomson Reuters SDC code: N1