CORP SNAPSHOT: Weekly haul looks set to fall short of expectations
IG corporate issuers are keeping their powder dry on Wednesday despite today appearing to be the last of this week's optimum issuance windows due to tomorrow's ECB verdict.
Wednesday's blank comes as earnings blackouts take a stronger grip, along with the traditional summer lull where more and more market participants are starting to head to the beaches for a well-deserved break after what has been a frenetic year so far.
As a reminder, just one corporate was out in Europe for the second straight day Tuesday in the form of American Honda Finance Corp, the finance arm of the North American subsidiary of Japanese automaker Honda Motor Company Ltd.
The issuer extended its single currency curve with an SEC-registered EUR750m (from benchmark) Apr 2031 bond that landed at m/s +98 (~10bp NIC) from a +120-125 IPTs starting point on an undisclosed book.
That added to Monday's EUR1.2bn 7/12yr green two-part from EnBW, meaning the weekly IG corp total is at EUR1.95bn versus the average estimate of EUR3bn given by market participants in our weekly issuance poll.
More broadly, the deal put euro corporate reverse yankee supply for the year at EUR44.02bn and beyond the full-year 2023 total of EUR43.3bn.
In secondary, the American Honda deal was this morning trading 2bp inside its landing spread despite what remains a soft broader market tone in Europe on Wednesday.
Source: IGM
Performance tracker of recent EUR IG/split-rated benchmark deals
| Issuer | Deal | Re-offer spread (m/s) | Current i-spread (bid) | Issue Rating |
| HNDA | 3.650% 04/31 | +98 | +96 | A3/A- |
| ENBW | 3.500% 07/31 | +85 | +86.5 | Baa1/A- |
| ENBW | 4.000% 07/36 | +125 | +127 | Baa1/A- |
| SCRSBE | 5.125% 07/30 | +240 | +225.5 | BBB- |
| LOGICR | 4.250% 07/29 | +153 | +147.5 | BBB |
| DE | 3.450% 07/32 | +68 | +68.5 | A1/A/A+ |
| IBESM | 3.625% 07/34 | +83 | +83.5 | Baa1/BBB+/A- |
| ARNDTN | 4.800% 07/29 | +245 | +234.5 | BBB+ |
| LEASYS | 3.875% 10/27 | +90 | +82.5 | A- |
| TOYOTA | 3.625% 07/31 | +85 | +83 | A1/A+/A+ |
| GYCGR | 4.375% 01/30 | +195 | +176.5 | BBB+ |
| REESM | 3.375% 07/32 | +67 | +76 | BBB+/BBB+ |
| ERGIM | 4.125% 07/30 | +140 | +126 | BBB- |
| PCIM | 3.875% 07/29 | +115 | +92 | BBB-/BBB- |
| DSFIR | 3.625% 07/34 | +95 | +87 | A3/A- |
| DE | 3.300% 10/29 | +55 | +61 | A1/A/A+ |
| HEIANA | 3.812% 07/36 | +103 | +102 | A3/BBB+ |
---- Subscribe to read more ----
To receive this analysis plus much more, subscribe to IGM. Request your free demo of the service today.