CREDIT BULLETS: CAFFIL reopens covered bond market
- European stocks start the new (Thanksgiving) week on the front foot. US futures are also up while DXY and UST yields are lower at the time of writing, with sentiment supported by President-elect Trump's pick for the next treasury secretary in the form of hedge fund manager Scott Bessent. German Nov IFO numbers were mixed this morning with Business Climate and Current Assessment both falling more than expected, whilst Expectations beat. M&A news is in the spotlight this morning given UniCredit’s all-share bids for Banco BPM, valuing the lender at just over EUR10bn
- Stoxx600 advances as much as 0.5%, before falling back to unchanged. Gains led by Tech names
- Govvies: EGB yields higher at the short-end but higher at the long-end, OATs underperforming
- Primary: Slow start to a week that is expected to yield on average EUR12.5bn of euro paper. Financials DNB Bank (EUR 6NC5 green SNP) and CAFFIL (EUR 5yr covered) are the only two out, with the latter marking the first covered bond sale since 4-Nov
- CORP SNAPSHOT: Heimstaden Bostad to launch hybrid ahead of upcoming call date
- Ahead: US data is second tier, whilst three ECB members are set to talk including chief eco Lane. Latest US funding cycle starts with USD69bn 2yr Notes sale. S&P futures +0.5% and Nasdaq futures +0.6%
Live deals/updates
| Issuer | Deal Type | CCY | Amount (mn) | Maturity | Initial Price Talk | Latest Px Talk | Final Pricing | Book Size (mn) |
| Caisse Francaise de Financement Local (CAFFIL) | Covered | EUR | TBD | 29/11/2029 | m/s+60a | - | m/s+57 | 1,250 |
| DNB Bank ASA | Senior non-preferred, Green Bond | EUR | TBD | 6NC5 | m/s+115a | - | m/s+90 | 2,000 |
Fresh in the pipeline
| Issuer | CCY | Notes |
| Gruenenthal GmbH | EUR | Calls 25-26 Nov; 500m 7NC3 SSN |
| Heimstaden Bostad AB | EUR | Calls 25-Nov; 500m wng PNC5.25 hybrid |
| Irca S.p.A. | EUR | Calls 25-27 Nov; 700m 5NC1 FRN & 400m 5NC1.5 FXD SSN |
Key Data
- SP Oct PPI rose to -0.1% (prev rev to -2.4% from -2.3%)
- GE Nov IFO Business Climate / Current Assessment / Expectations mixed at 85.7/84.3/87.2 (f/c 86.0/85.5/87.0, prev 86.5/85.7/87.3)
Auctions
- EU sold EUR3.796bn 2027 & 2034 Bonds at 2.258%/2.821% respectively (b/c 1.66/1.59)
Ahead
- US Nov Dallas Fed Manufacturing Activity (15:30)
- ECB’s Lane (16:30), Nagel (17:30) & Makhlouf (19:00)
- US to sell USD69bn 2yr Notes (18:00)
All times GMT
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