FIG SNAPSHOT: Still business to be done

Earnings blackouts and seasonals dictate that a slower pace can be expected this week but there is still business to be done where two issuers are testing demand on Tuesday in the form of Hamburg Commercial Bank AG (EUR500m Jul-2028 SNP) and Credit Agricole (EUR750m 6.5NC5.5 social SNP).

That will add to Monday's EUR2.75bn total provided by a two-part EUR1.25bn 4NC3 FRN & EUR1.5bn 8NC7 FIX-FRN senior from Wells Fargo on books that finished at EUR1.5bn & EUR3.5bn respectively.

In secondary, despite having seen healthy demand during execution, the fixed rate tranche of Wells Fargo's sale is bid around 4bps wide of its reoffer level though.

Given that today's deal sizes are already set, the day's activity will also bring the week's total bang in line with the EUR4bn average estimate after just two days, albeit with the week's remaining window narrowed by a looming ECB meeting on Thursday.

Earnings remain a focus with markets giving a mixed response to updates from a duo of Swedish lenders on Tuesday. SEB saw its stock rise by up to 4.3% where improvements in fee-earning businesses helped offset a further decline in lending while shares of Swedbank slipped by up to 1.6% after falling short of expectations on net interest income.

Ahead for today, BofA and Morgan Stanley report before the Wall Street open which could unlock further supply from US banks in coming sessions.

Monday's session saw JPMorgan Chase kick off the week's activity in the US public primary market via a USD9bn 4-pt offering of floating rate and fixed-to-floating rate debt as part of a USD18.7bn day (see our US wrap here).

Snapshot of Tuesday's live deals

Credit Agricole working EUR750m 6.5NC5.5 social SNP

Credit Agricole S.A, rated Aa3/A+/A+ (Moody's/S&P/Fitch), has mandated Credit Agricole CIB (B&D) as Sole Bookrunner (JLM (no books) TBD) for a EUR750m no grow RegS Bearer dematerialised form 6.5NC5.5 Social Senior Non Preferred callable Fixed to Floating Rate Notes due 23 January 2031, exp ratings A3/A-/A+ (Moody's / S&P / Fitch). Pay date 23 July. Optional Redemption Date: 23 January 2030.

IPTs: m/s +140/145.

- The issuer has made just one visit to the SNP market this year via a EUR1.25bn sale in February (4.125% 2/36) that was a blowout and garnered a EUR6bn book at its m/s +135 reoffer spread, spotted in the comps list (below) at i+119.

- Shorter on the curve is a EUR500 10yr green sold in Nov 2023 (4.375% 11/33) which also attracted very hefty demand worth EUR5.7bn, spotted at i+111.

Hamburg Commercial Bank AG emerge from pipeline with EUR500m 4yr SNP

** Hamburg Commercial Bank AG, rated A3 (Stable) by Moody's, has mandated Citi, Deutsche Bank, Goldman Sachs Bank Europe SE, Jefferies and Natixis as Joint Lead Managers for its upcoming EUR500m no grow 4yr (24 July 2028) fixed-rate Senior Non-Preferred offering. The transaction will be in Reg S Bearer format, will have a 100k+100k denomination and is expected to be rated Baa2 by Moody's. Pay date 24 July.

IPTs: m/s +210 area.

- As per Monday's mandate, the issuer is offering a EUR500m size which is capped from the outset.

- This marks its second trip to the non-covered euro market this year to follow a EUR500m 5yr senior pref in April into a EUR1.75bn book.

- Today's sale is its first SNP sale since November 2022 though which came in the form of a EUR500m 2yr bullet which is the subject of an any-and-all tender offer being conducted alongside the new sale (details here).

- Comps circulated Monday (below) also comprised the issuer's 5NC4 SNP sold in Sep 2021 (0.5% 9/26-25) and a selection of more recently issued SNP lines including a EUR500m 4NC3 social from German peer Deutsche Bank on 3rd July which was a big hit with a EUR6.6bn final book and huge 13.2x cover.

Performance tracker of recent EUR benchmark deals

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