BBVA

A trio of Spanish issuers launched the first covered bonds of the year from southern Europe this week but, with peripheral spreads widening sharply, conditions are not conducive to further supply.

Financial institutions have taken an early plunge into additional tier one bonds this week, as European and US investors show willing to take on risk and put cash to work.

BBVA, BFCM and BPCE met with strong investor demand for euro senior unsecured deals on Monday, as peripheral and longer dated debt proved no deterrent to buyers.

After three consecutive years of record volumes, in 2015 Latin American bond market momentum was halted by crises in Brazil and plunging commodity prices. Though volatility will continue and issuers and investors often struggle to meet on price, the market looks mature enough for a modest recovery in 2016. Oliver West reports.

Spain's inability to reach a decisive result in its general election sent European credit default swap markets wider on Monday, although dealer desks said trading was very thin.

Repsol, the Spanish oil producer, issued a €600m five year 2.125% bond on Wednesday, in a torrid week for commodity markets, to finance a buyback of some Talisman Energy bonds.

Repsol, the Spanish oil producer, issued a €600m five year 2.125% bond today, in a torrid week for commodity markets, to finance a buyback of some Talisman Energy bonds.

Amadeus, the Spanish company that provides IT systems to the air travel industry, reaped the rewards of five weeks of patience on Tuesday as its €500m six year no-grow bond brought in an order book of over €4.75bn.

Autoroutes Paris-Rhin-Rhone, the French motorways group, stayed with the defensive tactics of its previous bond issuance on Tuesday, raising a €500m 4.3 year floating rate note.

BBVA issued a €1.25bn five year covered bond on Tuesday that attracted an order book unequaled in size in the Cédulas market since July.

Alliance Data Systems, the unrated US private label credit card and marketing services provider, is set to end meetings with European investors on Thursday for €300m of unsecured notes, its first euro issue.

Autoroutes Paris-Rhin-Rhone, the French motorways group, stayed with the defensive tactics of its previous bond issuance on Tuesday, raising a €500m 4.3 year floating rate note.