Inter-American Development Bank IADB

Public sector borrowers are lining up a three pronged attack on Wednesday in a dollar market that is enjoying its widest swap spreads of the year. Quebec is attempting the first 10 year dollar benchmark since the first week of the year, KfW is out in fives — a part of the curve that has also become attractive in euros — and the Inter-American Development Bank is coming at the short end.

Rating: Aaa/AAA

More dollar deals are expected next week following a searing few days for trades in the currency, but despite bumper books and deal sizes, some in the market feel there is still some price discovery work to do. Meanwhile, US president-elect Donald Trump made his presence felt on the issuance calendar.

Origin, an electronic platform for private placement issuance, went live on Monday. While some dealers believe the system may be too costly for the service it provides, the market abuse regulation (MAR) could make the system more valuable.

The socially responsible investment market for public sector bond issuers is shaping up for another busy year, with one agency planning a debut print in the next few months.

More public sector borrowers want to enter a red hot sterling market, including some that have barely visited the market in years.

Public sector borrowers tore $10bn of funding from the dollar market on Tuesday, shaving several basis points from initial price thoughts in the process. Only one benchmark is on screens for Wednesday, but SSA bankers expect next week’s run-up to the inauguration of Donald Trump as US president on January 20 will be — in Trump terminology — “huge”.

Tuesday’s dollar market is set to be packed to the rafters, with a quartet of issuers out with trades and most of the focus at the five year part of the curve.

Rentenbank added a A$475m ($349.6m) tap to its September 2022 Kangaroo bond, joining the Asian Development Bank and Inter-American Development Bank in printing Kangaroo fives in the new year.

This week's scorecard looks at the progress supranationals have made in their funding programmes.

The African Development Bank (AfDB) added a A$30m ($22.8m) tap to its June 2026 Kangaroo line on Monday. The trade could precede more issuance in this market from the borrower as it grapples with a ramped up funding target.

Eurofima, Inter-American Development Bank and International Finance Corporation tapped their 10 year Kangaroo lines this week, raising a total A$180m ($136.8m), as Asian investors looked for yield from the Aussie market.