KfW

KfW and the Inter-American Development Bank highlighted demand at the far end of the Kangaroo curve on Tuesday. IADB was able to price a tap of 10 year notes during the Australian day, while the German development bank has drawn strong early orders for a new long 10 year of its own.

Read on to see how selected benchmarks are faring in secondary. Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

Public sector issuers shrugged off the quiet dollar and euro markets to take advantage of other currency opportunities this week — and there are signs that more deals could follow in the summer.

A short dated euro or a long dated dollar benchmark could be the next move for KfW, which visited the market this week with a NZ$100m ($85.1m) August 2020 Eurobond.

Greece's €1.5bn July 2017 from four weeks ago suffered a near 50bp widening versus Germany over the past week, as investors stormed into the eurozone core. But most safe haven assets like the World Bank's $1.75bn December 2016 from last week tightened against swaps and benchmarks.

Banco Espírito Santo reported a €3.6bn loss this week, but the Portuguese soveriegn looks safe from contagion. Its $4.5bn October 2024 from four weeks ago has tightened versus swaps since pricing.

KfW’s first green bond, which was priced on Tuesday, was trading around 3bp tighter in secondary by Wednesday, SSA Markets understands, through the issuer’s vanilla curve.

KfW entered the green bond market on Tuesday with a five year benchmark that — due to its size and liquidity — could prove important for working out where issuers’ green curves should price versus their normal curves as SRI capital markets mature.

KfW has hired a trio of banks to run a five year euro denominated green bond, where proceeds will be invested in green energy projects, after meeting investors on a roadshow last week.

KfW is to begin issuing green bonds, with the first deal to come soon via Crédit Agricole, Deutsche Bank and SEB. Regular issuance of large bonds is planned.

KfW has decided to begin issuing green bonds “to get the topic out of a niche and into the broader capital markets”, a funding executive at the bank said today.

This week's scorecard focuses on Europe's major supranationals and agencies, with most of the borrowers well advanced in their funding programmes as issuance begins to slow down for the summer.