Natixis

Zurich Insurance Company attracted plenty of demand in dollars on Tuesday, as it sold first subordinated dollar trade in over two years — a deal that could fund its acquisition of Metropolitan Life’s US property and casual business.

Fundamentals are becoming more important again in Europe’s corporate bond primary market, but the power of the European Central Bank technical trade in the secondary market is quickly washing away any new issue concessions issuers have to give.

Green and sustainability-linked convertible bonds are poised to enter the mainstream, following a year of rapid growth in the asset class.

A burst of mandates on Monday confirmed what many market participants had expected: a rise in emerging market corporate bond supply.

LBBW and Banque Fédérative du Crédit Mutuel (BFCM) were met with muted demand on Monday morning as the pair ventured into a busier, yet weaker market in search of senior non-preferred debt.

Non-preferred senior and holding company issuance was the focus for bank borrowers in euros this week, in what has been a slow start to the year by FIG market standards. With cheap central bank funding on offer, issuers have opted to start their funding programmes by filling their regulatory buckets.

Lagardère, the French book publisher and travel retail company, has signed a €465m short term government-backed loan and extended its revolving credit facility, as the company shuffles its loan liabilities amid a plunge in revenue.

Europe’s primary equity-linked market has reopened for 2021, with a debut €200m green convertible bond issued by Voltalia, the French renewable energy company.

Issuers from Greater China flooded the market with dollar deals on Tuesday, capitalising on strong appetite from investors ready to put money to work in the new year.

A pair of senior non-preferred bonds from Swedbank and Société Générale on Tuesday followed Monday’s opener from ING. With three household names now having established pricing points, rarer borrowers are starting to fill the pipeline.

Société Générale has hired Stephane About from Natixis, where he held a senior role in the Corporate and Investment Bank.

ING kicked off the financials market in euros on Monday, as the Dutch bank looked to extend out its callable curve at a holding company level, and with minimal new issue premia on offer, a slew of deals is set to follow.