Rabobank

Dutch bank aimed to get ahead of US election volatility

◆ Ten year Länder paper widens against KfW ◆ Deal strikes balance between size and price ◆ Investors on board despite deeply negative OAT spread

German state launches oversubscribed €500m deal close to secondary curve

IADB taps sterling while two other issuers mandate for new issues

◆ Leads say deal landed well inside fair value ◆ Rivals say result points to ‘halcyon days’ of early 2024 ◆ Other issuers said to be eyeing Rabobank's callable FRN structure

Some bankers were surprised, others not, but all expect a reduced EU funding programme for 2024's second half

Dutch issuer has now funded two thirds of its annual programme

Dutch lender came 1bp inside recent 12 year German deals

The bloc's bonds outperformed swaps and France but views still mixed as to the issuer’s true status

Widening Bund swap spreads draws bid back to paper

Deal was oversubscribed with €110m of lead manager orders

◆ Eight foreign banks raise more than $18bn in three days as BMO adds another $1bn to multiple perps ◆ M&A funding also boosts February FIG volume to over $50bn ◆ Slow down felt by Thursday as spreads widen