Rabobank

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

◆ ¥50bn Euroyen is issuer's first public bond in currency for five years ◆ Wide range of investors buys what was the biggest foreign issuer in yen ◆ Pricing wider than euros, tighter than dollars

From long-dated covered and senior bonds to regulatory capital deals; all were priced tight this week. Even after Thursday's ECB meeting, nothing looks set to worsen conditions for issuers

◆ Duration and spread demand dictate investor demand even at tighter valuations ◆ Rabo exemplifies this trend into a €1bn 10.5 year SNP that was more than six times subscribed ◆ NBG and CIBC also print with arguably no concessions left

◆ European banks lead issuance with focus on senior funding ◆ Market wobbles prove funding more challenging than expected ◆ Foreign banks’ capital raising is one prominent feature

Primary deal flow expected to resume next week, but amount raised will be small

Higher new issue concessions expected to continue into early 2024