US dollar

Issuer spots strong appetite from traditional investors amid net negative supply

Investment-grade corporates ramp up dollar issuance after blackouts end

◆ Issuer takes home more than the usual $2bn ◆ Single-digit spread to US Treasury at landing ◆ Dollar investors still attracted by spreads to swaps, yields

Average spread to swaps up compared to early 2024 while spreads to govvies trend downwards

◆ Strong market for subordinated bank debt in euros and dollars ◆ Investors buy ‘undersupplied’ UniCredit AT1 at multi-year low yield in the asset class ◆ Barclays, SMFG and ENBD target dollar AT1 buyers

Deal replaces facility due to mature next year

Outstanding subordinated debt totalling billions of euros no longer has equity credit

The company has at least five other drawn facilities

◆ Praise from bankers away from transaction ◆ Deal launched into market 'that wants to buy AT1s' ◆ Post-CPI spike in US Treasury yields not viewed as game changer

◆ Strong appetite for sub-benchmark pair ◆ Julius Baer issues in dollars after no replacement of Swiss franc AT1 last year ◆ Iceland’s Landsbankinn debuts in international AT1 market

The loan was provided by 18 financial institutions, including the new ones that joined

◆ Second Icelandic AT1 in five months after no issuance for four years ◆ Issuer on the road ahead of dollar outing ◆ Arion's recent deal is the main reference