Danske Research Team
Danske Bank A/S
What’s on our mind
- General credit market news
The European credit market continued to move more or less sideways. Over the week. iTraxx Main was unchanged at 60bp. iTraxx Crossover widened some 4bp to 269bp.
In the Nordic region, we saw issuance from DONG Energy coming to the market, with a new corporate hybrid (NC 5.5 years) issuance size of EUR600m and printing at MS 281.9bp. The proceeds are set to be used to repay the DONG Energy 5.5% 3005 with first call date at the end of June 2015.
The issuance of the new DONG Energy corporate hybrid comes on the back of strong issuance activity of corporate hybrid bonds. Thus, Bertelsmann (Germany), RWE (Germany), Centrica (UK), Bayer (Germany) and Air France-KLMhave issued corporate hybrid bonds within the past month.
According to Bloomberg, non-financial borrowers have already issued more than EUR19bn. of subordinated debt compared with total issuance of EUR28 bn. in 2014. Consensus among market participants is that total issue size of corporate hybrid bonds in 2015 will significantly exceed the 2014 issuance of EUR28bn.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.