No one is buying OATs. Will the ECB?
French government bonds (OATs) keep on breaking records and psychological barriers, with the latest being 10-year yields smashing through 5% for the first time since 2002 this week.
Insights Topic
Multi-Sector Bonds
Are smaller AT1s still offering sufficient premium?
This week a small Austrian lender, KommunalKredit, brought to the market a €150m Additional Tier 1 (AT1) transaction.
High yield pricing and covenants test investor demand
September’s surge in high yield (HY) issuance tested the limits of investor appetite in an evolving market.
French banks caught in crossfire, but fundamentals are solid
France has been the primary focus of the European rates markets in the past week, with domestic political risk and debt concerns adding to a general sell-off across government bonds.
InPost puts bondholder protections to the test
E-commerce platform InPost has entered the European high yield (HY) market this week with a new seven-year senior secured bond as part of a €3bn financing package to help fund its acquisition by an Advent led consortium.
The ECB pushes back on bank “deregulation”
The topic of banking “deregulation” has come back to the fore this year, mainly fuelled by initiatives from the US authorities.
Term premium has risen, and may not have peaked
The importance of “term premium” in discussions about yield curves has been on the rise this year.
Warsh delivers a boost to Fed's credibility
The latest FOMC meeting delivered more than a rate hike. Chair Warsh's clear hawkish message that inflation has been too high for too long helped restore confidence in the Fed's commitment to tackling inflation, with important implications for bond markets and rate expectations.
Waller vs Warsh: Finding the Fed’s strike zone
New Federal Reserve Chair Kevin Warsh’s reluctance to define a clear “strike zone” for forward guidance has put him increasingly at odds with Governor Christopher Waller.
Warsh finally gives markets much needed clarity
Kevin Warsh’s Jackson Hole speech went a long way, in our view, towards restoring some much-needed credibility to the Federal Reserve’s (Fed’s) reaction function and its commitment to the dual mandate.
US life insurers feel private credit scrutiny
A series of recent developments has put US life insurers with significant private-credit linkages under greater regulatory and investor scrutiny. While we believe this could create pressure for some US names, we see limited evidence that the concerns are spilling over into European life insurers.
US Treasury intervention unlikely to provide lasting support
The US Treasury Department surprised markets yesterday afternoon by announcing an increase in its buyback operations, which will “at least double” to $4bn, from 9 September to 4 November.