Data provided by Dealogic
The bar graphs below illustrate the trend in the growth and trends in issuance in the euro-denominated corporate bond market.
i) Senior Financials Issuance Since 2003
The all singing, all dancing days of senior issuance pre-financial crisis – are over. Admittedly, back then a fair portion of the supply was front-end in terms of maturity and league table motivated, but we have seen a material decline in senior issuance levels. The banking sector, quite simply, doesn’t need the money.
The difficult macro outlook has made banks more wary of lending and conditions remain strained despite much political interference – with even negative central bank deposit rates failing to lift the lending gloom – by much. More of the same we think through 2017 although senior non-proffered deals might become all the rage as TLAC considerations become increasingly important.
MiFID II Countdown
ii) Senior Financials Monthly Supply
Senior financials had a better month of it in November with €12.6bn of issuance, in what has generally been a poor year again for issuance, where the financial crisis has really impacted the levels of issuance form the financial sector.
The erratic supply dynamic leaves the total for the eleven months of issuance at just €136bn. And for the full-year? €145bn, perhaps.