/BONDS: Commerzbank On Initial ’24 EUR Supply

Commerzbank write “while the curve and swap spread dynamics suggest that concessions are needed to make room for upcoming supply, the indications from primary markets so far suggest that cash is there looking to get invested in the right places.”

• “Financials were first out of the block yesterday with a range of new issues across covereds, senior and subordinated. In covered bonds the market has proven to be accessible out to the 7y sector so far with NIP indications tightening swiftly from double to single digits as the order books grew. Several additional issues have already been mandated for today, including the first 10y covered benchmark since June.”
• “Today's deals will also deliver more concrete indications in the SSA benchmark segment where KFW is scheduled to price its long 3y and 10y dual tranche. In sovereigns, so far only Slovenia has announced a 10y deal while Italy, Portugal, Belgium and Austria are most likely still waiting in the (syndication) wings.”