CREDIT SUPPLY: Financials Primary: Busy But Very Mixed Day

A busy day of financials primary with good coverage for higher-yielding securities but some evidence of buyer’s fatigue in the tighter end of financials’ capital stacks (at least in coverage terms), including a touch of indigestion in the RT1 market (La Mondiale) and a failed issue in insurance (Athene’s FA-backed)

• Bank of New Zealand (BZLNZ: A1/AA-/A+) issued EUR750m 5Y senior unsecured which priced at MS+83bp, MNI FV MS+85-90bp. Final books were above EUR1.45bn, a small slip from peak of EUR1.5bn, but just under 2x cover.
• La Mondiale (LAMON: BBB+) issued EUR500m Per NC10 RT1 with final terms at 6.75% MNI FV was 6.5%. Groupama issued same-rated, same maturity yesterday at 6.5% with books >5x covered for a EUR600m issue. Books finalised above EUR1.2bn, little slippage from the peak but only just over 2x cover and wider than yesterday’s issue.
• CNP Assurances (CNPFP: A1/A/A) issued EUR500m 30NC10 Tier 2 sub debt priced at MS+210bp, MNI FV was MS+210-220bp. Books finalised at above EUR2.2bn, down slightly from EUR2.3bn peak but still a healthy >4x cover.
• Piraeus Bank (TPEIR: Ba2 pos/B+/BB- pos) issued EUR650m 5NC4 green senior preferred which priced at 4.625%, we had fair value around 4.6% area. Books strengthened all the way to pricing at above EUR4.1bn, so well over 6x covered.
• Aareal Bank (AARB: Baa3/BBB) issued a EUR500m short 5yr covered bond which priced at MS+52bp, we had fair value at MS+50bp. Books finalised above EUR1.6bn, a small slip from EUR1.8bn but little over 3x covered.
• Athene Global (ATH: A1/A+) tried to issue a EUR benchmark FA-backed bond but it was pulled just before the European close though rumours had been circulating as early as lunchtime. There’s been no company comment reported since.