What to Watch in European Credit Markets This Week
- Year end looms over new bond sales while loan deals power on
- Events this week include earnings, U.K. Budget, non-farms
Good morning. Here’s what we will be watching this week:
Last week was the slowest for sales of new bonds in Europe since August, and there’s not much to suggest this week will be much different. The sell-off in equities has dampened sentiment just at the point when investment-grade borrowers and bankers begin to wonder whether it’s time to pack up new-issue plans for the year. Two-thirds of respondents to a Bloomberg survey said they don’t expect more than 15 billion euros ($17.1 billion) of issuance this week and U.S. non-farm payrolls means we can write off Friday for deals. Suki Mann, the founder of CreditMarketDaily.com, wrote: "We are so close to year-end that few will be looking to do anything drastic and prefer to protect current performance."