What to Watch in European Credit Markets This Week
- Issuers scent opportunity to sell bonds before window closes
- Indexes tighten on positive news, though event risk remains
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Good morning. Here’s what we will be watching this week:
The market for new bonds is set to creak open for at least a week or two ahead of the traditional Christmas shut-down, despite last week’s sudden widening in spreads. Companies still have funding needs, and may not wish to wait until the New Year, when different, and potentially difficult, market conditions may prevail. And if sentiment has improved, there’s a risk of being crowded out. Already this morning four issuers -- Carrefour SA, Raiffeisen Bank International AG, OMV AG and ABN Amro Bank NV -- have decided today’s the day to do a deal.