Today they evolve around 10 to 15 basis points

Issuers of debt has more than a few weeks before the summer recess. They urge to take advantage of the window that opened in early June, after a month at a standstill. Even the "high yield" segment (the bonds in the speculative category) found access to the market, which had not happened since early May. Rémy Cointreau began last Friday, with a lift of EUR 205 million for 6 years at a rate equivalent to the mid-swap 305 points, or 5.18.

"This program, combined with the private placement completed at the beginning of months, due 2015, allows the group to ensure its refinancing in the medium term to extend the maturity of its debt and better distribute deadlines over time... all in excellent conditions of rates for the transmitter," indicates a player. In the aftermath, Peugeot, placed yesterday EUR 500 million for 5 years, mid-swap 358 points titles, or 5.75.

The week passed has been punctuated by the raising of debt of RTE EDF Transport, Alstom, Suez Environment, or even RCI, the Renault subsidiary specializing in financing. These operations helped restore prices to the market. TEN placed titles in 12 years for EUR 750 million, at mid-swap 85 basis points, or 3,963. "This is the first operation of reference more of EUR 500 million since mid-April and the first transaction in more than 10 years since that of EDF in April," said HSBC. RCI lifting for EUR 500 million for 3 years (mid-swap 253 basis points, or 4,092) also marked a turning point, where the automotive sector is not expected in a volatile market environment. Companies in defensive sectors, as the community services, traditionally open the ball, while the "cyclic" the close.

Climate change

The banking side, Deutsche Bank and Credit Switzerland emissions also testified to a change of climate in the primary market. The German establishment has indeed placed subordinated debt ("lower Tier-2"), considered quite risky, for not less than 1 billion euros. Such an amount, which was fairly common before the sovereign debt crisis, now represents rather a ceiling.

Moreover, the market allowed Credit Switzerland securities with fixed rate and maturity 9 years, while most financial institutions currently prefer to place paper variable rate of short maturity. "The situation is more tense for banks that for enterprises, because they are more sensitive to fears about sovereign debt and facing high this year of funding requirements," explains Thibaut Cuillière, at Natixis. "Further bank debt emissions are less well overall."

The situation of the primary market is still like that of 2009 and early 2010, when demand largely offset the offering of securities, or even exceeded, so that the emission (rate of the secondary market) premiums were near zero. Today, they evolve around 10 to 15 basis points.

"The big news is especially the importance of the geographical origin of the issuer: market secure obligations (1), and to a lesser extent of Bank senior debts: titles of German, Nordic and French banks rank without too many difficulties", entrusts Thibaut Cuillière. In their wake, the British secured obligations are licensee.

In contrast, Spanish or Portuguese issuers do not have access to the market. "The issue price reflects the credit quality of the underlying sovereign and only one of the company," summarizes the strategist. A configuration reminiscent somehow of emerging markets.