📌 European bond issuance has surpassed €1 trillion for 2024, breaking the previous record over a week earlier than in 2020. This milestone was reached largely due to a €10 billion sale from Spain. Nearly half of this year’s debt issuance has come from supranationals, sovereigns, and agencies, driven by strong investor demand and favorable market conditions. The European Central Bank’s anticipated monetary easing, in contrast to the Federal Reserve’s steady interest rates, has prompted a rush of US firms to take advantage of the growing yield gap.
📌 Major corporations like Merck, Coca-Cola, Swisscom, and Johnson & Johnson have raised substantial funds by issuing longer-term debt at tight spreads, the lowest since early 2022. The bond market has also seen an increase in merger and acquisition financing. Seventeen borrowers, including Medtronic, BBVA, and LVMH, are currently active in the market, contributing to the impressive total issuance. As of Wednesday, publicly syndicated issuance of euro, sterling, and Reg S dollar-denominated offerings has reached €1.013 trillion.
📌 Despite the high demand and favorable market conditions, experts advise caution. Nicolas Trindade of Axa Investment Managers highlights the risk of inflation potentially disrupting monetary easing. He recommends investors focus on investment-grade bonds, which offer solid fundamentals and lower default risk, to capture attractive yield opportunities. The robust investor interest, as evidenced by Spain’s deal attracting an order book of over €125 billion, underscores the strong demand for fixed-income funds. However, with many uncertainties looming, market participants are urged to seize current opportunities while remaining vigilant about potential risks.
Source: Bloomberg
NEW MOMENTUM AV, S.A. uses technical, preference and analysis cookies, both its own and those of third parties, which process connection and / or device data to facilitate browsing and analyse statistics on the use of the website. Further Information. Change preferencesAccept
Change preferences
Cookie Privacy Summary
This website uses cookies to improve your user experience while browsing the website. Cookies categorised as necessary are stored in the browser as these are essential for the basic functionality of the web to work. We also use third party cookies to help us analyse and understand how to use and improve this website. These cookies are stored in the browser only with your consent. You have a choice of cookies so that you can select the ones you feel are most appropriate, but not accepting some of these cookies may affect your user experience on the website.
These cookies are those that facilitate user navigation and the use of the different options or services offered by the website, such as identifying the session, allowing access to certain areas, facilitating orders, purchases, filling in forms, registration, security, facilitating functionalities (videos, social networks, etc.).
These cookies are used to carry out an anonymous analysis of the behaviour of web users and to measure user activity and create browsing profiles in order to improve the websites.
These cookies allow to manage the advertising spaces on the web. In addition, they can be personalised advertising cookies, and thus allow to manage the advertising spaces of the website, based on the user´s browsing behavior and habits, from which their profile is obtained and allow the advertising shown on the user's browser or other user profiles and social networks to be personalised.
📌 European bond issuance has surpassed €1 trillion for 2024, breaking the previous record over a week earlier than in 2020. This milestone was reached largely due to a €10 billion sale from Spain. Nearly half of this year’s debt issuance has come from supranationals, sovereigns, and agencies, driven by strong investor demand and favorable market conditions. The European Central Bank’s anticipated monetary easing, in contrast to the Federal Reserve’s steady interest rates, has prompted a rush of US firms to take advantage of the growing yield gap.
📌 Major corporations like Merck, Coca-Cola, Swisscom, and Johnson & Johnson have raised substantial funds by issuing longer-term debt at tight spreads, the lowest since early 2022. The bond market has also seen an increase in merger and acquisition financing. Seventeen borrowers, including Medtronic, BBVA, and LVMH, are currently active in the market, contributing to the impressive total issuance. As of Wednesday, publicly syndicated issuance of euro, sterling, and Reg S dollar-denominated offerings has reached €1.013 trillion.
📌 Despite the high demand and favorable market conditions, experts advise caution. Nicolas Trindade of Axa Investment Managers highlights the risk of inflation potentially disrupting monetary easing. He recommends investors focus on investment-grade bonds, which offer solid fundamentals and lower default risk, to capture attractive yield opportunities. The robust investor interest, as evidenced by Spain’s deal attracting an order book of over €125 billion, underscores the strong demand for fixed-income funds. However, with many uncertainties looming, market participants are urged to seize current opportunities while remaining vigilant about potential risks.
Source: Bloomberg