Euro Credit Supply: Primary markets still busy with high demand

Supply sitting at a substantial YTD figure of €120bn

Corporate supply reached €41bn in March, another month of busy primary markets. While this March is in line with most previous ones, apart from last year, YTD supply remains much larger than all previous YTD figures, at a notable €120bn. Demand remains hot in primary, with deals still seeing very high subscription levels and low NIPs. We don’t expect this to affect our supply forecast of €310bn, a slight increase on last year, as much of this supply is front loading and we expect a slower second half of the year.

Covered supply picks-up in March while senior unsecured issuance stagnates

Issuances are still concentrated on the longer end of the curve with over 52% of the 2024 YTD supply issued in the 5yr to 8yr buckets. 3-4yr maturities are representing less than 20% of total supply, showing a strong drop in shorter maturities as this bucket was nearly 50% of 2023 YTD issuances. French issuers are still leading this year’s supply, with a little over €20bn printed. German banks follow with nearly €15bn, well ahead of the other issuers with a maximum of €5bn.