Euro credit supply: substantial increases

• As expected, euro corporate supply was substantial in the first weeks of the year, amounting to €31.8bn

• Corporate hybrids’ supply amounted to a notable €7bn in January, up considerably from just €2bn in January 2020.

• Financial supply ended the month of January at €25.9bn (excluding covered bonds). On a YTD basis, this represents a drop of 44%. Bank senior unsecured bond supply aggregated to €14bn (of which €7bn in preferred and €7bn in non-preferred senior).

• In January 2021, financial issuers focused on issuing on longer maturities. 85% were issued within the 6yr+ maturity bucket. By doing so, they’re still trying to avoid issuing at deeply negative yields.

• Redemptions were €26.2bn, exceeding the primary issuance. This aggregates the net supply to a negative figure, €0.3bn. Redemptions in February 2021 are expected to to decrease by more than half of January 2021.

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