Bond markets have experienced an issuance bonanza this year, with both the size and frequency of deals in the ascendancy. Triple A activity has traditionally been frenetic in the first quarter of the year, with much of the issuance from the major agencies coming near the start of the year. There has, therefore, been a lot of Triple A paper knocking about in the first months of 2009. But in certain fundamental respects, the Triple A sector in 2009 has started to look very different from previous years. In the SSA market there has been a move...Read more
To purchase printed copies or a PDF of this report, please email leonie.welss@lseg.com and shahid.hamid@lseg.com
The SSA market has successfully responded to the changed landscape since the introduction of the sovereign guaranteed bank sector last autumn. Many issuers, mindful of potential market disruption, are already at advanced stages of their borrowing programmes for this year, just as signs emerge that credit market conditions are beginning to improve. Mike Winfield reports.
Triple A structured finance debt has suffered an immense loss of credibility, particularly in the US ABS CDO sector, which is beset by defaults. Triple A CMBS and CLOs, though not facing default, are clearly of a different order than pristine prime RMBS Triple As. This huge variability has meant that, in many eyes, anything structured finance-related gets tarred by the same brush. William Thornhill reports.
General Electric had been a constant feature of the Triple A landscape for many years. Its recent downgrade to Double A might have spelt disaster for the company, but it does not appear to have caused the forced selling and downward spiral that sometimes follows such action. Instead investors have welcomed the clarification and breathed a collective sigh of relief that things were not worse. Timothy Sifert reports.
Instituto de Oficial Credito is one of Europe's largest agency debt issuers with an established profile and widespread investor recognition. The borrower responded rapidly to the downgrade of its guarantor, Spain, earlier this year, and has remained open for business. With annual financing needs of €20bn, it is responsive to the changing tides of investor interest and emergence of the sovereign guaranteed bank sector. Mike Winfield reports.
Caisse d'Amortissement de la Dette Sociale, the Triple A rated French social security agency, confirmed that it is aiming to raise €33bn of financing in 2009 following the assumption of an additional €27bn of debt from central government this year. Despite increases to its funding programme, Cades has responded in a pragmatic way to this news as it set about its increased funding. Mike Winfield reports.