Single-A supply printed tight as ECB squeezes investors into low spreads

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By Mike Turner
22 Feb 2021

EnBW, the German electrical utility, and the financing arm of a Dutch truck company, DAF Paccar Financial, hit screens with highly rated euro trades on Monday. Central bank bond buying higher than forecast, pushed investors to oversubscribe the deals even though the spreads on offer were thin.

EnBW, rated A3/A-/A-, brought the larger deal of the two. The issuer was out with a €1bn no-grow trade, divided equally between March 2028 and 2033 maturities.

The 2028 trade started at 60bp over mid-swaps, while the 2033 started at 75bp over.

Investors are still finding some value in ...

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