<\/p>\n
European bond issuance has reached a record-breaking \u20ac1.705 trillion this year, passing the high-water mark previously set in 2020.\u00a0<\/span><\/p>\n Debt sales in the region\u2019s publicly-syndicated market hit the milestone, according to data compiled by Bloomberg. The figure includes publicly syndicated issuance of euro, sterling and Reg S dollar-denominated offerings sold in Europe.<\/p>\n Sovereigns, supranationals and agencies as well as financials have been at the forefront of the borrowing spree. The need to finance ever-growing debt piles has spurred issuance from public sector borrowers, with the UK being a case in point.<\/p>\n The country\u2019s debt management office raised \u00a34.25 billion through a syndicated debt sale, its first such deal since Chancellor of the Exchequer Rachel Reeves unveiled \u00a340 billion of tax rises and ramped up borrowing last month. Demand passed \u00a365 billion which was the highest ever level of demand for an index-linked gilt offering. Countries such as Belgium, France, Greece, Italy and Spain have also seen record bids for their debt.\u00a0<\/span><\/p>\n The quantum of new sales is striking given that it beats the record set four years ago when borrowers rushed to the market to bolster their finances in the face of the Covid pandemic.\u00a0<\/span><\/p>\n \u201cThe massive volumes of issuance in the bond market have been absorbed very easily this year,\u201d said Paula Weisshuber, head of corporate debt capital markets for Europe, Middle East and Africa at Bank of America. \u201cSpreads are at attractive levels and issuers have already been front-loading for 2025.\u201d<\/p>\n Bloomberg\u2019s euro-aggregate corporate investment-grade index has returned 4.67% since the start of the year and Bloomberg\u2019s euro high-yield index 7.42% over the same time period.\u00a0<\/span><\/p>\n Banks and real estate companies have been among those which made the most of near-constant buoyant market conditions to raise new debt.<\/p>\n Sweden\u2019s Heimstaden Bostad AB sold the first fresh junior debt offering from a property company since late 2021. Last week, Austria\u2019s Raiffeisen Bank International AG raised new capital to replace an Additional Tier 1 bond more than six months after an earlier deal failed.<\/p>\n \u201cSome of this resilience is due to technical factors like positive inflows,\u201d Benjamin Melman, chief investment officer of Edmond de Rothschild Asset Management, wrote in a note.\u00a0<\/span><\/p>\n Sales are likely to be even higher next year and 2026 as high levels of debt become due, said Cem Keltek, credit strategist at Deutsche Bank Research.<\/p>\n \u201cThe main risk to that would be a rapidly deteriorating European growth outlook and more comprehensive US tariff threats than the market is anticipating,\u201d Keltek said. \u201cThat could weigh on broader market sentiment, shut primary market access temporarily and could also see issuers reevaluate.\u201d<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" European bond issuance has reached a record-breaking \u20ac1.705 trillion this year, passing the high-water mark previously set in 2020.\u00a0 Debt sales in the region\u2019s publicly-syndicated market hit the milestone, according to data compiled by Bloomberg. The figure includes publicly syndicated issuance of euro, sterling and Reg S dollar-denominated offerings sold in Europe. Sovereigns, supranationals and […]<\/p>\n","protected":false},"author":1,"featured_media":3008,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/12\/Bond-sales-23-720x445.jpg",720,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/12\/Bond-sales-23-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/12\/Bond-sales-23-300x208.jpg",300,208,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/12\/Bond-sales-23.jpg",720,500,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/3007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=3007"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/3007\/revisions"}],"predecessor-version":[{"id":3009,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/3007\/revisions\/3009"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/3008"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=3007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=3007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=3007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}