US primary market new deals jumped higher last week to $41bn vs. $33.7bn a week prior with IG deals at $31.2bn led by Tapestry’s $4.5bn five-trancher and Carrier Global’s $3bn three-tranchers respectively. HY issuances stood at $7.5bn with TransDigm’s $2bn two-trancher and American Airlines’ $1bn deal leading the tables. In North America, there were a total of 47 upgrades and 87 downgrades across the three major rating agencies last week. US IG bond funds saw outflows of $452mn, adding to outflows of $1.5bn for the week ended November 15. For the same period, HY funds saw inflows of $4.6bn, adding to the $6.3bn inflows seen in the week prior.
EU Corporate G3 issuances continued to stay strong with $40.2bn in new deals vs. $42.9bn a week prior. Issuance volumes were led by banks including Santander’s $2.5bn and SocGen’s €2.25bn two-tranchers each, followed by Barclays’ $1.75bn deal and Deutsche Bank NY’s $1.5bn deal. The region saw 36 upgrades and 30 downgrades across the three major rating agencies. The GCC dollar primary bond market saw $550mn in new deals with QIB Sukuk’s $500mn issuance, after seeing $500mn in deals a week prior. Across the Middle East/Africa region, there were 6 upgrades and 9 downgrades each across the major rating agencies. LatAm saw $2.1bn in new deals after $5.2bn in deals a week earlier, led by Brazil’s $2bn issuance. The South American region saw 1 upgrade and 2 downgrades each across the rating agencies.
G3 issuance volumes from APAC ex-Japan stood at $1.9bn vs. $9.3bn a week prior to it led by Macquarie Group’s €800mn deal and AgBank Bank’s $600mn dual-trancher. In the APAC region, there were 11 upgrades and 9 downgrades each across the three rating agencies last week.