• Today proved to be a quiet one with neither € IG primary issuance nor $ RegS. There was a mandate announcement for Orbit Capital plc, who mandated Barclays, Lloyds & NatWest to organise investor calls through DealRoadshow, starting today. A planned £ benchmark 15-year offering - 1 £ IG (1 x corp) - was expected for launch in the near future, subject to market conditions. Elsewhere, the Swiss primary was active, with a couple of domestic issues, as well as 1 Chf IG (1 x SSA) tap for BNG.
• The background to today’s limited activity was broadly supportive for new supply, as financial markets were told to be risk on. The holiday season is very much in full swing, and activity is not expected to pick up significantly until late August, ahead of the usual September deal rush, post Summer.  
• News headlines remained unchanged, with no real news emerging from the Middle East negotiations. The govvie bond market in Eurozone & the UK traded in a tight range today. 
• Equity markets in Europe had once again a day of small gains across the board, following last night’s record-high close on Wall Street.  
• Brent crude oil started day lower from last night’s close, as Middle East diplomacy was progressing & heading towards a resolution. Brent opened at $78.44 this morning, but traded up a little during the day, in the news vacuum to trade c.$80 big figure. VIX was mostly unchanged through the day at around $16. . 
• A breakdown of today’s primary € supply is as follows.
  • Corporate
    • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing 
    • Avg. cover X
  • FIG
    • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing NA (unsecured)
    • Avg. cover NA
  • SSA
    • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA
• Pipeline: Currently there are no €, £, Chf or Reg S $ transactions in the IG pipeline.

Talking Point

Today's table maps average EUR Corp spreads in 2026 across rating groups & tenor buckets, offering a snapshot of where the market has been pricing & how the rating & duration premium relationship has played out across the curve. The overall picture is one of an orderly, well-structured spread matrix; the credit & duration premia are behaving largely as they should, with spreads stepping up consistently as you move down the rating scale & out along the curve. The range is considerable; from AA- paper at the short end sitting at just 30bps all the way out to BBB- in the 10 to 15yr bucket at 167bps, a spread of 137bps between the tightest & widest points in the table, a number that encapsulates just how much ground the € Corp market covers in terms of risk & reward. The BBB tier is where the duration premium bites hardest in relative terms; BBB- moves from 90bps at the short end to 167bps at the long end, a 77bps step-up across the curve, comfortably the most pronounced of any rating group. By contrast, the AA & AA- buckets show a more measured curve, with spreads moving from the low 30s at the short end to the low-to-mid 80s at the long end, reflecting the market's comfort with high quality duration risk. The gradient is intuitive; as you move down the rating scale & out along the curve, spreads widen, but the detail within that broad pattern is where the real insight lies. At the top of the quality spectrum, AAA & AA+ rated paper has been a rare sight in the € Corp market, with only isolated data points available, a reflection of just how thin the universe is at those rating levels. The supporting deal list for the 10 to 15yr bucket tells its own story; names such as Alphabet (93bps), Amazon (103bps) & Nederlandse Gasunie pricing at 88bps & 85bps respectively illustrate the range that can exist even within a single rating group, with AA- rated paper alone spanning from LVMH's 70bps & Sanofi's 70bps at the tighter end through to Amazon's 103bps at the wider end, a 33bps range that reflects the market's nuanced view on sector, name & timing rather than rating alone.

Euro IG (today)

• No Supply

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• No Supply

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• BNG (exp. Ratings Aaa / AAA / AAA by Moody’s, S&P & Fitch) announced a CHF100m (min) tap of its existing CHF100m 0.8825% due 21 May 2036 with guidance at a spread in the area of SARON MS+29. The lead bank was ZKB. Spread was set at SARON MS+29, and a new minimum size of CHF140m was released by early afternoon. Final terms were set at CHF150m (taking the new outstanding size to CHF250m) at SARON MS+29. 
  • This was BNG’s deal launched in January earlier this year, at a spread of SARON MS+25. The Dutch agency is a frequent issuer in Switzerland with 3 transactions. It has priced 2 bonds already in 2026, a CHF315m 15-year at SARON MS+25. In 2025, it sold a total of CHF595m. BNG has a total of above CHF2.2bn of outstanding debt in the Swiss market. 

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates 

Sterling (£)

• Orbit Capital plc (Issuer rating A3 by Moody’s) announced a mandate & investor calls via Barclays, Lloyds & NatWest beginning 05 August. Lloydsis  acting as logistics coordinator. The issuer is looking to issue a £ benchmark with a 15 year maturity, in the near future, subject to market conditions. 
  • Issuer has 3 existing £ transactions in the market, totalling £1bn. Its last foray to the public primary bond market was in late 2020 when it sold £300m 18yr at G+135. 
    

Transaction Details

PRICED: BNG Bank CHF 150m 9.7yr Sust; SARON MS+29bp

IGC European Market: Deal Flow - General

Reoffer: 9.7yr: SARON MS+29bp / 99.774 / 0.907%
Benchmark: 9.7yr: Govt+53.6 bps

Launched: 9.7yr: CHF 150m @ SARON MS+29bp
Spread set at: 9.7yr: SARON MS+29bp
Guidance: 9.7yr: SARON MS+29a

• Issuer: BNG Bank N.V.
• Issuer Ratings: AAA/Aaa/AAA (S&P/Moody's/Fitch)
• Exp. Instrument Ratings: AAA/Aaa/AAA (S&P/Moody's/Fitch)
• Format: Reopening Foreign Public Fixed Rate Sustainable Bond
• Ranking: Senior unsecured
• Type: Sustainable Bond
• Issue Size: CHF 150m (new total size CHF 250m)
• Coupon: 0.8825% p.a. (30/360; following unadj.)
• Tenor: 9.736 years
• Payment Date: 26-Aug-26
• Maturity: 21-May-36
• Accrued interest: 95 days
• Issue Price: 99.774%
• Pricing: SARON MS +29.0 bps / YTM 0.907% / Govt+53.6 bps
• ISIN/Valor: CH1581468118 / 158146811
• Original ISIN / Valor: CH1484612101 / 148'461'210
• Lead Manager: Zürcher Kantonalbank
• Listing: SIX Swiss Exchange, as of 25-Aug-26
• SNB Repoeligibility: At the discretion of the SNB, expected yes (HQLA Level 2a)
• Documentation: Off the Issuer’s EUR 110bn Debt Issuance Programme, base prospectus dated 22-May-26
• Governing Law: Dutch Law
• FIDLEG/FinSA Prospectus: Base prospectus is deposited with and recognised by the SIX Prospectus Office. Final terms available in accordance with art. 45 FinSA
• Covenants: PP, NP
• Denomination: CHF 5'000 and multiples thereof
• Sales Restrictions: In accordance with the Issuer's Debt Issuance Programme. No Sales to EEA nor UK Retail Investors.
• Target Market: As defined by the manufacturer domiciled in the EEA (MiFID II): Eligible counterparties, professional clients and retail clients in Switzerland only (all channels for distribution), subject to applicable selling restrictions
• Use of Proceeds: The proceeds of the bond will be utilised to finance the environmental and social activities of Dutch municipalities, as defined in BNG Bank's 'Sustainable Finance Framework' Framework: https://www.bngbank.com/Funding/ESG-Bonds

Details correct at time of posting