• The sell-off in Government bonds continued, with Bund, OAT & Gilt yields all notably higher across the curve. UST’s following the same trend.
• Credit indices widened & the higher oil price kept the mood very much one of ‘risk-off’, with those borrowers that had been looking to come advised by syndicates to sit on the sidelines.
• With that as a backdrop € IG experienced a rare zero-print Monday; though we are approaching month end, with many firms now in blackout ahead of their Q3 results.
• Sterling (£) was active pricing £1bn from 1 deal (1 x FIG) via 1 tranche.
• We also had Swiss Franc deliver Chf510m via 1 deal (1 x Corp) via 3 tranches.
• There was no activity in the US$ Reg S market.
• Given the “donut” today in € IG our “Talking Point” (below) looks at the other "zero-Issuance Mondays" we’ve had in € IG YTD.
• iTraxx Europe & the iTraxx Senior & Sub financial indices were wider on the day, currently trading at 62.380 (+2.52%), 67.533 (+3.03%) & 111.371 (+3.49%) respectively (as we print).
• Brent Crude fell slightly, currently trading at c.$107.44 (c.$107.44 this morning).
• European equity bourses were largely in the green with the FTSE, Dax & CAC 40 up by +0.40%, +0.36% & +0.51% respectively.
• A breakdown of today’s primary € IG supply is as follows.
• Corporate
  • Total IG: €0
  • Avg. tranche size €0
  • Avg. IPT to Pricing NA
  • Avg. cover NA
• FIG
  • Total IG: €0
  • Avg. tranche size €0
  • Avg. IPT to Pricing NA (covered) - €0
  • Avg. IPT to Pricing NA (unsecured) - €0
  • Avg. cover  NA
• SSA
  • Total IG: €0
  • Avg. tranche size €0
  • Avg. IPT to Pricing NA
  • Avg. cover NA

• Pipeline: The European IG pipeline filled out with the absence of live deals with a solid cross section of deals pending. 
  • 4 x € Corp (1 x dual-tranche, 1 x Green & 1 x Hybrid)
  • 3 x € FIG (3 x Covered & 1 x Green)
  • 4 x € SSA (1 x Sustainable, 1 x Green & 1 x Social)
  • 1 x Chf SSA

Contact Stuart Aylward with questions or comments on stuart@creditflowresearch.com

Talking Point

• With today a no-print session in € IG, we look at other "zero-Issuance Mondays" YTD.
• The largest cluster (2nd, 9th & 23rd of March) was driven by the outbreak of the US-Iran war. The near-standstill of traffic through the Strait of Hormuz, triggered the energy crisis that effectively repriced European rates. iTraxx Europe Main widened from c.50bp at year-open to 56.4bp (2nd March), 61.8bp (9th March) & 69.1bp (23rd March), en route to its cycle peak of 73.5bp on the 27th March, as ECB pricing flipped from cuts to hikes & oil surged.
• The 27th of April & the 13th of July reflects earnings blackouts layered on residual geopolitical drag. The former fell in peak pre-results blackout season with Iran talks having collapsed & no ceasefire in sight; while the latter saw € IG issuers explicitly opt to wait for a cleaner window.
• A second grouping (3rd, 10th & 31st of August) reflects the classic summer lull compounded by macro volatility.
• Today's zero-issuance day marks the most acute rate volatility since April 2025's "Liberation Day." Brent is above $107 after Iran refused to soften its Hormuz conditions, leaving syndicate desks cautious about the path ahead.
• 2026's zero-issuance Mondays trace a clear narrative arc, from acute war-shock dislocation in March, through earnings-related & summer lulls through spring/summer, to a renewed rates-volatility shock today, underscoring how geopolitical & macro risk premia have repeatedly, & specifically, closed the Monday funding window this year.

Euro IG (today)

• No issues

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• Commonwealth Bank of Australia (exp. Issue ratings of Aaa / AAA by Moody’s & Fitch) announced a £ benchmark Australian legislative Covered Bond, backed 100% by prime Australian residential mortgages. The 3.75yr FRN came with guidance in the area of SONIA+55. Books first called at over £1.25bn (inc. £100m JLMs), widening to over £1.55bn. Spread set at SONIA+51 & the trade sized & priced for £1bn. Investors were given a NIC of 2bps. Final books were over £1.35bn (inc. £100m JLMs).
  • CBA’s last £ trade was a £650m Tier 2 offering on the 13th of August. Its last public Covered issue was in the Swiss Franc market in June, when it priced a Chf145m dual-tranche. Relevant to today’s trade, CBA’s last Sterling Covered deal was back on the 8th of October 2024, when it priced a £1bn 3yr FRN at SONIA+52 (3bps tighter than guidance from a book of £1.5bn).

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• Digital Constellation B.V.  (exp. Issue ratings of Baa1 / BBB+ / BBB) announced a triple tranche Senior, unsecured & unsubordinated Green issue, composed of a 3, 6 & 10yr. The 3yr was announced as a minimum of Chf150m at SARON MS+95 to +105. The 6yr with a minimum size of Chf150m at SARON MS+120 to +130. Finally, the 9yr was a min of Chf100m at SARON MS +140 to +150. The 3yr grew to Chf220m with spread set at MS+100; while the 6yr grew to Chf180m with spread set at MS+125. The 10yr spread set at MS+150. The 3yr priced for Chf225m & the 6yr priced at Chf185m. The 10yr stayed at Chf100m.
  • The Dutch entity has not issued before, though they are a frequent visitor to the markets via their parent Digital Reality Trust & other group entities.

Week-to-date volumes:

US$ Reg S (today)

• No issues

Pending Deals & Mandates

Euro (€)

• 28th September: Bertelsmann SE & Co KGaA (exp. Issue ratings of Baa2 / BBB by Moody’s & S&P), mandated BNP Paribas & Goldman Sachs Bank Europe SE as Global Coordinators & BNP Paribas, Commerzbank, Goldman Sachs Bank Europe SE, HSBC & Landesbank Baden-Wuerttemberg as Active Bookrunners to arrange a series of fixed income investor calls on 28 September. A € benchmark dual-tranche, RegS, bearer offering, consisting of 5yr & 9yr senior unsecured notes, will follow, subject to market conditions.
• 28th September: SES (exp. Issue ratings of Ba1 / BBB- by Moody’s & Fitch), a global satellite communications provider, mandated BNP Paribas, ING, LBBW & Mizuho as Joint Global Coordinators & Joint Bookrunners, as well as Commerzbank, Goldman Sachs International, IMI-Intesa Sanpaolo & KBC as Joint Bookrunners to arrange a series of fixed income investor calls on Monday 28th September. A fixed rate, Reg S (Cat 2) senior unsecured € benchmark transaction with a 4.5yr tenor will follow, subject to market conditions.
• 28th September: Stedin Holding N.V. (exp. Rating of A- by S&P), a Dutch regulated electricity & gas grid operator, mandated ABN Amro, ING, Rabobank & SEB as Joint Bookrunners to organise a series of fixed income investor calls starting today, 28th September. A Green 12yr € benchmark, senior unsecured, fixed-rate, Reg S bond transaction is expected to follow, subject to market conditions.
• 28th September: Remy Cointreau (exp. Issue rating of Ba2 by Moody’s), a French family-owned group specialised in the global Wine & Spirits market with a portfolio of exceptional brands, which include Rémy Martin & Louis XIII cognacs & Cointreau liqueur, has mandated, BNP Paribas & Société Générale as Global Coordinators, together with Crédit Agricole CIB & HSBC as Active Bookrunners, to arrange a series of fixed income investor calls on Monday the 28th September & Tuesday the 29th September. An inaugural €250m (wng), Reg S Bearer, Hybrid PNC5 Bond offering may follow subject to market conditions. 

• 21st September: Evangelische Bank eG (exp. Issue rating of AAA by S&P), mandated Commerzbank, DZ Bank & NordLB as Joint Lead Managers for its upcoming €250m (wng) sub-benchmark inaugural Mortgage Covered Bond (Hypothekenpfandbrief) with a 5 to 7yr maturity. The deal is expected to be launched in the near future, subject to market conditions.
• 21st September: Banque et Caisse d’Epargne de l’Etat, Luxembourg (exp. Issue rating of Aaa by Moody’s), mandated Belfius as Global Coordinator & Belfius, Deutsche Bank, LBBW & Natixis as Joint Lead Managers to arrange a series of fixed income investor meetings & calls commencing on the 28th of September. BCEE is also available for meetings at the European Covered Bond Congress in Seville. An inaugural 7yr Green €500m (wng) Covered Bond transaction is expected to follow in the near future, subject to market conditions. European Covered Bond (Premium), ECBC Covered Bond label compliant, RegS bearer.
• 21st September: Fairstone Bank of Canada (exp. Issue ratings of Aa1 / AA by Moody’s & DBRS), mandated RBC Capital Markets as Arranger & Sole Structuring Advisor, & BMO Capital Markets, DZ Bank, LBBW, Natixis & RBC Capital Markets as Joint Active Bookrunners for an inaugural 3yr € benchmark soft-bullet Covered Bond. The Covered Bonds are backed by Canadian residential mortgages. This is the borrower's debut covered bond.

• 28th September: Japan Bank for International Cooperation - JBIC (rated A1 / A+ by Moody’s & S&P), guaranteed by Japan, mandated Daiwa Capital Markets Europe, Barclays, Crédit Agricole CIB & JP Morgan for its upcoming € benchmark 7yr fixed rate SEC-registered global bond offering. The transaction will be launched in the near future, subject to market conditions & MOF approval.
• 28th September: The Principality of Andorra (exp. Issue rating of A- by S&P), mandated Citi, Crédit Agricole CIB & Santander to lead manage its upcoming short to intermediate dated €500m (wng) Sustainable Benchmark RegS fixed rate senior unsecured bond transaction. A series of fixed income investor calls will be held virtually on the 28th & 29th of September. The deal may follow in the near future subject to market conditions.
• 28th September: TenneT Netherlands B.V. (exp. issue ratings of Aaa / AAA by Moody’s & S&P), mandated Deutsche Bank & Santander as Global Coordinators & Joint Lead Managers, & Commerzbank, NatWest, Rabobank & SMBC as Joint Lead Managers to lead manage a new Fixed Rate, Reg S, Registered, 0% RW, HQLA Level 1, Green, € benchmark 5yr. Launch is expected in the near future, subject to market conditions.
• 28th September: Instituto de Crédito Oficialenne - ICO (rated A3 / A+ / A / A+ by Moody’s, S&P, Fitch & Scope), explicitly guaranteed by the Kingdom of Spain, mandated BofA Securities, Citi, Crédit Agricole CIB & Santander as joint bookrunners to lead manage its new RegS €500m (wng) Social Bond. The bond will have a 30th July 2031 maturity & is expected to be launched in the near future, subject to market conditions.

Swiss Franc (Chf)

28th September: The Republic of Finland (rated Aa1 / AA+ / AA by Moody’s, S&P & Fitch), mandated Deutsche Bank as Lead Manager for a Chf benchmark offering with an expected tenor of 10yrs. The transaction may follow in the near future, subject to market conditions.

Transaction Details

PRICED: Digital Constellation B.V. CHF 510m 3yr, 6yr & 10yr Green Sr Unsec; MS+100 & MS+125 & MS+150

IGC European Market: Deal Flow - General

Reoffer: 3yr: SARON MS+100bp / 100 / 1.6803% 6yr: SARON MS+125bp / 100 / 2.06% 10yr: SARON MS+150bp / 100 / 2.415%
Benchmark: 3yr: Govt.+116bp 6yr: Govt.+146bp 10yr: Govt.+175bp

Launched: 3yr: CHF 225m @ MS+100bp 6yr: CHF 185m @ MS+125bp 10yr: CHF 100m @ MS+150bp
New Size: 3yr: Min size CHF 220m 6yr: Min size CHF 180m
Spread set at: 3yr: MS+100bp - Min size CHF 175m 6yr: MS+125bp - Min size CHF 160m 10yr: MS+150bp
New Size: 3yr: Min CHF 150m 6yr: Min CHF 150m 10yr: Min CHF 100m
IPTs: 3yr: SARON MS+95/105bp 6yr: SARON MS+120/130bp 10yr: SARON MS+140/150bp

• Issuer: Digital Constellation B.V. (Ticker: DLR)
• Guarantor: Digital Realty Trust, Inc.; Digital Realty Trust, L.P.; and Digital Intrepid Holding B.V.
• Guarantor Domicile: United States and The Netherlands
• Format: Fixed Rate Green Public Bonds
• Guarantor Rating: Baa1 (Moody's, stable) / BBB+ (S&P, stable) / BBB (Fitch, stable)
• Instrument Rating (exp): Baa1 (Moody's) / BBB+ (S&P) / BBB (Fitch)
• Status: Senior, unsecured and unsubordinated obligations of the Issuer ranking pari passu
• Tranche:
  • 3yr: 2029 new Fixed rate Green public bonds
  • 6yr: 2032 new Fixed rate Green public bonds
  • 10yr: 2036 new Fixed rate Green public bonds
• Issue Size (in mm):
  • 3yr: CHF 225m
  • 6yr: CHF 185m
  • 10yr: CHF 100m
• Coupon:
  • 3yr: 1.6803% p.a., long 1st. coupon
  • 6yr: 2.06% p.a.
  • 10yr: 2.415% p.a.
• Maturity:
  • 3yr: 3 years 2 days (06-Oct-26 until 08-Oct-29)
  • 6yr: 6 years (06-Oct-26 until 06-Oct-32)
  • 10yr: 10 years (06-Oct-26 until 06-Oct-36)
• Issue Price:
  • 3yr: 100%
  • 6yr: 100%
  • 10yr: 100%
• Spread/Yield:
  • 3yr: SARON MS +100.0 // YTM 1.6803% // Govt.+116
  • 6yr: SARON MS +125.0 // YTM 2.06% // Govt.+146
  • 10yr: SARON MS +150.0 // YTM 2.415% // Govt.+175
• ISIN / Security Number:
  • 3yr: CH1609605246 / 160960524
  • 6yr: CH1609605253 / 160960525
  • 10yr: CH1609605261 / 160960526
• Lead Manager(s): DB, UBS
• SNB Repo-eligibility: At the discretion of the SNB, expected no
• Documentation: Standalone CHF documentation
• FinSA Prospectus: Delayed prospectus approval in accordance with Article 51 (2) FinSa
• Governing Law: New York Law / the federal and state courts in the Borough of Manhattan, State of New York
• SIX Listing: 02-Oct-26
• Denomination: CHF 5000
• Use of Proceeds: The proceeds of the Bonds will be used to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects (as defined in the Preliminary Prospectus), including the development and redevelopment of such projects. The Bonds will be issued in alignment with Digital Realty’s October 2022 Green Bond Framework. The framework and accompanying independent second-party opinion will be made available at https://www.digitalrealty.com/about/sustainability/green-bond. Further details regarding use of proceeds can be found in the “Use of Proceeds” section of the Preliminary Prospectus
• Sales Restrictions: The Bonds are subject to restrictions on the offering, sale, and delivery both generally and specifically in the United States of America and to US persons, the European Economic Area (the “EEA”), and United Kingdom (the “UK”)
• Target Market: Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients (all channels for distribution), subject to applicable selling restrictions. Public Offering in Switzerland only.
• Retail Restrictions: As defined by the manufacturer domiciled in the EEA or UK (MiFID II and UK MiFIR): Eligible counterparties, professional clients and retail clients in Switzerland only (all channels for distribution), subject to applicable selling restrictions

PRICED: Commonwealth Bank of Australia £1bn 3.75yr CB; SONIA+51bp

IGC European Market: Deal Flow - General

Reoffer: 3.75yr: SONIA+51bp / 100

Tranche 1 (3.75yr): Final Books £1.35bn+ (inc. £100m JLM). Peak book £1.55bn+ (inc. £100m JLM)

Launched: 3.75yr: £1bn @ SONIA+51bp - Books: £1.55bn+ (inc. £100m JLM)
Book Update: Books £1.25bn+ (incl £100m JLM)
Guidance: 3.75yr: SONIA+55a

• Issuer: Commonwealth Bank of Australia (ABN 48 123 123 124) (“CBA”)
• Issuer LEI: MSFSBD3QN1GSN7Q6C537
• Covered Bond Guarantor: Perpetual Corporate Trust Limited (ABN 99 000 341 533) in its capacity as trustee of the CBA Covered Bond Trust
• Type: Australian legislative Covered Bond, backed 100% by prime Australian residential mortgages
• Expected Issue Rating: Aaa / AAA (Moody’s / Fitch)
• Format: Bearer Form, Classic Global Covered Bonds, Reg S (TEFRA D rules apply - no communications with or into the US or to US persons)
• Size: £1bn
• Maturity: 8-Jul-30 (3.75-year), Soft Bullet Maturity
• Settlement: 8-Oct-26 (T+8)
• Coupon: SONIA+51bps. Floating, Compounded Daily SONIA, 5 day observation lag, Quarterly until Maturity Date then Monthly until Extended Due Date for Payment, Act/365F
• Reoffer: SONIA+51bps / 100.000 (Par)
• ISIN: XS3526002616
• Denoms/Listing: GBP100k + 1k / London Stock Exchange’s Main Market
• Joint Lead Managers: BMO, CBA, Lloyds, Nomura (B&D) and UBS
• Target Market: MiFID II / UK MiFIR professionals/ECPs-only/No PRIIPs key information document (KID) or disclosure document required by the FCA Product Disclosure Sourcebook has been prepared as not available to retail in EEA or the UK
• Governing Law: The Covered Bonds and the Bond Trust Deed are governed by English law. The Security Deed is governed by New South Wales, Australia law
• Documentation: The Base Prospectus in relation to CBA’s U.S.$40bn Covered Bond Programme dated 20-Jul-26 and any supplements thereafter are available, and the Final Terms, when published, will also be available via: https://www.commbank.com.au/about-us/investors/covered-bonds.html
• Timing: ToE: 1334UKT / FTT: 1350UKT

• To view the LIVE / REAL TIME European IG pipeline please click here.
• Details correct at time of posting