Europe’s Bond Sellers Set for Brisk Return After Trump’s Win

(Bloomberg) -- Debt sales could return to Europe as soon as Thursday, with corporate issuance back on the menu after a week-long pause in the lead-up to Donald Trump’s US election win.

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Bankers responsible for bringing debt deals to market told Bloomberg they’re mulling deals for as soon as tomorrow, with rates decisions from the Bank of England and US Federal Reserve unlikely to deter potential euro currency sales. That would bring to an end two days without any marketwide sales in the region and snap a near week-long run of no corporate issuance, according to data compiled by Bloomberg.

“It makes sense to try to bring forward issuance into tomorrow if possible since next week has always threatened to be really busy,” said one European syndicate manager, who said a euro corporate offering could be on the cards and asked not to be identified because the information is private. They also pointed out that some countries will be observing the Armistice Day holiday on Monday.

Credit markets have rallied on the back of Trump’s presidential win, with the cost of protection against corporate defaults in Europe and Asia falling the most since early September. It follows similar positive moves across broader markets, with the S&P 500 hitting an all-time high after European and Asian stocks rose.

“I think the market’s reaction is as good a result as we could have had, for now at least,” said a separate senior debt banker, who noted that the clear result means there won’t be a repeat of the last election when markets were left in limbo after it took several days to declare a winner.

“If we don’t see deals this week we will see a wall of supply next week,” he added.

Debt sales in Europe are running at a record pace, with nearly €1.63 trillion ($1.75 trillion) priced so far this year. That’s about €80 billion short of the busiest year on record, when €1.7 trillion was raised in 2020 as borrowers loaded up on cheaper Covid-era funding.

“Healthy supply with some frontrunning what could be a very busy start to 2025,” could emerge in the upcoming three-week window before Thanksgiving, said a separate syndicate banker.

--With assistance from Paul Cohen.

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