US primary markets saw $37.5bn in new deals last week as compared to $35.4bn in deals a week prior to it. Of the deal volumes, IG issuers raised $33.8bn in new issuances led by Merck’s $6bn six-trancher and Apple’s $5.5bn five-trancher. HY saw $3.7bn in new deals with Iron Mountain and Ball’s $1bn deals each. In North America, there were a total of 36 upgrades and 33 downgrades across the three major rating agencies last week. US IG bond funds saw $1.43bn in a second week of inflows, adding to $321.6mn in inflows from the prior week. For the week ended May 10, HY funds saw $1.2bn in outflows, a second straight weeks of outflows following the prior week’s $1.58bn.
EU Corporate G3 issuance rose to $26bn vs. $14.5bn a week prior. Issuance volumes were led by L’Oreal’s €2bn two-trancher and SEB Group’s €1.75bn issuance. Across the European region, there were 36 upgrades and 57 downgrades. The GCC dollar primary bond market saw $1.5bn in new deals following two consecutive weeks of no new deals. Mamoura was the sole issuer. Across the Middle East/Africa region, there were no upgrades and 6 downgrades across the major rating agencies. LatAm saw no new deals for a second consecutive week. The South American region saw 4 upgrades and downgrades each across the rating agencies.
Issuance volumes from the APAC ex-Japan G3 region were slightly higher at $2.3bn vs. $1.9bn in deals a week prior to it. Deal volumes were led by Eximbank China’s $1.5bn and Bayfront Infrastructure’s $500mn. In the APAC region, there were 5 upgrades and 3 downgrades combined across the three rating agencies last week