US primary markets saw a near doubling in new deals last week at $64.8bn as compared to $37.5bn in deals a week prior to it. This was largely attributed to Pfizer’s jumbo $31bn eight-tranche issuance, the fourth largest bond deal ever, to finance a portion of its Seagen merger. Other notable IG deals, which accounted for $59bn of issuance, include Charles Schwab’s $2.5bn and State Street’s $2bn two-part deals each. HY saw $6.1bn in new deals led by Venture Global raising $4bn followed by Curo Group’s $682mn deal. In North America, there were a total of 45 upgrades and 64 downgrades across the three major rating agencies last week. US IG bond funds saw $2.16bn in a third straight week of inflows for the week ended May 17, adding to $1.43bn in inflows from the prior week. HY funds on the other hand witnessed $1.15bn in outflows, a third straight weeks of outflows following the prior week’s $1.2bn.

EU Corporate G3 issuance rose sharply to $43.5bn vs. $26bn a week prior. Issuance volumes were led by KfW’s €6bn two-trancher and EDF raising $3bn via a three-part deal. Across the European region, there were 51 upgrades and 23 downgrades. The GCC dollar primary bond market saw $7.3bn in new deals following $1.5bn in deals a week prior. The was majorly on account of the Saudi Government’s $6bn dual-tranche sukuk deal, followed by Nogaholding’s $750mn issuance. Across the Middle East/Africa region, there were 24 upgrades and 8 downgrades across the major rating agencies. LatAm saw no new deals for a third consecutive week. The South American region saw 7 upgrades and 10 downgrades across the rating agencies.

G3 issuance volumes from APAC ex-Japan doubled to $4.7bn vs. $2.3bn a week prior to it. Deal volumes were led by Westpac’s $1.75bn covered bond issuance and KDB’s €800mn deals, followed by ST Engineering and BOC Aviation raising $500mn each. In the APAC region, there were 14 upgrades and 10 downgrades combined across the three rating agencies last week.

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