US primary market issuances rose to $10.4bn vs. $957mn in the week prior. IG issuances were at $10.4bn in contrast to no deals happening in the week prior while there were no HY issuances compared to $957mn the previous week. The IG space was led by NextEra Energy Capital Holdings $4bn four-trancher and KLA Corp’s $3bn three-trancher. In North America, there were a total of 2 upgrades and 3 downgrades combined across the three major rating agencies last week. US IG funds saw $7.5bn in outflows in the week ended June 22 as per Lipper data, following an outflow of $8.7bn in the week prior. Bloomberg notes that this extends the longest losing streak for bond funds to thirteen consecutive weeks. The total amount of withdrawals in the past 13 weeks have now reached $55.7bn, Bloomberg added. HY funds saw $2.6bn in outflows. LatAm saw no deals for a fourth consecutive week. In South America, there were no upgrades and downgrades across the major rating agencies. EU Corporate G3 issuance more than doubled to $23.4bn vs. $10.6bn in the week prior – KFW raised $2.85bn to lead the table, followed by BASF SE and Volkswagen, both of which raised €1.5bn with dual tranchers. Across the European region, there were 5 upgrades and 9 downgrades across the three major rating agencies. The GCC G3 region saw $4bn in deals last week vs none in the previous 2 weeks led by the government of UAE’s $3bn dual trancher, followed by MAF Global Securities and Bahrain’s deals worth $500mn each. Across the Middle East/Africa region, there was 1 upgrade and 4 downgrades across the three major rating agencies. The APAC ex-Japan G3 region saw $1.5bn worth of new deals vs. $395mn in the week prior – Kookmin Bank raised €526mn followed by GS Caltex, Hanwha Energy and Korea Western Power raising $300mn each. In the APAC region, there were no upgrades and 6 downgrades combined across the three major rating agencies last week.
