EUR MTNs: 2023's top structures, issuers and leads
What types of interest rate structured note have been most popular in euro this year, who’s been issuing them and via which banks? Total Derivatives follows structured MTN issuance in its daily EUR vol and weekly EUR MTN reports (see, for example, here and here) but, until now, it hasn’t tracked aggregate issuance. This new monthly report is an attempt to fill that gap and feedback is welcome.
A number of things stand out from the data. First, while callable and repack issuance is down, inflation-linked notes have become a lot more important in the wake of HICPs surge to a peak of over 10% in October 2022. Inflation-linked notes have risen from just 1% of structured MTN issuance in the first seven months of 2022 to 17% (€2.8bn) of the total in 2023. SPIRE was the largest inflation issuer followed by the EIB, which printed a single €400m deal in May 2023.
Second, after rates rose in 2022-23, the popularity of callable structures fell, both on an absolute and a relative basis. KfW remained the largest issuer of callables but MTNs from such as NedWaters, IBRD and L-Bank fell in 2023 compared with 2022.
Third, issuance of CMS structures is running at about the same rate as last year (although the type of CMS structure being printed has changed). However, CMS issuance has been dominated in 2023 by €1.5bn in two large CMS deals from Italy. In contrast, repack issuance through SPIRE was the major source of CMS MTNs in 2022.
Finally, which banks have led the most deals? JP Morgan is the name on most inflation-linked structures in 2023 so far, through the EIB deal and also via SPIRE repacks, followed by Deutsche Bank in second. DZ is the top lead for callables, mostly for itself, followed by Goldman Sachs. Citigroup is top of the table for repacks followed by BofA, with JP Morgan and BNPP much less active than in the same period of 2022. And while BNP Paribas is the biggest lead for CMS deals, much of that is from Italy’s €1.27bn MTN, launched in May. Excluding issuance by Italy, Morgan Stanley and Credit Agricole are the biggest CMS leads this year.
Inflation
Inflation-linked MTN issuance by issuer (EUR million)
| '23 ytd | '22 ytd | ||
| SPIRE | 736 | Credit Suisse | 37 |
| EIB | 400 | Credit Agricole | 33 |
| LCL Credit Agricole | 250 | BofA | 25 |
| DB | 208 | Citigroup | 25 |
| RBI | 200 | JPM | 25 |
| Citigroup | 166 | MS | 25 |
| CIC | 160 | CIC | 20 |
| Credit Agricole | 143 | SPIRE | 20 |
| MS | 112 | SocGen | 20 |
| Santander | 100 | Nomura | 1 |
Inflation-linked MTN issuance by lead (EUR million)
| '23 ytd | '22 ytd | ||
| JPM | 776 | Credit Suisse | 37 |
| DB | 403 | Credit Agricole | 33 |
| LCL Credit Agricole | 250 | BofA | 25 |
| MS | 237 | Citigroup | 25 |
| RBI | 200 | JPM | 25 |
| Citigroup | 166 | MS | 25 |
| Barclays | 160 | CIC | 20 |
| Credit Agricole | 143 | Barclays | 20 |
| Goldman Sachs | 120 | SocGen | 20 |
| Santander | 100 | Nomura | 1 |
Callables
Callable MTN issuance by issuer (EUR million)
| '23 ytd | '22 ytd | ||
| KFW | 1650 | KFW | 3241 |
| DZ | 945 | NRW.Bank | 2080 |
| Helaba | 550 | DZ | 1160 |
| BCEE | 365 | NedWaters | 1039 |
| Credit Suisse | 339 | SPIRE | 870 |
| EBRD | 295 | IBRD | 787 |
| NedWaters | 240 | Kuntarahoitus | 561 |
| SPIRE | 240 | L-Bank | 521 |
| IBRD | 235 | NordLB | 350 |
| DB | 235 | Rentenbank | 295 |
Callable MTN issuance by lead (EUR million)
| '23 ytd | '22 ytd | ||
| DZ | 1240 | DZ | 2736 |
| Goldman Sachs | 860 | Citigroup | 1279 |
| Helaba | 555 | MS | 1175 |
| MS | 490 | UniCredit | 1145 |
| Credit Agricole | 411 | Credit Agricole | 1051 |
| BNPP | 410 | JPM | 893 |
| BCEE | 365 | Goldman Sachs | 675 |
| Credit Suisse | 339 | Natixis | 630 |
| UBS | 287 | SocGen | 611 |
| DB | 245 | BNPP | 577 |
CMS
CMS-linked MTN issuance by issuer (EUR million)
| '23 ytd | '22 ytd | ||
| Italy | 1520 | SPIRE | 1439 |
| SPIRE | 429 | Citigroup | 377 |
| DZ | 155 | JPM | 257 |
| Credit Agricole | 128 | Credit Suisse | 213 |
| MS | 105 | CIC | 165 |
| Natixis | 93 | Goldman Sachs | 135 |
| LBBW | 75 | SocGen | 125 |
| NBC | 70 | MS | 120 |
| BofA | 65 | Scotia | 75 |
| RBC | 60 | BofA | 75 |
CMS-linked MTN issuance by lead (EUR million)
| '23 ytd | '22 ytd | ||
| BNPP | 724 | BNPP | 619 |
| Intesa Sanpaolo | 635 | Credit Suisse | 488 |
| MS | 380 | Citigroup | 377 |
| Credit Agricole | 184 | JPM | 348 |
| DZ | 155 | Goldman Sachs | 225 |
| BofA | 140 | BofA | 195 |
| DB | 131 | Jefferies | 183 |
| LBBW | 100 | Credit Agricole | 147 |
| GS | 100 | MS | 140 |
| Natixis | 93 | SocGen | 125 |
Repacks
Repack MTN issuance by issuer (EUR million)
| '23 ytd | '22 ytd | ||
| SPIRE | 3931 | SPIRE | 6190 |
| Cima Finance | 343 | BNPP | 246 |
| Novus | 100 | Finzia | 230 |
| Nova Capital | 50 | Cima Finance | 187 |
| ABS | 45 | Sustainable | 150 |
| Palladium | 35 | Nova Capital | 100 |
| Cartir | 25 | Aldburg | 56 |
| Goldenpeaks | 22 | Progressio Infrastru | 56 |
| BNPP | 15 | Novus | 40 |
| Menara | 14 | Ascent Finance | 35 |
Repack MTN issuance by lead (EUR million)
| '23 ytd | '22 ytd | ||
| Citigroup | 1271 | JPM | 1249 |
| BofA | 707 | BNPP | 1179 |
| MS | 591 | MS | 1169 |
| JPM | 519 | BofA | 711 |
| Santander | 353 | Credit Suisse | 469 |
| Nomura | 150 | UBS | 361 |
| BNPP | 135 | DB | 352 |
| UBS | 123 | Credit Agricole | 312 |
| DB | 110 | Citigroup | 308 |
| GS | 100 | Santander | 187 |
Total
Total interest rate structured MTN issuance by issuer (EUR million)
| '23 ytd | '22 ytd | ||
| SPIRE | 3931 | SPIRE | 6229 |
| KFW | 1650 | KFW | 3241 |
| Italy | 1520 | NRW.Bank | 2080 |
| DZ | 1100 | DZ | 1210 |
| Helaba | 550 | NedWaters | 1088 |
| DB | 474 | IBRD | 787 |
| EIB | 425 | Citigroup | 602 |
| Credit Agricole | 414 | Kuntarahoitus | 561 |
| BCEE | 365 | L-Bank | 521 |
| Credit Suisse | 347 | JPM | 500 |
Total interest rate structured MTN issuance by lead (EUR million)
| '23 ytd | '22 ytd | ||
| Citigroup | 1572 | DZ | 2809 |
| MS | 1443 | JPM | 2450 |
| DZ | 1395 | Citigroup | 1989 |
| BNPP | 1213 | MS | 1939 |
| JPM | 1153 | BNPP | 1527 |
| Goldman Sachs | 1034 | Credit Agricole | 1396 |
| BofA | 1032 | UniCredit | 1225 |
| DB | 788 | BofA | 1022 |
| Credit Agricole | 752 | Credit Suisse | 981 |
| Intesa Sanpaolo | 650 | Goldman Sachs | 933 |