The meaning of a basis point

But first, to get us started, Atanas, the FIG market obviously has been full of interest this year and coped with, with the war situation in the Middle East, of course.

But you're focusing this week on a rather different aspect.

Credit markets have been doing really well, um, despite the war, um, AI jitters and whatnot.

Investors have been really eager to add credit.

Credit spreads have been very low.

We've discussed this before, but yields have helped.

There, there are different reasons why credit has been doing well, but in particular US banks when they issue in euros or in Europe in sterling as well, they seem to be really welcome by investors.

One reason for that is that, um, US banks tend to issue big volume similar to what they do in their US dollar market, and they pay higher new issue concessions.

And it's very topical, isn't it? Because we've just had the end of the second quarter, and the US banks tend to issue as soon as they've sort of finished their quarterly results, don't they? So tell us about what's been happening short term in, in, in that cycle.

But what we've seen this time around, just immediately on the same day after posting its earnings, Goldman did 10 billion in the dollar market through three tranches, and then it did 5 billion euros through another triple tranchure.

Which, which is not insignificant.

5, 5 billion euros, that's almost, uh, $6 billion.

That's 60% of what they've done in dollars.

So you see the significance of euros is growing in importance when you look at the funding volume.

And, and what is quite interesting is the US money center banks have been issuing a lot more in euros over the course of the past three years.

Now, Goldman Sachs has done three trades in euros, and actually they're leading in volume.

They've now done over 13 billion, 13.4 billion to be more precise in euros.

As year to date, US banks have now issued more than 15% than what they've done in the past, and last year was a record for them.

So David, you cover the dollar bond market for us.

What's the action been like from the US banks this week and, you know, recently?

Well, as you mentioned, you know, they typically come out with the blocks after earnings with, with, with bond deals, so it's kind of regular wave.

This is not a surprise.

But what's been surprising this time, taking a few kind of syndicate desks by surprise, is the sheer size relative to the fact that they've already issued in quite some volume so far this year.

I think, I don't have the total numbers to hand, but I think Goldman had already done something like 30 billion in the dollar market alone in the first half of the year.

So people were surprised that they came with another 10 billion.

But first, to get us started, Atanas, the FIG market obviously has been full of interest this year and coped with, with the war situation in the Middle East, of course.

But you're focusing this week on a rather different aspect.

Credit markets have been doing really well, um, despite the war, um, AI jitters and whatnot.

Investors have been really eager to add credit.

Credit spreads have been very low.

We've discussed this before, but yields have helped.

There, there are different reasons why credit has been doing well, but in particular US banks when they issue in euros or in Europe in sterling as well, they seem to be really welcome by investors.

One reason for that is that, um, US banks tend to issue big volume similar to what they do in their US dollar market, and they pay higher new issue concessions.

And it's very topical, isn't it? Because we've just had the end of the second quarter, and the US banks tend to issue as soon as they've sort of finished their quarterly results, don't they? So tell us about what's been happening short term in, in, in that cycle.

But what we've seen this time around, just immediately on the same day after posting its earnings, Goldman did 10 billion in the dollar market through three tranches, and then it did 5 billion euros through another triple tranchure.

Which, which is not insignificant.

5, 5 billion euros, that's almost, uh, $6 billion.

That's 60% of what they've done in dollars.

So you see the significance of euros is growing in importance when you look at the funding volume.

And, and what is quite interesting is the US money center banks have been issuing a lot more in euros over the course of the past three years.

Now, Goldman Sachs has done three trades in euros, and actually they're leading in volume.

They've now done over 13 billion, 13.4 billion to be more precise in euros.

As year to date, US banks have now issued more than 15% than what they've done in the past, and last year was a record for them.

So David, you cover the dollar bond market for us.

What's the action been like from the US banks this week and, you know, recently?

Well, as you mentioned, you know, they typically come out with the blocks after earnings with, with, with bond deals, so it's kind of regular wave.

This is not a surprise.

But what's been surprising this time, taking a few kind of syndicate desks by surprise, is the sheer size relative to the fact that they've already issued in quite some volume so far this year.

I think, I don't have the total numbers to hand, but I think Goldman had already done something like 30 billion in the dollar market alone in the first half of the year.

So people were surprised that they came with another 10 billion.