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◆ How French issuers are responding to political ructions 

◆ French corporate, agency, bank and sovereign bonds discussed 

◆ French lender brings innovative European Defence Bond

French prime minister Francois Bayrou's decision this week to hold a confidence vote in his government is likely to be a key influence on European capital markets for the immediate future and possibly beyond.

We discuss how it is affecting the borrowing costs and behaviour of different issuers from the country and further afield — from its agencies and the European supranationals, whose spreads took a hit this week, to its investment grade companies, which did some surprising deals.

We also look at an innovative deal from French bank BPCE. It priced a bond the proceeds of which will finance defence. Rising defence spending will be a huge and controversial topic for the capital markets and society for years to come so we examined whether this new label would be one that will stick, what it can achieve for the issuer and the defence industry, and what we can deduce from the execution given the politically-driven market volatility.

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◆ Why investors are piling into SSA bonds despite the tight spreads 

◆ Bank AT1 issuers spy chance 

◆ EDF pioneers in Kangaroo market

Benchmark bond issuance resumed across asset classes this week. In the SSA market, we investigated why issuers were able to build record order books for huge bonds when spreads are so tight.

We also inspected a restricted tier one deal from Allianz to see what it meant for banks looking to issue their version of that level of capital — additional tier one.

Finally, we looked at a rare trade from France's EDF in the Kangaroo market. Aussie dollar funding is of growing importance to the world's bond issuers so we looked into what the implications of this long-dated deal would be for other companies.

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◆ Exclusive interview with Amundi portfolio manager, Jonathan Manning 

◆ Navigating fixed income amid tariff disruption 

◆ Investing at tight spreads

Yields are high and defying predictions that they will fall. Meanwhile, spreads are tight across credit markets with recent new issues pricing at or through fair value.

Then consider erratic US trade policy, the early signs of international investors abandoning dollar assets and the rise of private credit into investment grade credit, and you have an awful lot to think about as a fixed income portfolio manager. 

All of which was why we were delighted to speak this week with Jonathan Manning, senior global credit portfolio manager at Amundi, Europe's largest asset manager, who talked to us about all of that and much more besides.

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◆ Wendel proves the summer market isn't just for the big boys 

◆ Trio of new issues show buoyant market for banks 

◆ Private credit's threat to the investment grade bond and loan markets

Both the investment grade corporate and financial institution bond markets this week hosted stellar new issues, proving that for certain issuers the perceived lack of summer liquidity is a fiction.

Wendel broke its usual issuance pattern to price a very successful new issue, proving that it isn't just the biggest blue chips that can get deals done. We ask what Wendel's success has done to the immediate pipeline in that asset class.

Meanwhile, there was a hat-trick of well-received new issues from major bank issuers. We look at the options for FIG issuers across the capital stack in light of these trades.

Finally, the rise of private credit is one of the hottest topics in finance. Traditionally a source of cash for sub-investment grade companies, investors are now looking to lend to the best rated borrowers. We discuss whether this is a threat to the bond and loan markets.

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◆ Mexico throws Pemex innovative debt lifeline 

◆ Callable ZCs in vogue for public sector issuers 

◆ Why ECB regs update will drive insurance capital issuance

Pemex, Mexico's state-owned energy company, is a storied bond issuer. But lately it has been in a spot of bother. We explain what has been going and what an innovative bit of financing organised by the Mexican government this week — a P-cap — will do to ease the company's debt burden.

Meanwhile, a particular group of investors is buying callable structured notes from public sector bond issuers. We reveal who, the market forces driving this trend and what's in it for the investors, issuers and the banks that put them together.

We also discuss the ECB's latest regulatory update on what is known as the Danish Compromise. The guidance on this piece of regulation that governs how banks treat the capital of the insurance companies that they own is likely to lead to more issuance. Insurance capital is a small, specialist but popular asset class. We debate whether this will be its lift-off moment.

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◆ EU budget ambition to cement issuer status 

◆ French spreads 

◆ Finally, the European bond market's consolidated tape

The European Commission has launched what its president, Ursula von der Leyen has called its "most ambitious" budget proposals. They include a heap of joint borrowing to be done by the EU, cementing its status as a permanently huge bond issuer. We look into the numbers to see what it means for the SSA bond market.

Meanwhile, in France, covered bonds look set to trade through government bonds. Again, the government's budget has a part to play as we investigate what this pricing dynamic means for different groups of investors.

We also herald the dawn of the EU's consolidated tape for the bond market, which aims to bring better price transparency. We explain what it will contain, what it won't and why it matters.

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◆ UK rule change cheers covered bonds... 

◆ ... as it shelves Taxonomy plans amid wider transition shift 

◆ Digital markets: what makes a swap smart 

The UK is going for growth and is making a regulatory revamp part of that programme. Chancellor of the exchequer Rachel Reeves said this week in her Mansion House speech that "in too many areas, regulation still acts as a boot on the neck of businesses" and that she was part of a government that has "swept away" regulations.

Whether it has or not can be debated but there were two key regulatory developments in the UK for the capital markets this week. The first was a decision to set-up an equivalence regime for covered bonds. We explain why that is such a boost for the asset class.

Secondly, the UK said it would not produce a green taxonomy. We examine why that might be and what the benefits and costs are. This is particularly pertinent as the transition to a low carbon economy evolves. We also discuss how that pursuit is changing and how it affects the capital markets.

Finally, with news of an agency issuer and a bank entering into a digital smart swap contract, we discuss what they are, what problems they solve, as well as some that they don't.

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◆ Stellar conditions for issuers across the bond market 

◆ How bond issuance will pan out over the rest of the year 

◆ Dedollarisation discussed

The relatively few issuers that took advantage of the primary market this week were well rewarded. US tariffs were kicked down the road once more meaning low volatility and so investors were happy to chase what deals they could find.

But is the market about to quieten down for the summer just when it seems there could not be a better time to issue bonds? We look at the arguments for and against and take the pulse of primary across SSAs, FIG, covered bonds, corporate bonds and emerging markets.

And we don't just think about when issuance will resume in size but also what the market will look like in the future with dedollarisation a growing topic for investors and issuers alike.

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◆ SSA yields bump up against US government curve with deficit set to spiral 

◆ Waning CEEMEA ESG bond issuance 

◆ Leaner, meaner SLL market

The SSA bond market has enjoyed its fair share of eye-catching relative value inversions of late. Last year, the likes of Portugal and Spain began trading tighter than France in the European government bond market, for example. 

But after US president Donald Trump got his budget voted through on Thursday, it could be about to witness the mother of all RV upsets — bonds trading though US Treasuries for the first time ever.

This week we look at the arguments for and against why this should happen and think about when it might occur.

We also looked at some slowing areas of ESG capital markets. ESG-labelled bond issuance is falling in the CEEMEA bond market despite some recent high profile deals. We examine the theories behind why this is happening.

Meanwhile, he sustainability-linked loan market is a shadow of its former self. We find out why and argue that this might be a good thing, showing a market gaining in sophistication.

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◆ SSA market faces up to escalating defence funding 

◆ Arms company bonds in focus 

◆ Slovenia's landmark SLB

As Nato members agreed — mostly — to ramp up their defence funding to 5% of GDP over the next decade, we asked the SSA bond market how it would handle the extra funding that it will need to provide for that end. 

Some Nato members don't even meet the old target of 2% of GDP, so this week's declaration made at the alliance's summit in the Hague was quite the escalation. It came in the same week that some of the SSA market's biggest borrowers released their latest funding targets too.

Meanwhile, extra defence spending is a boon to arms companies. They have been spectacular performers in equity markets but we took a look at what all that extra business and revenue will mean for their bond issuance.

Finally, Slovenia this week became the first European sovereign to price a sustainability-linked bond. We examined the deal, how it was priced and marketed, and ask whether this is a credible avenue of funding for other governments.