25 April 2017 by lberuti
France’s big banks were the main beneficiaries of the country’s first round of the presidential election. They were the best performers yesterday by a fair margin, and the risk premia of their senior and subordinated debts collapsed, despite some light profit taking on long risk positions during the session. They enjoyed another very positive day today, even if peripheral financial institutions stole the show - they were playing catch up, having lagged a bit their French counterparts yesterday -. Despite the backup in OATs, there was no stopping French banks. ACAFP ( Credit Agricole SA ) issued a new 10y obligation roughly 50 to 70cts cheap to existing bonds, but the discount was gone as soon as it started trading. The €1.5Bln new issue had no lasting impact on the bank’s 5-year CDS – nor on any other maturity – and it closed another 3.5bps tighter today at 60.5bps.