Euro Credit Supply: October Slowdown

(MENAFN- ING) Executive summary

Corporate issuance slows in October, net supply remains positive

Euro corporate issuance totalled €28bn in October, down from €56bn in September. Despite the softer monthly volume, YTD issuance reached €426bn, ahead of the €413bn YTD in 2020 and remaining above the €401bn issued over the same period in 2025. Corporate net supply remained positive at €2.2bn in October, bringing the YTD total to €154bn.

TMT remained the largest contributor to euro corporate issuance, with €8bn printed in October and €110bn issued year-to-date, up 30% versus last year. Utilities have also remained an active source of supply, with YTD issuance reaching €74bn (+28% YoY), while Industrials & Chemicals issuance totalled €59bn year-to-date.

Corporate Reverse Yankee issuance amounted to €7bn in October, lifting YTD volume to €104bn. This has already exceeded the €92bn issued during the whole of 2025, making 2026 the largest year on record for corporate Reverse Yankee issuance.

Corporate ESG issuance reached €95bn year-to-date, exceeding the €76bn recorded over the same period in 2025. Green bonds continued to account for the majority of issuance, with YTD volumes reaching €87bn.

Bank bond supply drops in October with net supply in negative territory

EUR financial supply totalled €17.5bn in October, down from the €49bn high recorded in September. This brings 2026 YTD gross issuance to €338bn and YTD net issuance to just below €111bn. October net supply was negative for the second time this year at nearly €-5bn, due to redemptions totalling around €22bn last month.

Covered bond issuances reached €8.5bn in October, a €16bn decline from September's level. This was the second-lowest monthly issuance volume recorded since the start of 2026, on a backdrop of spread widening at the beginning of the month. YTD covered bond supply is reaching €180bn, still nearly €30bn ahead of last year's level, despite last month's slowdown.

Bank senior unsecured issuance totalled just over €12bn in October, of which €8.4bn in senior non-preferred bonds and €3.8bn in senior preferred instruments. YTD senior unsecured supply stands at €214bn. While senior preferred bond supply is at a similar level to 2025 YTD, senior non-preferred bond issuance is running nearly €10bn above last year's level.

Sustainable bond supply slowed to €2.3bn in October, down over €7bn MoM. YTD ESG issuances have reached over €67bn, the highest level recorded since 2022. The increase was driven by green bonds (reaching €60.7bn versus €41.8bn in 2025 YTD). Social bond supply declined to €4.5bn from €6.8bn the year prior. Sustainable issuances remain broadly stable at €2bn.

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