Geopolitical risks receding, credit markets reopening: Europe welcomes a wave of $24 billion in bond issuances in a single day.

After U.S. President Donald Trump signaled that the Iran war is about to end, credit risk indicators fell, prompting companies to accelerate bond issuances in the European market. According to market data, at least 21 billion euros (approximately 24 billion U.S. dollars) in bonds will be priced in the European region on Tuesday, making it the busiest trading day since the outbreak of the Middle East conflict last week. Since the outbreak of the war, borrowers have generally delayed entering the market due to soaring credit risks, leading to a backlog of bond issuance transactions, and this market response is a reflection of the concentrated release of pent-up demand. According to sources, the automaker Stellantis NV (STLA.US) is advancing its first dual-currency euro and pound hybrid bond issuance, which consists of three parts and is the first such hybrid bond trade since the outbreak of the Middle East conflict - such high-risk debts are often seen by credit rating agencies as "part equity". McDonald's Corporation (MCD.US) also simultaneously launched a 1 billion euro bond issuance plan. In addition, sources revealed that other companies such as Royal Schiphol Group NV and South Eastern Power Networks Plc are also simultaneously advancing bond issuance plans. In addition to strong corporate bond performance, the participation of sovereign and quasi-sovereign issuers has injected a large amount of liquidity into the market. It is reported that the EU and the UK governments both launched large-scale pricing transactions on Tuesday, collectively making it the busiest trading day in the European bond market since the tension in the Middle East. Specifically, the EU plans to issue 9 billion euros in bonds, while the UK will launch 6.25 billion pounds (approximately 8.4 billion U.S. dollars) in green gilts. Trump's remarks about the impending end of the Iran war have significantly boosted global market risk appetite, leading to the largest single-day drop in credit default swap costs for European investment-grade corporate portfolios since June. Traders revealed that CDS prices for Asian investment-grade bonds simultaneously fell by 4 basis points, reflecting the market's positive response to the easing of political risks for GEO Group Inc. The current market focus is on the dynamics of Stellantis Group's hybrid bond trading. The automaker has been facing operational pressures in recent months, with its stock price falling by 35% year-to-date. CEO Antonio Filosa is currently adjusting the strategic direction, trying to divest non-profitable investment projects left by the previous management team in the field of electric vehicles to optimize capital allocation and alleviate financial pressures. Bond Craze This wave of transactions has restarted the rhythm of what was expected to be a busy issuance month. Data shows that the global financing volume in the first two months of this year has reached a record 1.5 trillion U.S. dollars, mainly driven by the large-scale transactions of technology companies and supported by strong investor demand. Market participants had previously expected a cautious outlook for this week, generally waiting for further clarity on the situation in the Middle East. According to a European bond issuance survey released on Friday, respondents expected the total bond issuance this week to be between 15 billion euros and 30 billion euros. As market sentiment changes, junk bond trading has also become active. Median Group became the first company to issue Class B term loans since the outbreak of the conflict - this company, which focuses on mental health and adult care, plans to extend the euro and pound portions of the loan term by three years to 2030, with the commitment date set for March 12th.