Leveraged/non-investment grade

  • Ukraine shows the difficulties of reform

    Ukraine shows the difficulties of reform

    Less than a year ago, international investor optimism about Ukraine was high but the journey to western style reform since then has shown just how hard a road it can be to travel.

  • Lack of CLO ratings transparency damages credibility

    Lack of CLO ratings transparency damages credibility

    Rating agency reviews of CLOs are not resulting in mass downgrades in Europe. That has caused some to question what is going on given the damage the coronavirus pandemic and lockdowns must surely have had on certain sectors of the economy that some CLOs are exposed to. Some transparency around ratings metrics would help soothe the angst.

  • Janus Henderson launches triple-A CLO ETF

    Janus Henderson launches triple-A CLO ETF

    Janus Henderson is planning an exchange traded fund (ETF) that will invest in the safest tranches of CLOs, according to a filing with the Securities and Exchange Commission.

  • Is Monzo at risk of a capital crunch?

    Is Monzo at risk of a capital crunch?

    The auditor for digital bank Monzo warned that a slower than expected recovery could lead it to breach its capital requirements, even though at the end of February it had a much better capital ratio than traditional banks. So what’s going on? GlobalCapital wonders if the risk is more about investors’ appetite to continue funding an unprofitable business than the bank breaching the requirements in the next few months.

  • Social revolvers: the feelgood hit of the summer

    Social revolvers: the feelgood hit of the summer

    Canny loans bankers have devised a social revolving credit facility structure that links a portion of a borrower’s debt directly to Covid-19 era relief spending. It’s a structure that won’t take the markets by storm on what is likely the eve of global recession but ESG-minded investors should still push hard for the companies they own to consider this new type of funding.

  • Pepp data: how ECB supports eurozone periphery with bond scheme

    Pepp data: how ECB supports eurozone periphery with bond scheme

    The ECB publishes a breakdown of its purchases under the Pandemic Emergency Purchase Programme (Pepp), which was launched in late March to combat the effects of the coronavirus pandemic. Unlike the Public Sector Purchase Programme, the Pepp may deviate from the ECB's capital key in terms of how it allocates its buying between member states. This chart shows the extent of these deviations, and that its buying has proportionally favoured the eurozone perihpery: Portugal, Italy, Greece and Spain.

  • Brandenburg prices through curve with new 20 year

    Brandenburg prices through curve with new 20 year

    The State of Brandenburg got over the line with a fully subscribed order book and a yield inside its curve on Tuesday, successfully avoiding the fate that its compatriot Berlin met at the tenor last week.

  • European CLOs weathering downgrade risk

    European CLOs weathering downgrade risk

    Rating agency reviews of CLO tranches which began in April are coming to an end, with the majority keeping their scores in early signals that the sector may avoid a mass of downgrades.

  • Melrose wins covenant waiver as lenders take 'pragmatic' stance

    Melrose wins covenant waiver as lenders take 'pragmatic' stance

    Melrose Industries, the UK industrial conglomerate, has negotiated improved financial covenants with its lenders on around £4.1bn of debt, as loans bankers say there is still a backlog of companies looking to get renegotiate covenants in the face of Covid-19 economic fallout.

  • Renovation revolution to spur green covered bonds

    Renovation revolution to spur green covered bonds

    The refurbishment of existing housing stock promises to deliver big strides in cutting global carbon emissions and will provide issuers with a large new stream of green collateral upon which issue green covered bonds.

  • Former Morningstar MD joins blockchain securitization platform

    Former Morningstar MD joins blockchain securitization platform

    Cadence, a blockchain based securitization platform for private credit, has added Rohit Bharill to be the firm’s first head of risk, a company executive told GlobalCapital. Bharill joins from Morningstar Credit Ratings, where he headed the ABS and CLO ratings team.

  • DSSI extension looms amid private sector absence

    DSSI extension looms amid private sector absence

    Expectations are building that the G20 Debt Service Suspension Initiative (DSSI), introduced to alleviate the debt burden of the world’s poorest countries in the face of the coronavirus shock, will be extended this winter.

  • Alibaba Health launches $1bn share sale

    Alibaba Health launches $1bn share sale

    Alibaba Health Information Technology hit the market on Tuesday evening to raise up to HK$8.2bn ($1.06bn) in fresh equity from a follow-on, according to a term sheet seen by GlobalCapital Asia.

  • Pepp data shows ECB still standing with periphery

    Pepp data shows ECB still standing with periphery

    The ECB has released the data breaking down the purchases it has made under the Pandemic Emergency Purchase Programme in June and July, revealing that it is still providing substantial support to the eurozone periphery.

  • Secondary blocks market reopens with big Swiss trades

    Secondary blocks market reopens with big Swiss trades

    European equity capital markets investors had a big night of secondary blocks to look at on Monday, with two large Swiss trades which totalled around Sfr1bn ($1.09bn) of volume combined. The transactions showed that there is still a market for block trades in large, liquid stocks with recent ECM pedigree.

  • Argentina lands $65bn restructuring after months of strained negotiations

    Argentina lands $65bn restructuring after months of strained negotiations

    Argentina announced an agreement with bondholders on Tuesday to restructure $65bn of debt. The country's dollar bonds had rallied late on Monday as rumours circulated that a deal was close following months of negotiations with either side repeatedly rejecting the other's proposals.

  • Market welcomes new Natixis CEO Namias

    Market welcomes new Natixis CEO Namias

    Investors appeared positive on Natixis's prospects on Tuesday morning after the replacement of François Riahi as chief executive with Nicolas Namias. Meanwhile, the bank has said it will reposition its equities division after it endured another tough quarter.

  • China Overseas Land loan available in secondary market

    China Overseas Land loan available in secondary market

    A HK$18bn ($2.3bn) term loan sealed by China Overseas Land and Investment in 2017 is doing the rounds in the secondary market, offering asset-starved banks an opportunity to take exposure to the Hong Kong-listed company.

  • Luckin Coffee: a crackdown or a sideshow?

    Luckin Coffee: a crackdown or a sideshow?

    China’s hands-on approach into investigating Luckin Coffee signals that the regulators are serious about cracking down on financial crimes by corporations. But how serious they really are will only be revealed in how they tackle similar problems in the future.

  • CICC seals $500m bond inside fair value

    CICC seals $500m bond inside fair value

    A recent flurry of bonds from financial institutions did not dent appetite among investors for China International Capital Corp’s (CICC) $500m deal on Monday.

  • Powerlong offers negative premium on bond return

    Powerlong offers negative premium on bond return

    Powerlong Real Estate Holdings received huge support from investors for its $200m bond on Monday. The deal’s modest size and expectations of limited imminent supply from Chinese property credits helped the firm get away with a negative new issue premium of about 10bp.

  • KWG makes $200m bond comeback

    KWG makes $200m bond comeback

    Chinese property developer KWG Group Holdings returned to the bond market on Monday, taking $200m at a level that was inside of fair value estimates from analysts.

  • New LA-based asset manager acquires CLO contract

    New LA-based asset manager acquires CLO contract

    Ducenta Squared Asset Management recently obtained the management contract for a CLO managed by Tortoise Credit Strategies, a firm that Ducenta acquired in April, according to a source familiar with the purchase.

  • A close call for this year’s covered bond awards

    A close call for this year’s covered bond awards

    Just a few few votes separate the leading contenders in some of the categories in GlobalCapital’s Covered Bond Awards 2020 survey and, with the outcome uncertain, market participants that have not voted yet are encouraged to do so soon.

  • EIB loans Italy €2bn for healthcare

    EIB loans Italy €2bn for healthcare

    Italy will receive a €2bn loan from the European Investment Bank to help cover the reinforcement of its healthcare system required to deal with the coronavirus pandemic.

  • Embattled HSBC to press on with restructuring

    Embattled HSBC to press on with restructuring

    HSBC revealed a big increase in credit loss provisions in its second quarter results on Monday, as it vowed to step up the pace of its strategy shift. In the investment bank, it was a strong outing for fixed income and currencies trading, but a disappointing quarter for equities.

  • Brandenburg hopes to avoid Berlin's fate with 20 year bond

    Brandenburg hopes to avoid Berlin's fate with 20 year bond

    The State of Brandenburg will keep the primary euro public sector bond market ticking on Tuesday after mandating banks for a new 20 year bond for which it hopes to achieve a better outcome than Berlin's deal at the tenor last week.

  • Hyde Housing holds calls for long dated sterling

    Hyde Housing holds calls for long dated sterling

    Hyde Housing, a UK housing association, held an investor call on Monday for a long dated sterling benchmark-sized bond, with bankers assessing demand for high grade debt in the currency is at a high.

  • Vanguard Group sells largest deal in US PP history

    Vanguard Group sells largest deal in US PP history

    The Vanguard Group, the US asset manager which pioneered low cost, index-tracking investment, has sold $3bn worth of private placements. According to GlobalCapital data, this deal is the largest ever recorded in the US private placement market.

  • Israel’s Delek steams ahead with $2.25bn trade

    Israel’s Delek steams ahead with $2.25bn trade

    Israeli energy company, Delek Drilling, is set to launch a $2.25bn bond sale this week to support the expansion of its gas fields in the Mediterranean Sea, according to market sources.

  • Big rights issues expected as firms dig in for long pandemic

    Big rights issues expected as firms dig in for long pandemic

    Equity capital markets bankers are preparing for a busy autumn of rights issues as companies prepare to weather a long period of Covid-19 disruption. Because of the uncertainty over the the length and severity of the pandemic, businesses are said to be looking at larger capital raises than before.

  • LCR amendment could disrupt Lux covered bonds

    LCR amendment could disrupt Lux covered bonds

    The European Commission’s proposed amendment to the Liquidity Coverage Ratio Delegated Act suggests covered bonds, such as those issued by NordLB Luxembourg and others, could be excluded which would threaten to extinguish bank demand for such bonds. However, it seems likely that a solution that references the covered bond directive will be found.

  • Social revolvers expected to remain tiny part of loan market

    Social revolvers expected to remain tiny part of loan market

    The Loan Market Association is not looking at producing documentation for social revolving credit facilities, adding to the likelihood that the first-of-its-kind Covid-19 facility for Suez last week will remain a rarity in the market.

  • UK announces details of September syndications

    UK announces details of September syndications

    The UK Debt Management Office has chosen the maturities and issuance windows for its two planned syndications in September. One of the syndications will be a new 15 year Gilt, which divided opinion among investors at a consultation last week.

  • Tahoe defaults as Vanke sets tough terms

    Tahoe defaults as Vanke sets tough terms

    China’s Tahoe Group has failed to repay a second domestic bond. The company has announced a potential share sale to China Vanke Co, but the deal will not be a bail-out ─ Vanke has made clear it will not take on the company’s debt.

  • Tianjin court orders Tewoo restructuring

    Tianjin court orders Tewoo restructuring

    Chinese state-owned commodities trader Tewoo Group Co, which has been under financial pressure for more than a year, is facing a possible restructuring.

  • Amigo holds on to RBC securitization facility as deadline nears

    Amigo holds on to RBC securitization facility as deadline nears

    Amigo Holdings, a UK guarantor loan provider, has won a waiver for its £300m securitization facility with the Royal Bank of Canada (RBC), giving it until August 14 to come to an agreement on terms while the company fends off an Financial Conduct Authority probe and a public spat between the board and the company's founder.

  • Suez brings new Covid-19 social revolver structure

    Suez brings new Covid-19 social revolver structure

    Suez, the French utility, signed what it claims to be the first ever social revolving credit facility, using elements of green and sustainability-linked financing to create a new Covid-19 era structure to mitigate some of the financial fallout from the coronavirus pandemic.

  • EU: the musical, Hong Kong: the swan song, and a menacing ballet

    EU: the musical, Hong Kong: the swan song, and a menacing ballet

    Each week Keeping Tabs beings you the most interesting and entertaining reading from around the web that we have uncovered. This week, the perils of the EU recovery fund through the lens of the subject of Broadway's hottest show, a menacing whiteness of swans and a grim view of Hong Kong's future in finance.

  • UBS hits Yankee bond market in quiet week

    UBS hits Yankee bond market in quiet week

    UBS lit up the dollar market with a $2.6bn trade this week that went some way to filling the supply gap created by a lack of issuance from Wall Street’s big guns.

  • Covered frameworks using SPVs clearer and safer for bondholders, says Fitch

    Covered frameworks using SPVs clearer and safer for bondholders, says Fitch

    Covered bond issuers using programmes containing a special purpose vehicle (SPV) have more guidance on the treatment of bad loans and protect bondholders further compared with those using integrated templates, Fitch said this week when assessing the risk coronavirus era mortgage payment holidays pose to the asset class.

  • HSBC shuffles FIG leadership

    HSBC shuffles FIG leadership

    Eric Bai and Alexander Paul have been appointed to the newly created roles of global co-heads of FIG coverage at HSBC.

  • Modernland proposes dollar debt restructuring

    Modernland proposes dollar debt restructuring

    Indonesian property developer Modernland Realty is looking to restructure its two outstanding dollar bonds following missed payments and rating downgrades, and after wrapping up a debt restructuring domestically.

  • GLP, FAB take on more renminbi debt

    GLP, FAB take on more renminbi debt

    GLP and First Abu Dhabi Bank both tapped investors in the renminbi bond market on Thursday. The Singapore-based logistics facilities provider took Rmb200m ($28.6m) from a Panda while the Middle Eastern firm headed to the Formosa market.

  • Peñoles mines for dual tranche dollar deal

    Peñoles mines for dual tranche dollar deal

    Mexican miner Industrias Peñoles sold $600m of bonds on Thursday to keep Latin American primary markets ticking over as sell-side bankers expect only a trickle of deals from the region until September.

  • Last-ditch bid to derail Ecuador restructuring finds limited sympathy

    Last-ditch bid to derail Ecuador restructuring finds limited sympathy

    Ecuador on Thursday afternoon agreed to delay the deadline of its bond restructuring offering by one business day after two funds began legal actions against it. But a US court hearing on Thursday morning was not promising for the litigious investors, and markets believe there is still a high chance of the deal going through.

  • US-EU trading venue deal could signal path to come for UK

    US-EU trading venue deal could signal path to come for UK

    A decision by the US Commodity Futures Trading Commission (CFTC) last week regarding European Union multilateral trading facilities (MTFs) and organised trading facilities (OTFs) could be a glum preview of the UK’s cross-border regulatory affairs.

  • DoL proposal misses the mark on ESG

    DoL proposal misses the mark on ESG

    The US Department of Labour (DoL) has proposed what it characterises as a reiteration of what has always been required of retirement fiduciaries — that they act in the best interest of their beneficiaries — urging them to disregard ESG considerations in investment decisions. In doing so, it appears not to have noticed the last decade in financial markets, which has shown that ESG investing is very much in investors’ interests.

  • AT&T rings in $11bn as Florida basks upfront

    AT&T rings in $11bn as Florida basks upfront

    The enduring health of the dollar new issue market was on display this week as companies emerged from earnings blackout to front-load funding ahead of the latest meeting of the Federal Reserve’s open market committee.

  • Transition idea key as banks present sustainability goals

    Transition idea key as banks present sustainability goals

    Citi, Deutsche Bank and Credit Suisse all launched pledges related to environmentally friendly financing this week, as banks face continued pressure to make their balance sheet greener. The details of the announcements also displayed how the idea of “transitioning” high-carbon companies to become more sustainable has become popular in banking.

  • Investors plead with US government over 'chilling' ESG rule

    Investors plead with US government over 'chilling' ESG rule

    The US Department of Labour is nearing the end of a comment period for a proposed rule that would hinder some investors’ ability to allocate money to environmental, social and governance (ESG) assets. Investors and advocacy groups have shown their alarm by pouring in requests for an extension to Thursday's deadline, writes Max Adams.

  • Lira dip raises spectre of currency crisis for Turkey with banks in crosshairs

    Lira dip raises spectre of currency crisis for Turkey with banks in crosshairs

    Falls in the Turkish lira have reignited concerns about a currency crisis this week, with the Central Bank of the Republic of Turkey’s (CBRT) unorthodox exchange rate policy raising questions from investors about the robustness of the country’s respected banking sector. Mariam Meskin and Ross Lancaster report.

  • Tesla returns to ABS with $780m auto lease deal

    Tesla returns to ABS with $780m auto lease deal

    Electric car maker Tesla is preparing its fourth retail auto lease securitization, issuing into a strong ABS market supported by high investor demand and solid auto market fundamentals in spite of the virus, sources said.

  • Utility stalwarts vanish from PPs as buyers cling to yield targets

    Utility stalwarts vanish from PPs as buyers cling to yield targets

    Regular credits in the private placement markets in Europe, like UK utilities, have disappeared from the scene since the coronavirus pandemic began because investors have not managed to reduce their yield targets to compete with pricing in public markets. Silas Brown reports.

  • IDB Invest lining up Covid-19 MTNs

    IDB Invest lining up Covid-19 MTNs

    Issuers have been flocking to the public market with coronavirus response bonds, but only a few have sold MTNs with the same theme. That is changing, however, with issuers inundated with requests for pandemic themed private placements. IDB Invest, the private sector investment arm of the Inter-American Development Bank, is likely to be next to cater to the market.

  • Swiss bankers optimistic for autumn deals

    Swiss bankers optimistic for autumn deals

    Despite the coronavirus crisis and uncertainty about the November US election, the Swiss franc market is feeling optimistic for the second half of the year, expecting a strong run of issuance until late autumn.

  • Prosus wows in euro debut with books 13.5 times oversubscribed

    Prosus wows in euro debut with books 13.5 times oversubscribed

    Prosus made a barnstorming debut in the European bond market this week, a day after an impressive dollar trade. The Naspers e-commerce vehicle, which attracts investment grade and emerging market investor interest, saw €13.5bn of demand for its €1bn deal.

  • Covid-19 spikes to wreak havoc in capital markets

    Covid-19 spikes to wreak havoc in capital markets

    Capital markets are preparing for a resurgence in Covid-19 cases as infection rates rise in the US and Europe. Bankers and investors are digging in for a longer pandemic than they hoped for and capital raising plans are set for a complete overhaul, report Sam Kerr, Lewis McLellan and Tyler Davies.

  • Euro borrowers look to long end

    Euro borrowers look to long end

    KfW tapped an October 2034 line on Tuesday, enjoying impressive demand for the €1bn trade after the strong performance of the Bund curve sent investors hunting for yield.

more leveraged/non-investment grade