Sovereigns - All Articles

  • Conservative victory sparks short-lived bump in rates

    The solid victory for the Conservative Party in the UK election has given investors a burst of confidence. But the rise in rates has proved short-lived and is unlikely to spark any supranational, sovereign and agency sterling issuance. Meanwhile, the outlook for the Bank of England has become slightly more hawkish.

    • 13 Dec 2019
  • SSAs to spur digital evolution of bond market

    After years with little in the way of technological improvements, momentum is finally building behind several projects that could reshape primary capital markets. These systems will undergo their first tests in the SSA market. Intriguingly, the winner could come from either the public or private sectors. Burhan Khadbai reports

    • 13 Dec 2019
  • Sterling SRI bond market roars into life

    Sterling is set to take a bigger slice of the socially responsible bond market as a result of a number of initiatives, including reforms that are putting the pressure on UK pension funds to focus on environmental, social or governance (ESG) factors in their investments. Burhan Khadbai reports

    • 13 Dec 2019
  • Serious about green? Lagarde must ditch dirty debt

    Christine Lagarde, the new European Central Bank president, has planted a flag, placing climate change at the centre of the ECB’s priorities. That is bold — and laudable — but if the ECB is to have a meaningful impact, green QE is not enough. The ECB must divest its holdings of unsustainable assets.

    • 12 Dec 2019
  • ECB’s Visco adds to calls for eurozone safe asset

    The eurozone authorities should introduce a financial instrument that bundles together bonds from its member countries to provide a safe asset for investors at times of crisis, according to Ignazio Visco, governor of the Bank of Italy.

    • 12 Dec 2019
  • Blackrock cools on government bonds as EM finds favour

    BlackRock is bearish on the prospects of the government bond market in 2020, thanks to the exhaustion of monetary policy as a means of generating growth. Instead, the world’s largest asset manager is looking to move deeper into riskier assets such as emerging markets where there is still room for further easing.

    • 11 Dec 2019
  • In defence of Denmark's green idea

    Denmark’s debt officials have a highly original plan to issue green bonds in which the green element can be stripped off and traded separately. It’s going to put many a green nose out of joint. That’s no bad thing: the market needs to re-examine its claims to efficacy and virtue.

    • 10 Dec 2019
  • Morgan Stanley fined by AMF over govvie manipulation

    Morgan Stanley has been fined €20m by the Autorité des Marchés Financiers (AMF) for manipulation of French and Belgian government bond prices. The bank intends to appeal the fine.

    • 10 Dec 2019
  • Comrade Corbyn capital markets: surprisingly enriching?

    Voters go to the polls on Thursday to pick the next UK government, with the outside possibility of a far left Jeremy Corbyn-led Labour government keeping capital markets bankers awake at night. But the return of Marxism might hold some silver linings for them.

    • 10 Dec 2019
  • Ireland slashes funding target for next year

    Ireland’s National Treasury Management Agency (NTMA) on Monday announced a reduced borrowing programme for 2020.

    • 09 Dec 2019
  • Italy eyes green debut in 2020

    Italy is planning to issue its inaugural green bond in the second half of 2020, joining Germany and Sweden, who are also looking to sell their debut bonds in the format next year.

    • 06 Dec 2019
  • Danish DMO advances strippable green bonds

    Denmark’s government debt management office has formally proposed issuing green bonds in which the green element can be stripped off and traded separately — something that would be a world first, and would ask difficult questions of the green bond market. The DMO said investors had welcomed the idea.

    • 05 Dec 2019
  • Market readies for era of loose spending

    A major push towards fiscal easing in Europe, which could be a key driver of capital markets in 2020, looks more likely after the junior partner in Germany's governing coalition elected leaders who are calling for more public investment. Government debt in some other EU countries is already at record levels while demographic changes could push it higher.

    • 05 Dec 2019
  • Corbyn ‘chaos’ the risk but Johnson win expected

    The Conservative Party’s lead in the opinion polls is giving rise to expectations that risk assets will rally, Gilts will sell off and primary markets will remain open after the UK general election on December 12. But a victory for Jeremy Corbyn’s Labour Party would cause panic.

    • 05 Dec 2019
  • People moves in brief

    Giancarlo heads to private sector — Barclays structurer goes to buy side — Danske reorganises DCM

    • 05 Dec 2019
  • Austrian treasury official promoted to new role

    Christian Schreckeis, the former head of capital markets and investor relations at the Austrian treasury, has taken on additional responsibility for Austria's budget.

    • 05 Dec 2019
  • Primary dealerships are rigged systems — that’s the point

    The FICC Market Standards Board has just released guidance on the proper conduct of government bond auctions, cautioning banks — and primary dealers especially — to manage their conflicts of interest carefully. That’s fine as far as it goes, but the whole point of the primary dealer system is to rig the market, with finely tuned incentives on all sides to make sure governments have access to funding whatever the weather.

    • 03 Dec 2019
  • UK chooses window for final syndication of year

    The UK Debt Management Office (DMO) has announced the timing of the fifth and final syndication of its financial year.

    • 02 Dec 2019
  • Ireland regains double-A rating

    S&P raised Ireland’s debt rating to AA- on Friday, almost nine years to day that Ireland agreed to a bailout programme from the European Troika.

    • 02 Dec 2019