Supranationals & Agencies - 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
  • Big Boris victory to fire up capital markets

    Capital markets are set for a surge of adrenalin on Friday after Boris Johnson’s Conservative Party secured a thumping majority in the UK’s general election, removing a huge weight of uncertainty about Brexit. With hopes also leaping of a US-China trade deal, government bonds, equities and sterling will all move in a risk-on direction on Friday — the only question is how far.

    • 13 Dec 2019
  • Climate and digitisation to dominate SSA’s 2020

    An unusual note of optimism defines the attitude of Europe’s public sector issuers as they approach 2020. While many other markets are beset by fears of a slowdown in global growth, trade wars, and Brexit, SSA borrowers are confident in their borrowing strategies and loyal investor bases. Despite a change of face in the ECB’s top job, rates are still set to remain low for the foreseeable future. Accordingly, investors are having to grit their teeth to stomach the scanty yields on offer for euro SSA assets. Although SSAs are offering little in the way of yield, their place as pioneers of the evolving SRI market always ensures lively debate. In this roundtable, held in early November, market participants on both the buyside and the sell side favoured a more holistic assessment of issuers’ ESG profiles, rather than relying on labelled assets, but whether or not the ECB should take a role in promoting the SRI market through “green QE” divided the group.

    • 13 Dec 2019
  • 2019 bond deals of the year: public sector borrowers

    2019 proved more fruitful for supranational, sovereign and agency borrowers than was expected in 2018 — in part thanks to a rejuvenation of the ECB’s asset purchase programme and a wholesale return to dovish monetary policies. GlobalCapital’s SSA team used its editorial judgment, with inspiration from GC’s world famous bond comments, to pick the top trades of the year. We strove to find deals that were not just the biggest, but that set pricing markers, were innovative and brave, or made an impression in other ways. GC presents the winners here. Congratulations to the issuers and banks involved.

    • 13 Dec 2019
  • SSAs forced to get comfortable with negative rates

    With the resumption of the ECB’s quantitative easing programme, any hopes of a normalisation of European monetary policy receded further into the distance. With “lower for longer” firmly established as the consensus call, SSA borrowers and investors will have to settle in and learn to love the world they inhabit

    • 13 Dec 2019
  • Dollars lose dominance for SSA borrowers

    The mighty dollar has lost its position as the default borrowing currency of the SSA market, and with a presidential election in 2020, that is unlikely to be reversed next year. However, that doesn’t mean that SSA borrowers can ignore it. Lewis McLellan reports

    • 13 Dec 2019
  • New supras poised to make a big splash

    A trio of recently launched supranational borrowers will be a frequent presence in 2020, as they look to cement their positions among the top names in the public sector bond market. Burhan Khadbai reports

    • 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
  • Can Sofr and €STR catch up to Sonia?

    In 2019, public sector borrowers led the way in the implementation of the new risk-free rates, with Sonia becoming a mainstream product. The question is whether Sofr and €STR can become as widely adopted as financial markets prepare for the end of Libor. 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
  • Dealers turn to specialisation as MTN volumes slide

    Specialisation could define MTNs in 2020 as the market looks to differentiate itself from public markets where borrowers are easily executing large, cheap, liquid benchmarks. MTN dealers’ change of focus is shaking up the league tables. Frank Jackman reports

    • 13 Dec 2019
  • What does not kill Swiss franc bonds makes them stronger

    The Swiss franc bond market has been able to withstand — just — the destructive forces of negative rates and yields and is looking forward to a new year in which green structures are set to blossom. Philip Moore reports

    • 13 Dec 2019
  • Niche currencies offer alluring alternative for SSAs

    For public sector issuers, niche currency deals have offered attractive opportunities for arbitrage funding, with spreads into euros and dollars spurring on demand this year. Meanwhile, strong investor appetite for green paper has seen niche shoots blossom throughout 2019. Frank Jackman reports

    • 13 Dec 2019
  • Green QE or divestment? Market eyes ECB’s plans

    Debt market specialists this week put forward contrasting views on the policies the European Central Bank might use to tackle climate change, after Christine Lagarde, its new president, said her strategic review of its mandate and operations would encompass how the bank should respond to it. She also promised action on stablecoins. Burhan Khadbai and Lewis McLellan report.

    • 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
  • KfW cuts funding target for 2020, eyes Sonia and Sofr

    KfW has announced a smaller borrowing programme for next year, joining a number of other public sector borrowers also set to borrow less in 2020.

    • 12 Dec 2019
  • First independent SSD on blockchain via Finledger

    German banks have completed the first Schuldschein issue with an independent counterparty on the new Finledger blockchain platform. The entire transaction happened on a paperless basis.

    • 11 Dec 2019
  • EU and Euratom ditch English law ahead of Brexit

    The European Union (EU) and the European Atomic Energy Community (Euratom) have switched the legal framework of their debt issuance programmes from English to Luxembourg law as they prepare for the UK’s withdrawal from the union.

    • 10 Dec 2019
  • ESM and EFSF funding to dip in 2020

    The total funding needs of the European Stability Mechanism and the European Financial Stability Facility is expected to drop next year.

    • 09 Dec 2019
  • SSA non-core issuance soars

    SSAs have had their best year in non-core issuance since 2012. SSA issuance (excluding euros, dollars and sterling) is up $3.83bn year on year to $82.95bn year to date. Much of this borrowing — some $32.8bn, according to Dealogic — has come through the MTN market.

    • 06 Dec 2019
  • Aurora shines into EMTNs

    Nivaura, a fintech startup, has added automation of EMTNs, commercial paper (CP) and certificate of deposits (CD) issuance to its Aurora platform.

    • 05 Dec 2019
  • SEK snags late $500m four year

    Swedish Export Credit Corporation has grabbed $500m of four year paper in what will almost certainly be the last SSA syndication of 2019.

    • 05 Dec 2019
  • SEK hits screens for four year dollar deal

    Swedish Export Credit Corporation appointed banks on Wednesday for the first syndicated public sector dollar bond since mid-November.

    • 04 Dec 2019
  • Vol may cause hiccups for SSAs in January

    A surge in volatility in underlying benchmark rates has SSA market participants eyeing the return of the primary market in January. While borrowers are unlikely to be deterred, the unsteady markets may make execution difficult.

    • 04 Dec 2019
  • EIB: spearheading the rollout of Ibor replacements

    When investors are presented with a new financial instrument, their instinct is generally to focus on pricing, relative value and liquidity. This is a natural response, especially in a low yield environment in which every basis point counts.

    • 04 Dec 2019
  • Funding scorecard: supranationals

    This week's funding scorecard looks at the progress supranationals have made in their funding programmes at the beginning of December, with some issuers also setting their funding targets for 2020.

    • 03 Dec 2019
  • CEB aiming for debut Sonia in 2020

    The Council of Europe Development Bank has told GlobalCapital about its borrowing plans for next year, which include making its debut in the new risk-free rate market.

    • 03 Dec 2019
  • Danske names co-heads of rates and credit in DCM reshuffle

    Danske Bank has appointed two senior bankers to lead its reorganised global debt capital business.

    • 02 Dec 2019
  • EU member states to kill plans for a new development bank

    European finance ministers are not keen on setting up a new development bank from scratch. They will instead start technical work on how to better streamline the operations outside the EU of the European Investment Bank and the European Bank for Reconstruction and Development.

    • 02 Dec 2019