Americas

Royal Bank of Canada’s €1.25bn seven year issued on Wednesday dropped more orders than any covered bond has in years, ending up as one of the least subscribed deals of its size since 2011. The transaction starkly illustrated that the balance of power has shifted in favour of investors and offered a salutary lesson for ambitious issuers, writes Bill Thornhill.

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The Inter-American Development Bank this week capitalised on a dearth of supply at the 10 year point of the curve to print its second dollar benchmark of the year.

BNP Paribas has hired a banker from SMBC to fill the vacant position of head of US private placements.

Bank of Montreal (BMO) has issued the first Canadian covered bond in dollars this year, raising $1.75bn of funding at a cost that was equivalent to what it would have theoretically paid in the euro market. National Bank of Canada was quick to follow, announcing a similar deal at the same starting spread.

After establishing itself as a top three player in European investment banking, Citi is now making an ambitious push for the summit in its home market, writes David Rothnie.

Defaulted Caribbean sovereign Barbados proposed two possible solutions to the restructuring of its external debt on Wednesday, though it stopped short of making a formal offer to creditors — perhaps in recognition of a warning from certain bondholders two weeks ago.

The sterling corporate bond market has shown surprising strength for issuers in short maturities this year, but on Wednesday its traditional forte shone through — the ultra-long end, where, as so often, the curve is inverted. Berkshire Hathaway found such good funding there that it scrapped a planned euro issue altogether and raised £1.75bn in sterling.

The Inter-American Development Bank this week capitalised on a dearth of supply at the 10 year point of the curve to print its second dollar benchmark of the year.

Chinese brokerage Huatai Securities has received one of two approvals needed to spin off its subsidiary AssetMark Financial Holdings in the US.

Mexico’s largest locally owned bank Banco Mercantil del Norte (Banorte) will begin meeting fixed income investors this week as it looks to test investor appetite for Mexico credit with a new subordinated bond.

Just two weeks after the IMF said it had reached a staff level agreement on the first review of Ecuador’s economic programme, the South American sovereign pounced on a positive start to the week in markets to issue $1.125bn of bonds that will be used to refinance debt due next year.