Americas

US and regional banks took advantage of strong market conditions this week, but could not stop high-grade dollar FIG supply enduring its worst start to a year since 2016.

High grade corporates are champing at the bit to access the dollar market as credit spreads continue to rally and investors continue to put money to work.

IBM returned to the euro corporate bond market for the first time since 2017 on Thursday, to sell its largest ever deal in the euro market and to push into a maturity not seen from a corporate issuer so far in 2019.

Regardless of when the US government shutdown ends, it will likely have wrought chaos on this year’s IPO market. Staff at the US Securities and Exchange Commission (SEC) have already been locked out of their offices for more than 34 days, frustrating a multitude of issuers that are waiting for the regulator to comment on their registration documentation. Sam Kerr reports.

The volume of corporate bonds with triple-B ratings, and vulnerable to downgrades into high yield, is at its highest in history. But while the US market fears the prospect of fallen angels, Europe appears to see advantages.

The prolonged US government shutdown has kept workers in the Securities and Exchange Commission (SEC) away from their desks for over 30 days frustrating a multitude of IPOs waiting for the regulator to comment on their registration documentation.

Thames Water sold roughly £220m of US private placement notes this January.

Bond investors and analysts warned on Wednesday that there was still deep uncertainty in store for Venezuelan bondholders even if market hopes materialise and Nicolás Maduro is soon to leave the presidency. Moreover, not everyone thinks his imminent exit is a given.

South American development bank Corporación Andina de Fomento (CAF) had its first outing in bond markets on Wednesday with a new euro benchmark as it took advantage of a favourable euro/dollars basis swap.

Colombia jumped on a turnaround in sentiment on Wednesday to become the third Latin American sovereign in just over a week to receive strong demand for dollar paper.

Colombian corporates have become rare treats for bond investors but investors were able to feast on a high yield debut issuer from the country on Wednesday to give an unusual start to the Latin American corporate primary market for the year.

Investors were eager to point out that the keen sense of anticipation over regime change in Venezuela hides a reality fraught with uncertainty. But as chaos grips the country, bondholders spy long-term opportunities. Oliver West reports.