Americas

Research by a US thinktank shows that the World Bank will have to carry out major reform of its lending to China to meet US-driven goals to focus loans on projects with benefits outside wealthy provinces. By Phil Thornton

Danske Bank is waiting until activist investor Bill Browder gives a press conference before deciding whether to proceed with the sale of a senior non-preferred bond. News of the conference derailed the deal on Wednesday, after final terms and a $3bn size had already been set.

Brazilian bank BTG Pactual is asking holders of its perpetual bonds issued in 2014 to agree to a new indenture that allows the lender to change the issuing branch of the notes.

Appetite for eurozone sovereigns is showing no signs of slowing down after Ireland and Portugal joined Belgium this week in scoring their largest ever syndication order books. Several other borrowers sold euro trades on Wednesday, with more supply expected this week as the pipeline has “accelerated” ahead of next week’s parliamentary vote on the UK’s Brexit deal.

After a run of triple-B rated corporate bond issuance, A-rated names have returned to the market and paid lower premiums than the higher beta issuers had, but 10.75 years remains the longest tenor to date.

Danske Bank offered its senior non-preferred bond to dollar investors on Wednesday, after UniCredit raised $3bn in the format the day before.

Syndicate bankers say that larger than normal new issue concessions being paid by US investment-grade corporates in bond markets mean Latin American borrowers are in no rush to get the year started.

UniCredit came to the dollar market on Tuesday, looking to sell a public senior non-preferred bond after its large private placement a few months ago. The bank was thought to be offering a large premium.

A benign start to the year for major equity indices could be just the comfort blocks bankers need to price deals before corporate blackouts begin.

Euro covered bonds issued by ANZ New Zealand, Caffil and National Bank of Canada on Tuesday provided “the least worst option” in a spread widening environment, said bankers.

Credit default swaps (CDS) are a complicated product. But the past year has presented a few examples of market participants resorting to ‘creative’ tactics to optimise payouts. If the market fails to respond to concerns around the viability of CDS, the product may have to be rethought.

Brazilian state oil giant Petrobras began the year finalising yet another buy-back of existing bonds, though the response from bondholders fell below the $1.5bn maximum repurchase amount set by the borrower.