Americas

Corporate dollar bond issuance ended a bumper month with a whimper as borrowers fought shy either side of the Fed’s September meeting.

A weak term that was built into the bonds backing Blackstone’s leveraged buyout of Refinitiv last week has also been included in a $1.625bn high yield bond being marketed this week for KKR’s buyout of Envision Healthcare.

Karel Lannoo, the chief executive of the Centre for European Policy Studies, indicated that he was optimistic about the prospects of an equivalency agreement on the oversight of clearing houses between the United Kingdom and EU 27 after Brexit.

A stream of low-rated US borrowers in euros could continue to flow this year, said market participants, consolidating these reverse Yankees as the second largest sector for euro high yield bonds.

This week Royal Bank of Canada became the first bank to issue a senior bond complying with the country’s new bail-in regime. It paid a 10bp-12bp premium over the legacy senior curve.

The IMF and Argentina’s announcement of a new improved financing package came after markets closed on Wednesday, but bond investors say it can be positive for the country's sovereign bonds.

Asian equities showed mixed responses to the increase in the federal funds rate announced by the Federal Open Market Committee (FOMC) on Wednesday night, while bonds in the region held up reasonably well. But there are worries that the pace of rate hikes until the end of 2019 might be too aggressive.

When UK telecoms company Vodafone announced in May that it had agreed to buy some of US rival Liberty Global’s European operations, it said it would use existing cash, €3bn of mandatorily convertible bonds and new debt, including hybrid bonds to fund the €18.4bn acquisition. On Wednesday, Vodafone sold the hybrid bonds, using four different tenors in three currencies.

US asset manager Pinebridge is positive on credit markets in the short to medium term, but the outperformance of assets in the past three years has increased the probability for a credit downturn according to a recent report it published.

Chinese scooter maker Niu Technologies is planning to float on the Nasdaq for up to $150m, filing a prospectus with the US regulator on Monday.

Canada should have thought twice before stripping banks of their ability to use senior debt as an ordinary funding tool.

Argentina’s bond rally may not have much further to run even if the country does clinch a larger deal with the IMF, as investors turn their focus to president Mauricio Macri’s challenge in retaining popularity.