Americas

No financial issuers came forward as they waited for the US Federal Reserve to publish the results of its Comprehensive Capital Analysis and Review (CCAR) this week.

The US dollar bond market ended a record-breaking month on a downbeat note as borrowers stayed on the sidelines amid a poor technical backdrop. Charter Communications became the first SEC registered issuer of the week on Thursday with a long five year trade and the only two other benchmark trades were from 144A issuers on Tuesday.

As the first half of 2018 draws to a close, it is clear Europe’s equity capital markets have been battered by political tensions and fears of disruption to international trade. Volume is down, particularly in block trades.

AES Gener, the Chilean utility, wants to buy back up to $200m of bonds using cash in hand, it said on Wednesday, as the company’s commitment to reducing leverage looks set to save its investment-grade rating.

A green bond and a conventional bond both hit the euro market on Wednesday. While neither aimed for size, the pricing action showed much hotter demand for the green offering.

Covered bond issuers are monitoring the dollar market with recent deals from DNB Boligkreditt and CIBC suggesting a welcome reception for further issuance. However, Canadian banks, perhaps the most likely dollar issuers, could well be enticed to consider their home market following TD’s recent success.

London Stock Exchange Group (LSEG) has acquired roughly 16% of collateral manager AcadiaSoft in an attempt to improve its offering in the non-cleared derivatives margin and processing business.

Factors internal and external to the emerging markets are this week combining to stymie new issuance.

Nasdaq-listed Momo this week bagged $650m from its first convertible bond, shrugging off a volatile market to close the deal multiple times covered.

Two euro borrowers launched benchmarks on Wednesday, sharing the SSA euro market. While both secured successful deals, one found the market tougher going, as investors pushed back.

A group of investors owning Venezuela sovereign bonds and notes issued by state-owned oil company PDVSA want creditors of the two issuers to be treated equally, as analysts point out that the sovereign debt is outperforming that of the oil company.

Bway, the US container maker, is including €475m of euro bonds in the leveraged financing for its $1bn acquisition of rival Industrial Container Services, in a sign of the increasing attractiveness of euro high yield markets.