Americas

A decent start to the week gave way to caution as escalating geopolitical concerns slammed the brakes on US high-grade dollar supply.

The International Swaps and Derivatives Association (ISDA) responded scathingly to attempts by market participants to “narrowly” trigger credit events that result in favourable pay-outs to buyers of credit default swaps. Costas Mourselas reports.

A recent string of defaults in the US high yield bond market, particularly in the retail and supermarkets sectors, has not caused undue concern among market players, with most of the situations already factored into assumptions.

Some US private placement investors in London are investing more time and resources on bilateral US PP transactions that do not involve either syndication or agent banks, so as to gain full allocations and originate their own business.

Chinese photovoltaics company Daqo New Energy Corp is looking to raise up to $112m from a follow-on offering of American Depository Shares (ADS).

Cometa Energía, a group of Mexican energy assets to be acquired by emerging markets private equity firm Actis, is understood to be preparing a bond issue of $907m that will be used to finance the buy-out.

The Province of Alberta printed its first ever euro bond on Wednesday, opting to follow its compatriot Ontario in attacking the sweet spot for investors at seven years.

The International Swaps and Derivatives Association this week asked its members for feedback on the potential integration of smart contract functionality into the definitions that govern derivatives transactions.

Moody’s said that it believed fiscal reforms in Brazil were inevitable no matter who wins October’s election, removing the country’s negative outlook just weeks after the rating agency’s peers downgraded the sovereign.

Leucadia National Corporation, the holding company of Jefferies, has sold 48% of its beef business, all of its automotive equity interests, and changed the name of the company to Jefferies Financial Group — a set of moves which ought to free the firm to take advantage of merchant banking opportunities, while giving investors a clearer business to focus on.

A trio of euro borrowers picked up a combined €8.5bn on Tuesday, seemingly without testing the limits of demand in the market.

The Ontario Teachers’ Finance Trust (OTFT) on Tuesday outdid its dollar debut last year for size, as its second ever international trade clocked in at $2bn.