Americas

Bonds markets in Latin America were firmly in holiday mode this week but syndicate bankers appeared bullish about issuance prospects for 2017 after the region brushed off the US rates hike.

After a fall in 2016 supply, the allure of euro bonds for US issuers looks to be set on a path of relative decline, as the market loses its technical shine and faces the prospect of cash repatriation for corporate America.

Another piece of next year’s equity capital markets issuance puzzle was turned over today, when Lonza, the Swiss pharmaceutical and chemical company, announced a Sfr3.3bn rights issue to pay for the acquisition of Capsugel from KKR.

United Healthcare Group became the first dollar issuer to jump into the market after the US Federal Reserve’s hawkish hike led to a sell-off in Treasuries amid predictions that 2017 could prove to be a more subdued year for high grade supply.

It’s that time of year when analysts dust off their crystal balls and make predictions for the next 12 months. In December 2015 not many were forecasting that Britain would vote to leave the EU, and even fewer were betting on a Donald Trump presidential victory, so investors would be wise to treat such missives with caution. Political risk is a capricious beast, even for the most seasoned market observers.

While the US Federal Reserve surprised nobody with its 25bp rate hike, an aggressive timeline for future increases has driven 10 year US Treasury yields to exceed their 2016 record.

Deutsche Bank, Goldman Sachs and JP Morgan are joint lead arrangers and bookrunners for a bridge loan of up to £12.2bn ($15.18bn) which 21st Century Fox will use to buy the remaining shares in Sky it does not own.

South American development bank Corporación Andina de Fomento (CAF) has elected Luis Carranza Ugarte, the former Peruvian finance minister, as executive president.

Aeropuertos Argentina 2000, the Argentine airport operator, is looking to return to bond markets in 2017 with a 10 year deal of up to $400m.

Mizuho has hired three technology bankers to join its San Francisco office, part of the firm's new tech operation, launched earlier this year

BlackRock has been awarded the first Renminbi Qualified Institutional Investor (RQFII) licence in the US this week providing further momentum to America's push in RMB internationalisation.

Intercontinental Exchange has obtained approval from the European Securities and Markets Authority (ESMA) for its ICE Clear US business to be recognised as a third country central counterparty under the European Markets Infrastructure Regulation (EMIR).