Americas

Santander Chile, which sent a strong message about its financing capabilities with two consecutive deals immediately after the US election result, will adapt to the Trump era with more international bond issuance, the bank’s CFO told GlobalCapital.

Whether PDVSA bondholders choose to believe JP Morgan’s EM research team, or if they agree with the Venezuelan company’s CEO that the US bank is an “enemy of the fatherland”, they cannot have had a particularly reassuring run-up to Thanksgiving, after the borrower’s coupon payments went missing. Oliver West reports.

European and UK issuers have driven the US Private Placement (US PP) market to near record highs, despite concerns around the Brexit vote and US presidential elections. Now, the prospect of the end of an era of record low rates could push volumes to unprecedented levels, writes Elly Whittaker.

Rising jitters around the approaching Italian referendum and ECB meeting in early December are keeping European credit spreads elevated, say traders, but many see the potential for a big rally given the extent of underperformance versus the US in November.

Corporate borrowers remained active in the dollar market in the run-up to the Thanksgiving holiday as investors continued to put cash to work in the high grade credit markets.

Market participants are expecting tense discussions after Belize’s government said it would look to restructure its 2038 “super” bond even though there is some debate as to whether a restructuring is really necessary.

Bank of America, on Monday, made its third trip to the dollar market since October 1 with an opportunistic dash amid tightening spreads in the run up to Thanksgiving.

The row over PDVSA’s late coupon payments ran into Tuesday with the Venezuelan state oil giant’s CEO claiming that the company had met with “all of its bond payments”.

Derivatives exchanges are making a push on natural gas with three new initiatives unveiled, amid expectations that demand to trade such products across global markets is set to grow.

trueEX, the interest rate swap trading platform, has broadened its push in the asset class with a new facility for trading, processing and novation of non-cleared contracts.

Venezuelan state oil giant PDVSA (Petróleos de Venezuela) failed to make $539m of coupon payments on three bonds last week, activating the 30 day grace period on its 9% 2021s, 6% 2024s and 9.75% 2035s.

GTX, the institutional foreign exchange trading arm of GAIN Capital, has named a chief executive of its swaps execution facility.