Americas

A shift of momentum in the US presidential race has sent tremors through derivatives markets this week, with equity implied volatility ramping up, credit index spreads widening and the Mexican peso slumping against the dollar.

The FIG primary market has largely remained quiet ahead of the US election on November 8, and some borrowers desiring funding have even sought ways around having to get caught up in its aftermath.

The EMEA loans market has been so far unruffled by next week’s US presidential elections — even if in the US itself deal flow has paused and the consequences of the vote could be far reaching, according to several loans bankers.

Argentinian debut international issuer Compania General de Combustibles (CGC) raised $300m on Wednesday, and while it offered a large pick-up over the sovereign, rival bankers were impressed that investor demand has extended to lesser known names in the region.

National Bank of Canada became the first North American lender to sell a Panda bond on Wednesday, raising Rmb3.5bn ($517m) from a three year note. What stood out, however, was not the deal execution but how the lender managed to convince the regulators that the sale aligns with China’s Belt and Road initiative.

Banks and corporates in the US are increasingly interested in understanding the opportunities in renminbi, but they need to lose their addiction to the US dollar. The catalyst is likely to come from market trailblazers and improved infrastructure.

Banco Macro printed the largest Basel III compliant tier two bond from Argentina on Tuesday, slipping into the market with a yield palatable enough to attract a $900m book, even as investors begin to lower the amount of risk they are exposed to before year-end.

Four banks have teamed up with law firm Simmons & Simmons to introduce market standard documentation for use in listed and unlisted repackaging transactions, in a move that they hope will ease hedging counterparty concerns for investors and help drive activity in this part of the market.

Equity derivative implied volatility in the US has ramped up over the past week as opinion polls on the result of the election suggest a 'closer call'.

Colombia’s Pacific Exploration & Production announced on Tuesday that all conditions had been met on a corporate restructuring plan that will allow the oil company to leave creditor protection.

GDS Holdings received a thumping response from investors for its $192.5m Nasdaq IPO, but priced it below the initial range to capture long-only demand and a higher-quality book.

Colombia window manufacturer Tecnoglass began meeting bond buyers on Tuesday ahead of a potential dollar market debut.