Americas

Anheuser-Busch InBev’s $46bn seven tranche bond issue this week defied expectations that the brewer would have to pay up to finance its takeover of SAB Miller. InBev took out nearly two-thirds of its acquisition financing in one go.

Crédit Agricole and Intesa Sanpaolo required big premiums to reopen the euro and dollar additional tier one (AT1) markets this week, and bankers fear others will have to follow due to poor secondary liquidity in the product.

It has been a big week for the International Swaps and Derivatives Association. The organisation moved to overhaul its credit determinations committee rules and broaden its board representation at the same time as undertaking a widely watched first credit event auction of the year and heading into new territory with a Novo Banco CDS external review.

Yankee banks took advantage of an improved market backdrop and US earnings blackout to jump into the dollar market this week.

Covered bonds issued this week from Lloyds and Bank of Nova Scotia were among the largest seen this year and attracted the biggest order books.

The abrupt departure of Greg Fleming shows Morgan Stanley’s top boss is delivering on his promise to make nurturing the next generation of leaders a defining aspect of his regime, writes David Rothnie

Crédit Agricole

Corporate dollar issuance was thin on the ground this week as earnings blackouts and AB InBev’s blockbuster $46bn trade throttled supply.

If European credit investors had to name two firms damaged by the precipitous fall in commodity prices, it is likely that Glencore and Anglo American would top the poll.

Investor positioning and the composition of market flows this week suggest two things about returns over the near term: a sharp intraday sell-off like that in August is less likely, but so is a healthy rebound if Chinese catalysts fade from view, said analysts this week.

Euro issuance had been subdued this week, with issuers reluctant to clash with AB InBev's $46bn deal, but it picked up hours before the brewer's launch on Wednesday.

The deadline for public comments on a key US swaps regulation is due on January 19 and, unless the Commodity Futures Trading Commission is swayed otherwise, “made up numbers” could drive costs higher for market participants.