Americas

Most futures traders in the US believe that the Federal Reserve will raise rates next month, but derivatives markets show few aftershocks priced in.

Simon Property Group, the US property company that is the world’s largest real estate investment trust, launched a benchmark seven year euro bond this morning, its first issue in the currency for over two years.

Ethypharm, the French pharmaceuticals company, has allocated €287.5m of new loan facilities at a wider margin than it initially proposed.

Moody’s has cut the rating on Brazilian shopping centre owner General Shopping’s $315m unsecured bonds from B2 to Caa1, saying there is an “elevated” risk of default in the next year or two.

It was hardly back with a bang, but Latin American corporate issuance is on the agenda again after Fibra Terrafina sold $425m of seven year notes on Tuesday — some two months after its roadshow.

Halliburton jumped at the chance to wrap up its jumbo M&A financing, after the US Federal Reserve chief Janet Yellen said that a rate rise in December was a ‘live possibility’.

This week’s landmark conviction in a Chicago court of a high frequency trader for ‘spoofing’ and commodities fraud has delivered a chilling statement of intent by US authorities to other suspects in the firing line and cranked up nervousness across the markets.

BorgWarner, the US car engine and drivetrain maker, furthered the return of reverse Yankee bonds to Europe's corporate market on Monday, by issuing a €500m seven year no-grow deal.

Plunging swap spreads, coupled with data releases and holidays in the US, are set to make dollar benchmark issuance difficult in all but the most defensive of tenors next week, public sector bankers have warned.

Bankers are expecting the Financial Stability Board (FSB) to loosen up its final total loss-absorbing capacity (TLAC) rule, set to be published on Monday, after the Federal Reserve published its own draft consultation of the rule last week.

A supranational issuer is understood to be mulling a visit to the belly of the dollar curve, but may have to pay up to do so as five year swap spreads have fallen into negative territory.

Veritas, the Californian data management company, has become the first US borrower to roadshow for a euro high yield bond in the second half of this year — and bankers say it will soon have company.