Americas

Procter & Gamble, the US consumer goods company, brought a €1.25bn bond issue to the European market on Tuesday, bringing life to an otherwise moribund reverse Yankee market.

Microsoft led a stampede by high grade borrowers to the dollar bond market this week as the latest Fed meeting pointed to the chance that it may raise rates in December.

As overall credit market liquidity has eroded, total return swaps (TRS) are providing an alternative for market participants to access or hedge their corporate bond exposure, according to financial information services provider Markit.

The US Federal Reserve this week appeared to move closer to raising its key policy rate in December but the shift in tone drew little reaction from options and futures markets.

Goldman Sachs and Sumitomo Mitsui Trust raised $500m of five year funding this week using a novel triple recourse special purpose vehicle called SumitG.

Public sector borrowers have jumped on demand for Brazilian real notes with a flurry of medium term notes — and there is more in the pipeline, said niche currency and MTN bankers.

Brazilian meatpacker Marfrig has completed a tender offer on four of its bonds, spending just over $400m of the $1.21bn in cash it received from the sale of its UK subsidiary on the buyback.

World Bank has priced the first deal from a new retail focused socially responsible investment programme — and it could sell more notes as often as once a month.

Goldman Sachs and Sumitomo Mitsui Trust showed on Tuesday that it is possible to place bonds in the market backed by other rated debt with recourse back to the issuer – and that it was possible to do so at an advantageous spread to a differentiated group of investors. Though abhorred by some covered bond stalwarts, the deal suggests a potentially new funding avenue and a new source of highly rated debt for investors.

SSA borrowers this week provided investors with a strong line up of innovative products. A new standard was set in SRI bonds, Cyprus raised €1bn via an innovative switch offer, Italy sold two year debt at a negative yield and British Columbia is lining up its debt Panda bond.

Latin American sovereigns’ march back towards European bond markets continued on Tuesday as Peru achieved its lowest ever coupon on an international bond with its long 10 year. But opinion is split on the value of the euro market.

Procter and Gamble, the US consumer goods company, brought a €1.25bn bond issue to the European market on Tuesday, bringing life to an otherwise moribund reverse Yankee market.