Americas

Troubled Brazilian shopping centre owner General Shopping Brasil has launched a heavily discounted tender of its 10% senior perpetual notes in an effort to reduce its dollar debt, although Fitch says that a debt restructuring is “likely to occur in the near future”.

European FIG issuance is expected to resume next week after the Federal Open Market Committee decided against raising interest rates on Thursday. Borrowers had approached the announcement with caution, but steady rates should allow normal trading to resume.

DCM bankers covering Brazil are hopeful that liability management exercises from financial institutions may provide them with something to do in the coming weeks as the new issue market suffers depressed volumes.

Bankers are preparing for a torrent of dollar high grade issuance after the US Federal Reserve voted to keep rates on hold on Thursday.

Buy and sell side credit traders expressed disappointment on Thursday, after the US Federal Reserve elected to keep interest rates on hold.

As derivatives markets girded for an FOMC announcement on Thursday, some traders said they were exhausted with speculation about the timing of a hike.

Covered bond issuers failed to take heed of poor market conditions and, just like lemmings, followed one another with poorly performing deals this week.

There was speculation this week among credit market participants that a recent high profile US legal settlement could open the door for a wider array of credit default swap clearing houses and exchanges. But firms at the heart of the battle refused to be drawn on whether the outcome could change the structure of the market.

Equity capital markets bankers are looking forward to a busy autumn season of deals in Europe, now that the Federal Open Market Committee’s much-anticipated interest rate decision is out of the way. Deals that had been kept back are now likely to be announced next week.

Indian pharmaceutical companies are creating a buzz in the loan market by seeking debt to fund outbound acquisitions. While other sectors in the country are yet to kick off such spending in a big way, the pharmaceutical industry has been an exception, and bankers are hoping for more opportunities to finance purchases. Shruti Chaturvedi reports.

Troubled Brazilian shopping centre owner General Shopping Brasil has launched a heavily discounted tender of its 10% senior perpetual notes in an effort to reduce its dollar debt, although Fitch says that a debt restructuring is “likely to occur in the near future”.

The issuer formerly known as Pacific Rubiales fell just one notch away from triple-C status on Wednesday after Moody’s downgraded the borrower by three notches from Ba3 to B3 and kept it on negative outlook.