Americas

Apax is acquiring a majority stake in FullBeauty Brands, the US plus-size fashion retailer, and has obtained the commitment of four banks to the deal’s debt financing.

Canadian investors are not being put off by China's recent equity and currency volatility. CI Investment, the first Canada-based firm to have obtained a Renminbi Qualified Foreign Institutional Investor (RQFII) licence, has told GlobalRMB that the China is still attractive to those wanting to increase their international exposure.

Project bond supply could be on the way from Colombia after Goldman Sachs committed to provide $1.2bn in the first leg of financing for the country’s $25bn so-called 4G infrastructure programme.

Brazilian refractories and minerals producer Magnesita Refratarios will buy back over three quarters of its outstanding bonds after a tender expired at the end of last week.

Whether prices in Brazilian bonds really have found a floor or not, several bond investors say they are now finding value in the country’s debt markets after a sustained sell-off was halted by a better-than-expected downgrade from Moody’s this week.

Markit is set to unveil changes in CDX HY, the US high yield credit derivatives index, aimed at making it more useful as a hedging tool for cash bond investors and reviving ailing trading volumes in high yield credit.

Widespread concern over China’s currency strategy put the brakes on European banks’ use of the dollar market this week, which began with a $7.5bn raid on the currency by four borrowers.

With China’s devaluation having brought rising uncertainty across global markets, volatility measures for many options on exchange traded funds have not kept pace with those that reference their underlying securities.

The shift towards centrally clearing derivatives has contributed to a decline in the total amount of collateral supporting non-cleared derivatives transactions, according to the latest International Swaps and Derivatives Association (ISDA) Margin Survey, with cleared transactions gaining from the swing.

Changing the selection rules for the CDX HY index, which references the debt of US high yield companies, should make it more useful for investors as a hedge against cash bonds. But the even better news is that Markit and CDS market makers seem to have learned from the experience of last year's changes to Europe's equivalent, the iTraxx Crossover.

BNP Paribas responded to investor demand for dollar paper with a $1.5bn additional tier one (AT1) this week, just two months after making its euro debut.

The AT1 market has come of age. In just over two years there is no longer a need for arduous investor education and perfect markets to sell the riskiest bank debt on offer.