Americas

Exasperated European FIG bankers are unsure whether the US Federal Reserve will raise rates on Thursday but they do agree that the central bank should “get on with it”.

Two Indian pharmaceutical companies, Cipla and Lupin, are sounding out banks for loans to fund recent acquisitions in the US.

Banco do Estado do Rio Grande do Sul (Banrisul) has become the third Brazilian lender to launch a tender offer for existing debt as bond prices in the country hit lows.

As credit markets prepare for the FOMC announcement on Thursday, some traders said they are exhausted with speculation about the timing of a hike.

Pentair, the UK-headquartered maker of fluid and thermal systems, priced a €500m bond in line with initial price thoughts on Monday, after deciding to plough ahead with its funding plans despite a difficult market.

The Ontario Teachers’ Pension Plan (Teachers’) has appointed Nicole Musicco to helm its Hong Kong operations in a newly created position. The move demonstrates the growing importance of the Asia Pacific region for the fund, which invests across asset classes.

The International Swaps and Derivatives Association is likely to have to change its licensing practices as a result of a $1.9bn credit default swaps price fixing settlement by banks, according to a source familiar with the case.

Bank of Montreal (BMO) returned to the covered bond market for the fourth time this year to issue its third benchmark in euros. At seven years, the tenor was longer than the borrower’s previous two benchmarks, but at €1bn it was considerably smaller even with a wider spread.

Intesa Sanpaolo’s inaugural AT1 note, which was priced 7.7% on Thursday, was hailed as an impressive trade by London bankers.

The downgrade of Brazil by Standard & Poor’s into sub-investment grade territory on Wednesday had been seen as inevitable for nearly two months. But when it came, the downgrade was as brutal as it could have been.

The two Fibras — or Mexican Reits (real estate investment trusts) — lining up to issue are perfect candidates for the volatile conditions in the Latin American market, said LatAm bond bankers.

LatAm syndicate bankers said Codelco had carried out a perfectly executed trade on Wednesday with its new 10 year, but some highlighted that the re-offer yield should be a lesson to borrowers about the dangers of waiting to issue.