Americas

After the recent spike on Grexit fears and a crash for Chinese equities, implied volatility levels for US stocks have fallen back to earth with stunning speed, say traders.

Though Bank of America remains by far the most fined bank in history, in the second quarter results for the US banks, it was Goldman that felt the heat, sucking up a $1.45bn provision for mortgage litigation and regulatory matters.

US and Yankee banks took home more than $15bn this week as they raced to wrap up funding plans amid improving market conditions.

Banco Mercantil do Brasil extended the settlement date for a buyback of its 2020 dollar denominated subordinated debt this week, because it has not yet received central bank approval to increase the amount it can purchase.

Chinese wealth management service provider Jupai Holdings priced its $53m IPO on the New York Stock Exchange at the bottom end of guidance on July 16, as its selling shareholders reined in the number of secondary shares on offer.

Bank of Nova Scotia, the third Canadian institution to issue a covered bond this week, took €1.25bn with its five year covered bond on Thursday. While the books were slightly slower to build than market rivals BPCE and Commerzbank, the result was still a strong one for the issuer.

New regulations restraining the risk taking ability of dealer banks contributed to last October’s sudden and mysterious selloff in US Treasury futures and options — dubbed the “Flash Crash”.

Oil market volatility was driven higher this week as traders placed bearish bets amid the prospect of more Iranian supply following its sanctions deal combined with weak fundamental data.

Royal Bank of Canada was set to price its first sterling benchmark in years at a spread that is expected to lead to a re-pricing of the market, but which is close to where it would have funded in dollars. Meanwhile, CIBC will open books for its first dollar deal in four years and the first from its legally compliant programme in that currency.

US speciality chemical products holding company Platform will buy UK firm Alent for £1.35bn using a $1.9bn bridge loan from Credit Suisse.

The Greek Prime Minister’s decision to provide voters with an opportunity to reject the country’s bailout conditions in a referendum is an unusual move, but not without precedent.

Larger companies needing growth capital have a useful source in Mexico’s stockmarket, where demand in roughly equal quantities from domestic and foreign investors has supported a strong rise in issuance. It is going through a dip this year – but as Jon Hay reports, if Mexico delivers on reforming energy markets, there will be plenty of deals to come.