Leveraged/non-investment grade

  • Greece looking to capitalise on Pepp to complete curve

    Greece looking to capitalise on Pepp to complete curve

    Greece hit the market this week with a €2bn tap, neatly threading a needle between the EU’s jumbo debut and a hefty 30 year from Italy. But unlike other sovereigns, the exercise was not a scramble for cash to mitigate the impact of the pandemic.

  • MTN investors on hold ahead of election

    MTN investors on hold ahead of election

    A number of MTN investors are waiting for the result of the US election before committing themselves to the market, meaning next week is set to be a quiet one.

  • Bank supply to be muted ahead of US election

    Bank supply to be muted ahead of US election

    Despite a recent deal surge, investors and issuers are set to pull away from the primary market with just one full week left to go before the US presidential election.

  • Goldman, BofA take most of mammoth mortgage bond bidlist

    Goldman, BofA take most of mammoth mortgage bond bidlist

    Cerberus Capital Management drew strong demand for its 48-line item bidlist of mezzanine mortgage bonds on Thursday, with winning bids for most of the bonds in the nearly day-long sale going to Goldman Sachs and Bank of America, sources tell GlobalCapital.

  • Barclays boasts of share gains in markets

    Barclays boasts of share gains in markets

    Barclays enjoyed a record quarter in equities, but in its advisory and equity capital markets it lagged behind competitors, it showed in third quarter results on Friday.

  • China issuers sneak into closing bond window

    China issuers sneak into closing bond window

    A host of Chinese issuers found one of the last windows to sell bonds on Thursday ahead of the US presidential elections at the beginning of November and a public holiday in Hong Kong early next week.

  • Lufax launches roadshow for $2.36bn US IPO

    Lufax launches roadshow for $2.36bn US IPO

    Lufax Holdings, a personal finance services platform, has opened books for its offering of American depositary shares (ADS). It is aiming to raise up to $2.36bn.

  • Suriname to miss coupon payment, engage IMF amid liquidity squeeze

    Suriname to miss coupon payment, engage IMF amid liquidity squeeze

    Suriname’s new government said on Thursday that it would not make a coupon payment due next Monday on its $550m of 9.25% 2026s as it prepares for restructuring discussions. But with the Surinamese economy capable of generating high levels of hard currency, the focus could be on liquidity relief rather than principal haircuts.

  • Millicom, BRF find bid but Lat Am lull begins

    Millicom, BRF find bid but Lat Am lull begins

    Two corporate deals on Monday and a tiny tap from a Paraguayan beef exporter on Wednesday were all investors had to choose from in Latin American primary bond markets this week as issuance remains light ahead of the US elections next month.

  • Science-based targets could help banks wrestling with climate risk

    Science-based targets could help banks wrestling with climate risk

    UK banks and building societies are struggling with difficult aspects of incorporating climate change into their risk management, as demanded by the regulator, a PwC survey has found. The answer to some of their problems could be a non-risk initiative: science-based targets.

  • UK moves early to dispel fears about bank capital buffers

    UK moves early to dispel fears about bank capital buffers

    Markets rejoiced this week after the Bank of England proposed policy changes that will make it harder for UK lenders to run into automatic restrictions on their additional tier one coupons and equity dividends. The move was seen as a way of addressing concern about ‘buffer usability’, which has come to the fore during the Covid-19 pandemic.

  • EU big fish breaches at last with historic SURE splash

    EU big fish breaches at last with historic SURE splash

    After months of waiting as even the great whites of the SSA oceans kept clear of primary bond sales in anticipation, the EU — now a bond market megalodon by comparison — cruised into a bait ball a quarter of a trillion euros big this week to take a €17bn bite out of its enormous pandemic recovery borrowing programme. Lewis McLellan and Bill Thornhill report.

  • Will the Next Gen loans be needed?

    Europe’s bevy of recovery lending packages is undoubtedly a welcome gesture, but it may remain just that — a gesture. If trends continue as they are, some countries may prefer market lending to concessional loans from Europe.

  • CFTC and BoE tie up clearing agreement

    The US Commodity Futures Trading Commission and the Bank of England signed a memorandum of understanding on Tuesday regarding the oversight of derivatives clearing.

  • JP Morgan and Capula execute Sonia trade on Tradeweb

    JP Morgan and Capula have executed a Sonia swap against a Gilt future on Tradeweb, in what the trading venue provider says is the first electronic execution of such a trade for institutional investors.

  • Raiffeisen prints Swissie bail-in bond

    Raiffeisen prints Swissie bail-in bond

    Raiffeisen Schweiz brought a rare Swiss bail-inable bond to the market on Thursday, issuing Sfr325m ($358.3m) across two tranches to help replenish its capital structure.

  • World Bank seizes ‘perfect’ timing for $6bn jumbo deal

    World Bank seizes ‘perfect’ timing for $6bn jumbo deal

    The World Bank sold its second supersized bond of 2020 as it capitalised on a calm market and a lack of competing supply in dollars this week, as well as leaning on the strength of its name, which continues to attract new investors looking to make an impact investment.

  • Two EM deals pulled in a week, but last chance market open, say investors

    Two EM deals pulled in a week, but last chance market open, say investors

    Two EM bond issuers beat hasty retreats from the primary market this week. But despite the challenges the pair faced, bankers and investors believe the market is open for borrowers looking to pick up a bit of funding ahead of what is expected to be a tortuous US election. Lewis McLellan reports.

  • Upstart broker rocks up in Schuldschein to spur secondary trading

    Upstart broker rocks up in Schuldschein to spur secondary trading

    The secondary market in Schuldscheine is rudimentary, partly as the arranging banks have never wanted to encourage it. But a little known brokerage firm is quietly acting as a go-between, helped by its contacts with non-traditional investors, writes Silas Brown.

  • Senior trio make most of opportunistic window

    Senior trio make most of opportunistic window

    Three banks rode out a volatile bond market this week, printing senior deals amid positive sentiment caused by talks making it seem an agreement about a new US Covid-19 stimulus package was closer on Tuesday.

  • Cerberus challenges market to digest flood of mezz

    Cerberus Capital Management auctioned off one of the largest ever portfolios of UK mezzanine mortgage bonds on Thursday, following a deterioration in the terms available in the ABS repo market after the Covid crisis made it uneconomic to continue to hold the deeply subordinated and risky positions.

  • Indian dual recourse flies as covered bond hopes build

    Indian dual recourse flies as covered bond hopes build

    Dual recourse structures have become increasingly popular in India after last year’s debut from Kogta Finance. And with the sanctity of bankruptcy remoteness successfully tested in the courts, sentiment towards such structures has improved further. This could help pave the way for a national champion bank to test appetite for Indian covered bonds, which would offer the country's lenders a source of long-term diversified funding that they can't get from deposits.

  • Italy takes €90bn book for 30 year

    Italy takes €90bn book for 30 year

    The strong momentum in the euro public sector bond market continued on Thursday with Italy receiving a huge reception for a new 30 year line, which was sold alongside a tender of various outstanding Italian government bonds.

  • A2A breaks Italian long maturity yield record

    A2A breaks Italian long maturity yield record

    A2A, the Italian multi-utility, pre-funded for 2021 with a €500m trade on Wednesday with what the lead claims is the lowest yield for a deal of its type, as the company prepares to unleash its new business plan that will see it printing more green and sustainability-linked debt.

  • People moves in brief

    People moves in brief

    Makinson Cowell joins Lazard — Vikas Seth moves into vice-chairman role at HSBC — Fernando Vicario picked as CEO of BofA's EU bank

  • Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira splashes cash on Lowell rescue ahead of 2021 NPL splurge

    Permira opted to rescue its debt purchasing portfolio company Lowell from the restructuring that many thought was imminent, with the largest slug of equity support any sponsor has injected in Europe since the coronavirus pandemic began. Covid-19 has crushed cashflows for some debt purchasers, but next year should be a bumper year for NPL buying — for those firms with cash to do so, writes Owen Sanderson.

  • Unibail cash call threatened as rebel alliance swells stake

    Unibail cash call threatened as rebel alliance swells stake

    Unibail-Rodamco-Westfield’s rights issue is under increased threat from a group of rebel shareholders that disagree with the company’s vision to reset its business. These shareholders have rapidly surpassed the 5% threshold, according to a filing with the with the Autorité des Marches Financiers, after which they have to disclose their holdings.

  • Window closing for euro ABS primary

    Window closing for euro ABS primary

    Most euro ABS issuers are holding off on new deals until the results of upcoming US presidential election, according to sources, with about only a one month window of opportunity in November between the election and intensifying Brexit headline risk.

  • Soltec Power rides ESG momentum with €150m IPO

    Soltec Power rides ESG momentum with €150m IPO

    Soltec Power Holding, the Spanish maker of solar trackers for renewable energy generation, has narrowed the price range for its IPO on the Spanish Stock Exchange, after the deal was covered shortly after the launch of bookbuilding earlier this week.

  • DZ hits covered bond sweet spot with well-timed Pfandbrief

    DZ hits covered bond sweet spot with well-timed Pfandbrief

    DZ Hyp returned to the covered bond market for the fourth time this year on Thursday to issue a €1bn eight year mortgage Pfandbrief. The deal showed that any uncertainty over the relative value of covered bonds has been firmly swept away after the European Union’s blow out debut earlier this week.

  • Canal+ Polska launches Warsaw IPO

    Canal+ Polska launches Warsaw IPO

    Emerging market IPOs have been one of the hottest themes in EMEA equity capital markets this year and issuance is set to continue as Canal+ Polska, the Polish television network owned by French TV service Canal+, launched its IPO on Thursday.

  • Ant comes closer to jumbo listing as investors vie for $35bn deal

    Ant comes closer to jumbo listing as investors vie for $35bn deal

    China’s Ant Group kicked off marketing for its Hong Kong and Shanghai dual listing on Thursday, the last stage before launching a possible $35bn IPO, set to be the world’s largest to date. The combined offering is already more than a third covered by onshore investors, with global buyers lining up for the rest. Addison Gong and Jonathan Breen report.

  • Updated: HK regulator fines Goldman $350m for 1MDB failures

    Updated: HK regulator fines Goldman $350m for 1MDB failures

    Hong Kong’s securities watchdog has fined Goldman Sachs $350m for regulatory failures in its work on bonds issued by the scandal-hit Malaysian state investment fund 1MDB, part of a multi-billion-dollar settlement with global regulators.

  • When a rose by any other name is asked to leave

    The theory of nominative determinism states that people tend to take jobs that fit their names: John Baker becomes a baker, Ted Milk becomes a dairy farmer, Fakey McBlowhard becomes a politician. But there are also names that are valuable, not so much because they affect your career choices but because there’s a good chance you might get confused for someone else.

  • Rabo finds a way to reward its Certificate holders

    Rabo finds a way to reward its Certificate holders

    Rabobank intends to make an exceptional distribution on its equity-like Certificates and will avoid breaching the European Central Bank’s dividend ban by paying its investors in more Certificates rather than in cash.

  • eBay Classifieds underlines strength of final market window

    eBay Classifieds underlines strength of final market window

    The €2.6bn financing for Adevinta’s purchase of eBay Classifieds looks set to be a blowout success, with sharp tightening across all tranches underlining the bid for quality credits enduring limited pandemic impact. The deal’s double-B rating helps attract rating-sensitive investors who have seen their portfolios pummelled this year by Covid-related downgrades.

  • Advisory shop moves over from KPMG to Lazard

    Advisory shop moves over from KPMG to Lazard

    Makinson Cowell, a company that advises on equity capital markets and investor relations, has joined Lazard, in a move that the investment bank says strengthens its UK financial advisory business.

  • Dim sum market surprises as ADBC sees hot demand for rare 10 year

    Dim sum market surprises as ADBC sees hot demand for rare 10 year

    Agricultural Development Bank of China returned to the offshore renminbi market this week with a Rmb5.7bn ($854m) triple-tranche transaction. The deal featured a rare 10 year tenor in the dim sum market, showing the potential for more long-dated CNH funding. Addison Gong reports.

  • Asian bond issuers set frenetic pace

    Asian bond issuers set frenetic pace

    Asia’s dollar bond market has seen a big bump up in volumes this month, as issuers rush to get ahead of the US presidential elections and take advantage of still supportive markets. DCM bankers are expecting a much quieter year end — but they admit anything can happen. Morgan Davis reports.

  • Levfin bankers optimistic as liquidity returns

    Levfin bankers optimistic as liquidity returns

    Leveraged finance bankers coping with a slump in deal flow in Asia this year are gearing up for a bumper start to 2021, as a return of liquidity and growing interest from institutional investors for loans set the stage for a market revival. Pan Yue reports.

  • London landlord Shaftesbury taps investors for £300m

    London landlord Shaftesbury taps investors for £300m

    Shaftesbury, the UK real estate investment trust that owns swathes of London’s West End, is tapping its shareholders for almost £300m ($392m) amid a severe downturn in the theatre district because of the Covid-19 pandemic.

  • UOB goes tight in Aussie dollars

    UOB goes tight in Aussie dollars

    United Overseas Bank achieved the tightest spread for a five year floating rate bank issue in Australian dollars in over 10 years this week, issuing A$750m ($532.0m) to prove that there is still demand at decade-low levels.

  • Panama bonds head lower on third negative outlook

    Panama bonds head lower on third negative outlook

    Panama’s bonds traded lower on Wednesday, a day after Moody’s became the third agency to place the sovereign’s rating on negative outlook. Moody’s highlighted, however, that Panama’s broad bond market access remained a key credit strength.

  • Tightening spreads revive middle market CLO issuance

    Tightening spreads revive middle market CLO issuance

    The middle market CLO segment is slowly regaining momentum, with more managers coming back to the market to take advantage of tighter spreads and a clearer picture of the financial impact of coronavirus on middle market companies.

  • Pimco, GECAS launch aircraft investment platform

    Pimco, GECAS launch aircraft investment platform

    Pimco is teaming up with GE Capital Aviation Services (GECAS) to create an aircraft leasing investment platform to support up to $3bn in aircraft asset financing. Sources say it will provide a new funding option and inject liquidity into the aviation industry at a time when it is badly needed.

  • Loss mitigation loans make their way into euro CLOs

    Loss mitigation loans make their way into euro CLOs

    A common feature of the US CLO market known as the loss mitigation loan has begun to make its way into European deals for the first time, continuing the trend of European managers borrowing features from US peers to deal with the effects of the Covid-19 crisis.

  • Coventry takes Godiva to covered bonds

    Coventry takes Godiva to covered bonds

    Coventry Building Society (CBS) has set up a second covered bond programme that is secured exclusively on the mortgages originated under its buy-to-let Godiva platform, which had previously been funded through its Mercia RMBS programme. Although the covered bonds require more collateral to reach the same rating, they offer greater funding flexibility as they can be pledged for repo and are eligible for the liquidity coverage ratio.

  • World Bank snags $6bn with SDB

    World Bank snags $6bn with SDB

    The World Bank blew the cobwebs out of the dollar market on Wednesday, raising $6bn with a five year Sustainable Development Bond.

  • Italy and Québec jump into strong euro SSA market

    Italy and Québec jump into strong euro SSA market

    Italy and the Province of Québec will add to the euro public sector supply on Thursday, hoping to capitalise on the strong momentum in the currency following the European Union’s record order book earlier in the week.

  • EM banker Seth joins HSBC

    EM banker Seth joins HSBC

    HSBC has hired Vikas Seth for a vice-chairman position, where he will be tasked with serving the firm's emerging markets clients.

  • Janus Henderson launches new ABS fund

    Janus Henderson launches new ABS fund

    Janus Henderson Investors has launched a new ABS fund, named the Janus Henderson Asset-Backed Fund, to be offered to institutional investors in a UCITS structure.

  • CCP Sofr switch gives needed boost to Libor move

    CCP Sofr switch gives needed boost to Libor move

    The transition from Ibor benchmarks passed a major milestone this week, when LCH joined CME in switching its discounting rate for dollar referencing derivatives from the Fed Funds Rate to Sofr.

  • Singapore slings old 4% covered bond limit

    The Monetary Authority of Singapore (MAS) has substantially increased its covered bond issuance limit which had stood at 4% of assets on an issuer’s balance sheet. This, along with very strong market conditions, should help to induce the country’s borrowers, which have not printed in euros for more than two years, to make an appearance before the year is out.

  • Bank of America switches leadership at new EU bank

    Bank of America switches leadership at new EU bank

    Bank of America has appointed Fernando Vicario as chief executive of its EU bank, replacing Bruce Thompson, who worked to establish the new entity ahead of Brexit. It has also given new roles to Richard King and Simeon Stevens.

  • Aareal prices inside curve in show of Pfandbrief strength

    Aareal prices inside curve in show of Pfandbrief strength

    Aareal Bank issued a short six year Pfandbrief on Wednesday at a deeply negative yield and with a negative concession. Investor demand was impressive, illustrating that Pfandbriefe, twinned with Aareal’s loan origination standards, were sufficient to offset any concern over the hotel and retail exposures in its collateral pool. At the same time DZ Hyp has mandated leads for an eight year Pfandbrief.

  • Bank pair taps 'rollercoaster' euro market

    Bank pair taps 'rollercoaster' euro market

    A pair of banks made opportunistic moves into a euro market buoyed by positive headlines around a potential US stimulus bill on Wednesday. France’s Crédit Mutuel Arkéa and Japan’s Sumitomo Mitsui Financial Group each tapped for senior paper, raising €500m a piece.

more leveraged/non-investment grade