Leveraged/non-investment grade

  • Flutter Entertainment bets on growth with £812m share sale

    Flutter Entertainment bets on growth with £812m share sale

    Flutter Entertainment, the parent of bookies Paddy Power and Betfair, has sold £812m of new shares to institutional investors to reduce debt and position itself for further growth once sporting events around the world are allowed to resume and its retail stores are permitted to reopen.

  • Alberta debuts in Nokkie

    Alberta debuts in Nokkie

    Alberta made its first foray into the Norwegian kroner market on Thursday — the same day that S&P placed the province’s credit outlook on negative.

  • IADB bumps up 2020 funding need

    IADB bumps up 2020 funding need

    The Inter-American Development Bank has bumped up its 2020 funding programme by almost a quarter to fund its response to the coronavirus pandemic.

  • Direct Line blows out in sterling with rare tier two

    Direct Line blows out in sterling with rare tier two

    Direct Line was about 15 times subscribed for a new tier two on Friday, allowing it to tighten its pricing by 75bp. The deal from the UK company adds to a recent run of subordinated insurance supply in sterling.

  • MEPs target AT1 coupons in CRR amendments

    MEPs target AT1 coupons in CRR amendments

    MEPs proposed a series of amendments to the Capital Requirements Regulation (CRR) this week, including a couple that could compel banks to stop paying additional tier one (AT1) coupons during the coronavirus pandemic.

  • Mortgage holidays to ‘negatively affect’ covered bonds

    Mortgage holidays to ‘negatively affect’ covered bonds

    Features in UK covered bond programmes offer limited protection and could lead to a delay in the classification of defaulted loans, Moody’s said this week. Meanwhile in Europe, regulators have muddied the waters on payment moratoria legislation.

  • Joy for JDE Peet’s as stock surges after accelerated IPO

    Joy for JDE Peet’s as stock surges after accelerated IPO

    Shares in JDE Peet’s, the coffee company which priced its IPO on Thursday, traded up by over 13% on their first day on the Amsterdam exchange. The rise vindicated the syndicate's decision to accelerate the roadshow on what is predicted will be Europe’s largest listing all year.

  • UK picks date and banks for June syndication

    UK picks date and banks for June syndication

    The UK Debt Management Office has announced the timing and the banks for its upcoming syndication next month, as it continues to plough through its unprecedented borrowing programme.

  • AIIB mandates for debut Panda bond

    AIIB mandates for debut Panda bond

    The Asian Infrastructure Investment Bank has hired banks for a renminbi sustainable development bond, its first outing in the Panda market.

  • Korea’s Big Hit files for IPO review

    Korea’s Big Hit files for IPO review

    South Korean firm Big Hit Entertainment, manager of popular K-pop boy band BTS, has applied for a preliminary review of its IPO with the Korea Exchange.

  • CAF captures Covid funds with social bond

    CAF captures Covid funds with social bond

    Latin American development bank Corporación Andina de Fomento expects the social bond universe to grow after bringing forward its debut social bond to raise funds for its Covid-19 mitigation efforts.

  • Europe is not wasting this crisis

    Europe is not wasting this crisis

    The European Commission has delivered its proposal for an EU recovery fund. It may not be full debt mutualisation nor a solution to low European growth, but it is a huge step forward.

  • HKEX nabs MSCI contracts, with SGX agreement due to lapse

    HKEX nabs MSCI contracts, with SGX agreement due to lapse

    Hong Kong Exchanges and Clearing (HKEX) won a licensing agreement this week to list 37 MSCI equity index futures and options contracts, as the index provider agreed to wind down its partnership with rival Singapore Exchange (SGX).

  • Petrobras trades softly on break with Lat Am to stay quiet

    Petrobras trades softly on break with Lat Am to stay quiet

    State-owned oil and gas giant Petrobras finally brought some bond supply from Brazil on Wednesday but, as the new issue traded down on the break, bankers said few Latin American issuers were likely to be persuaded of the benefits of tapping international markets in the short term.

  • Green convertibles arrive with Neoen blowout

    Green convertibles arrive with Neoen blowout

    Neoen, the French solar and wind energy producer, has issued the first green convertible bond in Europe — and investors’ eager reception of the deal suggests these instruments could be as popular in the equity-linked market as they have become in the straight bond market.

  • ABS investors weigh options in Hertz bankruptcy

    ABS investors weigh options in Hertz bankruptcy

    ABS investors watched nervously last week as car rental company Hertz filed for bankruptcy, with few good options to keep cash flowing in the face of a crisis that has curtailed travel and depressed used car values. However, sources say that there are a number of reasons investors should be pinning their hopes on a reorganization rather than a liquidation.

  • Private sector makes step on rocky road to EM debt relief

    Private sector makes step on rocky road to EM debt relief

    Private sector involvement in suspending debt servicing for the world's poorest countries to alleviate the impact of the coronavirus pandemic progressed this week, with the Institute of International Finance (IIF) publishing guidelines for such an initiative. But countries face a long and tortuous path to reach tangible relief, write Ross Lancaster and Oliver West.

  • BBVA brings Covid-19 bonds to European credit markets, others to follow

    BBVA brings Covid-19 bonds to European credit markets, others to follow

    BBVA surprised market participants by becoming the first bank to issue a Covid-19 response bond in Europe this week. There will be follow-on deals as the format catches on in credit markets — high grade corporates are looking to do deals too — but it is unlikely to be exploited as widely as it has been in the SSA market. David Freitas and Mike Turner report.

  • Commission proposal boosts periphery but long way to go

    Commission proposal boosts periphery but long way to go

    The European Commission delivered its proposal for Next Generation EU on Wednesday, marking a sea change in the bloc’s relationship with the capital markets as it proposes truly shared borrowing to finance expenditure for the first time. The move could make the Commission the biggest supranational and agency borrower by some distance, Lewis McLellan reports.

  • US corp bond sales slow but Fed keeps spirits up

    May has been another stellar month for US corporate bond issues, but issuance is expected to fall sharply as lockdown restrictions start to be lifted and international political concerns return to centre stage.

  • People news in brief

    People news in brief

    New chair at MUFG's EMEA arm — Jim Cowles turns up at ambitious fintech firm — Citi picks Sansen for trading team

  • Soaring CMBS delinquencies a preview of pain ahead

    Soaring CMBS delinquencies a preview of pain ahead

    Loans packaged into US commercial mortgage-backed securities (CMBS) delinquent by 30 days or more have quadrupled, according to remittance reports published in May, as the economic devastation of the coronavirus pandemic ripples through the financial system. Market participants fear record levels of distress if borrowers that are now in their grace periods add to the figures in the coming month, writes Max Adams.

  • MREL tenders ‘logical next step’ for banks

    MREL tenders ‘logical next step’ for banks

    HSBC Holdings is the latest European financial institution to have looked at launching a new deal for the minimum requirements for own funds and eligible liabilities (MREL) while simultaneously announcing tender offers on existing bonds.

  • FCA warns on conduct risk for housebound capital markets

    FCA warns on conduct risk for housebound capital markets

    The UK’s Financial Conduct Authority has reminded issuers and bankers of rules related to inside information and wall-crossings, as it seeks to make sure standards are upheld in busy markets when participants are working from home.

  • Denmark reveals three banks helping on strippable green bonds

    Denmark reveals three banks helping on strippable green bonds

    Denmark has made public the mandate it had given earlier this year to three banks to help it prepare to issue the world’s most unusual green bond, as the work is getting to a more advanced stage. A political decision to issue might come towards the end of this year.

  • ESG offers way out of panic market as investors bundle in

    ESG offers way out of panic market as investors bundle in

    Corporate bond investors piled into the three environmental, social and governance trades on screens this week, as bankers said the focus in the high grade market is shifting from crisis mode back to socially responsible debt.

  • BNG jumps on 10 year dollar bandwagon to seek out duration

    Bank Nederlandse Gementeen (BNG) this week became the latest public sector borrower to hit the 10 year part of the dollar curve with its first such trade since 2016. While demand seems to be starting to slow down for 10 year dollar bonds, SSA bankers say there is still room for more issuers to follow.

  • France smashes 20 year as demand heats up in long end

    France smashes 20 year as demand heats up in long end

    France impressed as it received a record €51bn order book and paid a small new issue premium with its first syndication since the outbreak of the Covid-19 pandemic. The sovereign was joined in the long end of the curve this week by two sub-sovereign borrowers as investor appetite for duration grows, with more supply expected to follow.

  • JDE Peet’s prices €2.6bn IPO after three-day roadshow

    JDE Peet’s prices €2.6bn IPO after three-day roadshow

    JDE Peet’s, the coffee business owned by JAB Holdings, closed the books on its IPO after an accelerated roadshow that lasted only three days. The transaction still attracted huge demand from investors eager to buy into the only sizeable IPO in the market.

  • Hilti, Sonava tap Swiss as basis deters tourists

    Hilti, Sonava tap Swiss as basis deters tourists

    A shift in the Swiss franc-dollar basis swap has been enough to deter , foreign issuers from the Swiss bond market this week, leaving it to a Swiss biomedical market regular and a Liechtenstein-based power tool manufacturer.

  • Unsecured euro money market borrowing hits high

    Unsecured euro money market borrowing hits high

    Unsecured euro money market borrowing this week reached its highest level since the European Central Bank began publishing statistics in November 2017, driven by issuers scrambling for funds to combat the coronavirus pandemic, according to one analyst.

  • SG innovates with second blockchain covered bond

    SG innovates with second blockchain covered bond

    Société Générale SFH has issued a second Obligations de Financement de l’Habitat (OFH) deal as a security token using a protocol that can be fully integrated with other blockchains and, for the first time, was settled using the Banque de France’s newly developed digital currency and structured with industry-aligned smart contracts.

  • Wallonne hits long end with debut social bond as Bpifrance takes size

    Wallonne hits long end with debut social bond as Bpifrance takes size

    The Belgian region of Wallonne took advantage of the growing demand in the long end of the curve to sell its first social bond on Thursday, although it had to pay a chunky new issue premium to do so. Elsewhere, Bpifrance received plenty of demand to print €1.25bn with a 10 year trade.

  • EU sends RFP for Ukraine loan

    EU sends RFP for Ukraine loan

    GlobalCapital understands that the European Union has sent a request for proposals (RFP) to banks to fund a macro-financial assistance (MFA) loan to Ukraine.

  • IWG surges after raising £315m of growth capital

    IWG surges after raising £315m of growth capital

    Shares in IWG, the London-listed operator of serviced offices and co-working spaces, rose by 15% on Thursday after the company successfully tapped investors for £315m to fund growth once the Covid-19 global pandemic subsides.

  • Cineworld raises new cash and gains covenant waiver

    Cineworld raises new cash and gains covenant waiver

    Cineworld announced on Thursday that it had raised on extra $110m of liquidity by extending its revolve. Its lenders also agreed to waive the covenant test for the end of June. The company also plans to tap government lending schemes in the UK and US.

  • Germany dollar syndication ‘could be a smart move’, says SSA DCM head

    Germany dollar syndication ‘could be a smart move’, says SSA DCM head

    Germany would be wise to consider diversifying its colossal funding needs with a syndication in dollars — a currency in which it is no stranger and which has become more attractive for euro-based funders, according to a head of public sector debt capital markets at one of the sovereign’s primary dealerships.

  • Cirsa bonds bounce as Blackstone buys back PIK notes

    Cirsa bonds bounce as Blackstone buys back PIK notes

    Bonds issued by Spanish gambling company Cirsa have rallied on expectations of support from owner Blackstone, after it disclosed on its investor call that affiliates of the private equity firm had bought €120m of its PIK notes in the market — even though the purchase does nothing to boost the firm’s liquidity profile.

  • Lufthansa refuses €9bn bailout terms

    Lufthansa refuses €9bn bailout terms

    The board of Lufthansa, the German flag carrier, has rejected the terms of a €9bn state bailout that would have seen the European Commission require the company to relinquish flight slots in Frankfurt and Munich.

  • Axa pushes covered bonds longer with 20 year

    Axa pushes covered bonds longer with 20 year

    Axa Bank SFH became the first bank since February to issue a 20 year covered bond — showing investors' growing appetite for risk. It also offered encouragement to eurozone issuers with long term funding needs to return to the market — especially given the strong performance of deals eligible for the ECB's purchase programmes compared with those that are not.

  • BNS to plant a flag for AT1 pricing

    BNS to plant a flag for AT1 pricing

    Bank of Nova Scotia was looking to test investors’ appetite for one of first additional tier one transactions of the coronavirus pandemic on Thursday, helping to set a reference point for pricing in the asset class.

  • Tencent jumps on ‘golden window’ for $6bn bond

    Tencent jumps on ‘golden window’ for $6bn bond

    Chinese tech giant Tencent Holdings raised $6bn from a four-tranche transaction on Wednesday. The deal, which attracted some $36bn of orders at its peak, proved that global investors are not being scared away from Chinese credits, despite the geopolitical risks clouding the country. Morgan Davis reports.

  • Hong Kong markets process impact of new security law

    Hong Kong markets process impact of new security law

    Hong Kong’s capital markets were left roiling this week as investors tried to grasp the significance of a new national security law. Some fund managers are jumping on opportunities amid the ensuing confusion, but other market watchers see the city losing its financial edge. Jonathan Breen reports.

  • Phoenix Group swaps old for new but lacks plan transparency

    Phoenix Group swaps old for new but lacks plan transparency

    Insurance company Phoenix Group Holdings launched a tier two in the dollar market on Thursday in a refinancing exercise, making use of favourable conditions across the board with a "well received" trade. But the issuance raised some concerns regarding the company’s plans to deleverage after its acquisition of ReAssure.

  • Swissport seeks bondholder backing for priming debt deal

    Swissport seeks bondholder backing for priming debt deal

    Swissport, the baggage handling and air cargo group, is asking bondholders to allow it to add €380m of super-senior debt above its existing senior secured bonds and loans, secured by the same collateral but with a priority claim.

  • China’s ABS market ready for change

    China’s ABS market ready for change

    China’s auto ABS market has seen a slew of tightly priced deals this month, thanks to ample liquidity onshore and the growing strength of domestic investors. While very short-term trades have been popular, appetite is rising for longer revolving structures, said bankers.

  • Bilibili launches $650m ADS convertible bond

    Bilibili launches $650m ADS convertible bond

    Chinese streaming platform Bilibili returned to the equity-linked market on Thursday, kicking off bookbuilding for a $650m convertible bond, according to a source familiar with the matter.

  • Chinese SOEs seal new dollar bonds

    Chinese SOEs seal new dollar bonds

    Shandong Hi-Speed Group Co and Taiyuan State-owned Investment Group were among the bond issuers on a relatively busy day for the primary dollar market on Wednesday.

  • The unexpected perks of working from home

    Social distancing has created a new world for all of us. I’ve learned to mix my own cocktails with such flair that I’ll be teaching the bartenders a thing or two the next time I’m at the Captain’s Bar. But I’m also not the only old dog learning a few new tricks.

  • Petrobras pushes on price to reopen Brazil

    Petrobras pushes on price to reopen Brazil

    Investors and bankers said that Petrobras had achieved exceptionally tight pricing on Wednesday as the oil and gas giant became the first Brazilian issuer to tap international bond markets in times of coronavirus amid a strong rally in corporate paper from the country.

  • Citi sustainability: grey heads and millennials

    Citi sustainability: grey heads and millennials

    Citigroup’s new architecture to make its banking, capital markets and advisory (BCMA) group a fitter competitor in sustainability and ESG issues emphasises two channels of communication, according to Manuel Falcó, co-head of BCMA, through the most senior rainmakers and a cadre of younger enthusiasts.

  • Lenders make less money despite Covid-19 loan boom

    Lenders make less money despite Covid-19 loan boom

    Some of the largest investment banks made 12% less revenue from lending in the first quarter, despite balance sheet expansion as they supported companies, according to research from analytics firm CRISIL Coalition.

  • Threat of CLO downgrades poses challenge for insurers

    Threat of CLO downgrades poses challenge for insurers

    The possibility of CLO downgrades from the major rating agencies is creating a difficult situation for insurance companies, many of which have bulked up their investments in lower rated bonds in the last two years.

  • Loanpal preps first solar ABS since outbreak

    Loanpal preps first solar ABS since outbreak

    Loanpal is bringing the first solar securitization to market since the Covid-19 outbreak. The deal is the first of several solar ABS lining up for the coming weeks, sources said, with at least two other 144A deals in the works.

  • European Commission proposal offers hope of grants

    European Commission proposal offers hope of grants

    The European Commission has published its proposal for an EU recovery fund. Next Generation EU, as it has been dubbed, has impressed onlookers with promises of €500bn of grants and a further €250bn of loans for countries affected by the coronavirus pandemic.

  • Commerzbank flags AT1 issuance intentions

    Commerzbank flags AT1 issuance intentions

    Commerzbank set up an issuance programme this week that will enable it to sell up to €3bn of additional tier one (AT1) debt. The German lender is preparing to take advantage of regulatory relief in its Pillar 2 capital requirements.

  • Banks busy in Kangaroos

    Banks busy in Kangaroos

    Banks are bounding back into the Kangaroo market. On Wednesday, BNP Paribas jumped in to sell the first syndicated Australian dollar senior non-preferred deal since the start of the Covid-19 crisis, later that day the Bank of Nova Scotia announced plans to join the fray with a mandate for a three year bail-inable deal.

more leveraged/non-investment grade