Leveraged/non-investment grade

  • Orcel looks to clinch MPS takeover in six weeks

    Orcel looks to clinch MPS takeover in six weeks

    Andrea Orcel is looking to clinch a deal for Unicredit to acquire parts of stricken Italian lender Banca Monte dei Paschi di Siena (MPS) in the early part of September after revealing it was negotiating with the Italian government.

  • SLB momentum in EM triggers debate over pricing innovation

    SLB momentum in EM triggers debate over pricing innovation

    As sustainability-linked bond issuance gains momentum in emerging markets, questions are being asked about the product and its potential for innovation. The next iteration could see a feature already accepted in the loan market but not yet in bonds: a margin step-down.

  • Diversity — bold action needed

    Investment bankers tend have a built-in sense of infectious optimism that helps them to convince issuers to mandate them or investors to buy securities and other financial products, and also gets them through tough times. So it is only natural that, while rightly recognising the terrible human cost of the Covid-19 pandemic, they should be searching for silver linings.

  • Delta variant spread puts reopening trade at risk

    Delta variant spread puts reopening trade at risk

    Credit spreads for corporate borrowers from sectors that will benefit the most from reopening from lockdowns are drifting wider as coronavirus infections rise thanks to the spread of the delta variant. Industries already battered by the pandemic face a rough autumn in capital markets if there is another major global wave of the virus.

  • What analysts want: how the pandemic reshaped bank recruitment

    What analysts want: how the pandemic reshaped bank recruitment

    Investment banks are broadening the search for talent and tweaking their recruitment message to attract and retain the bankers of the future, as working conditions and corporate culture emerge as hot topics after a difficult period for staff in the industry.

  • SSA market big guns face September crush as EU returns

    SSA market big guns face September crush as EU returns

    The big public sector borrowers are watching out for two obstacles as they prepare for a crowded autumn funding season: guidance from the ECB and the US Federal Reserve on tapering their bond buying programmes, and the return of the Next Generation EU debt issuance programme.

  • Taper talk sets up delicate restart for FIG supply in September

    Taper talk sets up delicate restart for FIG supply in September

    The US Federal Reserve moved one step closer this week to signalling it will start to end its quantitative easing measures. FIG borrowers now face a nervous wait for the central bank’s next communication in late August, which will define the strength of market conditions ahead of a crucial issuance window in September.

  • CVC drags triple-A CLO spreads tighter again

    CVC drags triple-A CLO spreads tighter again

    CVC Credit Partners has priced the tightest US CLO of the month selling the senior notes at 113bp over three month Libor, underscoring the robust demand for the product.

  • Valeo deal must prompt Scope 3 refocus

    Valeo deal must prompt Scope 3 refocus

    It’s time for investors to pressure borrowers to emphasise Scope 3 emissions if they want to make the difference to climate change they claim they do.

  • Market looks ahead to Jackson Hole for taper talk

    The Federal Reserve signalled that tapering is near in its Wednesday meeting, describing how the US economy has made progress and employment continues to strengthen. ABS pros are expecting the Jackson Hole Summit in August to be a natural point to begin tapering and pull back MBS purchases at a faster rate than Treasurys.

  • Prudential sounds ESG klaxon for US insurers

    Prudential sounds ESG klaxon for US insurers

    Prudential has signed a $4bn revolving credit facility, with margins linked to its sustainability performance. This is the first deal of its kind by a major US insurer and puts pressure on others to follow suit.

  • EDC returns to Chilean pesos

    EDC returns to Chilean pesos

    Export Development Canada (EDC) sold the first offshore Chilean peso deal of the year as it dropped into the currency in search of short dated borrowing earlier this week.

  • Pool diversification to insulate covered bonds from flood risk

    Pool diversification to insulate covered bonds from flood risk

    The recent floods in western and central Europe could have an impact on covered bond pools. However, despite uninsured losses expected to total in the billions, covered borrowers are likely to remain insulated thanks to the diversification of their pools.

  • Markets steady as Fed inches closer to tapering

    Markets steady as Fed inches closer to tapering

    The US Federal Reserve signalled on Wednesday that a tapering of its support the economy may not be too far away. Market participants across both emerging and developed markets, however, appeared unruffled by the announcement.

  • Novo Banco buys back more than expected in legacy tender

    Novo Banco buys back more than expected in legacy tender

    Novo Banco has repurchased about €260m more debt than it set out for with a tender offer this month, as it looks to reshape its funding structure towards the minimum requirements for own funds and eligible liabilities (MREL).

  • Íslandsbanki sets sights on debut AT1

    Íslandsbanki sets sights on debut AT1

    Íslandsbanki plans to issue its inaugural additional tier one (AT1) note in the near future, becoming the second Icelandic bank to debut in the format since the collapse of the nation's banking system 13 years ago.

  • Adamo secures €600m SLL refi to get rural Spain online

    Adamo secures €600m SLL refi to get rural Spain online

    Adamo, a broadband company, has agreed a €600m sustainability-linked loan, the company announced on Wednesday. The cash will be used for refinancing and to fund the expansion of Adamo’s fibre network into rural Spain.

  • Chinese stock rout derails IPO pipeline as regulators flex their muscles

    Chinese stock rout derails IPO pipeline as regulators flex their muscles

    Chinese stocks were in freefall this week after Beijing tightened rules for the for-profit education sector, sparking a fresh — and severe — bout of volatility in the equities market. While the timing for new IPOs is far from ideal, there is hope yet for companies, say ECM bankers. Jonathan Breen reports.

  • European IBs look to loosen purse strings

    European IBs look to loosen purse strings

    After several quarters of strong performance among European investment banking businesses, there are signs that firms are satisfied with cost cutting measures and are prepared to resume investment instead.

  • Jefferies eyes IB big league with SMBC alliance

    Jefferies eyes IB big league with SMBC alliance

    Aligning with a global commercial bank has been on Jefferies’ agenda for several years, but its alliance with SMBC signals an intent to join the investment banking big league. By David Rothnie.

  • Chexim leads policy bank peers in onshore perp market

    Chexim leads policy bank peers in onshore perp market

    The Export-Import Bank of China (Chexim) has sold a renminbi-denominated perpetual bond, becoming the first of the country’s three policy lenders to tap the onshore debt market for additional tier one capital. Addison Gong reports.

  • Affirm taps ABS demand with non-revolver

    Affirm taps ABS demand with non-revolver

    Affirm priced its buy now pay later ABS on Tuesday afternoon. The revolving transaction is designed to provide Affirm with the flexibility to fund shorter term instalment loans.

  • Lloyds to reshape DCM as top bankers leave

    Lloyds to reshape DCM as top bankers leave

    Lloyds Bank has formulated a succession plan to prepare for the departure of Allen Appen, its head of bond financing, as another senior figure prepares to leave its debt capital markets group.

  • Trade body pair reinforce importance of KPIs for SLLs in leveraged market

    Trade body pair reinforce importance of KPIs for SLLs in leveraged market

    The Loan Market Association (LMA) and the European Leveraged Finance Association (ELFA) jointly released a best practice guide for sustainability-linked loans on Wednesday. The guidance is aimed specifically at the leveraged loan market and stresses the importance of agreeing on clearly defined key performance indicators ahead of announcing a SLL.

  • Taper talk dominates ahead of Fed meet

    Taper talk dominates ahead of Fed meet

    Market participants expect the Federal Reserve could address the topic of tapering at its meeting later today; however, the spread of the Delta variant may cause the central bank to put any talk on hold until its Jackson Hole Symposium next month.

  • Blackstone UK logistics CMBS sees high demand lower down cap stack

    Blackstone UK logistics CMBS sees high demand lower down cap stack

    Sole arranger Bank of America has added £104.5m to Taurus 2021-4, a UK logistics CMBS sponsored by Blackstone, ahead of pricing on Thursday. The deal had trouble matching subscription levels seen for logistics CMBS at the beginning of the year, but demand came in strong lower down in the capital stack, reflecting a shift in investor preferences as the UK economy reopens.

  • Metro warns it could again fall below MREL requirements

    Metro warns it could again fall below MREL requirements

    Metro Bank said as part of its results on Wednesday that it was in danger of falling below its minimum requirements for own funds and eligible liabilities (MREL), following a big drop in its common equity tier one (CET1) ratio.

  • Carige flounders on market return amid uncertain future

    Carige flounders on market return amid uncertain future

    Banca Carige’s share price fell nearly 60% on Tuesday, after trading in its stock reopened for the first time in about two and a half years. Investors are concerned about the outlook for the Italian lender, which may need to raise €400m of capital if it cannot find a merger partner.

  • Oi sells dollars in refi scheme

    Oi sells dollars in refi scheme

    Oi, the Brazilian telecom company, re-entered international debt markets this week to raise almost $1bn of short-dated paper.

  • KfW takes A$350m with green Kangaroo tap

    KfW takes A$350m with green Kangaroo tap

    KfW added to the week’s SSA niche currency supply on Wednesday with a tap of a green Kangaroo bond that ended up almost two times the initial target size.

  • Barclays shakes up capital markets, M&A teams

    Barclays shakes up capital markets, M&A teams

    Barclays has made several further promotions across its capital markets and M&A teams in London and New York, a week after rolling out a new global investment banking management structure.

  • Chia Tai feeds debut $500m loan to market

    Chia Tai feeds debut $500m loan to market

    Chia Tai Animal Husbandry Investment (Beijing) Co, an onshore China entity of Thailand’s Charoen Pokphand Group, is borrowing its first offshore loan directly.

  • Chexim debuts Rmb60bn perp

    Chexim debuts Rmb60bn perp

    The Export-Import Bank of China has sold a renminbi-denominated perpetual bond, becoming the first among the country’s three policy lenders to tap the onshore debt market for additional tier one capital.

  • US-listed I-Mab readies Shanghai IPO

    US-listed I-Mab readies Shanghai IPO

    Chinese biopharmaceutical company I-Mab is moving ahead with plans for a dual listing in Shanghai, as it looks to broaden its investor base.

  • Hard landing: Avic nets €200m

    Hard landing: Avic nets €200m

    Avic International Leasing Co turned to the euro market on Tuesday for a sub-one year bond, but the deal’s short tenor and a rough issuance backdrop led to tepid investor response.

  • Korea ECM: investors miss the point

    Korea ECM: investors miss the point

    South Korea’s financial regulator has stepped up scrutiny of big IPOs recently, disrupting a few listings and stoking concerns about a pullback in deal flow. Investors have so far been undeterred — but it’s time they start paying attention.

  • The UK risks missing an opportunity on MREL

    The UK risks missing an opportunity on MREL

    The Bank of England looks set to wrap up a review of the minimum requirements for own funds and eligible liabilities (MREL) without reconsidering its total asset threshold. That would be a mistake.

  • Stan Chart’s apprentices to tear down banking shibboleths

    Stan Chart’s apprentices to tear down banking shibboleths

    Standard Chartered’s mould-breaking front office apprenticeship scheme is to be lauded. The programme stands to supply the City not just with a new breed of banker but, if handled well, could bring that rarest of commodities to high finance — genuine diversity.

  • Denmark's Capital Four expands US CLO business

    Denmark's Capital Four expands US CLO business

    European CLO managers are growing their presence in the US, lured by tighter spreads and growing demand from investors and running contrary to the previous trend for US managers to plot European expansion.

  • Market minds Powell's language as Fed meeting kicks off

    Market minds Powell's language as Fed meeting kicks off

    The Federal Reserve kicked off its two-day policy meeting on Tuesday, with the officials deeply divided on when to make the move to tapering asset purchases. With no dot plot projections expected this time, sources are keeping a close eye on what Fed chairman Jerome Powell says, looking for hints about the central bank’s plans.

  • Valeo and Nasdaq breeze through quietest July in years

    Valeo and Nasdaq breeze through quietest July in years

    Valeo, the French auto parts maker, and US exchange company Nasdaq brushed off any worries of contagion from a weak sterling market to print bonds in euros flat to fair value on Tuesday, with the issuers able to take full advantage of the an exceptionally quiet market.

  • FCA moves to allow US-style Spac IPOs in London

    FCA moves to allow US-style Spac IPOs in London

    US-style Spac IPOs will soon be possible on the London Stock Exchange following a review by the Financial Conduct Authority, although the changes come at a time when the vehicles have fallen increasingly out of favour with investors.

  • Liberum makes renewed M&A push

    Liberum makes renewed M&A push

    Mid-market investment bank Liberum has brought in the co-founders of corporate finance boutique Bullfinch Corporate Finance as co-heads of M&A as it looks to raise its profile in takeovers.

  • Banks expected to eschew early TLTRO repayments

    Banks expected to eschew early TLTRO repayments

    Market participants do not expect banks to repay their targeted longer-term refinancing operations (TLTROs) borrowings early when a window opens next month, though the primary market would retain plenty of capacity to swallow up any increased issuance.

  • Sampo reduces debt through senior tender

    Sampo reduces debt through senior tender

    Finnish insurer Sampo has bought back more euro-denominated senior bonds as it looks to reduce its leverage, though it failed to gain approval to redeem the remaining bonds ahead of their maturity.

  • Plastic fantastic: SMI joins ring of LatAm SLB issuers

    Plastic fantastic: SMI joins ring of LatAm SLB issuers

    Peru-headquartered San Miguel Industrias, known as SMI Group, which produces plastic packaging across Latin America, sold a sustainability-linked bond on Monday. The trade is the latest in a long string of Latin American issuers embracing the innovative format.

  • Rwanda mandates for return after eight year hiatus

    Rwanda mandates for return after eight year hiatus

    The Republic of Rwanda is set to return to the international bond market for a dollar bond, joining a club of sub-Saharan African sovereigns that have taken advantage of attractive funding conditions in recent weeks.

  • Equity market hiccup betrays Covid fears

    Equity market hiccup betrays Covid fears

    A sell-off in global equities at the beginning of last week, in response to the Delta-variant-fueled rise in Covid-19 cases, was largely erased in the following days. But the episode offered a glimpse of the disquiet in the market, and a hint as to the likely reaction if the pandemic were to take a course that put the brakes on economic growth.

  • JP Morgan installs activist defence specialist for EMEA

    JP Morgan installs activist defence specialist for EMEA

    JP Morgan has topped up its expertise in shareholder activism in EMEA with the appointment of Darren Novak, a veteran of the discipline who previously worked at UBS, as head of shareholder engagement and M&A capital markets (SEAMAC) for the region.

  • PMM: Investors shy away as supply dries up

    PMM: Investors shy away as supply dries up

    The primary market was much quieter last week with only two markets active — SSA and corporate bonds. Total issuance in those markets fell to 32% and 18% of their 2021 weekly averages, respectively.

  • Football securitization closed despite pandemic chaos

    Football securitization closed despite pandemic chaos

    A UK football club securitization has closed that offers investors exposure to future ticket sales. But sports securitizations, almost non-existent after the 2008 global financial crisis, have assumed a new, higher level risk in the eyes of many following the pandemic.

  • Adani Ports steers through rough waters for $750m deal

    Adani Ports steers through rough waters for $750m deal

    Adani Ports and Special Economic Zone locked up a $750m dual-tranche bond on Monday. But the deal was not easy for the Indian borrower, as negative headlines at home and a volatile Asian market kept many investors away. Morgan Davis reports.

  • Temasek pushes to longer tenors

    Temasek pushes to longer tenors

    Singaporean sovereign wealth fund Temasek offered investors 10 year, 20 year and 40 year bonds this week when it priced its $2.5bn deal.

  • Lesso woos banks with $550m loan

    Lesso woos banks with $550m loan

    China Lesso Group’s $550m-equivalent dual-currency loan is in the market, with an open invitation for banks to join at three levels.

  • Castlelake ABS refi swoops lower than ever despite aviation pricing concerns

    Castlelake ABS refi swoops lower than ever despite aviation pricing concerns

    Castlelake beat its own record with a refinancing of its 2017-1R transaction, achieving the lowest coupon out of all of its deals since it debuted in the ABS market in 2014. The pricing highlighted the insatiable demand for aviation bonds, even as some voiced concerns over valuations in the esoteric ABS market overall.

  • CarVal comes Clean on ESG CLOs

    CarVal comes Clean on ESG CLOs

    CarVal Investors has launched a new CLO platform that looks to advance the sophistication of investing along environmental, social and governance lines in US capital markets.

  • No easy road to recovery for CMBS noteholders after Intu restructuring

    No easy road to recovery for CMBS noteholders after Intu restructuring

    The three-year restructuring plan for four Intu shopping centres is set to see cash poured into London, Nottingham and Glasgow retail hubs after the group collapsed into administration in June 2020. But CMBS noteholders are set to see yields recover to only 60% of the outstanding amount by the time of a likely asset sale, bringing into doubt the prospect of future shopping-centre securtiizations.

  • Not an Ideal Standard: shaky HY deal scrapes through

    Not an Ideal Standard: shaky HY deal scrapes through

    Troubled Belgian bathroom fixtures firm Ideal Standard has struggled to sell high yield bonds, slashing the size of its deal and yanking up the yield. Meanwhile, the transaction is down at least three points on the first day of trading.

  • BlueBay grows ESG team in London

    BlueBay grows ESG team in London

    Fixed income investor BlueBay Asset Management has added to its environmental, social and governance (ESG) investment team in London with an external hire and a move from within.

  • London housing associations plot ESG bond splurge

    London housing associations plot ESG bond splurge

    Four of London’s biggest housing associations are moving closer to issuing debut sustainability bonds, after Metropolitan Housing became the third from an influential group of associations to print debt using the structure.

  • Cyprus edges closer to IG ratings hat-trick

    Cyprus edges closer to IG ratings hat-trick

    Moody’s upgraded Cyprus on Friday, leaving it one notch below investment grade status and a step closer to reclaiming high grade ratings from all three of the major rating agencies.

  • Stellantis locks in €12bn after Peugeot/Fiat Chrysler merger

    Stellantis locks in €12bn after Peugeot/Fiat Chrysler merger

    In one of the largest deals in the loan market this year, Stellantis, the Netherlands based company formed from the merger of Fiat Chrysler (FCA) and Peugeot (PSA), has secured a €12bn revolving credit facility. The fresh debt will refinance revolvers from the two car companies.

  • ECB ends dividend ban ahead of stress test

    ECB ends dividend ban ahead of stress test

    The European Central Bank took another step towards normality last Friday as it announced that the dividend and share buyback restrictions for eurozone banks will end in late September, coming ahead of the publication of the supervisor's latest stress test later this week.

  • EU tweaks will hamper Basel III benefits, ECB warns

    EU tweaks will hamper Basel III benefits, ECB warns

    The European Central Bank has urged the EU to implement a "plain vanilla" version of the final Basel III rules, arguing that other design options will have lower economic benefits over the long term.

  • Tunisia bonds fall as ‘coup’ sends shockwaves

    Tunisia bonds fall as ‘coup’ sends shockwaves

    A decade after the Arab Spring erupted in Tunisia, the country has found itself once again in the throes of a political crisis, sending shockwaves through investors. The president’s abrupt seizing of executive power — which some have labelled a coup — poses yet another challenge for the country, though some said there may be buying opportunities on the horizon.

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