Bank of America

All of the big US investment banks have beaten grim expectations for their fixed income trading divisions, despite a collapse in volumes far more severe than that in the first quarter and volatility that is still on the floor, writes Owen Sanderson.

Trade & Development Bank of Mongolia (TDBM) was forced to pull its dollar bond after announcing guidance on Thursday July 9. While bankers on the deal blamed shockwaves from a bank crisis in Portugal, investors said they were not willing to take on Mongolian risk and that the deal hardly received any orders at all.

Bank of America Merrill Lynch became the first US bank this year to post a year-to-date rise in revenue from their fixed income, currencies, and commodities business, announced in their second quarter earnings report on Wednesday.

Caixa Econômica Federal sold the first Basel III compliant tier two bond from a Brazilian issuer on Wednesday, but the government owned development bank is unlikely to trigger a flurry of copycat deals.

CCB Asia reopened its 3.25% 2019s after seeing the spread on its debut five year dollar bond tighten by 28bp since launch. The deal had already attracted $1.5bn in orders by 2:19pm Wednesday.

Israeli energy conglomerate Delek Group has set price guidance on a €655m loan to back the sale of its petrol station and convenience store operations in the Benelux and France to TDR Capital.

Kuwait Energy has mandated Bank of America Merrill Lynch as the sole bookrunner for a Reg S dollar bond. The roadshow for the deal will start on July 15.

The $205m loan for Khopoli Investments, a subsidiary of Tata Power, has received commitments from two more banks, according to a banker.

China’s Rundong Automobile Group is gauging investor sentiment for a potential listing on the Hong Kong Stock Exchange, and if market conditions stay in its favour, books could open as early as next week.

Trade & Development Bank of Mongolia (TDBM) was forced to pull its dollar bond after announcing guidance on Thursday July 9. While bankers on the deal blamed shockwaves from a bank crisis in Portugal, investors said they were not willing to take on Mongolian risk and that the deal hardly received any orders at all.

China Gold International Resources Corp pulled in a $7bn order book for its inaugural international bond on Thursday, just before a shock from Portugal sent markets around the world into a state of disarray. Although dealers had tightened pricing by 35bp as investors took to the rare state owned credit, the notes nonetheless rallied in secondary trading the following day, tightening by 17bp.

Bank of America Merrill Lynch has hired Mayank Saxena as its new head of southeast Asia FIG investment banking, according to an internal memo seen by GlobalCapital Asia.