Banks

A leading covered bond investor has reacted positively to a series of measures announced by Canada’s Office of the Superintendent of Financial Institutions’ (OSFI) which have effectively provided stable access to emergency funding, including a temporary increase in the amount of covered bonds the country's banks can issue. The move comes after a heavy spell of supply that had sparked concerns that Canadian banks were struggling for cash.

The dollar bond market is gradually opening up, with two high quality public sector borrowers hitting screens on Monday for short dated deals. But with volatility still gripping the cross-currency basis swap market, European borrowers are still sticking to their home currency.

Jefferies said on Sunday that its chief financial officer, Peregrine ‘Peg’ Broadbent, had died of coronavirus complications. Broadbent had been CFO of the group since 2007, and helped it more than double in size.

The Nordic Investment Bank on Monday became the latest public sector borrower to use the capital markets to provide emergency financing in response to the coronavirus crisis. But rather than selling a conventional or socially responsible bond, the supranational has developed a new framework specially designed to tackle the pandemic.

CPPIB Capital hit the euro market on Monday, becoming the first SSA borrower not eligible for QE to access the market since the coronavirus outbreak shuttered the market. A fellow Canadian is set to follow suit.

Belgium has picked banks for a seven year benchmark, publishing the mandate just after joining the throng of sovereigns upping their funding requirements. Norway has also raised the size of its borrowing programme.

Hipgnosis Songs Fund, the London-listed investment fund focused on song royalties, has acquired the music catalogue of Richie Sambora, the lead guitarist of Bon Jovi and co-writer of the US band’s hits, for an undisclosed price. It is an example of the acquisitions the fund continues to make as it mulls a fresh equity capital raise.

A string of well rated companies are preparing to issue bonds in the coming days, as syndicate desks are heartened by the continued ample demand from investors. Anheuser-Busch InBev, Volkswagen Financial Services and Thermo Fisher Scientific raised a total of €7.85bn in euros today, despite a rocky market.

BMW has raised €200m from a single investor in the Schuldschein market, according to several market sources. Arrangers are talking with Schuldschein investors to gauge appetite for German auto manufacturers as the Covid-19 pandemic wreaks havoc on corporate earnings.

Goldman Sachs has hired a senior banker from Morgan Stanley to be its new head of equity syndicate, GlobalCapital understands.

British Airways, the UK flag carrier, has extended its dollar revolving credit facility, as the coronavirus-ravaged airline industry continues to reinforce its finances.

Market participants are debating whether the risks to additional tier one coupons have risen or fallen after the European Central Bank urged banks not to pay equity dividends for at least six months.