Banks

Despite the terrible effects of the coronavirus pandemic on capital markets, the MTN market is open and functioning.

L-Bank brought a novel approach to sell a two year dollar deal on Thursday that could help other borrowers navigate volatile markets, with investors invited to place bids for the trade over their desired level versus mid-swaps.

Europe's bank funding officials are not certain how their borrowing plans are likely to change but seem agreed there is little point in hitting the primary market until serious liquidity returns, That has given Canada's banks the run of the place with this week with another deal emerging from Canadian Imperial Bank of Commerce on Friday.

The Bank of England said on Friday morning that UK banks should not treat coronavirus-impacted exposures as impaired assets under IFRS 9 accounting standards, as it unveiled new guidance around the impact of the pandemic.

Goldman Sachs announced on Thursday that an employee in its investment banking division in Hong Kong had been identified as a "highly probable case" of the Covid-19 coronavirus.

China’s Cathay Media and Education Group has re-applied for approval to float in Hong Kong, submitting documents on Thursday with its latest financial figures.

Mercedes-Benz Auto Finance broke an almost year-long break from the China auto ABS market this week with a Rmb6.316bn ($892m) deal. The company added a three month revolving period to its transaction, a rarity for issuers.

The biggest investment banks are enjoying strong trading revenues from the market moves related to the coronavirus pandemic, alleviating a freeze in M&A and underwriting activity. The banks appear well-placed to deal with corporate drawdowns, although there is some debate around wider liquidity profiles.

Royal Bank of Canada, Bank of Montreal and Toronto Dominion Bank all issued euro covered bonds in good size this week, finding big savings over senior unsecured issuance. One leading investor said bringing these deals in a fragile market was opportunistic and reflected The Bank of Canada's more restrictive provision of emergency liquidity than in Europe.

Deloitte hires ex-Morgan Stanley banker — Roland swaps roles at LBBW

The State of North Rhine Westphalia (Land NRW) had to pay a large new issue premium on Thursday as it brought the first SSA deal of a volatile week.

ING and Skandinaviska Enskilda Banken (SEB) said this week they would redeem dollar-denominated additional tier one (AT1) bonds at their first call dates, despite the economic and market implications of Covid-19.