Barclays

Lloyds issued the first sterling covered bond of the year and was quickly followed by two overseas issuers who priced deals at successively wider levels.

Public sector borrowers enjoyed a storming sterling market this week and, with many of the supporting factors still in place, SSA bankers are confident that more deals will follow.

Borrowers who issued covered bonds this week that are eligible for the European Central Bank’s purchase programme (CBPP3) did not receive such a strong reception as those whose bonds were not eligible.

European high yield specialists hope the continent's market can repeat in 2016 its sharp outperformance compared with the US market last year — but history suggests that the two markets tend not to diverge for long.

Eleven covered bonds were priced in the first week of 2016 despite the onset of European holidays and US non-farm payroll data.

A healthy euro benchmark pipeline is building for next week, with one supranational looking to print and a pair of sovereigns believed to be considering deals, after a week that didn’t finish as strongly as it started for core issuers.

World Bank rounded off a strong week for sterling issuance from public sector borrowers, opting to print a deal further out the curve than the week’s previous trades.

Investors on Thursday pounced on Ireland's recovery story to lap up €3bn worth of 10 year bonds from the Celtic Tiger.

EasyJet, the UK budget airline, has mandated three banks for its first ever bond issue, and will run a roadshow next week.

Allocations are out for a $145m loan backing the Blackstone Group’s acquisition of Serco’s business process outsourcing assets in India.

Korea Development Bank (KDB) snagged tight pricing for its $1.5bn dual-tranche bond, completing one of the first deals of the year in Asia. Some accounts stayed away citing expensive pricing and geopolitical concerns, but investors still thronged to the credit, viewing it as a defensive play amid high volatility.

Barclays is preparing to let go of investment banking staff in Asia as the UK lender continues to wind down its presence in non-core markets.