Barclays

The mild market reaction to Dilma Rousseff’s Brazilian presidential election victory last Sunday suggested the incumbent’s triumph was already priced in, said bond investors. However, market participants warned of volatility in the coming months until the direction of the government’s economic policy becomes clearer.

Rating: Ba1/A-/BBB+

Investors have successfully pushed pricing wider on three leveraged loan deals that are closing this week, with RAC, a well liked credit, the latest to flex for investors.

Czech Raiffeisenbank priced the first publicly syndicated euro benchmark covered bond from the country on Wednesday. At the same time, Toronto Dominion Bank mandated leads for its first Australian dollar covered bond.

Slovenia this week became the latest sovereign to be tempted into pre-funding by the low yields on offer, following deals from Lithuania and Romania last week. The issuer priced a long seven year bond that marks the lowest coupon on any of its outstanding medium to long term euro benchmarks.

Bank of Nova Scotia (BNS) priced its third euro benchmark of the year, and its fourth covered bond benchmark across all currencies, on Tuesday. The deal took advantage of space created by robust Eurosystem central bank demand at the short end. And responding to reverse enquiry, the issuer also priced a £250m three year floater.

For the first time the European Central Bank waded into the primary market for covered bonds for its third purchase programme (CBPP3) this week, as eurozone issuers from the currency bloc’s core and periphery returned after a long hiatus. The central bank’s buying may not be so good for core issuers but the evidence so far suggests peripheral names who have been locked out are about to bask in its largesse.

Turkish consumer products company, Yasar Holdings, printed its $250m bond on Thursday evening from a book of $620m and well inside initial price thoughts. The success of the EM high yield deal — the first to be printed since the huge US volatility of a fortnight ago — bodes well for other corporates from the region roadshowing bonds.

The US investment grade corporate bond market barely blinked this week when the US Federal Reserve called time on quantitative easing. Companies hit the market ahead of what is expected to be a bumper November for new issuance.

Styrolution, the German plastics firm, will allocate its €1.05bn-equivalent five year term loan ‘B’ on Friday, after successfully meeting its revised deadline for commitments.

Turkish consumer products company, Yasar Holdings has released price guidance at a yield of 9% to low 9% for a $250m 5.5 year non-call three bond. The high initial guidance drew attention from syndicate officials away from the deal who said that the note would serve as a test of investor appetite for EM high yield names.

UBS has made a senior appointment to its leveraged finance team in Hong Kong, hiring a banker from a rival lender to head its leveraged capital markets for Greater China.