Barclays

Commodities group Glencore Xstrata proved there was life in the corporate investment grade market this week, but syndicate bankers are hoping for a more broad-based recovery as corporate America emerges from earnings blackout.

Italian insurer Assicurazioni Generali took advantage of a good market tone to offer a deal that combined features of recent success stories: subordinated insurance debt, and Europe's periphery.

At Barclays' AGM on Thursday, chairman David Walker was the fall guy. He had to defend pay at the bank, describing 2013’s compensation decision as “among the hardest that we have had to take”, and making it clear that this was thanks to the media.

Barclays has been preparing the ground ahead of an expected crunch in FICC revenues in its first quarter results, which it reports on May 6. It has also moved to reassure the market that its strategy for the investment bank is under control, with details of another strategy review due to be announced on May 8, and a reshuffle of the investment bank’s management team.

Kingdom of Sweden was able to price a five year euro benchmark at a level deeply through mid-swaps this week, as investors snapped up the rare opportunity to take on exposure to the sovereign despite the deal offering what leads say is the lowest coupon on a five year euro deal for a sovereign, supranational or agency all year.

The Republic of Latvia picked up a book of mid-€3bn for a €1bn 10 year bond on Thursday, pricing flat to its curve and polishing off its funding requirement for the year.

Thai bank paper continues to be in favour with Kasikornbank pricing 5bp inside its existing curve, despite political headwinds.

Katherine Lau, head of loan syndicate for Asia Pacific at Barclays, has left the bank after working in the role for just 10 months.

Tencent printed the largest ever dollar bond for an Asian technology company on Tuesday night, and the $2.5bn three and five year dual tranche transaction was more than five times subscribed. A ratings upgrade since its last outing ensured the issuer received a good response from the US and allowed it to price comfortably inside its curve.

Woori Bank printed the first US dollar Basel III tier two bond from a South Korean issuer on Wednesday night. A big order book helped the borrower to tighten initial guidance by 30bp, the largest margin for an Asian issuer issuing a Basel III compliant security.

Price guidance for Latvia’s euro benchmark 10 has been tightened to 125bp over mid-swaps, in a move widely expected after a generous starting position. Two bankers away from the deal had said they expected to see tightening from the initial 135bp starting number before the Reg S note was priced later on Thursday.

Barclays CEO Anthony Jenkins said at the bank’s AGM that its fixed income, currency and commodities (FICC) business “continued to face many of the challenges seen in the second half of 2013 with a significant year-on-year reduction in FICC income, reflecting difficult market conditions and a strong comparative performance for Q1 last year.”