BNP Paribas

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The euro public sector bond market bounced back in fine fashion this week after a shock result in the German federal election, leading to some well oversubscribed trades. A potential Catalonian independence referendum is also not affecting demand, said bankers.

Four firms from Asia ex-Japan are taking bids for their dollar bonds, including Lionbridge Capital Co, Nan Hai Corp, Overseas Chinese Town Enterprises Company as well as Malaysia’s Yinson Holdings.

There’s a spring back in the steps of markets businesses, despite a slump in trading conditions from last year, and record low volatility levels. But making money in the new world order isn’t about a return to the leverage-juiced fixed income flows of the pre-crisis world. GlobalCapital spoke to Olivier Osty, BNP Paribas’ executive head of global markets about what it takes today.

Bpifrance Financement has tapped a November 2024 line for €700m, outstripping the size of the original issue and selling into what a banker at one of the leads described as an “amazingly strong market”.

With strong demand right off the bat, Chinese firm RYB Education has broken through the top of guidance to raise a higher $144.3m from its US flotation, according to a source close to the deal.

Equity derivatives experts do not expect equity volatility to pick up from its current low level any time soon. Some of the potential political hurdles have been overcome and some see little to trouble them until the Italian elections in the second quarter of next year.

One borrower took advantage of an excellent backdrop to scoop up its first green funding in euros at an attractive level on Tuesday, while a second issuer is lining up to follow suit in dollars.

Last week saw the revival of a once glorious tradition; the spurious big bank M&A rumour. The trigger was an article suggesting UniCredit had approached the German government about buying Commerzbank, which was followed, in short order, by a suggestion that BNP Paribas was the preferred suitor.

Deutsche Wohnen, one of the biggest listed German residential property companies, added its name to the string of equity-linked deals in Europe this month on Tuesday when it printed an €800m eight year note to finance a tender offer for a previous convertible bond, due in 2021.

ThyssenKrupp, the German steel company, raised €1.37bn of fresh equity on Monday night, in one of the largest primary accelerated bookbuilds of the year so far in EMEA.

US machinery manufacturer, John Deere, returned to the euro corporate bond market on Tuesday, selling its second deal in September. The €500m five year deal was issued by the company’s John Deere Bank entity.