Derivatives - All Articles

  • Senior CLO debt slashed by 37bp in successful first AMR auction

    The first ever refinancing of a CLO via an applicable margin reset (AMR) auction was a success this week, with BNP Paribas among the winning bidders, trading 73% of the total CLO, according to sources familiar with the matter.

    • 31 Jan 2020
  • EIB: standard-bearer of sustainable finance

    For well over a decade, the cornerstone of the European Investment Bank’s sustainability funding policy has been the conviction that the financial services industry has a pivotal role to play in spearheading the battle against climate change. As the EU’s climate bank, it has also consistently recognised its responsibility for developing best practice, which in turn helps promote enhanced environmental and social standards across the global financial community.

    • 31 Jan 2020
  • Drop Moody’s and leverage up: new Cerberus RMBS boosts triple-A portion

    Cerberus has juiced up its latest UK buy-to-let RMBS deal by dropping Moody’s from the deal, which has a more dismal view of the market than its rival rating agencies. Among other structural changes, this has allowed the private equity firm to enlarge its triple-A tranche by more than 10 percentage points, giving a far more efficient capital structure.

    • 31 Jan 2020
  • Covered bonds to stay immune from viral scares

    January's total primary covered bond volume was the second highest since 2014, albeit 25% down on last year in euros. February is typically a much slower month, but supply could keep pace if issuers look to the asset class for execution certainty amid mounting concern around the potential impact of a new coronavirus in China.

    • 31 Jan 2020
  • Investec Group begins asset management spin-off

    Anglo-South African bank Investec Group has launched the spin-off of its asset management division, Ninety One ,on the London Stock Exchange.

    • 31 Jan 2020
  • Adani raises first US PP from India for a decade

    Adani Transmission has priced a $310m US private placement, becoming the first Indian company to raise money in that market since 2007. Although some investors still feel scarred by an Indian incident a decade ago, many see this as the dawn of an Indian PP revival.

    • 31 Jan 2020
  • European Parliament rejects proposed banking regulator

    Members of the European Parliament voted against the European Banking Authority’s proposed executive director on Thursday, following fears about a revolving door between the regulator and lobbyists.

    • 31 Jan 2020
  • Gabon's $1bn bond for tender offer three times subscribed

    The Gabonese Republic pulled in more than $3bn of demand on Thursday for a $1bn 10 year bond that some observers saw as having been priced flat to its curve.

    • 31 Jan 2020
  • DMO mandates banks for 2071 tap

    The UK Debt Management Office has selected the syndicate that will run the books for its upcoming tap — its final syndication of the 2019/2020 financial year.

    • 31 Jan 2020
  • F1's Stroll steps in to recap and restructure Aston Martin

    Shares in Aston Martin Lagonda, the UK maker of luxury cars, surged by more than 20% on Friday morning after the company unveiled a £500m rescue deal led by Lawrence Stroll, the Canadian billionaire Formula One investor. Sources close to the deal discuss his plan to transform the company, which has struggled since it listed in 2018.

    • 31 Jan 2020
  • UBS bucks coronavirus fears with 'specific' block trades

    Swiss bank UBS priced two block trades in companies on Thursday night, despite wider market concern over the spread of a deadly strain of coronavirus.

    • 31 Jan 2020
  • Volkswagen Bank arrives late to the ECB's Pillar 2 party

    Volkswagen Bank has belatedly joined the list of banks whose Pillar 2 requirements were posted on the European Central Bank's website this week. It had initially not consented to its targets being published.

    • 31 Jan 2020
  • Credit Suisse Sofr surfs to record

    Credit Suisse secured the lowest spread for a Yankee bank referencing the secured overnight financing rates (Sofr) on Thursday, breaking the previous record set just over a week ago.

    • 31 Jan 2020
  • Hong Kong bourse rejects Akeso IPO filing

    Hong Kong’s stock exchange has returned Chinese biotechnology firm Akeso’s listing application, a deal being sponsored by JP Morgan and Morgan Stanley.

    • 31 Jan 2020
  • Virus fears keep Asian bonds at bay

    Asian debt bankers had expected a peaceful week amid the Chinese New Year holidays, but rising concerns about the spread of the coronavirus this week led to a rush of emergency calls. Several borrowers have decided to skip or delay planned roadshow meetings in Hong Kong.

    • 31 Jan 2020
  • Alpha, Eletrobras priced as Lat Am shrugs off coronavirus concerns

    Latin American bond markets reached record levels of January issuance this week as primary activity ticked over despite the scare about the coronavirus, which the World Health Organisation declared a global emergency on Thursday.

    • 30 Jan 2020
  • Toll road sets meetings but Lat Am pipe thins

    The concessionaire on a 50km toll road in Kingston, Jamaica will begin meeting fixed income investors on Friday ahead of an international bond deal, as bankers say rarer issuers are likely to dominate supply for the foreseeable future.

    • 30 Jan 2020
  • Fixed income traders fail to prevent Deutsche IB losing money

    A hefty increase in revenues from rates and credit trading helped Deutsche Bank’s investment bank in the fourth quarter, but the division still made a loss.

    • 30 Jan 2020
  • March deadline looms large for Arg as BA offers sweetener

    Buenos Aires Province has offered more incentives to bondholders to encourage them to accept a three-month delay of a small debt payment. The move makes the Argentine sovereign’s aim to restructure all its external debt by March 31 as ambitious.

    • 30 Jan 2020
  • Sustainable loans give banks strange urges

    New dynamics are appearing in the sustainability-linked loan market, as the product balloons and banks prepare for more intense scrutiny of their green lending activities. The trends highlight how unformed and confusing this young market still is, writes Jon Hay.

    • 30 Jan 2020