Derivatives - All Articles

  • Government reins in UK council borrowing with new PWLB guidelines

    The UK government tightened guidance for local authority borrowing on Wednesday, in a bid to stymie the riskier borrowing-to-invest models certain UK councils have adopted over the past decade.

    • 25 Nov 2020
  • Wallonia, Cades bring what may be year's last SSA benchmarks

    Two public sector borrowers hit the euro bond market on Wednesday, raising what might well be the final benchmark funding of 2020.

    • 25 Nov 2020
  • UK to launch infra investment bank

    The UK government said on Wednesday that it will form a new national infrastructure bank, in part to help the country's net zero carbon plans.

    • 25 Nov 2020
  • Unibail shrugs off rights issue debacle in busy bond market

    Unibail-Rodamco-Westfield, the shopping mall operator, priced a €2bn dual tranche bond from €7.2bn of demand on Wednesday, as fixed income investors were unfazed by its attempted rights issue having been blocked by shareholders earlier this month.

    • 25 Nov 2020
  • Seats to upright as Lufthansa helps airline bonds take off

    Deutsche Lufthansa showed decisively that bondholders will buy airlines again, without relying on extra security, extra upside, or anything beyond a broad-based mood of credit euphoria sending risk assets soaring.

    • 25 Nov 2020
  • Investors pounce on high grade corporate ESG debt

    Investors pumped €11.65bn of orders into €1.6bn of green and sustainable corporate bonds on Wednesday, when paper company Stora Enso, utility Fluvius and real estate firm Cofinimmo all built bulging order books.

    • 25 Nov 2020
  • Bellway debuts in US private placement market

    UK homebuilder Bellway has sold £130m of US private placements, according to market sources, across seven and 10 years. This is likely to be the last broadly marketed USPP deal of the year.

    • 25 Nov 2020
  • UK piles an extra £92bn on to record borrowing programme

    The UK Debt Management Office provided an update to its funding programme following the Spending Review and the Office for Budget Responsibility’s Economic and Fiscal Outlook on Wednesday.

    • 25 Nov 2020
  • Fitch appoints Paladino as North America head of structured finance

    Fitch Ratings appointed Michael Paladino as the new head of structured finance for North America, its latest update from a global reshuffle.

    • 25 Nov 2020
  • UOB sends positive signal to APAC covered bond issuers

    The outlook for Asian covered bond supply will have improved slightly in the wake of Tuesday’s deal from United Overseas Bank, particularly among Singaporean lenders. But issuance from Australia and New Zealand is expected to be more limited reflecting their banks' priority to get ahead with regulatory funding.

    • 25 Nov 2020
  • Covid-19: sovereign borrowing response

    The Covid-19 pandemic is forcing many governments to expand their borrowing programmes. The table below details the impact of the outbreak on the funding requirements of major sovereign bond issuers.

    • 25 Nov 2020
  • Nordnet trades up as strong bid for growth lives on

    Shares in Nordnet rose in the aftermarket on Wednesday after the digital bank began trading on Nasdaq Stockholm following its Skr9bn (€885m) IPO.

    • 25 Nov 2020
  • EBA gives hope to SRT market

    The European Banking Authority has lifted the spirits of those working in the significant risk transfer (SRT) market by suggesting that call options and early termination rights should not disqualify a transaction from achieving SRT recognition, pushing back on proposals made by European Parliament members.

    • 25 Nov 2020
  • Turkey prices $2.25bn flat to curve as investor optimism swells

    Turkey raised a dollar bond on Tuesday, pricing $2.25bn of 10 year funding flat to its curve, demonstrating that investors believe it is recovering from a period of financial peril.

    • 25 Nov 2020
  • Handelsbanken flirts with sub-zero yield

    Svenska Handelsbanken sailed very close negative yield territory when it printed a €500m seven year green senior non-preferred deal on Wednesday.

    • 25 Nov 2020
  • Greene King securitization faces default as bondholders face a choice

    Greene King’s pub securitization Spirit Issuer is expected to default this year, after bondholders declined to waive potential covenant breaches in the same way they did for other pubcos, including the company's larger, whole business securitization. This will give bondholders the right to enforce security, but will test whether creditors want to take over the assets outright.

    • 25 Nov 2020
  • Macquarie hits euros for second deal of the year

    Investors were delighted to add more exposure to Macquarie Group on Wednesday, after the Australian issuer returned to euros for its second senior deal of the year.

    • 25 Nov 2020
  • Luminor targets short end in storming return to euros

    Luminor Bank was more than 3-1/2 times subscribed on its return to the euro market on Wednesday, allowing it to demonstrate a year-on-year improvement in its senior funding costs.

    • 25 Nov 2020
  • Mercuria beefs up banking group in $1.7bn facility

    Mercuria, the Swiss commodity trading firm, has signed a $1.7bn credit facility for its US business, with the company reducing the size of the deal being refinanced but continuing the trend of trading firms of adding to their US banking groups.

    • 25 Nov 2020
  • ESMA: no change to derivs trading rule ahead of Brexit deadline

    As market participants prepare for the end of the Brexit transition period on December 31, the European Securities and Markets Authority has said it will not change requirements on where derivatives can be traded, even though this could cause problems for UK branches of EU investment firms.

    • 25 Nov 2020