Derivatives - All Articles

  • ESG: the filter that lets everything through

    Deliveroo and its shareholders raised £1.5bn this week. The IPO was a dog, priced at the bottom of its range and falling 20% on its debut. But it’s hard to feel sympathy for the investors.

    • 31 Mar 2021
  • Suriname extends consent after feedback

    Suriname said on Wednesday that it had provided its bondholders with the data and reassurances they had requested, before extending the deadline on a consent solicitation that would grant the government additional debt relief while it negotiates an IMF deal.

    • 31 Mar 2021
  • Chile completes ESG set with sustainable Formosa bond

    Chile’s head of international finance said that the sovereign’s debut in the Formosa bond market this week was a natural continuation of the diversification of its funding sources, as Asian investors bought more than half of the government’s $1.5bn 32-year sustainable bond. The government has now issued green, social and sustainable notes in international markets.

    • 31 Mar 2021
  • BMW returns to US for $2bn at end of monster March for corporate issuance

    Borrowers packed deals into the US corporate bond market this week before the Easter holiday weekend. Among them, BMW enjoyed a strong order book for its first dollar issue for a year.

    • 31 Mar 2021
  • Pandemic boosted CLO resistance to distressed fund predation

    The Covid crisis has made the CLO market stronger and more attractive to investors, but it has also taught the CLO community to defend itself from distressed debt funds, agreed panellists at the IMN and FIIN conference in the session focused on the CLO market recovery.

    • 31 Mar 2021
  • Social bond boom lifts labelled FIG supply to new heights

    Sales of ESG-labelled debt have skyrocketed in the FIG market over the first quarter of 2021, with issuers already halfway through last year’s total volumes. Deal arrangers are confident that supply will be able to keep pace, as banks find room to expand into a burgeoning social bond market, write Tyler Davies and Bill Thornhill.

    • 31 Mar 2021
  • Brexit gulf widens as UK and EU split on securitization regs

    The UK is overhauling its securitization regime following its exit from the EU in a bid to become a more competitive destination to host special purpose vehicles. The move comes as EU authorities sign the latest amendment to securitization rules, splitting the two jurisdictions further apart and causing headaches for issuers wanting to sell into both markets. Tom Brown reports.

    • 31 Mar 2021
  • Alternative credit is here for the yield

    Institutional private credit is emerging as a competitive substitute for bank lending in Europe, but companies need to remember that alternative lenders define what they are looking for more narrowly than banks.

    • 31 Mar 2021
  • Ghana USD525m 0% April 25 USD1bn 7.75% April 29 USD1bn 7.75% April 29 USD1bn 8.625% April 34 USD500m 8.875% May 42

    • 31 Mar 2021
  • Real estate names pile into high grade bond market before Q1 ends

    A seemingly endless supply of real estate companies coming to the high grade bond market continued this week, with Deutsche Wohnen and debut deals from Canary Wharf and VGP giving investors another chance to load up on the sector.

    • 31 Mar 2021
  • Canary Wharf overcomes office return fears with triple-tranche debut bond

    Canary Wharf made its debut in the corporate bond market on Tuesday, with a green triple-tranche bond in euros and sterling that found plenty of demand, despite the rocky future for office space.

    • 31 Mar 2021
  • Ghana divides opinion with zero coupon

    The Republic of Ghana brought innovation to the emerging market bonds this week, by selling Africa’s first zero coupon international deal. But the “risky” trade ignited debate among bankers and investors after it attracted a smaller order book than expected and required generous pricing as debt sustainability concerns swirled.

    • 31 Mar 2021
  • Investors flock to defensive BFCM pref five year

    Investors poured into a five year senior preferred deal from Banque Fédérative du Crédit Mutuel on Monday, as accounts look for shorter defensive deals to hedge against rates volatility further along the curve.

    • 31 Mar 2021
  • Gatwick Airport boosts size of sub debt debut

    Gatwick Airport brought its debut subordinated bond to market this week, a high yield issue raised from its holding company that found investor demand for more than three times the deal size, and that was priced at the tight end of talk.

    • 31 Mar 2021
  • Banque Fédérative du Crédit Mutuel EUR1.5bn 0.01% May 26 senior

    • 31 Mar 2021
  • Subprime auto lending activity reaches new post-crisis low

    Subprime and deep subprime auto lending activity has reached its lowest level since the 2008 financial crisis, as the pandemic forced lenders to take a cautious approach. But this has also helped soothe concerns market participants had about the resilience of the sector to another crisis. Tighter criteria has meant the quality of borrowers in subprime pools is improving, which should lead to better performance in subprime auto securitizations, sources say.

    • 31 Mar 2021
  • Comet caters to high net worth investors

    Swiss technology firm Comet served up a niche sub-investment grade bond to high net worth investors this week, issuing a 1.3% Sfr60m ($64m) five year.

    • 31 Mar 2021
  • Casino refi tightens pricing as investors shrug off Rallye overhang

    Leads tightened pricing and increased the size of an opportunistic maturity-pushing loan and bond refinancing for French supermarket Casino this week, with investors keen to buy the company’s turnaround story and look past the troubles of its holding company, Rallye, which needs a slug of cash to pay bondholders in 2023.

    • 31 Mar 2021
  • EIB EUR500m 1.5% Nov 47 Climate Awareness Bond tap

    • 31 Mar 2021
  • German court injunction a ‘game changer’ for EU recovery fund ratification

    The European Union’s planned €750bn coronavirus recovery fund is facing a lengthy delay to its inception, and possible derailment, after Germany’s Federal Constitutional Court issued an injunction to block its ratification by the Bundestag, writes Burhan Khadbai.

    • 31 Mar 2021