Corporate Bonds

Covid-19

  • Banks carry on conduit lending despite coronavirus crunch

    Banks carry on conduit lending despite coronavirus crunch

    According to data from the European Securities and Markets Authority, new trade receivables securitizations are still being regularly financed by banks through their asset-backed commerical paper conduits, with market participants saying that lenders remain open for business — for existing clients only.

  • Sanofi reopens recent bond well through original pricing

    Sanofi reopens recent bond well through original pricing

    Sanofi, the French pharmaceutical company, has followed the example of Danaher by reopening bonds priced in the last few weeks - it raised another €500m on Monday, at pricing well inside where it had priced the original bonds at the end of March.

  • BP raises $10bn in new revolving facility

    BP raises $10bn in new revolving facility

    BP, the UK oil and gas company, has set up a new $10bn revolving credit facility, as oil companies look to shore up their cash positions in response to the twin maladies of Covid-19 and a drop in oil prices.

  • India’s Adani returns to the PP market for more

    India’s Adani returns to the PP market for more

    Adani Transmission has raised a further $90m US private placement, according to market sources, after it became earlier this year the first Indian company to raise debt in the market since 2007.

  • Rating agencies ‘doing their jobs’ in coronavirus crisis

    Rating agencies ‘doing their jobs’ in coronavirus crisis

    Investors see the rapid wave of downgrades in response to the coronavirus crisis as evidence that ratings agencies are "doing their jobs" compared to their response in the 2008 financial crisis, where they were roundly criticised.

  • High grade companies cram into short week

    High grade companies cram into short week

    The corporate bond market made a blazing start to Monday with deals for Repsol, Naturgy and LafargeHolcim on screens, as issuers cram what they can into a shortened week.

  • Danaher taps week-old deal cheaply as corporate assault continues

    Danaher taps week-old deal cheaply as corporate assault continues

    This week's intense spate of corporate bond issuance in Europe continued into Friday, though at a slightly more moderate pace, and the broadening of access continued, with the first sub-benchmark deal, for Red Electrica, the Spanish power grid. However, a Leaseplan green bond did not fly.

Corporate Bonds News Archive

  • Dollar bond frenzy: everything is supersized

    T-Mobile became the latest US company to cash in on the extraordinary boom in dollar bond issuance as it priced an increased $19bn deal on Thursday that attracted $72bn of demand.

  • Daimler gears up on cash as companies hurry new lines of credit

    Daimler gears up on cash as companies hurry new lines of credit

    Daimler has signed a €12bn one year loan with four banks, to strengthen its cash position for the pandemic’s stormier days. It joins a host of borrowers agreeing new credit lines with relationship banks, rather than drawing down existing facilities. Bankers say the borrowers hope to enter the bond markets down the line.

  • Corporates leap into turbocharged 2009-style IG market

    Corporates leap into turbocharged 2009-style IG market

    High grade companies poured into the bond market this week as participants weigh up whether this is a redux of 2009’s record year or if the unprecedented central bank spending and high bank liquidity mean that this is a unique market where borrowers raise cash even if they do not really need it.

  • Mission impossible? Cruise co Carnival storms into capital markets with high stakes rescue

    Mission impossible? Cruise co Carnival storms into capital markets with high stakes rescue

    Dollar high yield and convertible bond buyers dived straight into the riskiest possible end of the market on Wednesday, snapping up rescue issues for cruise operator Carnival Corporation, a firm at the centre of the coronavirus storm. Carnival pledged nearly all its ships to back bondholders’ investments, while convert investors spied a chance to double their money — if the cruise industry can bounce back. Aidan Gregory, Jon Hay, Sam Kerr and Owen Sanderson report.

  • Swissies pick up as investors return to market

    Swissies pick up as investors return to market

    Having dropped off in early March, Swiss franc issuance has bounced back in the last fortnight, buoyed by returning investors flocking to low investment-grade rated borrowers, like triple-B rated cement manufacturer LafargeHolcim, and piling into a record-breaking foreign covered bond.

  • Insurers bulked up on airline risk as export credit agencies pulled out

    Insurers bulked up on airline risk as export credit agencies pulled out

    Private sector insurance companies have written extensive guarantees for the purchase of new aircraft from Boeing and Airbus in the past two years, filling a gap in the market left by the retreat of US Eximbank and European export credit agencies. But with aircraft around the world grounded and airlines slashing capital expenditure, these insurance firms could be stuck with the risk.

  • Credit ratings take second place for corporate bond investors

    Credit ratings take second place for corporate bond investors

    There was little let up in the high grade corporate bond market on Thursday, but the growing importance that investors are putting on individual borrowers' perceived exposure to corona risk over more traditional measures of creditworthiness like credit ratings was on full display.

  • Rare bullish companies still buying own stock

    Rare bullish companies still buying own stock

    As the coronavirus eats into the global economy, most companies are putting their share buy-back programmes on hold — but there are exceptions. ContourGlobal, which generates power in emerging markets, has launched a new buy-back programme, while Philips is using an unusual derivative technique to adapt its plan to crisis conditions.

  • Bond buyers pile in for Carnival’s giant priming debt opportunity

    Bond buyers pile in for Carnival’s giant priming debt opportunity

    Dollar high yield buyers showed up in force for the largest priming debt opportunity provided so far by the coronavirus crisis, Carnival Corporation’s $4bn rescue offering, priced alongside a convertible and an equity capital raising on Wednesday. The package provides funds for the stricken cruise operator until November, but even if the company can’t start sailing again this year or next, investors in the new issue are first in line for the firm’s $38bn of assets.

  • Dyson first UK firm to sell PPs under clouds of Covid-19

    Dyson first UK firm to sell PPs under clouds of Covid-19

    Dyson has become the first UK company to sell private placements in the past month, as the coronavirus complicates primary issuance and the market instead focuses on amendments to existing deals. Sources said the UK manufacturer succeeded because it was realistic over the price it would have to pay.

  • Carnival rescue bond eschews euros as dollars goes large

    Carnival rescue bond eschews euros as dollars goes large

    The high yield bond leg of the rescue package for cruise company Carnival is flying off the shelves in the dollar market, leading the company to increase it from $3bn to $4bn, cut pricing, and drop the planned euro tranche entirely — but the equity capital raising is proving tougher and has been shrunk by $500m.

  • Technicals shunt IG corporates into narrow maturity range

    Technicals shunt IG corporates into narrow maturity range

    The power of central bank buying and fund redemptions are evident this week in the European investment grade corporate bond market, where issuers have been squeezed into a narrow range of maturities as they search for cash.

  • Aircraft lessors under spotlight in PP market

    Aircraft lessors under spotlight in PP market

    Aircraft lessors have become popular borrowers in the US private placement market but coronavirus pandemic has thrown up a whole new magnitude of risk for the industry and many will be looking to amend the terms of their deals. Many market participants predict that the conversations between borrowers and investors will be tricky.

  • Loxam ready to lean on French loan guarantee scheme

    Loxam ready to lean on French loan guarantee scheme

    Equipment rental firm Loxam has signalled that it plans to shore up its liquidity by tapping the French government’s loan guarantee scheme — an option off the table for leveraged companies elsewhere.

  • Top banks hog crisis IG mandates

    Top banks hog crisis IG mandates

    Extraordinary times call for extraordinary capital markets activity. The North American corporate bond market funded a staggering record $194bn of investment grade issues in March while Europe has also been busy — shaking up the league tables and yielding a surprise windfall for the very largest investment banks.

  • Red Eléctrica hires for phone-only roadshow

    Red Eléctrica hires for phone-only roadshow

    Spain’s Red Eléctrica Corporación has hired banks to run a series of fixed income investor calls for a debut five year senior unsecured deal, in the first European corporate roadshow since stringent social distancing measures were implemented across the continent.

  • Corporates roar but prospect of beating 2009 record distant

    Corporates roar but prospect of beating 2009 record distant

    The primary corporate bond market in Europe threw up another blistering day on Wednesday, with seven issuers on screens by mid-morning, bringing the number of deals so far this week to 18, though bond syndicate desks are hesitant to compare this crisis market with the record-breaking issuance in 2009.

  • Investors step back from Indian dollar bonds

    Investors step back from Indian dollar bonds

    Indian debt issuers are starting to feel the impact of the Covid-19 pandemic, which has forced a country-wide lockdown for three weeks. With dollar bonds slumping in the secondary market and downgrades coming fast, the outlook for borrowers is bleak.

  • Hennebry steps up to global DCM head at Santander

    Hennebry steps up to global DCM head at Santander

    Conor Hennebry has been promoted from head of European debt capital markets and syndicated lending to global DCM head, following the appointment of Rafael Noya as head of global debt finance.

  • Market sunshine brings out eight corporate bond issuers

    Market sunshine brings out eight corporate bond issuers

    If Europe's corporate bond lead managers have been learning that it is possible to bring new issues even on a day when stock markets are falling and credit spreads widening, they still know a bullish day when they see one, and Tuesday was one.

  • European high yield waits for its ship to come in after IG flood

    European high yield waits for its ship to come in after IG flood

    Investment grade companies have rushed back to the bond market, while syndicate bankers in riskier and more complex asset classes are wondering when their turns will come. Yum Brands reopened US high yield on Monday, leaving European high yield desks hoping a bold issuer would try this side of the Atlantic. Euro buyers were teased a piece of Carnival's rescue package, but lost out to a strong dollar market.

  • Home a-loan: lenders learn to love WFH

    Home a-loan: lenders learn to love WFH

    The loans market has been one part of the capital markets that has perhaps unsurprisingly taken to working from home easier than most. Some loans bankers even see a world after the pandemic where one or two days a week working out of the office becomes the norm.

  • Airbus follows €15bn loan with triple tranche bond

    Airbus follows €15bn loan with triple tranche bond

    Airbus, the European aircraft manufacturer, opened books for a three tranche bond issue on Tuesday, just over a week after raising €15bn from banks, on the assumption, its CFO said then, that there would be "no issuance in capital markets, such as commercial paper".

  • Hotel firm Whitbread amends clause to avoid technical default

    Hotel firm Whitbread amends clause to avoid technical default

    Whitbread, the UK hotel and restaurant company behind Premier Inn, has amended a clause in its debt documentation which could have left it liable for technical default. One source said several companies may have to go through a similar amendment process.

  • Almost closed Volkswagen raises €2.15bn for leasing arm

    Almost closed Volkswagen raises €2.15bn for leasing arm

    Public bond investors in Europe received on Monday their first new issue from the car industry since the coronavirus crisis went global. The paper was not from an industrial company but Volkswagen Financial Services, its leasing division, which does not rely on VW producing new cars to repay its debt, but rather on customers who are legally obliged to keep paying their leases. The price was wide, but VWFS showed it had market access.

  • Norwegian government backstops high yield companies with bond fund

    Norwegian government backstops high yield companies with bond fund

    The Norwegian government’s support package for large companies goes beyond that announced in other jurisdictions, in actively buying bonds from companies deep in sub-investment grade territory, helping the country's vital oil exploration, shipping and oil services firms to access financing.

  • Companies take what they're given in bond market as more issuers line up

    Companies take what they're given in bond market as more issuers line up

    A string of well rated companies are preparing to issue bonds in the coming days, as syndicate desks are heartened by the continued ample demand from investors. Anheuser-Busch InBev, Volkswagen Financial Services and Thermo Fisher Scientific raised a total of €7.85bn in euros today, despite a rocky market.

  • BMW sells quick SSD as German autos test private debt

    BMW sells quick SSD as German autos test private debt

    BMW has raised €200m from a single investor in the Schuldschein market, according to several market sources. Arrangers are talking with Schuldschein investors to gauge appetite for German auto manufacturers as the Covid-19 pandemic wreaks havoc on corporate earnings.

  • AB InBev, VWFS issue big on down day, but chunky concessions are back

    AB InBev, VWFS issue big on down day, but chunky concessions are back

    The new pattern that investment grade companies will dare to issue bonds in the European market, even on days when stockmarkets are falling, was confirmed today when Anheuser-Busch InBev launched a three tranche bond that will be at least €4bn, while Volkswagen has brought the first car company bond since the crisis intensified, although it is from its financial services arm, which is backed by loans.

Corporate Bonds News Archive

SRI

Loans

All Corporate Bonds

Rank Lead Manager Amount $bn No of issues Share %
1 75.33 272 8.61%
2 74.23 254 8.48%
3 56.58 224 6.47%
4 43.83 132 5.01%
5 38.97 159 4.45%

Bookrunners of European Corporate IG Bonds

Rank Lead Manager Amount $bn No of issues Share %
1 12.65 61 6.91%
2 12.18 42 6.65%
3 10.60 36 5.79%
4 10.50 39 5.73%
5 10.08 36 5.50%