Deutsche Bank has had an impressive run in the European investment grade corporate bond market this year, leaping from sixth to second year-to-date. GlobalCapital spoke to Frazer Ross, Deutsche’s head of investment grade syndicate for Europe, the Middle East and Africa, to find out the reasons behind its success.
European airlines have shied away from the bond market during the Covid-19 pandemic, instead opting for equity raises, loans and government support. But should they decide to issue a bond, they would be well supported by investors, according to senior debt capital markets bankers.
Soaring demand and tight spreads lured repeat borrowers as summer dollar bond supply soared with $34bn of new issuance crammed into four days.
The coronavirus pandemic and the global stock of negative yielding bonds are the two biggest concerns for European high grade credit investors, according to a survey published by the Bank of America.
NatWest Markets has restructured its divisions and given them new leadership. It is also moving some UK corporate-focused bankers over to the ring-fenced bank.
The summer lull in the primary European investment grade bond market will likely continue for another week before the return of new issues from a mixed bag of sectors and across different structures, according to bankers.
Yunnan Provincial Energy Investment Group Co added a dash of variety to bond supply from China’s local government financing vehicles, by selling a $300m dual-tranche deal that combined a senior unsecured portion with an unsubordinated perpetual.
Singapore fintech BondEvalue launched BondbloX Bond Exchange this week, which claims to be the first blockchain-based exchange in the world, with the maiden trade executed on a bond from commodities giant Olam.
VC Trade, a digital platform in the Schuldschein market, has begun promoting secondary trading on its system, with an eye of scaling up into Europe’s loan markets.
Hong Kong rail operator MTR Corp priced a larger and tighter green bond than expected this week, with investors showing their faith in a company that has been forced to battle protests and the pandemic in the past year. Morgan Davis reports.
Many saw the US Federal Reserve’s decision to lend hundreds of billions of dollars to certain central banks at the height of the coronavirus crisis as pivotal in preventing further calamity in global markets. Brad Setser, senior fellow for international economics at the Council of Foreign Relations, gives a great deal of credit to the Fed for its forceful intervention. But if markets begin to see the US central bank as a global lender of last resort, there may be a greater risk of imprudent behaviour and more political tumult in the US.
German energy giant E.On launched a liability management exercise on Thursday to harmonise the group’s funding structure following its takeover of Innogy in 2018.
While bankers in the Northern hemisphere plan well-deserved summer breaks, the Australian and New Zealand dollar markets are set to remain open for business, with some competitive pricing on offer.
Azzurra Aeroporti, an acquisition vehicle that bought a majority stake in a French airport, made its debut in the bond markets on Tuesday, achieving decent demand despite some dire warnings emerging about the medium term future of industries linked to air travel.
The University of Leeds tapped its debut bond for another £50m on Tuesday, becoming the first UK university to come to the capital markets since the Institute for Fiscal Studies (IFS) warned of mass bankruptcies across the sector in a damning report earlier this month.
Several companies boasting Big Four accounting firms as auditors have emerged as fraudulent, leading many to wonder what value auditors bring to an investors' understanding of a company. The big issue is that auditors have little obligation to detect fraud at companies they audit, and neither it seems does anyone else. Until they do, investors need to stop believing a Big Four sign-off is a seal of approval. In fact, for a system supposedly built with its own reputation in mind, developed markets have offered investors very little protection.
Chinese food and beverage company Bright Food’s ability to court investors and push for a tight price for its euro-denominated bond shows the benefits ─ and downsides ─ of an aggressive approach to the euro market.
European high grade non-financial credit spreads dipped to their lowest levels in around five months this week, though corporate bond bankers said it is the lack of primary bond market activity rather than the breakthrough in EU fiscal stimulus that has ground spreads tighter.
Royal Vopak, the Dutch oil and gas storage company, has sold $500m-equivalent in US private placements.
Invesco has changed the line-up of its fund managers across a number of fixed interest funds, with Paul Read, co-head of fixed interest, stepping down from several funds.
Investors were unfazed by State Power Investment Corp’s (SPIC) move to tighten pricing on a $1bn bond by 52bp. The Chinese company’s deal was six times oversubscribed at its peak, and only tightened further in the secondary market.
Future Retail has missed a payment on a $500m debut bond, sold just six months ago, as Covid-19 hits the Indian company’s business.
Philippine conglomerate San Miguel Corp sold its first perpetual dollar bond on Wednesday, returning to the debt market after a seven year hiatus.
Bonds from Indian corporations were among the worst performing investment grade deals in Asia last week. The primary market also suffered, with one deal cancelled and another put on hold.
Premier Oil, the UK oil company, has signed sale and purchase agreements to buy BP assets in the North Sea in a deal that could total up to $565m, with an equity raise earmarked to provide the funds for an upfront payment.
UK pub owner Stonegate held calls with investors on Monday for a bond issue, to partly refinance £2.73bn worth of acquisition facilities used to acquire a larger competitor, Ei. Stonegate is set to be one of the first UK borrowers hit by coronavirus to sell high yield notes.
Segro, the FTSE 100 UK real estate investment trust, has sold €450m of private placements, according to market sources. The largest tranche was the longest, €200m at 20 years, which is sign of investors' confidence.
The MTN market expects a busy summer in Asia as investors look to make up for time lost to the coronavirus pandemic at the start of the year. In Europe, things are starting to slow down, however, there are signs that the credit market could open up over the coming weeks.
NatWest Markets has restructured its divisions and given them new leadership. It is also moving some UK corporate-focused bankers over to the ring-fenced bank.
This week in Keeping Tabs: whether investors are prepared for the impact of a Joe Biden win on environmental policy, how bond and syndicated loan markets diverged in the crisis, and a crypto app that tanked.
NatWest Markets has restructured its divisions and given them new leadership. It is also moving some UK corporate-focused bankers over to the ring-fenced bank.
NatWest Markets has restructured its divisions and given them new leadership. It is also moving some UK corporate-focused bankers over to the ring-fenced bank.
This week in Keeping Tabs: whether investors are prepared for the impact of a Joe Biden win on environmental policy, how bond and syndicated loan markets diverged in the crisis, and a crypto app that tanked.
OMV, the Austrian oil company, plans to print €1.5bn of hybrid debt in the coming 12 months, and some investors say they expect to see more subordinated corporate issuance as issuers try to patch up their Covid-19 ravaged balance sheets.
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