Corporate Bonds - Article Archive

  • Corporate bond market shines brightly in Brexit gloom

    The flames of Brexit-inspired volatility licking around the corporate bond market this week were spectacularly extinguished by the deep pools of investor cash as market conditions snapped back in favour of investment grade companies, writes Ross Lancaster.

  • Cautious optimism in the Euro PP market

    The Euro private placement business will be relatively immune from Brexit volatility, said many bankers this week, although some see a small rise in pricing ahead.

  • Brexit: a historic moment for credit markets

    Those of us who stayed up to watch the Brexit television coverage knew that in a few hours’ time the June 24 trading session would go down in history. The mainstream media were inevitably obsessing about the post-Brexit collapse in sterling, but the credit markets were focused on the Markit iTraxx indices. Big moves were expected by market participants, and they weren’t disappointed.

  • BAT and Brown Forman awaken corp sterling market

    British American Tobacco and Brown Forman gave the sterling corporate bond market a much needed boost on Thursday as both brought benchmark transactions to enthusiastic investors.

  • Asia high yield looks to shrug off post-Brexit blues

    It was high yield that sprung back to life in Asia this week, while investment grade counterparts remained on the sidelines amid a cautious environment. Market participants remain hopeful that the region’s high yield market will benefit from a possible Brexit-driven pivot from European investors, write Narae Kim and Max Bower.

  • Fullerton makes debut with CGIF guarantee

    Fullerton Healthcare has made its debut in the Singapore dollar bond market, raising S$100m ($74m) from a deal backed by the Credit Guarantee and Investment Facility (CGIF). Bankers on the trade reckon the issuer’s sector, as well as the bond’s structure and currency, were the winning ingredients to navigate volatility.

  • Agile builds upon Chinese property Panda push

    The list of Chinese real estate firms seeking to take advantage of the country’s Panda bond market is getting longer, with Agile Property Holdings the latest to have its application approved.

  • Growing optimism amid concerns over SNB

    Swiss franc bond bankers expressed concerns this week that the Swiss National Bank will not be able to halt the rising value of the franc in the face of political uncertainty resulting from the result of the UK's referendum on European Union membership.

  • First blood for Brexit: Euro doubts may drive clearing houses from London

    Clearing looks set to be one the first areas of London’s dominance as a financial centre to be challenged, following last week’s vote to leave the European Union, with uncertainty over the future of euro business putting pressure on central counterparties based in the UK to relocate their clearing operations elsewhere.

  • Bond deals return after Brexit vote but risk appetite down

    In the week after the UK’s vote to leave the European Union many corporate bond specialists are feeling downbeat. But away from existential questions about the City’s future, the investment grade corporate bond market is actually in fairly good shape.

  • Fesco restructuring talks further delayed

    Restructuring talks have further been delayed after holders of Far Eastern Shipping Company (Fesco)’s ruble denominated debt failed to agree to a waiver on Monday which would remove their right to claim early redemption of the notes by November 28.

  • SBC eyes first dollar bond in 10 years

    South Korea’s Small & Medium Business Corp (SBC) is looking to make an appearance in the offshore bond market for the first time in a decade.

  • Citic Envirotech prices $180m tight tap

    Citic Envirotech has priced a $180m tap of its existing $175m 5.45% perpetual notes at the tighter margin of 4.25%, becoming the first Asian G3 bond issuer since the UK’s decision last Friday to leave the European Union.

  • Fullerton takes orders for CGIF-backed S$ bond

    Fullerton Healthcare opened books on Wednesday for a dual-tranche Singapore dollar bond backed by the Credit Guarantee and Investment Facility. This would be the fifth transaction to be sold in the Lion City with an enhancement from CGIF.

  • Contracts in focus as traders wrack brains over Brexit risk

    The United Kingdom's vote to leave the European Union sent traders, lawyers and trade associations into overdrive this week as they sought clarity on whether contractual changes for derivatives will be required, what form they would take and how they could be modelled.

  • HY committed to London, but pessimistic

    US, German and French bankers speaking to GlobalCapital from the control room of the European high yield market want London to keep their capital. But they admit it is a hopeless wish, if Brussels imposes a full Brexit.

  • Brunswick Rail in final effort to restructure debt

    Russia's Brunswick Rail has approached investors with a new offer after failing to reach a restructuring agreement with holders of its $600m bonds due 2017 after several months of negotiations. A source close to the company said that this was Brunswick Rail's last offer.

  • Asia HY bonds set to defy Brexit woes

    Volatility has reigned following the UK’s decision to exit the European Union last Friday. But market participants in Asia are now hopeful that the region’s high yield market will be a new go-to place for investors trying to redeploy their funds away from Europe.

  • Citic Envirotech opens dollar tap

    Singapore water treatment firm Citic Envirotech is seeking a tap of the $175m 5.45% perpetual notes that it originally sold last year, becoming the first issuer in Asia to test the G3 market since Brexit.

  • Arcor the only sweet in HY shop for European investors

    Argentina’s confectionary maker Arcor is tomorrow meeting investors in the US and London to market a $300m offering, the only active high yield deal that European investors can consider in the week after the UK's Brexit vote.

  • There and back again: markets go full circle post-Brexit

    What began as a week of turmoil for European credit and equity markets amid Brexit uncertainty is ending on a full circle return with no immediate signs that that the UK will begin a formal exit from the EU soon and amid rumours on Thursday that the ECB will relax the terms of its bond repurchase programme.

  • Daimler ends two-year Panda bond absence

    German carmaker Daimler returned to the Panda bond market following a more than two-year hiatus, raising Rmb4bn ($604m) from a private placement.

  • Don't get too comfortable, say bond bankers

    The Asian bond market, while rattled by Britain’s decision to leave the European Union, shouldn’t remain subdued for a particularly long period, according to several bankers.

  • Corporate bond market searches for answers

    After more than three months of stable and attractive funding conditions, the European corporate bond market has been turned on its head by the UK EU referendum result.

  • Corporate bond market searches for answers

    After more than three months of stable and attractive funding conditions, the European corporate bond market has been turned on its head by the UK EU referendum result.

  • Capital markets reel as UK shatters EU unity

    Capital markets have been hit by a cataclysm, the worst political shock since 11 September 2001 — though the immediate effects on financial markets may not be as grave as those of the 2008 financial crisis, because the solvency of banks is not in question.

  • Jiangsu Hanrui sells rare LGFV high yield bond

    Jiangsu Hanrui Investment Holdings defied the quietness in Asia’s primary capital markets on Thursday with a rare high yield bond from a local government financing vehicle. Although market observers welcome growth in the new asset class, some are cautious about the standalone credit strength of smaller LGFVs.

  • Mærsk shares soar 12% on hopes of break-up

    Shares in AP Møller-Mærsk, the Danish shipping and oil group, shot up 12% today after the company announced a sudden change of strategy. It is changing its CEO and will conduct a strategic review that could include deciding to break up.

  • Dollar market reaches inflection point

    A slump in high-grade issuance has prompted fears of a prolonged slowdown in US corporate bond supply, with borrowers shelving their funding plans until the autumn.

  • Asia markets look to shrug off Brexit concerns

    Markets watchers in Asia said they were optimistic, as GlobalCapital Asia went to press on Thursday, that next week would be a return to business as usual, given their widespread expectations that the UK would choose to remain in the European Union. But some warned that, irrespective of the outcome, currency risks could spill over to other asset classes, adversely affecting bonds and equities.

  • China relaxes RMB conversion regulations

    China's State Administration of Foreign Exchange (Safe) has expanded a pilot renminbi conversion scheme to all non-financial companies, allowing them to repatriate offshore bond proceeds. This will help reduce confusion over different rules from different regulators and boost direct offshore bond issuance, said market participants.