Corporate Bonds - Article Archive

  • Solvay, Lufthansa and Balder close massive week for corps

    Three new investment grade corporate bonds appeared in Europe on Friday, a slower pace than the frenetic one of Tuesday and Wednesday, but still adding €1.6bn to the already huge total of €15.5bn in the middle three days of this week.

  • MTNs slip through as public market resumes

    Issuance is starting to resume after the summer break; however, this week a booming public market drew away investor and issuer attention from MTNs. Despite this, a range of established SSA, FIG and corporate borrowers have slipped in, with deals across core, niche and EM currencies.

  • Lagarde opens way to green QE

    Christine Lagarde suggested that the European Central Bank, which she is set to lead later this year, could apply green criteria to its asset purchase programme once the EU’s Taxonomy of Sustainable Economic Activities is completed, in comments published on Thursday.

  • Throng of issuers jostle for record rates before Danaher jumbo

    Europe’s corporate bond market has made a remarkably strong start to the autumn issuing season, with €14bn of euro and sterling issuance in the first two open days for issuance (Tuesday and Wednesday) and another €1.5bn on Thursday.

  • US bond bankers eye bumper September

    US corporate bond desks are braced for the busiest month of the year when September supply kicks off after the Labor Day holiday on September 2, but negative rates in Europe have raised the prospect of US companies shunning the dollar market.

  • Vier Gas, SBB Norden enjoy success in quieter market

    After two huge days of corporate bond issuance, Thursday was much quieter, with issues only from Vier Gas Transport and SBB Norden — not because the market was worse, but just because most of the issuers that wanted to come this week had crowded into the first two days.

  • Where is a company?

    Europe’s patchwork of insolvency laws gives canny corporates and creditors the chance to pick the jurisdiction they want to use. That leads to absurd outcomes — and the sooner it ends, the better.

  • Schuldschein entrants: Pareto optimal

    Some traditional arrangers of Schuldscheine, which see themselves as the guardians of the market’s probity, were horrified by the news that Pareto Securities is looking to set up shop on their front lawn. But the sort of companies Pareto is likely to bring will answer the prayers of some investors that the old guard have not. And with it, buyers will have to take greater responsibility for what they stick on their books.

  • Pareto heralds changing of the guard in Schuldscheine

    Nordic broker Pareto Securities is looking to capitalise on the growth of the Schuldschein market and the instrument’s increasing popularity in its native region by advising and arranging transactions itself. But some traditional market players fear the Oslo-based firm’s association with high yield borrowers is a cause for concern. Silas Brown investigates.

  • People moves in brief

    UBS replaces EMEA president — Lloyds loses PP agent — Deutsche Bank reorganises treasury team

  • Telecoms giants shrink Europe’s high yield universe

    The European high yield bond market was built on telecoms companies, but in the last month their share has shrunk, as several have shored up their capital structures ahead of the heavy financial lifting set to be required for 5G infrastructure. More than €10bn of high yield bonds are likely to be repaid, leaving investors sitting on piles of cash going into September.

  • Qinghai woes remain after close call with default

    The local government has thrown a lifeline to Qinghai Provincial Investment Group Co, helping it pay off a dollar bond coupon a week after it was due. But more looming payment deadlines are set to cause the company a headache. Addison Gong reports.

  • Tianjin Rail closes debut Schuldschein loan

    Subway operator Tianjin Rail Transit Group has raised a €200m Schuldschein loan, becoming the first Chinese company to tap this market. Bankers believe similar deals will follow, given the market’s appeal.

  • Smooth sailing for PSA $500m 10yr amid volatility

    PSA International, the Temasek Holdings-owned port operator, seized $500m from its return to the dollar bond market after a three year hiatus. It priced the 10 year deal right around fair value, thanks to its opportunistic timing and strong credentials.

  • Corp bonds tighten sharply as party rages

    The hail of issuance in European corporate bonds continued at full pelt on Wednesday as Orange and National Grid joined the fray with multi-tranche deals. Investors and issuers seem equally eager to do business.

  • TVO powers ahead with tight €550m bond

    Finnish nuclear power company Teollisuuden Voima (TVO) got a warm reception from the investors on Wednesday, when it sold €550m of senior unsecured notes after a 20bp tightening from initial price thoughts.

  • PP agent leaves Lloyds for rival

    A private debt banker for Lloyds Securities in New York has left the bank, with one source suggesting he will start covering US private placements (US PP) for another arranger.

  • Junior Galapagos bondholders swoop to stop business sale

    Unsecured creditors to German engineering firm Galapagos swooped in at the last minute on Friday to stop a sale of the business that would have wiped out their claims. One of the funds fighting this corner is the credit opportunities fund raised by former Deutsche Bank securitization boss Elad Shraga.

  • Bankers temper expectations for September bond activity

    DCM bankers in Asia have used a quiet August to prepare new bond deals for next month. But despite most bankers’ optimism that the coming weeks will be busy, many believe the second half of 2019 will be quiet compared with the same time last year as the market gets battered by volatility. Morgan Davis reports.

  • Brazil bonds make green investors look ridiculous

    To make a real difference, green finance needs to prove it is tough on dirty companies. How can the sector look at the fires ravaging the Amazon region and still take comfort in having embraced a bond issued to finance cattle purchases there?

  • Corps open with a €7bn bang amid strong bid

    Europe's corporate bond market opened emphatically for business on Tuesday, as seven issuers banished all memories of the summer holiday. Despite there being plenty of choice for investors, demand was high across the board. Multiple deals were two to three times oversubscribed, while the largest, a €3.5bn four trancher from Siemens, the machinery maker, was nearly 4.5 times covered.

  • VC Trade introduces e-signatures in Schuldschein digital race

    VC Trade, one of the leading digital platforms in the Schuldschein market, has introduced an e-signature into its syndication process, which its founders claim renders the syndication process totally paperless. An impediment to paperless transactions has been market participants’ fear of regulatory and legal consequences — but VC Trade believes it has managed to navigate a way over these hurdles.

  • Confusion at Qinghai Provincial on dollar bond payment

    The liquidity situation at China’s Qinghai Provincial Investment Group Co has taken a turn for the worse after the company missed a dollar bond coupon last week. A treasurer at the government-owned issuer denied media reports that it made the overdue payment last Friday.

  • Pemberton raises €3.2bn more for Europe's mid-market

    Asset manager Pemberton has raised €3.2bn for a direct lending fund focusing on Europe’s mid-market. This is a few months after it raised €1bn for another European direct lending platform, Strategic Credit Opportunities Strategy (SCOS), which has higher expectations on returns.

  • New era for bond pricing as corporates, banks push deeply negative

    Europe's bond market reopened for the autumn issuance season this week — but it is a new bond market. The summer's queasy bout of bearishness has pushed government bond yields to unprecedented lows and these are now for the first time being tested as a platform for private sector bond issuance.

  • European credit quality has peaked, says S&P

    European companies are facing a downhill slide from the best credit quality conditions in a decade, rating agency S&P predicts. Lending conditions remain exceptionally generous but fears of a downturn and uncertainty over new monetary stimulus have kept many new issuers at bay.

  • Volkswagen's short sterling note twice covered

    Volkswagen Financial Services printed a £300m 3.25 year bond on Thursday that was twice oversubscribed. It has not been long since the A3/BBB+ rated German carmaker came to the sterling market. Only last month it sold a £350m three year note.

  • Agents carp over PP minnows nibbling at business

    Agents active in private debt markets in the UK are growing increasingly frustrated by a crop of advisory firms muscling in on their market share, often arranging deals without the need an investment bank. Some bankers allege that advisory firms don’t have the capacity to price deals effectively, and also that some do not have appropriate regulatory cover from the US regulators to pitch investors there legally.

  • Banks go broader and deeper in revamp of corporate broking

    Banks like Goldman Sachs have positioned corporate broking as part of a wider, integrated offering to clients — a strategy that appears to be the future of this traditional UK line of business, writes David Rothnie.

  • This is the end for new issue premiums

    How can capital markets professionals talk about new issue premiums when it is becoming normal for issuers to price bonds at negative yields?

  • Developer Yanlord raises $400m in quiet market

    Yanlord Land Group offered a welcome bit of supply in Asia’s otherwise tepid bond market this week, breaking the silence to raise $400m from just its third dollar deal in eight years.

  • E.On opens new age of negative corporate bond yields

    E.On, the German electricity company, ended Europe's summer lull in investment grade corporate bond issuance on Wednesday, and opened a new era in pricing, with the first ever five year bond at a negative yield. And E.On is only rated triple-B.

  • E.ON turns green to reopen IG market

    The first investment grade euro corporate bond since Daimler's €3bn four trancher at the beginning of August appeared on Wednesday morning. E.ON, the Baa2/BBB rated energy company, is in the market with a debut green bond — a benchmark five, and 10.5 year dual tranche deal.

  • Assa Abloy unlocks long dated euros

    Assa Abloy, the Swedish door maker, locked in €100m of long dated euro paper on Monday. The 15 year note, according to bankers, does not fit the Swedish issuer’s usual maturity profile, and is its first in the maturity since 2015.

  • SBB announces roadshow, as Nordic IG market stirs

    The Nordic corporate bond market may be starting to stir from its deep summer sleep, as Samhällsbyggnadsbolaget i Norden (SBB) revealed on Tuesday plans for a new issue. The Swedish housing and social infrastructure company, rated BBB-/BBB- (both stable), has announced a roadshow starting on August 23 for a seven year euro note.

  • HSBC plucks Welsh in UK coverage push

    Ed Welsh will join HSBC in November as global head of business services, although his work is expected to be heavily centred around the UK, as the bank ramps up efforts to gain market share among the country’s biggest listed firms.

  • Barclays gives Blackman UK coverage job

    Alastair Blackman, formerly a top media investment banker at Deutsche Bank, will be developing relationships with the heads of UK firms on behalf of Barclays from next month.

  • GE funding costs rise, but it can wait to access market

    General Electric’s bond spreads have widened substantially since last Thursday, when a research report by Harry Markopolos, the Bernie Madoff whistleblower, accused the US conglomerate of major fraud, by hiding $38bn of losses. However, the initial jolt has not turned into a rout, and while some bond investors see cause for concern, others are sceptical of Markopolos’ claims and do not expect the report to spell GE’s doom.