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◆ 12 year bond surprises bankers with strong demand ◆ Orders fall as pricing tightens ◆ Deal lands close to fair value
AT&T’s 19 year bond found buyers this week, but rate uncertainty and a flatter euro curve have dampened investor demand for duration
August forecast to be a strong month for corporate dollar supply
Stable backdrop, steady rates and strong demand give issuers reasons to move before the post-summer rush, bankers said
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Bond bankers love an orderly market, and this week's European corporate bond space has been the epitomy of that. Three large companies issued big European deals in the first two days of the week, with no sense of investor strain.
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Hyundai Capital Services has mandated Bank of America Merrill Lynch, BNP Paribas, Citi and HSBC to arrange a series of non-deal investor meetings in Asia, Europe and the US.
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The owner of the Hong Kong shopping malls and skyscrapers intends to launch a debut euro-denominated bond issue after speaking with investors in Europe.
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BP Capital Markets priced its latest dim sum bond on Monday though was forced to offer an generous guidance over its existing curve to stand out in what is a very busy market. However investors still flocked to take advantage of the attractive pricing and a quality multinational credit with the orderbook closing at Rmb3.6bn ($571m).
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Dim sum regular Caterpillar opted to price its latest dim sum deal wider than other recent bonds from multinational corporates on Monday night, with a view to shoring up demand for future issues.
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Caterpillar is cementing its position as one of the most frequent issuers in the dim sum market, launching price guidance for a seventh deal on Monday.