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◆ Real estate firm takes £400m on second outing ◆ Single digit concession needed ◆ Elevated sterling yields putting off potential issuers
◆ Food group issues euros to finance dollar tender ◆ Low single digit concession offered ◆ Dairy firm Arla preps euro debut
Estonian sovereign outing its first under local law
◆ Aerospace firm ends near six year euro market absence ◆ Books soar for seven year deal ◆ Trade lands close to fair value
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Credit risk has awakened from its summer slumber over the last couple of days with the CDX IG and iTraxx main index now trading 8% and 11% higher than their close on Thursday. While it’s still too early to see whether this latest surge is a passing event or a longer lasting trend, both indices are still below their 12 month averages and now trade roughly 40% off the highs set earlier in the year.
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Deutsche Bahn was alone in the euro investment grade corporate bond market on Thursday, as it printed a €500m 12 year transaction on a soft day in financial markets.
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Hon Hai Precision Industry sealed $1bn from a dual-tranche offering, seizing what is thought to be the last good window before the Fed’s decision on a September rate hike.
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Tobacco product manufacturer Swedish Match stepped into the euro corporate bond market on Wednesday to cut its financing costs.
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National Grid Gas followed its £3bn Tuesday visit to the sterling market with a €750m eight year bond that completes its primary bond market financing ahead of its 2017 sale.
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On Wednesday, Bayer said that five banks have agreed to provide the hefty bridge loan for its $66bn acquisition of US agrochemicals specialist, Monsanto. But the $57bn deal is not yet being syndicated, according to one of Bayer’s relationship banks.