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High yield investors nibble at IG names, as credit investors brace for ‘trillions’ unlocked from money market funds
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Thames Water refinancing battle is an unedifying mess
Embattled utility asks judge to approve £3bn lifeline as creditor groups keep fighting
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Investors rewarded Zhenro Properties Group for selling its first green bond this week, pumping orders into the $350m transaction and allowing the issuer to price the deal at its lowest coupon ever.
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Hong Kong-based conglomerate First Pacific Co had to navigate underperforming bonds from peers and difficulties around price discovery for its $350m bond return.
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Market observers believe that investors in open-ended debt funds need to be disincentivised more than they are at present from scrambling to liquidate their holdings in a market downturn.
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Issuance of sustainability-linked bonds is set to resume next week, after a year’s hiatus since the product was introduced by Enel, the Italian power and gas company. Many possible deals have fallen by the wayside, as market participants have realised the structure is more difficult to use than they had thought. But Suzano, the Brazilian paper company, will roadshow an issue on Tuesday and Wednesday and other transactions are expected in the coming months.
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HSBC might be in the middle of a big restructuring, but that isn’t stopping plans to develop mid-market M&A efforts in France, Germany and Asia as well as the UK, writes David Rothnie. The bank has also bolstered its teams covering specific sectors.
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There is about €4tr of European corporate debt due to mature between now and the end of 2025, though syndicate bankers say that the market is primed to cope with bumper issuance levels.