Emerging market bonds are trying to catch the same bid that has gripped investment grade markets, particularly in the US. Now, Latin America borrowers are scavenging once more for chances to print new issues.
UPDATED 1 April 2am GMT The encouraging trend in Italy continued on Tuesday, with 4,053 new confirmed cases, almost identical to Monday's figure, which was the lowest for 13 days. Sadly, Spain's figure of 9,222 and France's of 7,578 were new records.
Delinquencies in the fastest growing segment of the consumer debt market are increasing at a heightened pace, with another wave of missed payments on marketplace loans expected on the first of the month. Amid the rise in delinquent loans, lenders are saying that they are seeing a jump in loan applications as more consumers seek a lifeline to stave off the effects of the pandemic.
Investors are increasingly focused on non-call risk in European securitizations, with specialist lenders in the firing line. Investors say roadshow conversations led them to believe that non-call risk would not be a feature of the post-2008 ABS market.
If Europe's corporate bond lead managers have been learning that it is possible to bring new issues even on a day when stock markets are falling and credit spreads widening, they still know a bullish day when they see one, and Tuesday was one.
Canadian banks are among the largest, most profitable and best rated in the world, but that does not grant them immunity from liquidity bottlenecks. A recent spree of deals, although in some ways was a show of might, also illustrated even the most fortified of lenders can appear vulnerable.
The European Stability Mechanism has added a new 12-month bill programme for the second quarter as it looks to manage its collateral requirements amid volatility in rates. ESM and the European Financial Stability Facility have also set out their issuance windows for benchmark deals in April to June.
Equity capital markets in Europe got off to a great start in the first quarter of 2020 but any optimism about more deal flow has swiftly been killed off by the onset of a global equity market selloff sparked by the spread of the Covid-19 coronavirus across the globe and the shutdown of major economies.
Portugal will be hoping to mirror the success of Belgium after the latter smashed records in the public sector bond market on Tuesday with the biggest ever order book for an SSA borrower in euros. Both Portugal and Belgium have announced an anticipated increase to their 2020 funding programmes as result of the Covid-19 crisis.
Carnival Cruises, the world’s largest leisure travel company, is rolling the dice on a coronavirus rescue package, launching a $1.25bn underwritten rights issue, $1.75bn convertible bond, and a $3bn dual currency high yield bond.
Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, March 30. The source for secondary trading levels is ICE Data Services.
Italy’s borrowing is set to increase as it attempts to weather the economic impact of coronavirus. But Davide Iacovoni, director general of the Italian public debt office, told GlobalCapital that he doesn’t expect investors to abandon the country’s debt. He also called for some form of European risk sharing.
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