The House passed the Paycheck Protection Program Flexibility Act last week in an attempt to loosen the terms around how small businesses can spend their loans, reducing the amount required to be spent on employee payroll. Sources say the program has made strides in the past two months since its rock rollout, enabling a wider range of industries to benefit from the forgivable loan program.
The Financial Conduct Authority has ruled out an extension of Libor, leaving the UK RMBS market to face the challenges of transitioning legacy deals before the end of the year. Because of the Covid moratorium extension, this leaves little time to move on to the new benchmark while the market digests new mortgage affordability data.
The Council of Europe Development Bank is preparing to issue its second Covid-19 response bond which will also be its first ever trade in dollars under its social inclusion framework.
KKR, Cinven and Providence Private Equity have launched the first post-Covid take-private LBO attempt, targeting Spanish telecommunications company MasMovil with a €3bn takeover offer at €22.50 a share, giving the company an enterprise value of around €5bn. Barclays, BNP Paribas and Morgan Stanley have underwritten the financing for the buyout.
The pricing advantage offered to issuers by green bonds over conventional issuance — the so-called greenium — has shrunk during the coronavirus pandemic, making them less attractive for borrowers. Investors have instead dived into buying Covid-19 response bonds, meaning there is a decent premium available for issuers which can sell deals with that label.
Emerging market corporate downgrades have accelerated since the beginning of the Covid-19 crisis, which has raised questions about debt refinancing in the asset class.
Deal arrangers said on Monday that banks would not be dissuaded from bringing new bond deals to the market, though spread levels have started showing their first signs of weakness following an extraordinarily strong month in May.
GVS, the Italian manufacturer of masks and filters, has confirmed that it is seeking to list on the Milan stock exchange this month.
The supervisory authority for Italian insurance companies (Ivass) has urged Cattolica Assicurazioni to raise €500m of capital before the autumn, having become concerned about a decline in the company's solvency ratios amid Covid-19.
Citigroup has named Will McLane as its Asia Pacific vice-chairman of technology, as it looks to grow the use of technology in client relationships, according to a memo seen by GlobalCapital Asia.
Asia’s loan market is slowly recovering from a near-shutdown due to Covid-19, with bankers predicting a busy couple of months ahead. But syndication will still be a challenge as lenders continue to remain risk-averse and selective on deals.
Suriname’s sovereign bonds traded up in the wake of last week’s elections, despite doubts over a looming debt payment and even as a candidate who has promised discussions over the country’s rapidly rising debt stock looks to be nearing power.
GSO/Blackstone and Napier Park both priced post-covid CLOs on Thursday, with GSO finding new tights for the European CLO market since its reopening.
Each week, the very best of what our newsroom have found most useful, interesting and informative from around the web. This week: what being in charge of a leading reserve currency actually means, how business travel might return, and a power play from Warrington Borough Council.
Features in UK covered bond programmes offer limited protection and could lead to a delay in the classification of defaulted loans, Moody’s said this week. Meanwhile in Europe, regulators have muddied the waters on payment moratoria legislation.
Shares in JDE Peet’s, the coffee company which priced its IPO on Thursday, traded up by over 13% on their first day on the Amsterdam exchange. The rise vindicated the syndicate's decision to accelerate the roadshow on what is predicted will be Europe’s largest listing all year.
The UK Debt Management Office has announced the timing and the banks for its upcoming syndication next month, as it continues to plough through its unprecedented borrowing programme.
The Asian Infrastructure Investment Bank has hired banks for a renminbi sustainable development bond, its first outing in the Panda market.
The Asian Infrastructure Investment Bank has approved a $750m loan to the Philippines to help it recover from the Covid-19 pandemic.
Latin American development bank Corporación Andina de Fomento expects the social bond universe to grow after bringing forward its debut social bond to raise funds for its Covid-19 mitigation efforts.
State-owned oil and gas giant Petrobras finally brought some bond supply from Brazil on Wednesday but, as the new issue traded down on the break, bankers said few Latin American issuers were likely to be persuaded of the benefits of tapping international markets in the short term.
ABS investors watched nervously last week as car rental company Hertz filed for bankruptcy, with few good options to keep cash flowing in the face of a crisis that has curtailed travel and depressed used car values. However, sources say that there are a number of reasons investors should be pinning their hopes on a reorganization rather than a liquidation.
Private sector involvement in suspending debt servicing for the world's poorest countries to alleviate the impact of the coronavirus pandemic progressed this week, with the Institute of International Finance (IIF) publishing guidelines for such an initiative. But countries face a long and tortuous path to reach tangible relief, write Ross Lancaster and Oliver West.
BBVA surprised market participants by becoming the first bank to issue a Covid-19 response bond in Europe this week. There will be follow-on deals as the format catches on in credit markets — high grade corporates are looking to do deals too — but it is unlikely to be exploited as widely as it has been in the SSA market. David Freitas and Mike Turner report.
The UK’s Financial Conduct Authority has reminded issuers and bankers of rules related to inside information and wall-crossings, as it seeks to make sure standards are upheld in busy markets when participants are working from home.
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