Coronavirus

The Italian Treasury has updated the guidelines for its debt management strategy for 2020 as it comes to terms with additional financing needs from Covid-19. There are plans for more syndications, bigger auctions and more products for retail investors.

Reviews of key areas of legislation such as MiFID II, bank capital requirements and Solvency II have been pushed into the future, as the European Commission puts green and digital regulation first.

Banco Santander Mexico showed that emerging market investors are willing to deploy cash in a greater range of credits than just sovereigns as it sharply increased the size of a five-year senior deal on Tuesday. But though the new issue concession was in line with expectations, the deal underscored the new reality of funding conditions for Latin America borrowers.

EU ministers finally managed to find agreement before the Easter weekend on a rescue package to help fund the bloc's response to the Covid-19 pandemic. But investors and analysts were far from convinced that critical debates about countries' ability to deal with the economic impact of the crisis and about the wider future of the EU have been settled.

There has been much discussion since the financial world went into lockdown about how life in the capital markets will change once governments lift restrictions. Chief among those concerns has been whether the usual business of putting deals together needs to burn the Bacchanalian quantities of jet fuel and waste the many hours lurking around airports that capital markets air miles enthusiasts were doing before Covid-19 grounded them. If that is to change, borrowers and investors need to make it happen.

Greece is looking to become the latest eurozone sovereign to sell a seven year syndicated bond, after mandating banks on Tuesday for the transaction.

Schuldschein arrangers are waiting for large German blue chips to launch transactions, to help ease the market’s reopening after the coronavirus. According to market sources, deals are being prepared and are expected to launch in the next one or two weeks.

The World Bank made a swift return to the market on Tuesday as it prepares to sell a five year global sustainable development bond after updating investors on its plans to tackle the impact of the Covid-19 pandemic.

The wave of UK corporates going to equity markets to raise capital to offset Covid-19 volatility is set to continue this week according to sources. On Tuesday, Hyve Group, the London-listed organiser of exhibitions and conferences, said it was looking at a possible deal.

The Province of Alberta is preparing for a bigger borrowing programme to counter the impact of the global oil crisis and the coronavirus pandemic.

BNP Paribas and Crédit Agricole have become the first euro area banks to launch senior bonds for nearly two months. They joined UBS in the euro market on Tuesday, taking advantage of a recent rally in credit spreads across the sector.

The International Monetary Fund on Monday kicked off down the long road emerging market debt relief, giving six months’ waiver to 25 of its poorest members as calls grow for private sector involvement in the exercise.