Credit Suisse

Supranational and agency borrowers have long anticipated a wave of demand from American investors as US government sponsored enterprise issuance dwindles. But this week there were concrete signs that the dollar bond market has shaken off the problems that prevented the big switch. Craig McGlashan reports.

National Australia Bank (NAB) priced a seven year Swiss franc note this week, making it the first international issuer in the currency for 2016.

Credit Suisse and UBS dominated Dealogic’s European FIG bookrunner rankings for 2015, helped by their issuer parents cranking up their issuance of holdco and capital instruments.

Investigators are finally baring their teeth at the bond markets, after dozens of other post-crisis scandals, with a probe into the supranational and agency market that has engulfed four banks.

Eleven covered bonds were priced in the first week of 2016 despite the onset of European holidays and US non-farm payroll data.

TDR Capital has set bank meetings for January 12 to market a £745m debt package for its minority investment in Euro Garages, the UK’s second largest independent petrol station operator.

Korea Development Bank (KDB) snagged tight pricing for its $1.5bn dual-tranche bond, completing one of the first deals of the year in Asia. Some accounts stayed away citing expensive pricing and geopolitical concerns, but investors still thronged to the credit, viewing it as a defensive play amid high volatility.

A South Korean deal kicked open the Asian block market this week but complications in the execution have set a negative tone for the country’s equity capital markets, where numerous share sales are expected in 2016. Jonathan Breen reports.

The Islamic Republic of Pakistan has increased the size of its latest loan to $325m from $300m after a few more lenders joined the deal at a later stage.

Corporate issuers now dominate Europe’s high yield market, but investor appetite is showing signs of its old fickleness. As Victor Jimenez reports, issuers can still depend on the market, but may have to pick their windows carefully in 2016.

While the last few years have been all about the European high yield bond market rapidly developing into a dependable financing source for private equity sponsors, 2015 saw the loan market fight back. But as Max Bower and Victor Jimenez point out, it has done so at a time when LBO sponsors face increasing competition from IPOs and trade buyers.

Investment grade loan pricing has stopped falling — meaning the flow of refinancing deals is ebbing. Mergers and acquisitions, as ever, are what banks want, and they are confident of getting more in 2016. But will banks finally get round to weeding out unprofitable relationships? Rob Cooke reports.