Investors have long had access to different ESG analytics when evaluating institutions’ socially and environmentally responsible credentials. But as investors expand their reach and become more sophisticated in using these services, issuers find themselves under greater scrutiny than ever before, finds Craig McGlashan.

Far East Consortium made a stunning bond debut earlier this year with a massively oversubscribed book, following it up a month later with an equally impressive showing by its subsidiary. But despite its recent success with bonds, it is happy to sit back and explore its options, writes Rev Hui.

Dong Energy drew plaudits when it had to improvise with an exchange offering after Standard & Poor’s changed its view on the issuer’s €700m hybrid from 100% equity to 0% in April. Its reputation remains intact — but the experience has permanently altered its approach to the capital markets. Craig McGlashan reports.

Primary issuance in European commercial mortgage securitization has picked up this year, and Gagfah, which has a strong focus on German residential property, is providing much of the fuel for the market, already pricing two CMBS deals this year. The firm sees further mileage in this funding avenue, and plans to refinance more of its debt via CMBS in the months ahead. Hugh Leask reports.

The RMBS market in the Netherlands has long been a cornerstone of the wider European RMBS market, but it faces some stiff headwinds. House prices have fallen 20% from their peak, putting a growing number of mortgage borrowers into negative equity. The government’s efforts at reforming the housing market and reducing the Netherlands’ high LTV/mortgage tax deductibility model have only added to the sense of uncertainty, making turnover of new sales and origination of new mortgages sluggish. Despite all of this, RMBS performance remains very robust with short term and long term arrears barely rising over the past year. A bigger problem could be the lack of primary supply this year. Issuers from the Netherlands are very well funded and, as a result, have publicly issued only €4bn of new RMBS this year to date. When the absence of UK issuance this year is also factored in, there is a danger some investors might rethink their commitment to the RMBS asset class as a whole. In this roundtable, EuroWeek asked a selection of leading investors and issuers in RMBS from the Netherlands for their take on the macroeconomic picture, the shrinking volume of paper and the problems this might create for liquidity and investor appeal, and where potential spread volatility could arise in this sector.

Like many banks in Europe’s periphery, BBVA continues to be dogged by the region’s perennial political and financial crises. But it is also a global brand, with a huge presence in growth markets like Latin America. That strength allowed it to triumph in capital issuance this year, writes Will Caiger-Smith.