Deutsche Bank

Financial institutions have taken an early plunge into additional tier one bonds this week, as European and US investors show willing to take on risk and put cash to work.

A pair of SSAs are set to bring dollar deals on Wednesday, despite worries over the health of the Chinese economy making life difficult for other issuers in the currency on Tuesday.

The European Financial Stability Facility and Nederlandse Waterschapsbank on Tuesday brought euro benchmarks in five and seven year maturities. Now much more at those tenors is expected.

Though financial institutions and public sector entities were busy issuing bonds on Tuesday, corporate issuance was quiet, despite the success of the only two trades so far this year and increased confidence that European markets can cope with Asia’s difficulties for the moment.

Intesa Sanpaolo opened the 2016 additional tier one (AT1) market on Tuesday with its euro debut, and is now over halfway to its 2017 issuance target.

Italian property has been one of the more disappointing sectors in European equity capital markets recently, so it was a welcome change that in a still bare calendar of formally announced IPOs, two of those that have appeared are for Italian real estate investment trusts.

Kommuninvest and Oesterreichische Kontrollbank are set to bring deals at the short end of the dollar curve on Tuesday — by which time leads are hoping Monday’s turbulent swap spreads will have calmed.

A bevvy of public sector borrowers are lining up euro deals for Tuesday and beyond — but some are opting to hold back price thoughts amid a cluttered and volatile backdrop.

Webhelp, the French call centre operator, was one of three companies who held bank meetings on Tuesday for leveraged loans. The €640m of first lien debt finances Webhelp’s acquisition by KKR from Charterhouse Capital Partners.

Intesa Sanpaolo is set to print the first additional tier one transaction of 2016 after opening the dollar tier two market for European banks last week, while ABN Amro opened the euro bank capital market on Monday.

There is no denying markets have given the RMB a rough start to the year. But despite the depreciation pressure on the RMB, the real trend seems to be more market-driven volatility rather than persistent weakening, according to some.

Neil Shuttleworth, Deutsche Bank’s head of debt syndicate for Central and Eastern Europe, Middle East and Africa left the firm at the end of last month.