Deutsche Bank

The Government of Mongolia has picked six banks to work on a 144A/Reg S bond that may hit the market as early as next week.

Volatility in Chinese equity and foreign exchange markets is spooking investors but the cheaper RMB and more reasonable valuations for A-shares might provide an ideal entry point for investment into the Mainland.

Anheuser-Busch InBev has brought its jumbo acquisition financing to the US corporate bond market on Wednesday, after days of speculation over when it would arrive. But that did not deter Telecom Italia and Mondelez from issuing in the European market.

Telecom Italia brought the first telecoms bond deal of the year to the European market on Wednesday, tapping both high yield and investment grade investors.

Pohjola Bank and NordLB paid slim new issue concessions for five year senior debt on Wednesday, but market participants pointed to the dangers of pushing spreads in too tightly.

China Nonferrous Metal Mining and Vista Land & Lifescapes are meeting investors ahead of their respective dollar offerings, while Hangzhou Hikvision Digital Technology is set to gauge interest in Europe for a euro-denominated deal.

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.