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Kevin Warsh's speech at Jackson Hole has pushed up borrowing costs for dollar issuers
◆ Three year creates another point on curve ◆ €750m was target, Leumi’s deputy CEO said ◆ Strong market reopening after summer lull gave confidence
A double digit premium to the dollar curve lured in overseas buyers, who took a 'large chunk' of the bonds

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  • Paraguay tapped bond investors on Thursday to finance its portion of the transcontinental road, raising $732.3m of amortising notes with an average life of 8.9 years and using a zero coupon structure to reflect project payment flows.
  • Growth is expected to slow across central and eastern Europe this year, but the region has a trick up its sleeve: a well developed local banking system that in the 30 years since the fall of the Iron Curtain has evolved into a self-sufficient source of financing for the region.
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  • The US was set to raise tariffs on $200bn of Chinese goods, as GlobalCapital went to press, after talks between the two economic powers appeared to break down. Few people predicted it, most having prematurely stopped worrying about the US-China trade war and its impact on markets.
  • Global equity markets suffered their worst days of the year this week after an apparent breakdown in trade talks between the US and China, causing investors to sell and volatility to spike and possibly wrecking equity issuance plans, write Sam Kerr and Ross Lancaster.
  • It should not have been a good week for CEEMEA bonds. Fears of an escalating trade war between the US and China, a re-run of mayoral elections in Istanbul that many are calling the end of democracy in Turkey, South Africa national elections and the spectre of US sanctions on Russia would normally have killed the primary market. But issuers kept on printing and bonds rallied, writes Francesca Young, with next week's pipeline filling up.