Euro
-
-
After the Whit Monday holiday in Europe, Deutsche Telekom boldly re-opened the corporate bond market. Having seen compatriot Bertelsmann pull a deal on Thursday, Europe’s largest telecoms provider showed no fear when it sold a four-tranche offering. -
German energy supplier Innogy found the corporate bond market tough going for its latest new issue, despite marketing its deal for two days. However, it did execute the deal in a week that saw two corporate bond deals pulled, and despite an M&A shadow hanging over the company.
-
American household appliance manufacturer Whirlpool took the brunt of the damage from the volatility in the corporate bond market this week as it had to pull a deal just as investors were waiting for a final update. But it might not be the last issuer to struggle in the European investment grade corporate bond market, writes Nigel Owen.
-
Dexia Crédit Local scored what leads said was a good result on Thursday as it brought a trade at the upper end of its size plans and tightened pricing during another volatile day for eurozone rates. KfW was also out in euros, with a tap, although it appeared to be more of a slow burner.
-
The European Commission has formally proposed a change in rules to allow sovereign bond-backed securities (SBBS) the same regulatory treatment as eurozone sovereign bonds. But the plan to introduce SBBS is still receiving an, at best, lukewarm reception from market participants.
-
Unédic played it safe by offering extra new issue concession to traverse a choppy euro market on Wednesday, ending up with a €1bn 15 year deal and a 1bp tightening from guidance. Dexia Crédit Local is out for a euro deal on Thursday, although bankers said the shorter duration trade should mean the volatility will be less of a test.
-
On Wednesday, US electrical appliance manufacturer Whirlpool became the second investment grade corporate borrower to pull a deal in a week. German energy company Innogy and Whirlpool both found the corporate bond market tough going on Wednesday, despite having employed two-day marketing strategies. Whirlpool, however, took the hardest hit.
-
The statement that value is what someone is willing to pay has proven true in the corporate bond market in the last week. Large multi-tranche deals paid lower new issue premiums than smaller deals that came later in the week, while one deal failed to find that value point altogether. And then a €2.9bn four-tranche jumbo deal attracted a €4.35bn book, albeit with healthy premiums on all tranches.
-
Some investors are optimistic that Italy’s borrowing costs can recover following a rapid rise over the last few days as the spending plans of its likely new government came to light. But they also warned that the picture is rapidly changing — as evidenced by the apparent push-back this week by the Italian president against the proposed candidate for prime minister.
-
The European Investment Bank has printed a new Climate Awareness Bond — its sole euro green bond for 2018 — opting for an aggressive price and falling short of full subscription. A French agency will follow the supranational’s lead, mandating for a deal with the same tenor.
-
After the Whit Monday holiday in Europe, Deutsche Telekom boldly reopened the corporate bond market. Having seen compatriot Bertelsmann pull a deal on Thursday, Europe’s largest telecoms provider showed no fear when it sold a four-tranche offering.
