Euro

Bank of China has hit the market for its multi-currency green bond, with an offshore renminbi portion in only the second time a green dim sum bond has been sold.

A pair of public sector borrowers on Monday joined the handful of issuers that have sold well subscribed taps since the UK voted on June 23 to leave the European Union. But there are growing hopes that the first new issue since Brexit could happen this week — in euros, at least.

Bank Nederlandse Gemeenten held an investor call on Monday to gauge interest in a possible debut social bond.

Commerzbank issued a well-received €750m eight year covered bond on Monday. The first euro benchmark since June 15 sends a strong signal to other issuers that have funding needs and shows that the sometime precarious funding window is now firmly open.

The latest Obbligazioni Bancarie Garantite issued by Monte dei Paschi di Siena (MPS) was barely changed on Monday after the bank’s share price sank to new record lows in the wake of news that the European Central Bank had requested a sale of its non-performing loan (NPL) stock.

The UK subsidiary of Santander issued a £500m three year floating rate deal on Friday in an exercise that suggested UK banks still have good access to wholesale funding. The deal comes as several banks line up with euro benchmarks next week, and amid growing signs that a further expansion of quantitative easing is on the way.

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The SSA market got back to business swiftly, if somewhat cautiously, this week, with taps and private placements (PPs) across core currencies coming quickly after the UK’s vote to leave the European Union. Although none of the trades were especially ambitious, their success has set a positive tone for the weeks to come.

A stronger picture is emerging for the eurozone periphery late in the week, after the region’s governments suffered a spike in yields in the immediate aftermath of the UK’s vote to leave the European Union.

Fitch has revamped its covered bond rating rules to reflect differences between national resolution frameworks that could allow covered bond liabilities to be partly bailed-in, in some jurisdictions. Upgrades are likely in low investment grade countries, and downgrades in high investment grade countries.

Several covered bond borrowers are eyeing the market for possible issuance next week from a range of eurozone and non-eurozone countries.

Italy took advantage of a fall in its yields since a Brexit-induced spike late last week to print five year debt at a record low rate on Thursday, while Portugal announced plans for an exchange offer.