Europe

Some SSA investors are expecting new records to be broken in European government bond yields, though analysts warned that some sovereigns will still need to actively woo investors if they want to keep their debt prices rising.

A UK fertiliser mining project was thrown into jeopardy this week as the high yield market turned too spicy for some investors. But for those looking for something milder for their portfolios in the primary market, there was little to be found either with no investment grade supply until UK retailer Next appeared on Wednesday morning.

Equity capital markets investors may be grappling with a rough week for major equity indices but they are still ready to invest in new listings. However, there is a possibility the sellers won’t come.

Former JP Morgan banker Andrew Truscott has been appointed as co-head of UK investment banking at Citi.

Russia was slapped with sanctions this week that stop US financial institutions from participating in primary issuance from the sovereign. So far, so terrifying as – eek!— Russia’s main artery of finance has been cut. Only it hasn’t been, not really. Don’t be too surprised if the Russia sovereign comes out soon with an international bond to prove it.

Widening spreads in the investment grade corporate bond market are making the chance of a repeat of last year's heavy issuance in the first week of August look slim.

Newport City Homes (NCH) has sold a £95m private placement to Legal & General, as housing associations soldify their position in the private debt market.

Green Schuldscheine have been a peripheral feature of the market for the past three years but this seems to be changing, with a billion plus transaction from Porsche and a sustainability linked note from Durr stirring investors into a frenzy. This green turn could have more of an impact for short term market growth than the odd non-European borrower tapping the market.

The UK’s Financial Conduct Authority (FCA) is being accused of negligence and a laissez-fair attitude in relation to the collapse of several funds. The irony is that in a different but less well-publicised area it is far from lax: it has undoubtedly tightened the screws on bankers gone bad.

EM investors are calling the US Treasury’s latest round of sanctions — this time on Russian sovereign debt — confusing and knowingly ineffective.

UK mining company Sirius Minerals delayed its $500m high yield bond on Tuesday,aiming to try again in September. The clock is ticking on the fertiliser mine project in the Yorkshire Moors. Sirius has until October 30 to entice investors or its whole financing package will collapse.

HSBC has said that it will look to raise additional tier one (AT1) capital in the second half of 2019, as investors point to 10 or more issuers that could refinance securities in the next six months.