Europe

Holders of Banca Monte dei Paschi di Siena’s €300m 10 year tier two have already been burned in the secondary market, with the price of the bonds having plummeted since their initial sale on July 16.

The Spanish non-bank mortgage lender Unión de Créditos Inmobiliarios (UCI) is set to issue an unusual structured covered bond through a special purpose vehicle. The transaction works a little like legacy multi-Cédulas deals, benefiting from a liquidity facility that allows for a soft bullet extension.

UBS and Citi trader Tom Hayes was jailed for 11 years for manipulating Libor. But while the trader argued that he was made a scapegoat for the financial crisis, perhaps the rate he rigged is a bigger victim.

A refinancing package of €1.23bn has lifted some pressure off Swiss aviation services company Swissport and driven Moody’s to change its ratings outlook on the company from negative to stable. Parent HNA has had a fire sale of assets to combat a cash crunch, and a new portability clause is likely a sign of its desire to exit from the Swiss firm.

Ukraine’s GDP warrants are trading around a cash price of 85. That is way below JP Morgan's view that fair value is closer to 135. No matter the new, surprisingly positive GDP growth forecasts and enthusiasm for the country’s new leadership, from the trading numbers it seems clear that investors do not believe they will get their money from Ukraine.

Populism and economic change are melting down old idols. When the next crisis comes, new fiscal and monetary tools will be used — including helicopter money.

A dire two days for sterling served as a sharp rebuke to the UK government about its Brexit strategy and equity bankers and investors hold little hope for an imminent recovery in the country’s fortunes.

Synthomer, the Malaysian-backed UK producer of aqueous polymers, has finished its £204m rights issue after the deal won a high take-up among shareholders.

Porsche AG, maker of Porsche sports cars, closed a green Schuldschein this week, with pricing and allocation set for Friday. The final size is rumoured to be €1bn, with an order book far exceeding that.

Andrew Hollingworth, a portfolio manager at Holland Advisors and shareholder in Sports Direct, has urged Mike Ashley, the sports retailer’s owner, to pay more attention to corporate governance. But had Hollingworth known about the US private placement market’s experience of dealing with Ashley — in this case over debt owed by one of his other businesses, Newcastle United FC — he might have campaigned for it even more strongly.

FIG bankers believe that issuers will refrain from rushing into the primary market following the summer break, waiting instead to hear what the European Central Bank has to say in September.

Germany’s constitutional court said this week that the EU had not exceeded its powers when establishing the first two pillars of the banking union, dismissing a law suit brought forward by a group of academics.