Europe

IPO investors in Europe are taking more time over new listings and subjecting each to greater levels of scrutiny than before.

JP Morgan has hired Patrik Czornik to lead its M&A team for Germany. Czornik used to work for the bank in the past but then joined Goldman Sachs.

Equities are down on Wednesday, but corporate bond issuance, in both the investment grade and high yield sectors, is going ahead briskly, after an encouraging day of strong issuance on Tuesday.

The fall in absolute yields to new record lows has heightened investors’ search for FIG bonds that offer an attractive pick-up. As a result, investors have favoured higher yielding senior non-preferred transactions from the eurozone periphery, ultra-long dated covered bonds and higher yielding central European and Asian covered bonds. By contrast, demand for lower yielding core European covered bonds, while still healthy, has begun to wane following the exuberant levels of demand witnessed in May.

Sean Tai has left Debtdomain, the company he founded, to start a new venture, according to several sources with knowledge of the situation. Debtdomain is still willing to take on the challenge posed by new digital platforms in the Schuldschein market, according to Tai’s replacement as global head of business development.

Huatai Securities has already covered the minimum target for its global depository receipts (GDRs) IPO on the London Stock Exchange, according to a source close to the deal.

Italy has surprised the market by hitting screens with a new 20 year euro benchmark trade while it is facing disciplinary action from the European Union for having excessive debt.

Associated British Ports defied sceptical observers this week and succeeded in persuading holders of a £65m floating rate note to switch its coupon to one set over Sonia — a global first. ABP managed to do it without paying investors a fee, potentially setting a precedent for others to follow. ABP is certainly likely to try again.

Ford Motor Credit and Aéroports de Paris issued investment grade corporate bonds in Europe on Tuesday, while Spie joined them with an IG-style but high yield-rated deal.

An infrequent Swedish corporate issuer, a Nordic bank, and a German car manufacturer all placed floaters larger than Skr1bn ($106m) in the last week. Swedish krona bonds have been popular with both public and private issuers in recent weeks, as both issuers and investors rush to get business done before the traditional midsummer market closure.

Kazakhstan is one of the most interesting and exciting investment stories in the equity capital markets given its privatisation plans. But the events surrounding its election over the weekend reminded investors of the risks they face.

Schuldschein lenders are getting their first taste of environmental social governance (ESG) interest-linked notes next week, as Dürr takes its final orders on a transaction linked to its sustainability performance. According to several participants the trade has so far gone well, and will likely spark further Schuldschein borrowers using this new structure.