Europe

Barclays is under pressure from activist investor Edward Bramson to slim down its investment bank. But among top European IBs, it made the second highest amount of revenue in Europe, the Middle East and Africa in 2018, according to new research. The results were less promising for Deutsche Bank, however.

High yield bond investors in Europe are getting squeezed from both sides, as formerly regular visitors to the market hit investment grade status, and new acquisition financings hit the loan market rather than bonds. Schaeffler’s blow-out debut in the investment grade bond market on Tuesday took out €1.5bn equivalent of former HY product.

Sovereigns from the eurozone periphery could take advantage of the red hot market conditions by returning to the syndicated bond market in April, according to SSA bankers.

The Basque Country could became the latest Spanish sub-sovereign to hit the bond market in recent weeks as the regions look to get in ahead of Spain’s general election at the end of April.

The European Parliament and member states reached a provisional agreement on Wednesday afternoon on InvestEU, a new vehicle looking likely to trigger at least €650bn of investment from 2021 to 2027.

A surge of additional tier one issuance this week shone a light on how activity in the market is going to shape up in the coming months and years — refinancing is now the main game in town.

SSA sterling issuance was muted this week, with only the Inter-American Development Bank bringing a small deal, as the Bank of England's Monetary Policy Committee (MPC) met.

Swiss franc investors leapt headlong into the Brexit turbulence on Thursday morning, giving a solid reception to the first Swissie deal of the year from a UK corporate borrower.

Kommuninvest built out its Swedish krona green curve benchmark this week with its longest dated bond in the format. There is, however, an expectation that this Skr3.5bn ($382.3m) five year green bond could be the curve’s furthest extent.

The Commerzbank and Deutsche Bank talks have given Europe’s FIG bankers an unexpected source of cheer, writes David Rothnie.

Instituto de Crédito Oficial (Ico), an already well established issuer in the social bond market, will meet investors to market its debut green bond.

The unique assets and business model of Danish Ship Finance meant the price discovery process was much more challenging for its first euro covered bond than is typical. However, with a conservative starting spread the issuer reeled investors in for its inaugural euro benchmark on Thursday.