Europe

With SSA primary market conditions red hot, it would be wise for French public sector borrowers to crack on with their funding ahead of a double whammy of risk events in May.

The UK Financial Conduct Authority has fined a former fund manager for attempting to influence pricing during an IPO and share placing in 2015.

Japanese anchor investor Norinchukin is directing issuers to print new issue euro CLOs within a week, according to market sources, leading to pressure on syndicate desks to place the mezzanine, weaker spreads — and tougher times for equity investors.

Italy will test peripheral sovereign appetite in the long end after hitting screens on Tuesday for a 30 year syndication.

All three public sector borrowers in the euro market on Tuesday received record order books, despite the spreads tightening by up to 5bp during pricing — which left little to no concessions for investors.

Theresa May may not have brought any further clarity to the UK’s Brexit agreement, but that is not causing any issues for investors and issuers in the sterling corporate bond market. On Tuesday, two more deals were priced: one from a UK issuer, one from a European.

The UK Debt Management Office showed no effects from the ‘noisy UK environment’ to comfortably conclude its 2018/19 syndicated programme on Tuesday. KfW will add to the sterling SSA supply this week after picking banks for its third benchmark in the currency this year.

A sustained improvement in market conditions suggests issuers now have access to a broad mix of funding instruments and, in the wake of January’s extraordinarily heavy covered bond supply, issuance is likely to moderate.

The European Parliament and the EU member states are planning to approve a provisional agreement on the Pan-European Personal Pension Product (PEPP) in February — one of the flagship pieces of the Capital Markets Union (CMU) initiative.

Egger, the Austrian wood-based panel maker, has entered the Schuldschein market for a third time, shaving its pricing margins once again.

Deutsche Bank offered large new issue premiums in an effort to lure investors towards four tranches of non-preferred senior debt in euros and sterling on Tuesday. The decision to include a two year offering caught some market participants by surprise.

Turkish President Tayyip Erdogan said on Tuesday that Isbank will become the property of the country's finance ministry, in what a US-based investor said he saw as a 'further consolidation of Erdogan power'.