Europe

Backed by a resilient and toughened banking system, Turkish debt could be one of the most rewarding investments in loan and bond format alike. As the country recovers from the currency crisis of August 2018, it is high time for those still standing on the platform to board the Turkish train.

The start of 2019 has been particularly quiet for equity capital markets bankers, but investors have been engaging with the only new listing in the market.

Kier Group shares perked up by as much as 1.6% on Tuesday after the UK construction company said it had parted ways with its CEO following the completion of its troubled £264m rights issue.

Fearful of missing out and, in the absence of competing credit supply, investors piled into six covered bonds on Tuesday with a combined value of more than €6bn.Royal Bank of Canada’s deal epitomised the state of investor frenzy as it was able to issue the largest deal of the year with a negative new issue premium.

US sanctions on EN+ and Rusal look set to be lifted soon, but they have not been the failure that some emerging market investors claim.

Banca Monte Dei Paschi di Siena (MPS), Fédération des caisses Desjardins du Québec (FCDQ), SpareBank 1 Boligkreditt (Spabol) and DZ Bank have announced plans to issue covered bond benchmarks on Wednesday when the market is expected to be just as busy as it was on Tuesday.

New issuance returned to the corporate bond market on Tuesday as Auchan and Vonovia attracted €8bn of demand for their new deals after two days without any trades. The new issuance spreads they paid differed markedly however.

Two US PP institutional investors headquartered in the US are considering lending to UK borrowers for the first time this year.

The Danish Financial Supervisory Authority has warned that banks would face trouble accessing funding in international markets if there were to be a repeat of the kind of money laundering scandal that has gripped Danske Bank, the country’s largest lender, in the last year.

Banco Comercial Português could be the first European financial institution to sell additional tier one capital in 2019, following an impressive rally in the asset class.

The European Insurance and Occupational Pensions Authority is asking for evidence on the effects of the Solvency II regime on the sustainability of firms’ assets and liabilities. But the regulator does not believe in incentivising sustainable behaviour through capital regulations at present, an idea being discussed in the banking sector.

BNP Paribas has made a string of senior appointments to complete the reorganisation of its corporate and institutional bank that began at the end of last year.