Europe

The deal agreed by Theresa May, prime minister, for the UK's exit from the European Union has brought issuance of sterling bonds, equity and loans to a juddering halt, which could extend into 2019. Nigel Owen reports.

Several European central banks have contacted the Loan Market Association (LMA), raising concerns about the risks of the leveraged finance market. But following a round of private meetings in London, the authorities are not expected to bring forward new regulations.

International uproar over Russia seizing three Ukrainian navy ships last weekend did not stop Russia selling a €1bn 2.875% 2025 bond on Tuesday. But investor fears are growing ever higher over the likelihood of further US sanctions on the country. Russia’s pivot away from dollars seems to indicate the same concerns. Francesca Young, Sam Kerr and Lewis McLellan report.

Defensive formats and short maturities found favour among FIG issuers this week, with new senior offerings from ABN Amro and Commerzbank. But there was no doubting that new issue premiums remain high in the euro market.

It was never going to last. Bitcoin has ended its three month holiday from volatility and begun to crash once more. The cryptocurrency market is looking for a new floor.

Nykredit returned to the euro covered bond market on Thursday to issue its second floating rate transaction. The oversubscription rate was similar to other recent deals, but well below that for its debut deal, when market conditions were much stronger.

Chinese and French banks may take advantage of a new Luxembourg green covered bond law, where the cover assets are linked to renewable energy, according to an official at the Luxembourg Stock Exchange (LuxSE).

Shareholders have waved through The Restaurant Group’s (TRG) £559m debt and equity-funded purchase of UK Asian-themed restaurant Wagamama, despite a large portion of those voting opposing the deal.

Zur Rose, the Swiss online pharmacy, has completed its Sfr200m ($200.8m) at-market rights issue to fund the acquisition of a German e-commerce platform, following the sale of a rump placement on Wednesday evening.

Rating: Ba1/BBB-/BBB-

As the EU Covered Bonds Directive nears the finish line, speakers at the Covered Bonds Market conference held by the Association for Financial Markets in Europe (Afme) and the Association of German Pfandbrief Banks (VDP) have voiced concern about the quality of the product being diluted.

Banco de Sabadell broke open the market for subordinated bank debt on Thursday, taking advantage of a steady improvement in conditions throughout the week.