Europe

Coventry Building Society became the first financial institution to issue a five year Sonia-linked covered deal on Tuesday, just beating Yorkshire Building Society (YBS) to the punch.

There has been feverish talk over the past few days that the UK and European Union are close to agreeing a deal to determine the future of the continent’s financial services industry, but that talk is premature: real negotiations likely haven’t even started yet.

DZ Hyp this week issued its first Pfandbrief following the merger of DG Hyp and WL Bank. At €1bn, the deal was larger than most and, though it was priced much tighter than a range of non-German seven year deals, it did land at the widest level for a German bank of this rating in over two years.

Ireland’s Dalata Hotel Group has signed a €525m-equivalent loan facility, with new banks joining the acquisitive borrower’s lending group.

The trading platform provider Liquidnet announced today that it has added emerging market bonds to its institutional fixed income trading platform. To support the additional breadth of its offering, the company has hired two former bankers to its fixed income teams.

Equity investors are keeping their powder dry as US voters go to the polls in congressional elections with little stock trading taking place globally.

The euro high yield market was giving signs that investor discrimination is back this week, as borrowers IDG and Victoria respectively marketed and postponed new issue bond deals.

The Depository Trust & Clearing Corporation (DTCC) on Tuesday said it had moved to the testing phase of a new credit derivatives “warehouse” that processes credit derivatives trades with distributed ledger technology (DLT).

Garanti Bank has launched syndication to refinance a $1.15bn-equivalent loan, as bankers assess Turkish banks' funding activity during the country's recent period of economic upheaval.

The Spanish Supreme Court is expected reach a decision on Tuesday about whether banks should have been liable for certain mortgage taxes that have previously been paid by the borrower.

A pair of public sector borrowers are looking to eke out the last bit of cash from the dollar market before it shuts down for the US mid-term elections on Tuesday night.

The European Financial Stability Facility has opted to tackle a part of the euro curve where KfW found substantial demand last week, with a trade that SSA bankers said should provide a steer on the health of the euro market. There was one positive sign for the sector on Monday, as a Dutch agency increased the size of an SRI bond from its initial target.