Europe

The Republic of Turkey has set price guidance on a new bond issue that equates to 50bp back of its curve. That is a big, sour number for Turkey to have to offer investors, but its goal at this point must be to reopen the capital markets for its banks and corporates. To do that, Turkey's new bond needs to perform.

The UK government might seem to have little clue about where the the City of London will drum up business after the country leaves the EU in March but the City, and notably the London Stock Exchange, has always been more global than European in nature. For better or worse, it will likely come to rely on this more in the months and years to come.

The European Stability Mechanism priced its second ever dollar benchmark at a “fair” level of around 5bp over European Investment Bank’s September 2020, according to onlooking SSA bankers. Elsewhere in the dollar SSA market, Inter-American Development and NRW.Bank mandated banks for floating rate notes.

Rostin Behnam, a commissioner at the US Commodity Futures Trading Commission (CFTC) flagged potential issues in the governance and risk management of clearing houses (CCPs) on Tuesday.

Agrofert, the agricultural and industrial firm from Czechia, has entered the Schuldschein market in search of debt.

The Autonomous Community of Andalusia has mandated banks for what Dealogic data shows is its first syndication since May 2011.

Shurgard Self Storage and Knorr-Bremse have both held up in the aftermarket so far, suggesting there is still appetite for high quality European IPOs, despite the global equity market sell-off last week which led to a number of deals being pulled.

Bank Nederlandse Gemeenten and KfW mandated banks on Tuesday for euro issues at opposite ends of the curve.

Münchener Hypothekenbank has mandated leads to roadshow its first green Pfandbrief while HSH Nordbank has mandated leads for a 3.5 year deal in the format.

High yield rated UK supermarket chain Tesco has launched a new bond with investment grade style features to fund tender offers for eight outstanding bonds, just days after a recent rating upgrade from Fitch Ratings.

Turkey is in the market for a five year dollar benchmark — its first trip to international capital markets since it was plunged into financial crisis by US sanctions earlier this year.

Italy’s deficit expanding budget plans — and their incompatibility with the European Commission’s wishes — may be one of the biggest talking points in the capital markets, but Spain also intends to loosen its deficit in the coming years. While fiscal stimulus after years of austerity should be welcome — so long as it’s spent on growth boosting policies rather than handouts — Europe’s lawmakers at the national and supranational level must really be lambasted for their timing.