Europe

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.

The Bank of England will steer banks and insurers to think seriously about climate change. This is great news in itself. But what will count is how far the Bank is willing to push them.

Bank of Nova Scotia took full advantage of a respite in hitherto volatile market conditions and an expected secondary market spread widening to issue the largest euro covered bond from a non-European issuer this year on Tuesday — and paid a slim new issue premium to boot.

UK power company Drax has signed bridge financing for a £702m acquisition of assets from Iberdrola, as the Spanish company shifts away from traditional energy sources.

Burkhard Balz, a member of Deutsche Bundesbank’s executive board, warned on Monday that certain tools to support struggling banks, such as precautionary recapitalisation and liquidity provision, should be used sparingly.

Commerzbank enjoyed a smooth execution for its first green bond on Tuesday, having found a clear window to issue amid recently volatile market conditions.

In less than 24 hours Royal Bank of Canada and Toronto Dominion have almost doubled the volume of Canadian dollar covered bonds issued this year. And with the cost of funding being cheaper than euro covered bonds and half senior unsecured, others may be tempted to follow.

The International Swaps and Derivatives Association (ISDA) released an updated version of its Model Netting Act on Tuesday. The Act is a guide for legislators looking to properly institute close-out netting rules.

Neoen, the French renewable energy producer, priced the largest French IPO of 2018 on Tuesday, and the deal has traded up in the aftermarket, bringing cheer to investors after a series of pulled deals.

Heylo, a UK property company that specialises in shared ownership residential properties, launched the first bond off its new corporate bond programme last week. The bonds, which will be priced on or before October 22, offer investors inflation protection over the 10 years of the bond’s life.

Actiam, the Dutch asset manager, has launched what it believes is the first investment strategy built around the nine planetary boundaries — an attempt to describe the ecological limits within which humans can live sustainably on Earth.