Europe

The EMEA IPO market is back after a quiet two months over summer and investors are eager to look at a wide range of deals coming to market.

European corporate bond investors have enjoyed the extra yield a bunch of new 12 year bonds have offered in the last two weeks, but are warning that issuers may need to find a new trick soon.

Rabobank stole the limelight in the FIG market on Tuesday with its €1bn additional tier one deal, which was close to five times subscribed. It demonstrated that demand is still there for the high beta product, and Credit Suisse looked to follow up on Wednesday with a dollar-denominated AT1.

Bankers working on the European deal pipelines for high yield bonds and leveraged loans promise a blazing September, but the talk among investors and their advisers is sober. Some fund managers believe the second half of the year might turn out to be reckoning time from what they described as “excesses” of the past.

GlobalCapital announced the winners of its Sustainable and Responsible Capital Markets Awards 2018 in Amsterdam on Tuesday evening. This year’s two sovereign debut green finance issues, from Indonesia and Belgium, won Deals of the Year in their regions, and there were double laurels for Danone, in both the bond and loan markets.

The US high yield bond market’s vulnerability to the price of oil is a perfect example of how heavy dependence on a single industry can hit a whole market. Now, the sterling bond market faces a similar test from the retail sector.

Swiss healthcare company Roche took advantage of upcoming redemptions and a new investor base following its rating upgrade by Moody’s, to raise CHF900m ($922m) from a dual tranche offering.

Eurex, the derivatives exchange belonging to Deutsche Börse, reported a 56% increase in traded equity derivatives contracts in August 2018 compared to the same period last year.

UK and European IPO sellers are beginning to view Brexit as a serious geopolitical threat to the smooth running of their market and a potential hindrance on deal execution.

Banco Santander brought the first sterling deal in more than six weeks with a non-preferred senior transaction, in a rare instance of a Spanish bank choosing to access funding in that currency.

China General Nuclear Power Corporation sold its second green bond in the euro market on Tuesday, nine months after its first success in the format. Last time the company sold green alongside five and 10 year conventional dollar bonds and this time it used a similar combination, replacing the 10 year dollar option with 30 year notes.

Spanish telecoms company Telefónica sold its second euro-denominated senior bond of 2018, benefitting from one its quietest years of issuance with a single digit new issue premium.