Europe

A research note by the Financial Conduct Authority (FCA) has concluded that the phase-in of initial margin requirements for non-cleared derivatives trades will largely fail to make the process “gradual” and easier to stomach for UK counterparties.

The investment grade corporate bond market started August with a pair of transactions that supported the positive tone of the market. Primary market participants are still in positive mood, but are yet to see any further deals announced.

On Monday, asset managers holding HSBC’s discount perpetual bonds (discos) again pressed the bank to clarify why it classified the securities as fully eligible regulatory capital. A recent Bank of England policy update has not persuaded HSBC to reverse its decision.

Greece’s planned return to the 10 year part of its euro benchmark curve is likely to be in late August or early September, according to market sources.

Green Italian bond supply has good scope to grow, and banks are likely to play a central role in the rise, according to Standard and Poor’s. Given the old age of Italy’s building stock and the importance of financing for small and medium-sized enterprises (SMEs), green covered bonds and green European Secured Notes could play a vital part.

Victoria, the UK flooring firm, has completed a £60.5m ($77.77m) sale of new shares to fund its takeover of Saloni, a Spanish producer of high-end tiles.

UniCredit is seeking €90m from Caius Capital due to the hedge fund’s actions over the past few months in relation to the convertible and subordinated hybrid equity-linked securities (Cashes).

Turkish banks are gearing up for a round of loan refinancing at a time when the country is a risky economic hunting ground. But bank lenders are confident the loan market will support Turkish banks, albeit at wider margins.

The Single Resolution Board said on Monday that it would not compensate creditors or shareholders who lost money as part of the resolution process for Banco Popular, after Deloitte found that these investors would have fared no better in an insolvency procedure.

Shares in RBS rose 3.5% on Friday morning after the UK bank unveiled its first dividend since it was rescued during the financial crisis, paving the way for more share sales by the UK government once the lockup from the last trade comes off in September.

Swiss Re is considering a sale of its closed book life business ReAssure, possibly in 2019, in order to raise capital to buy more polices, a deal which could be worth over £875m.

BTPs sold off on Friday morning ahead of the Italian government’s crucial 2019 budget review, with yields reaching their highest level in two months.