Europe

When 16 banks recently conducted a pilot study on how to analyse climate change risks on their balance sheets, they only published three case studies, and only one bank, Barclays, was willing to put its name to its study.

Italian tyre company Pirelli has launched a Schuldschein after a six year absence from the market. This is a clear illustration, Schuldschein market participants said, of the resilience of the product, versus the shakier backdrop of public bonds.

A green bond and a conventional bond both hit the euro market on Wednesday. While neither aimed for size, the pricing action showed much hotter demand for the green offering.

The shareholders of French brokerage Kepler Cheuvreux have restructured its ownership, with two new investors coming in and UniCredit increasing its stake, while others have sold out.

Spain’s Masmovil has completed a second round of refinancing on its bank loans, shaving a further 100bp off the cost of its total debt pile and ramping up the size to €831m.

Covered bond issuers are monitoring the dollar market with recent deals from DNB Boligkreditt and CIBC suggesting a welcome reception for further issuance. However, Canadian banks, perhaps the most likely dollar issuers, could well be enticed to consider their home market following TD’s recent success.

UK asset manager Winterbrook Capital has gone public with a claim that events of default have occurred on Novo Banco senior notes, on the week in which the bank is attempting to sell a tier two bond and tender old senior bonds.

London Stock Exchange Group (LSEG) has acquired roughly 16% of collateral manager AcadiaSoft in an attempt to improve its offering in the non-cleared derivatives margin and processing business.

Scope Ratings has warned that investors should not be ‘complacent’ about the risk of coupon cancellations for additional tier ones (AT1) following planned changes to European bank capital requirements.

After a series of 10 year Pfandbrief flops, Deutsche Apotheker-und Aerztebank (ApoBank) has decided to test appetite for another German 10 year with, unusually, its second deal of the year.

After two successful new corporate bond issues on Tuesday, market participants were hopeful of more supply on Wednesday. However, the optimism caused by Wall Street was extinguished as Asian markets tumbled overnight.

Public sector issuers have streamed back into the primary market in euros after being kept away by weeks of volatility. This week is already the second busiest of the year for the sector, but investors are starting to focus on where interest rates are headed.