Europe

News that populist parties in Italy could be positioning to defy Europe over spending and debt levels has rattled some participants, causing some to change their strategies with derivatives.

Investors took their time in considering new senior offerings from Morgan Stanley and Santander Consumer Finance on Wednesday, following a weak opening for financial markets.

Are global equities still experiencing a bull market? It seems to be the question that is perplexing equities strategists and bankers as markets extended the choppy run that dates back to February.

Deutsche Pfandbriefbank (PBB), which completed its second euro benchmark Pfandbrief of the year this week, is expected to consider issuance in dollars or sterling, as are other German issuers that have big foreign currency assets.

Italian energy company Enel received €3n of orders for €1.25bn of new hybrid bonds on Tuesday. This showed the insatiable appetite of investors for the product with the enhanced yield it offers and ratings agency Scope expects 2018 to record much more supply that the previous two years.

Investors have written to the Single Resolution Board asking why a ‘no creditor worse off’ report has not yet been published for Banco Popular and criticising what they see as a conflicts of interest over Deloitte’s involvement in the Spanish bank’s resolution.

If the principles-based European covered bond directive is implemented in its current draft form not a lot will change — but that may be just as well.

Equity and bond investors hoping for the Turkish central bank to step in and cool its overheating economy will be dismayed by President Erdogan’s pledge to influence its decisions. But they should not be surprised.

The advisory arm of Hermes Investment Management fired both barrels at Deutsche Börse chairman Joachim Faber on Tuesday, partially blaming him for the implosion of the proposed merger with the London Stock Exchange Group in 2016

The UK Debt Management Office on Tuesday extended the conventional Gilt curve while breaking two of its syndication records. Bankers off the deal hailed the “great result”, while leads highlighted that the deal was already performing in secondary just a few hours after pricing.

Swiss speciality chemicals firm Sika turned to the equity-linked market this week to raise Sfr1.65bn. The trade was just what investors in the asset class have been crying out for in Europe, but it also served as a nifty corporate financing solution — funding the settlement of a four year long hostile takeover battle with French rival Saint-Gobain.

Schuldschein issuance this year will be much lower than in 2017, Moody’s analysts have predicted. Their view echoes those of two German Landesbanks. But although there is a creeping consensus in the market of an impending fall, participants are no closer to agreeing why.