Europe

Gazprom made its sixth appearance in the Swiss franc bond market on Wednesday, but for only the first time as an investment grade credit after S&P upgraded its rating. Institutional investors, which only buy bonds that are eligible for the Swiss Bond Index, piled into the transaction, pushing pricing down and the size up.

Société Générale has become the third bank to sell a five year non-preferred senior bond in floating rate format this week, but the French bank was unable to replicate the earlier successes of BBVA and Crédit Agricole.

Equity capital markets are enjoying heightened activity this week with a number of block trades hitting the pipeline and three IPOs launched on Monday.

Equity repo, a way to lend shares to the market, is a key parameter in equity derivatives trading but is yet to be fully considered and monetised. Given the opportunities that exist in the space, market participants would do well to change tack.

Emerging market bonds have been buoyed by several positives in key markets this week including a cabinet reshuffle in South Africa that has seen the return of respected former finance minister Nhlanhla Nene, and the upgrade of Russia to investment grade by S&P.

The European Central Bank may find that when it stops its government bond buying programme, investors that left the sector to find higher yields may not return, according to a credit analyst on an SSA treasury team.

Ukraine’s DTEK is meeting fixed income investors this week to update investors. The borrower is in the process of restructuring some outstanding bank loans.

The State Export-Import Bank of Ukraine printed its local currency bond on Tuesday, but needed to pay an eye-watering 16.5% coupon to do so.

Seven investment grade corporate deals in the first three days of this week kept investors busy doing their credit work, but the lack of new issue volume has left investors still hungry for more.

FMS Wertmanagement on Tuesday took advantage of widening swap spreads to equal the tightest spread to mid-swaps on a five year benchmark so far this year — a level that was “very tight” to KfW, said bankers on the trade. Two other borrowers are lining up to try their luck in the tenor — including one that is aiming for an even tighter spread.

Three public sector borrowers hit screens in euros on Tuesday, taking advantage of a hot market to offer zero or limited new issue premiums.

AMS, the Austrian sensor supplier listed on SIX Swiss Exchange, priced a €600m seven year convertible bond on Monday, led by Deutsche Bank, that achieved a negative yield.