Europe

Demand for a deal can be accurately reflected only in the context of a specific spread. Anything other than that can mislead investors, so the ECB should demand better.

Greece, which on Monday announced its intention to sell a seven year, kept away from markets because of wide swings in European govvie spreads — a decision lauded by bankers away from the transaction. Dimitris Tsakonas, head of funding at the Greece's Public Debt Management Agency, spoke to GlobalCapital.

Public sector borrowers are reaping the benefits of investors looking to “weather the storm” of wider market volatility, said bankers, as investors poured cash into short dated dollar issues this week. Bank Nederlandse Gemeenten and Sweden are set to be the next issuers to benefit, after mandating for three year trades on Tuesday.

An exchange traded note that rewards investors when equity volatility drops is being shuttered by Credit Suisse, after implied volatility on the S&P 500 exploded this week.

The UK Debt Management Office drew praise on Tuesday as it priced the final syndication of its 2017-18 financial year at the tight end of a tiny guidance range. Bankers said that result, coupled with the behaviour of the UK’s outstanding curve over the course of the deal, was particularly impressive given a turbulent backdrop in the wider financial markets.

Ocado, the UK online grocer, raised £143m of fresh equity on Tuesday morning in an early day accelerated bookbuild led by Goldman Sachs and Numis Securities that finished “a few times covered”, according to a banker involved.

Fabio Gallia, who became chief executive of Cassa Depositi e Prestiti (CDP) in 2015, is overseeing its ambitious 2016-2020 business plan. In this interview, he shares his views with GlobalCapital on the prospects for the Italian economy and the role CDP will play in supporting its accelerated recovery.

Italy’s large companies had a bumper 2017 in the bond markets but they are well known names with investment grade ratings. What about the backbone of the Italian economy — how are the SMEs that form the supply chains of larger companies finding finance as the country emerges from its long economic winter and seeks out stable growth? By Nigel Owen.

What is the outlook for 2018 for Italy’s corporate borrowers, after a year in which old and new names came to the bond markets with great success? Some of Italy’s most important treasury teams met GlobalCapital to discuss the prospects for the year ahead. Funding teams and investment bankers shared their views on the state of the local and international economies, how they are finding access to capital markets and what the future holds as the ECB tapers its corporate sector purchase programme and investors adjust to a new era of normalisation.

Global stock markets have been hit with volatility in recent trading sessions, but European primary leveraged finance markets had already slowed down as investor pressure grew around Algeco’s €1.4bn deal and UK retailer New Look’s performance.

Italian financial institutions had an exceptional year in 2017. Banks that had been flirting with collapse were either recapitalised or allowed to fail, with very little disruption spilling over into the broader market. All this helped to make Italy an attractive destination once again for international investment, clearing some of the clouds hanging over the financial system and allowing firms to increase the volumes of debt they placed into the public capital markets.

Italy’s biggest corporate bond issuers such as Enel and ENI have been agile players right through the crisis years. Spreads were turned upside down and companies traded inside the sovereign. Many still do, but Italy’s corporate bond market has changed greatly. The group of issuers has swelled and they have gone far beyond merely securing market access, to considering how to optimise their funding with a range of instruments, from liability management to green bonds. Nigel Owen reports.