Europe

All-time low funding costs have sparked record gross issuance of leveraged finance debt in Europe this year, including a stream of multi-billion sized deals. More are coming, market participants say, and leveraged loan demand will be key for them.

The sovereign green bond market looks set to come of age next year, with some issuers confirming that they will join the likes of France in printing deals and others mulling the possibility. But the model may not fit all government borrowers — for the moment, at least. Craig McGlashan reports.

Futures based on cryptocurrency bitcoin exploded onto US exchanges this week, with traders looking to expose themselves to the asset's incredible volatility and authorities sounding warnings.

The US Federal Reserve raised its target rate to 125bp-150bp this week in a move investors and analysts widely expected, but there was still a small rally in US Treasury yields as some of the central bank’s projections hinted at what analysts called a “Goldilocks scenario for bonds”. That is likely to be welcomed in the offices of one sovereign issuer, which is planning a return to the dollar market after a long absence.

European banks were outgunned again in corporate finance in 2017 but there is cause for optimism for next year, writes David Rothnie.

UniCredit was able to sell a new additional tier one (AT1) at close to fair value this week, after updating the market about its progress with its strategic plan at a conference in London.

Rating: Baa1/BBB-/BBB

European Central Bank president Mario Draghi struck an upbeat note on the currency bloc’s growth prospects at a press conference following a governing council meeting on Thursday, but analysts still expect borrowers to enjoy supportive conditions for some time yet. The meeting — and the approaching year end — meant euro supply was thin on the ground, but Iceland did take the opportunity to return after several years away.

Rating: A3/A/A

European Central Bank president Mario Draghi struck an upbeat note on the currency bloc’s growth prospects at a press conference following a governing council meeting on Thursday, but analysts still expect borrowers to enjoy supportive conditions for some time yet.

Bunge Finance Europe, an arm of the US agricultural commodities group, signed a $1.75bn revolving credit facility with 42 banks on Tuesday.

Bitcoin, the cryptocurrency that has taken capital markets by storm, may be coming to European derivatives exchange Eurex, according to a spokesperson.