Europe

A lack of supply in the summer months has helped to extend an already impressive rally in the bank bond market, leaving cash-rich investors hungry for a wave of new supply.

Russian bank debt has fallen out of favour after events snowballed into fears that Central Bank of Russia is lining up to pull the plugs on Credit Bank of Moscow (CBM) and Otkritie.

Public sector borrowers are mainly keeping to the short end of the dollar curve this week, but at least one top tier issuer is understood to be considering a 10 year dollar benchmark in the next few weeks.

Nederlandse Waterschapsbank brought some supply to the sparse long end of the SRI market on Tuesday, printing a trade that alongside Rentenbank was part of a strong re-emergence of euro supply after the summer.

The UK Debt Management Office looks likely to bring a new index-linked Gilt in the 30 year area of the curve in November after investors and banks both called for the issue. That came as the DMO firmed up plans for its next syndication, in September.

German medical care company Fresenius attracted 45 banks into a €3.8bn refinancing, closing the transaction on Tuesday.

Fintech firm Paysafe has disclosed the financial structure initial lenders have put in place before they begin marketing the all-leveraged loan funding of its acquisition by CVC and Blackstone from Old Mutual and Threadneedle.

Germany’s WL Bank left little on the table when selling a 10 year mortgage Pfandbrief on Tuesday, following the example of recent trades from Commerzbank and Münchener Hypothekenbank (MuHyp) and setting a final price very close to fair value.

Denmark’s Jyske Bank could return to the market for loss-absorbing capital in the second half of 2017, as the firm looks to hit its subordinated debt issuance targets and gets ready to increase the size of its share buy-back programme.

On Tuesday LafargeHolcim became the first issuer for nearly two weeks to launch a corporate bond in Europe. The €750m 12 year deal received strong demand, which may lead other issuers to bring forward their plans.

GCP Asset Backed Income Fund, the closed-end investment fund focussed on asset-backed loans, is considering another capital increase to finance future investment opportunities, according to a regulatory filing on Tuesday.

The practical application of covered bond harmonisation is too challenging to implement and the process may ultimately not amount to much more than an exercise in moral suasion.