Europe

Germany’s constitutional court has referred several questions to the European Court of Justice over whether the Public Sector Purchase Programme (PSPP) is compatible with European Union rules prohibiting monetary financing by central banks. As was proved with Germany’s challenge of the European Central Bank’s Outright Monetary Transactions (OMT), there is again likely to be little effect from the move — and in any case, Germany’s judiciary should learn that at times of crisis, central banks should be left to wave their magic wands.

US private equity firms keep an eye on European deals, but their doubts over the eurozone’s future become a deterrent at times. Now that Germany and France are signalling a zealous commitment to the European project, the chance is ripe to regain their trust.

Financial institutions bond bankers have reported growing interest in the the primary market this week, with a number of banks pencilling in next month as an attractive window for debt capital offerings.

Akbank, one of Turkey’s largest banks, has secured another $1.2bn facility for this year in its second round of refinancing, proving the credit is still an attractive prospect for the market.

Public sector bond supply this week is so far thin on the ground, despite conditions calming after fears of a conflict between the US and North Korea fell. The only supply on Monday came from a German issuer, despite some analysts pointing to a “mild risk-on tone” in eurozone debt markets.

Trinseo, a US manufacturer of plastics, latex binders and synthetic rubber, opened investor calls on Monday for a new unsecured bond, as it plans to repay all of its bonds due in 2022.

Bain Capital and Cinven’s second attempt for German pharmaceuticals manufacturer Stada could meet the same fate as their last one later this week with shareholders tendering around a third of the firm’s shares, leaving only until midnight on Wednesday for the 63% threshold to be reached.

Axactor, the Nordic debt management company, has raised Nkr598m ($75.3m) to part finance the creation of a new jointly-owned investment portfolio with John Fredriksen, the Norwegian-born oil tanker and shipping magnate.

The International Swaps and Derivatives Association (ISDA) has urged European lawmakers not to give resolution authorities greater powers to limit cash outflows from struggling banks, weighing into a heated debate about planned changes to the Bank Recovery and Resolution Directive (BRRD).

Bank bond spreads tightened on Monday morning after a sell-off last week, with hopes that any gremlins will disappear in time for the primary market’s reopening in the coming weeks.

Places for People priced its debut Australian dollar transaction on August 10. The $150m five year deal was also the first by a social housing provider in Australia.

Private equity firms have deployed their direct lending arms in three UK mid-sized deals in the past week, just as public market bankers begin to fret about the effects of Brexit on the sterling market.