Europe

British American Tobacco’s $21bn-equivalent raid on corporate bond markets either side of the Atlantic took all the headlines this week, but while it was the only story in Europe, the US market saw plenty of other deals.

Covered bond spreads were marginally cheaper to Bunds across the board on Friday after a flight to safety caused German government bonds to rally. The move should bode well for the many issuers that will need to refinance maturing Pfandbriefe in the next few weeks.

Rating: Baa2/BBB+/—

UBS has issued $3.25bn of senior debt maturing just three months after pre-existing bonds that came onto the market in March.

Those who took losses when the Single Resolution Board (SRB) put Banco Popular into resolution and approved its sale to Santander are lining up to dispute the decision — but lawyers are sceptical over whether the claims can succeed.

The European Securities and Markets Authority (ESMA) on Thursday announced a new cooperation agreement with the Securities and Exchange Board of India (SEBI), that will secure it information on the ongoing compliance of Indian central counterparties (CCPs) under EU regulation.

September is fast approaching, bringing with it one of the most hotly anticipated European Central Bank (ECB) meetings ever, but the central bank will do its utmost to avoid causing drama, say investors.

The European high yield bond market will enter the second half of the year in extraordinary shape, with average coupons at all-time lows and a surge of issuance. Can it get any better? Bankers and investors think not.

Credit spreads flicked wider this week but bankers are confident the weakness will be short lived as demand for new bank bonds is expected to continue to outstrip supply in the second half of the year.

New accounting rules could hit the loan syndications market, potentially adding to earnings volatility and changing how banks book their underwriting fees. But the rules could clash with the EU’s leveraged lending guidance.

All eyes in the leveraged loan market this week were trained on UK health food retailer Holland & Barrett.

FMS Wertmanagement has upped its funding requirement for 2017 by more than 50%, a move that is likely to gladden SSA bankers who are expecting a bunfight for mandates come late summer.