Europe

Globalworth Real Estate Investments, a fund which focuses on Romania, was out on Monday with guidance for its debut five year benchmark after a roadshow prolonged by European holidays.

It won the Euros, it won Eurovision – now it is time to win back its lost investment grades.

Agrokor has signed a new €400m facility with Knighthead Capital Management and Zagrebačka banka, UniCredit’s Croatian subsidiary, to enable it to keep operating.

The European leveraged finance market was calm on Friday, despite the Conservative Party losing its majority after Thursday's UK general election and being forced to cobble together an agreement with a Northern Ireland political party to form a government.

The Swedish financial supervisory authority (Finansinspektionen) has proposed tightening mortgage lending criteria in an effort to slow growth in household debt, a decision which analysts believe is likely to be positive for covered bonds.

The European Commission (EC) has confirmed it wants to create a more integrated covered bond framework in the European Union and explore the possibility of developing a market for European Secured Notes. Proposed amendments to the framework are likely to prove 'controversial', said market participants.

The Bank of Queensland (BOQ) has mandated joint leads to roadshow its newly set up conditional pass-through (CPT) A$3.25bn (€2.18bn) covered bond programme.

The corporate credit market has given an almighty shrug on Friday to the surprise UK election result that came in overnight, with primary issuance expected to resume as normal next week helped by technical factors.

The UK's shock election result, in which prime minister Theresa May failed to secure a majority, has led to a slight fall in equity volatility, as the FTSE 100 rose on a weaker pound and European stocks rallied.

A shock result in the UK general election on Thursday had little effect on the Gilt and sterling SSA market on Friday, leaving the door open for any issuers considering deals next week, said bankers. The medium term picture may be harder to glean, however, with sterling’s fall against the dollar potentially impacting the cross currency basis swap between the two.

Equity capital market bankers are dazed but calm this morning, after the UK's shock general election result produced a hung parliament, in which it may be very difficult for any party to form a stable government.

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