Europe

Ever since Theresa May became UK prime minister in July, markets and commentators have thirsted to know what her strategy would be for the negotiations to leave the European Union. Now we know — and so far, the markets like it.

Shares in Banco Comercial Português, the Portuguese bank, closed 15% higher on Tuesday after they began trading ex-rights ahead of its €1.33bn rights issue to strengthen its capital buffers and repay contingent convertible bonds owned by the Portuguese government.

After a glut of long-dated covered bonds in 2016, investors are scrambling to bring the duration of their portfolio down again, and that means five year covered bonds are likely to remain a firm favourite. More issuers should turn down the ECB's TLTRO, and try covered bonds instead.

Italy is set to kick off its syndicated programme for the year with a September 2033 euro benchmark, as the sovereign brushed off a downgrade from DBRS late last week.

Credit Suisse has named two bankers co-heads of global leveraged finance.

The pipeline for euro issuance is filling up once again as the European Investment Bank looks to raise funds at 10 years, although a deal from KfW on Tuesday appeared to struggle to reach €1bn.

Thames Water, the UK water supplier, shrugged off currency market nerves over UK prime minister Theresa May’s speech about the UK's departure from the EU on Tuesday to engage sterling bond investors with a £500m dual tranche offering.

Paper packaging maker Smurfit Kappa launched a drive by benchmark euro offering on Tuesday, as it looks to refinance existing securitisation facilities.

German healthcare group Fresenius brought euro corporate bond investors their first jumbo deal of the year on Tuesday as it financed its acquisition of Spanish hospital operator QuironSalud.

A quartet of public sector borrowers are set to cram into the front end of the dollar curve on Wednesday, as bankers outlined a triple whammy of factors driving the squeeze.

VodafoneZiggo, the newly formed joint venture between Vodafone and Liberty Global-owned Ziggo, launched a €1.5bn-equivalent term loan package this week with a lender call at 4pm London time on Tuesday.

Belgium hit a landmark on Tuesday, printing its biggest deal ever with a 10 year benchmark. Scoring a more modest €1bn, African Development Bank's second ever euro syndication also met with a warm reception.