Europe

Caffil, the French public sector covered bond borrower, has issued a €500m 15 year public sector Obligations Foncieres. The attractive coupon and concession overcame concerns over the bond’s long tenor, which were heightened following further volatility in the rates market.

The European Commission will require EU member states to create a new asset class of ‘non-preferred’ senior debt to help banks comply with bank resolution and loss-absorption standards, and it expects countries to adopt the necessary changes by June 2017.

UBS was warmly received for the first one year senior callable bond from a European bank on Wednesday, sparking hopes that other issuers will also be able to take advantage of the TLAC and MREL-friendly format.

The European Central Bank has laid out its plans to regulate leveraged lending at banks it supervises, a move that could curb aggressive deal structures and give banks a way to resist pressure for low lending standards from their private equity clients.

Baltic consumer loan provider 4Finance on Wednesday printed an add-on of its old 2021 bonds in a high yield market that is coming to a halt four weeks ahead of the Christmas break.

New issues are coming at a relentless pace in the European corporate bond market, despite an increasingly uncertain medium term outlook for rates and spreads. Issuers are hitting the market with the same force as during the bull run between March and September.

The public sector borrower bond market on Tuesday had its first busy day since the election of Donald Trump as US president, but conditions turned rocky again on Wednesday after a report that the European Central Bank may try to boost the volume of bonds it can lend.

The momentum in the equity block trade market since the US presidential election has continued this week, with nearly $1.4bn of issuance, as vendors rush to sell assets before the loss of US distribution for the Thanksgiving holiday on Thursday.

The European Commission has presented proposals for the treatment of covered bonds which are more favourable than those outlined by the Basel Committee, and may hasten the adoption of soft bullet and conditional pass-through structures.

Derivatives exchanges are making a push on natural gas with three new initiatives unveiled, amid expectations that demand to trade such products across global markets is set to grow.

SES, the Luxembourg-based satellite operator, issued its second hybrid bond of the year on Tuesday as it pounced on a calm day in the euro corporate bond market and captured an increase in risk sentiment.

MedLife, a leading Romanian private healthcare provider, has announced plans for the first IPO on the Bucharest Stock Exchange since 2014, as it seeks to capitalise on higher disposable income in the EU’s fastest growing economy.