Europe

Stadshypotek was lucky to raise €1bn of six year funding at 3bp over mid-swaps on Monday, a feat that leads said would not have been possible on Tuesday as markets deteriorated.

Caisse Française de Financement Local (Caffil), the French public sector bank, issued its third Obligation Foncière this week but, while it set a record low coupon, it was heavily reliant on support from the Eurosystem.

If the UK votes to leave the European Union on June 23, and a Brexit leads to fears the EU will fragment, EM bond markets will not escape the volatility that ensues in the immediate days after the referendum.

Lloyds Bank won a long fought battle with investors on Thursday, after the UK Supreme Court ruled a series of the bank’s high coupon enhanced capital notes would not count as stress test capital and could be recalled at par.

Covered bond volumes were higher this week than last even as mounting fears of a UK decision to leave the European Union lead to greater volatility and increased execution risk.

Falling government bond yields across Europe have meant investors have been rewarded with impressive returns so far this year. One country however, continues to lag. Portugal has seen its credit risk hover at elevated levels and its government bonds have produced negative returns this year.

A rush to safe haven assets amid fears of a UK exit from the European Union crystallised higher Spanish bond yields at a bond auction on Thursday.

Eutelsat, the French satellite operator, managed to issue a €500m no-grow five year bond on Thursday, despite the ever-fraying nerves about Brexit — though it offered a sizeable new issue premium.

Predictions from both sides in Britain’s EU referendum suggest economic disaster if the country votes the ‘wrong’ way. But history shows the dangers of doom-mongering.

Lloyds Bank won a long-fought battle with investors on Thursday, after the UK Supreme Court ruled a series of the bank’s high coupon enhanced capital notes would not count as stress test capital and could therefore be recalled at par.

The Swedish covered bond law requiring issuers to hold a minimum overcollateralization ratio of 2% is expected to come into force on June 21.

Mobile TeleSystems (MTS) has launched a tender offer on its 2020 bonds on Wednesday, becoming the latest Russian corporate to buy-back its dollar debt.