Europe

Vesteda, the Dutch residential property company, issued a €300m unsecured bond, its second, on Tuesday, on the same day as Hammerson, another real estate company, was issuing in sterling.

Portugal’s secondary spread over its peers rose on Wednesday amid concerns that progress on its economic reforms could be slowed by a political stalemate — but it was still able to cut borrowing costs at a bill auction.

The Norwegian covered bond borrower issued its second deal of the year on Wednesday. Though the final spread was on the generous side, and the book only just covered, the overall cost of funding was less than half what it paid in March.

Agrokor, the Croatian food and drinks producer and retailer, has secured a €200m club loan with four banks.

The People’s Bank of China priced its first offshore renminbi bond late on October 20, raising Rmb5bn ($788m) in a deal widely hailed as an important milestone in the internationalisation of Chinese capital markets.

A flow credit trader at a European bank who previously focused on financial names has jumped firms and changed remit to trade corporate credit at Goldman Sachs.

The Bank of England’s new stress testing plan for big UK banks will set a higher capital hurdle than last year’s test — an average of 6.3% instead of the 4.5% in this year’s test. Individual banks will have different bars to clear, based on adding on their Pillar 2A capital requirements and big bank buffers.

Credit Suisse will raise Sfr6bn of new equity and float its Swiss domestic arm, as part of a strategic overhaul in which it is also making big bets on Asia and wealth management.

Central eastern European sovereign supply is moving further out the credit curve, with Romania on Wednesday attempting its longest dated euro deal yet.

Swedbank returned to the sterling covered bond market to issue its second sterling deal this year. Though the issuer paid a minimal concession, the spread was almost double what it paid in August and the order book almost half.

The recent rally in Europe’s iTraxx Main and Crossover credit indices has brought them back to within touching distance of the spread levels they held at the roll in to their latest series, before the end of September spike in volatility. But the Senior Financials basket continues to outperform corporate credit, with some market participants describing the offset as a one-way trade.

Hammerson, the UK property company, plumped for the sterling bond market today and was rewarded with a well oversubscribed £350m deal, after a roadshow when it considered issuing in sterling or euros.