Europe

German corporate credit, generally regarded as a safe bet, has had a torrid time of late. Last week we looked at how the costs of transitioning from nuclear to clean energy had inflicted damage on German utilities and sent credit spreads spiralling wider. This week it was the turn of the automotive industry, and Germany’s largest car producer: Volkswagen.

The Ukrainian government has released the exchange offer for its sovereign Eurobonds, amended from what was previously announced.

Investors could have their first chance in two months to buy tier two debt from a periphery bank as early as Friday, after Banca Popolare di Vicenza hired leads for a 10 year non-call five.

China and the UK are set to usher in a “golden decade” in their bilateral relations, with the two countries proposing a stock trading link as a key part of the policy. Many have denounced the idea as a bridge too far, but if it goes ahead, the move could be a great leap forward for China’s international ambitions, writes John Loh.

Avangard, Ukraine’s largest egg producer, has appointed a Swiss bank as sole solicitation agent for its planned Eurobond restructuring.

In this round-up, the visit to China by UK chancellor George Osborne generates raft of new announcements including plans for Shanghai-London Stock Connect, landmark bond issues, an extension to the RMB-GBP swap line and many, many more; PBoC relaxes requirements for cash pooling scheme.

Guarantor: State of North Rhine-Westphalia

Royal Bank of Scotland has undertaken a shakeup of senior staff in its credit trading business, in a move that bolsters financials at the expense of corporate credit.

The International Swaps and Derivatives Association ruled on Wednesday that Ukraine has not triggered a repudiation/moratorium credit event following the country’s recent decision to freeze payments on debt.

On the Beach, the online retailer of beach holidays, today completed its initial public offering on London’s main market, raising £90.2m.

Pressure eased on Volkswagen’s bonds on Wednesday, as investors took stock and waited for the next turn of the company’s saga. Martin Winterkorn resigned as CEO in the afternoon, but that was hardly a surprise.

Sorgente Real Estate System, the Italian property company, today launched its initial public offering in Milan, according to a banker on the deal.