Europe

Saxony elected to bring a 15 year benchmark to market on Tuesday, launching the deal in an otherwise deserted primary market. The negative yield told against the deal, which was sold without being fully subscribed.

Société Générale took advantage of superlative conditions in the US dollar market at the start of the week, raising $2bn of funding with a tightly priced deal in non-preferred senior format.

New York-based hedge fund Third Point has offloaded a £42.3m chunk of its stake in Energean, the London-listed oil and gas producer focused on the Eastern Mediterranean.

Covered bond participants will be looking eagerly to the European Central Bank’s policy meeting this Thursday in anticipation of a host of new stimulus measures, the most important of which is likely to be the targeted long term refinancing operation, where lower rates for longer are expected to impinge on supply.

The European Central Bank is set to meet on Thursday and is widely expected to announce a substantial increase to its Asset Purchase Programme. Antonio Cavarero, head of investment at Generali Investments, expects the ECB to stand foursquare behind European government borrowing.

The UK wing of the US private placement market has shed over a third of its year-on-year volume, as the private debt instrument has struggled to stay competitive with bank loans and the sterling bond market. Agents argue that illiquidity premiums must drop for the market to regain its appeal.

Three of France’s most famous entrepreneurs won acclaim from investors on Monday as they closed books on the IPO of 2MX Organic, a new €300m special purpose acquisition vehicle (Spac) that is seeking to shake up the European organic food sector.

CVC Credit Partners has hired two partners to join its private credit team, one of which will be co-head of private credit.

Tight spreads, low yields and aggressive central bank action make covered bonds a 'low conviction' asset class, according to one major investor. But there is some scope for selective performance in relation to debut issuers and deals from Japan, where a legislative framework is hoped for.

Despite the market volatility and uncertainty that have gripped emerging market bond markets in 2020, green and ESG-linked issuance has continued to grow, and market participants expect further expansion next year.

Bankers and investors are unconcerned by an inquiry by UK members of Parliament into the cost-effectiveness of syndicated Gilt issues.

Whether or not Schuldschein debt is deliverable under CDS auctions is becoming more than an academic discussion, as analysts look to companies like travel firm Tui’s financial future. While the instrument fits the criteria as relevant debt for a CDS auction, the private nature of the contract could prevent the Determinations Committee from ruling.