Europe

Credit Suisse took advantage of a ferocious rally in subordinated debt to land its lowest ever coupon for an additional tier one (AT1) in dollars this week. The deal was also the Swiss bank’s debut use of Sofr to hedge interest rate risk on new issuance.

A new special purpose acquisition company (Spac) founded by three celebrated French investors has prompted hopes that more deals will follow in Europe next year. Spacs have been one of the most talked-about aspects of the global equity capital markets, particularly in the US, where more than $65bn has been raised through Spacs this year, according to Dealogic.

The EU’s Taxonomy Regulation for sustainable activities regarding property represents a brutal disclosure standard. Though some investors will grapple with the collateral implications, others told GlobalCapital on Thursday that the taxonomy should not bar them from investing. But even so, several bankers and a rating agency specialist predicted that, if left in its present format, the draft would be wholly counterproductive.

Building a UK green government bond market would take a minimum issuance of about £30bn and “some time” for the UK to establish a benchmark size for the market, according to the head of the UK Debt Management Office.

Finland has cut the number of its solicited credit ratings from three to two after removing Moody’s, leaving the sovereign with scores from Fitch and S&P Global.

AIIB's Mills Hagen leaves for Opec Fund — Horta Osório to chair Credit Suisse, replaced by Nunn — Mulderrig to head up European debt syndicate at UBS

UniCredit chief executive Jean Pierre Mustier upset the Italian establishment but he acted in the best interests of shareholders. But if he moves on, the bank would face an uncertain fate amid a new chapter of domestic and international banking M&A, writes David Rothnie.

Rating: B2/—/B+

Rating: B2/—/BB-

The European Commission is considering a way to proceed with its €750bn coronavirus recovery fund that will exclude Hungary and Poland. The two countries have stood firm in their opposition over the idea that receipt of EU funds will depend on states adhering to the rule of law.

Sub-investment grade Italian lenders Banco BPM and Illimity Bank were well-supported in the euro bond market on Thursday, as investors showed they were more than happy to look at riskier names in their search for yield.

Marcel Göldner has been picked as the successor to Andreas Petrie, the retiring head of primary markets at Helaba.