Europe

Four borrowers hit the euro market on Wednesday, focusing on taps and small new lines. The issuers are seizing their opportunity to sell before this week's European Central Bank press conference and nest week's US elections.

The covered bond supply outlook is dismal and could worsen but that means spreads are well protected, even if competing supply in the rates market from the EU ramps up, a major investor told GlobalCapital on Wednesday.

Denmark’s banks are set for a quiet end to the year, according to bankers, as changes made to their minimum requirements for own funds and eligible liabilities (MREL) have taken the pressure off of funding.

German e-commerce company Fashionette, which sells designer handbags and accessories online, set a price for its IPO on the Frankfurt stock exchange on Tuesday, even as the main equity index in the country took a pasting.

Deutsche Bank's fixed income and currency bankers continued a strong run in the third quarter, the firm's results on Wednesday showed. Profit before tax at the investment bank has now been enough to cover losses from the capital release unit for two consecutive quarters.

Covered bond spreads are unlikely to widen much say dealers, plenty of whom are long inventory, especially in recently issued deals. Deals that are ineligible for central bank buying programmes, however, are vulnerable.

HSBC's credit and equities business lines were the standout performers in the global banking and markets division (GBM) in the third quarter, the bank's results showed on Tuesday. Meanwhile, group chief executive Noel Quinn said the firm was adapting its business model to chronic low interest rates.

Supply in the SSA dollar market is clustered at the short end of the curve, as borrowers focus on defensive tenors ahead of the upcoming US election. Kommuninvest landed a sizeable benchmark on Tuesday, while Kommunalbanken will follow suit on Wednesday.

Austrian semiconductor maker AMS has returned to the convertible bond market for more financing, raising €750m.

Münchener Hypothekenbank (MuHyp) issued a €500m 20 year flat to fair value on Tuesday even though market conditions were volatile.

The Turkish lira fell to record lows against the dollar this week as investors lamented the central bank’s failure to raise interest rates amid high inflation and expressed concerns over the country’s relationship with the US.

UBS Group made a rare entry into the euro market on Tuesday, issuing €1.5bn of new senior paper in line with fair value.