Europe

VC Trade, a digital platform in the Schuldschein market, has begun promoting secondary trading on its system, with an eye of scaling up into Europe’s loan markets.

The UK Municipal Bonds Agency (MBA) has picked banks for its second trip to market, eyeing the ultra-long end and once again raising cash on behalf of Lancashire County Council. Although the bond will be in conventional format, the MBA is looking to issue green bonds in the future.

Political unrest in Belarus has thrown up difficult questions for emerging market investors, as ESG concerns rise and those who would buy still not seeing an attractive opportunity to do so.

Citi has taken market share from other banks in the past year to become one of only four that account for 60% of all secondary market covered bond volume traded on Bloomberg so far this year, thanks to a combination of devoting balance sheet to trading and having the appetite to take risk.

FIG market participants expect a smooth return to euro bond issuance from next week, with bankers and investors now set up to facilitate deals where ever they may be.

S&P has warned there is no smooth way for banks and insurers to direct proceeds from debt capital instruments towards specific green financing objectives. It recommended that these issuers instead focus on making broad commitments through their green subordinated bonds.

Private equity firms EQT Partners and Vaaka Partners have offloaded €118.5m of stock in Musti Group, the Finland-based pet store, in an otherwise barren week for block trades in EMEA.

European equity capital markets are gearing up for a wave of autumn IPOs and are worrying that they will struggle for investor attention. But one of the few good things to have emerged from the coronavirus pandemic — the use of technology to accelerate deal calendars — should alleviate fears of congestion.

ABN Amro plans to quit corporate banking outside Europe, except for clearing, and also exit trade and commodity finance in a shake-out of its corporate and investment banking activities.

Spanish Cédulas reform has been widely anticipated for years. However, whether Spain is ready to execute the sweeping reforms necessary to bring the regime into line with the European Union’s covered bond directive remains to be seen, as the impact of the coronavirus risks diverting attention.

Europe’s equity capital markets have gone quiet in August as investors take a holiday before what is expected to be a busy September. Bankers are keen to get their deals done quickly when the market reopens to avoid running into bad news on Covid-19 and a volatile US election, meaning investors will be asked to take part in an onslaught of IPOs in a true test of market capacity.

Prudential plc confirmed this week that it intends to separate from its US arm, Jackson National. The move means Prudential will likely deleverage by letting bonds roll off over the next two years.