Europe

The European Central Bank will begin supervising financial institutions in Bulgaria and Croatia from October 1, as the two countries prepare to join the euro. Firms entering the Banking Union for the first time will also fall under the Single Resolution Board’s remit for the minimum requirements for own funds and eligible liabilities (MREL).

Australia and New Zealand launched their first syndications of their 2020-21 fiscal years on Monday.

Market participants expect that bank debt issuance activity will slow down in anticipation of earnings season over the next few weeks. But deal arrangers suggest banks will still be keen to access the primary market during this period, should conditions remain favourable.

The European Banking Authority is urging resolution planners to consider the real impact of Covid-19 on banks. It wants to make sure that resolution can be seen as a "credible" option in times of stress.

Italy did not set the world alight with the sale of its first government bond targeted exclusively to retail investors. The proceeds will be used to finance measures related to Italy's post-Covid-19 economic recovery.

Hipgnosis Songs Fund, the FTSE 250 investment company focused on music royalties, has completed its latest capital increase, as it gears up for a spree of acquisitions.

Kazakhstani crude oil company Tengizchevroil held an investor call on Monday ahead of its first entry into debt capital markets since 2016. The bond will add to the company's existing balance sheet, which has billions of dollars of outstanding loans and bonds up for redemption in coming years.

Each week, Keeping Tabs brings you the very best of what we have found most useful, interesting and informative from around the web. This week: liquidity in the age of central banks, making bank capital green, and US fiscal stimulus.

Segro, the FTSE 100 UK real estate investment trust, has entered the private placement market with an initial target of €250m.

Funding officials from Caffil, Credit Mutuel Arkéa and La Banque Postale gathered in early July to take part in a roundtable to discuss how they navigated their way through the peak of the crisis when covered bond market volatility was at its highest, and how they expect to manage funding in its aftermath, as the pernicious impact of the pandemic takes its toll.

FMO may lower its 2020 funding target when it reviews its borrowing plan after the summer, which could lead to a postponement of a planned dollar benchmark to next year. The Dutch development bank made a strong return to the issuance of subordinated debt this week ahead of a call date in December of its previous deal in the format.

Increasing European unemployment and a subsequent rise in the use of mortgage holidays is set to put pressure on the credit quality of European lenders and their covered bond pools, according to S&P.