Europe

While the coronavirus pandemic and its economic consequences are still a global threat, new sources of funds have enabled KfW to reduce its capital markets requirement for 2020. The German promotional bank's treasurer, Tim Armbruster, and head of capital markets Petra Wehlert discussed the matter with GlobalCapital.

Fitch has downgraded its covered bond ratings for Banco Montepio amid a deterioration in the outlook for residential mortgage loans in Portugal, exacerbated by the impact of the coronavirus pandemic.

Bankers and investors say FIG issuance will return to the fore after a sovereign-dominated first half of the year. Three bank issuers this week showed that the market is open for non-sovereign issuers. As fears of a second wave of Covid-19 infections and November's US presidential elections threaten volatility, some say the usually quiet summer period may be inundated with EM issuance.

Hipgnosis Songs Fund, the London-listed investment trust focused on song royalties, has announced a fresh £200m share sale as it prepares to acquire up to £1bn of additional music catalogues.

Shawbrook Group, the specialist UK lender, was able to price a new tier two at 9% this week. The deal is set to replace an older bond, which is subject to a tender offer and is otherwise callable later this year.

The biggest reform of UK insolvency law for more than a decade was rushed through Parliament and enacted on June 26, as the coronavirus lockdown is expected to cause a wave of defaults across the economy, reports Jon Hay. The law’s complexity and the haste of its preparation have left restructuring experts chewing over many aspects where they foresee risks of unintended consequences — but also eager to try out some of the law’s new powers.

Barclays appoints levfin and sponsors leaders — Créd Ag gives Goldfischer UK role — BTIG hires Huggins

Société Générale and Natixis may face more questions over their equity derivatives businesses when they release their second-quarter results. The issue is whether their structured products are inherently problematic or simply suffered from freak events.

Social commercial paper could be on its way to the SSA market, with several issuers telling GlobalCapital that investors are interested in the product. However, some are sceptical that themed debt will work in CP format.

Yankee banks ensured a record-breaking first half ended on a high, as European lenders took advantage of strong demand for tier two paper.

European banks are looking to tie up loose ends in their 2020 funding plans in next couple of weeks, according to deal arrangers, as they get ready for a remarkably uncertain summer period. Tyler Davies reports.

Unrated Swiss private railway operator Rhätische Bahn, owner of the UNESCO World Heritage-listed Bernina railway, made its second stop in the Swiss franc bond market this week, four years after its debut deal.