Europe

Reform of the US government sponsored enterprises (GSEs) has always been considered a necessary precursor to establishing a US covered bond legal framework. But with the Covid-19 crisis and November’s presidential elections diverting attention, dollar covered bond issuance will remain dominated by foreign banks, with near term supply prospects likely to be determined by the cross-currency basis swap.

Cellnex, the Spanish telecommunications towers operator, has launched a €4bn underwritten rights issue to fund acquisitions.

Reports that the European Central Bank (ECB) could ask banks to suspend dividend payments until the end of 2020 sent subordinated debt higher and stocks lower this week.

Smaller loan loss provisions and high capital ratios have helped Nordic lenders to kick off European bank earnings season in a positive fashion. But analysts are cautious about drawing any conclusions for the rest of the sector.

Countryside Properties, the UK house builder and urban regeneration company, completed a equity raise on Wednesday evening to repay debt in order to help it grow its business.

The growth of green convertible bonds is promising and there are hopes for more issuance. However, the market has some way to go before it becomes mainstream, according to sources.

Invesco has changed the line-up of its fund managers across a number of fixed interest funds, with Paul Read, co-head of fixed interest, stepping down from several funds.

Franck Lacour is taking over HSBC’s equities business, with Hossein Zaimi leaving the bank. In Hong Kong, Selene Chong will take on new responsibilities in the equities business.

Royal Vopak, the Dutch oil and gas storage company, has sold $500m-equivalent in US private placements.

Laetitia Hamon has joined the Luxembourg Stock Exchange to lead its sustainable finance offering, including its exchange for securities branded as sustainable.

Bank of America has appointed Martina Slowey as head of equities for Europe, the Middle East and Africa.

Negative yielding covered bonds, which are trading close to their tightest-ever spread levels, could become less attractive to bank investors relative to European Central Bank (ECB) deposits, which may soon become more generously tiered, and government bonds, where an increase in supply is likely, said bankers on Wednesday.