Europe

The German covered bond market is famed for its stability but S&P has drawn attention to the diversity of its borrowers' cover pools, suggesting that their performance will begin to differ. One major investor said he favours bonds secured on residential loans, rather than commercial ones, as a result of prevailing economic conditions.

Raiffeisen Bank International is getting ready to sell its third additional tier one (AT1) instrument, as it looks to make full use of its regulatory allowance for subordinated debt capital.

Richard Livingstone, the British billionaire property developer, sold Skr5.5bn ($616m) of shares in Swedish online gambling company Evolution Gaming in an overnight trade on Monday, to help mitigate the effect of Covid-19 on his property portfolio.

Bank of America was quick to return to the market after reporting its second quarter earnings, using a favourable backdrop on Monday to price a new dual-tranche offering in dollars.

Booming markets revenues in the second quarter helped UBS post another strong set of results at its investment bank. But higher loan loss charges ate into group-level profits as the coronavirus crisis led to deterioration in the global economic outlook.

The Republic of Lithuania returned to bond markets for its second trade in less than three months on Tuesday, tapping euro investors for a 30 year trade.

The UK Debt Management Office intends to sell a new 15 year Gilt via syndication in early September for which it will seek feedback through a consultation with Gilt market participants next week.

ADO Properties, the German real estate developer, concluded its €450m rights issue on Monday, with a high take-up from its shareholders.

KfW will lead the charge in the euro public sector bond market on Tuesday with a €3bn green bond that will match its biggest ever deal in the format. Eurofima and the State of Berlin are also preparing to bring bonds to the euro market.

Segro, the FTSE 100 UK real estate investment trust, has sold €450m of private placements, according to market sources. The largest tranche was the longest, €200m at 20 years, which is sign of investors' confidence.

UK pub owner Stonegate held calls with investors on Monday for a bond issue, to partly refinance £2.73bn worth of acquisition facilities used to acquire a larger competitor, Ei. Stonegate is set to be one of the first UK borrowers hit by coronavirus to sell high yield notes.

Citi has appointed Cristina Paviglianiti and Luca Sabbatini to run markets and securities services in Italy, adding to a series of recent appointments across its European investment bank.