Europe

Financial markets are at risk of a renewed dollar funding squeeze, the Bank for International Settlements (BIS) warned on Thursday. This would mirror the stresses that hit when the impact of the coronavirus pandemic triggered a rush for cash.

Euronext has laid out a series of initiatives to meet the ever-growing interest in environmental, social and governance (ESG) factors, but has not yet recognised transition bonds in the absence of an industry standard. It also highlighted the advantage of issuers conducting virtual roadshows.

Five banks and insurers from across Europe issued senior debt this week, including two in green bond format, as they tried to find opportunities in a choppy market. Athene Global Funding, Banco de Sabadell, Virgin Money, Santander and Hypo Noe all priced deals.

Hyundai pulled into the Swiss franc bond market this week with a three-year green deal that was priced with a substantial new issue premium (NIP). Elsewhere, nuclear energy provider AKEB sold one of the highest yielding bonds of recent weeks.

DZ Hyp managed to attract a healthy order book for a €1bn eight year deal issued on Wednesday, a day before a more narrowly subscribed €1bn 10 year from UniCredit’s German subsidiary, HVB.

Caisse Française de Financement Local lost €700m of orders after pricing a €1bn 10 year covered bond flat to OATs on Tuesday. Axa Bank SFH offered a generous new issue concession a day later on a €500m 15 year that came well inside the French government curve.

Covered bonds issued by SR Boligkreditt and Vseobecna uverova banka (VUB) this week were well subscribed, reflecting the generous spreads they paid compared to deals by issuers from core Europe.

Austria and Belgium could bring syndicated transactions as early as next week, according to SSA bankers, after both sovereigns recently announced bigger funding programmes in response to the coronavirus pandemic.

‘Angrynomics’, a well-timed book on anger and how it relates to politics, economics and finance by Eric Lonergan and Mark Blyth, is published this week. GlobalCapital spoke to Lonergan to discuss its meaning.

The success of Rich Ricci’s banking comeback depends on getting a revered old broking brand back on its feet.

UK government bonds sold off sharply as the Bank of England announced an increase to its asset purchase facility on Thursday but said it expected no further increase to the programme before the end of the year, leading to a much slower rate of buying.

Deals issued on Thursday by SR Boligkreditt and UniCredit Germany (HVB) illustrated that investor demand is skewed to bonds that offer a pick-up, no matter how small.