Europe

A rush to dollars in recent days has caused dysfunctions in various corners of the financial markets. The US Federal Reserve has rushed to put out the flames, including with new measures on Monday.

The hunt for liquidity has driven covered bond spreads wider across the board with little fundamental differentiation between assets, investors told GlobalCapital on Monday. This move has thrown up opportunities to find value before liquidity is restored when the European Central Bank steps up its asset purchases.

The pace of emerging markets borrowers’ requests for official institution funding, amid the shocking deterioration of their bond markets, is picking up pace. On Sunday, Ukraine's president Volodymyr Zelensky said that he had discussed using International Monetary Fund resources to fight the economic impact of Covid-19.

European banks are steering well clear of new issue markets during the coronavirus pandemic, avoiding having to call on investors for funding by taking advantage of attractive central bank funding schemes.

Aareal Bank has become the latest European financial institution to extend the life of an additional tier one instrument, as turbulent market conditions make it harder for banks to decide how to manage their capital structures.

The Nordic region’s credit markets are experiencing something of a lockdown as the spread of Covid-19 lead to dozens of fund providers halting withdrawals last week and the effective closure of the primary market due to a shortage of liquidity.

L-Bank postponed its dollar transaction on Thursday after not receiving enough orders for the targeted deal size. The trade had been structured as an auction, with investors invited to place bids over their desired level versus mid-swaps. After taking indications of interest, no further updates followed.

Could EU member states finally come together to issue a common debt instrument? In this article, GlobalCapital takes a look at the key issues.

Despite the terrible effects of the coronavirus pandemic on capital markets, the MTN market is open and functioning.

L-Bank brought a novel approach to sell a two year dollar deal on Thursday that could help other borrowers navigate volatile markets, with investors invited to place bids for the trade over their desired level versus mid-swaps.

Europe's bank funding officials are not certain how their borrowing plans are likely to change but seem agreed there is little point in hitting the primary market until serious liquidity returns, That has given Canada's banks the run of the place with this week with another deal emerging from Canadian Imperial Bank of Commerce on Friday.

The Bank of England said on Friday morning that UK banks should not treat coronavirus-impacted exposures as impaired assets under IFRS 9 accounting standards, as it unveiled new guidance around the impact of the pandemic.