Europe

The coronavirus outbreak has created a rush to safe haven assets. While the demand for SSA paper is hotter than ever, some feared that sharply falling yields would make the primary market less attractive. However, borrowers have proved those worries unfounded by building big order books for new bonds this week.

The Loan Market Association is set to restart its Schuldschein working group in February, with a workstream addressing credit restructuring. This is an early sign that the market’s heavyweights are taking this issue — which has damaged the Schuldschein’s reputation in some quarters — seriously.

European equity capital markets’ buoyant start to the year ground to a halt this week as banks held back from doing deals over concerns about the outbreak of a deadly strain of coronavirus in China and how it may damage investor risk appetite. Losses in Asian markets, which are reopening following the Lunar New Year holiday, have compounded fears that global risk sentiment may be turning.

Vakifbank printed its $750m 5.25% 2025s on Wednesday from a book that reached higher than $4.3bn at its peak, but the note was seen below re-offer in London’s secondary market on Thursday morning.

JP Morgan has hired William Vereker, former global co-head of investment banking at UBS and business envoy to former UK prime minister Theresa May, to be vice-chairman for investment banking in Europe, the Middle East and Africa.

Deutsche Apotheker- und Aerztebank (Dapo) underlined just how strong the primary covered bond market is on Thursday by wrapping up a busy week's supply with what was arguably the tightest German deal of the year so far.

Banco Santander included a small premium in the pricing for its latest non-preferred senior bond this week, as the bank looked ahead to a busy year for issuance in the asset class.

BW Offshore, the Norwegian operator of floating oil storage vessels, has fixed a price range for the Nkr1.659bn ($187m) listing of its exploration and production unit BW Energy on the Oslo Børs.

Austria's new benchmark was over 10 times covered on Wednedsay, making the sovereign the latest in a string of its peers to receive a record order book for a syndicated bond this year.

The buy side is keen to be able to buy Gilts that pay a coupon linked to Sonia, investors have told GlobalCapital. The matter was also raised with the UK Debt Management Office, according to the minutes of its latest consultation meeting.

French fashion house Isabel Marant made its high yield bond debut this week with a €200m dividend recap deal.

The IPO of Calisen, the UK manufacturer of smart energy meters, was covered on its full size on the first day of marketing. Banks on the deal were pleased with the speed of the bookbuild and the quality of investors placing orders.