Europe

The Conservative Party’s lead in the opinion polls is giving rise to expectations that risk assets will rally, Gilts will sell off and primary markets will remain open after the UK general election on December 12. But a victory for Jeremy Corbyn’s Labour Party would cause panic.

Ukraine is approaching a crucial moment in its financial history as a court decision nears on the future of one of its largest commercial banks that will determine the course of foreign investment in the country.

Participants in the financial institutions bond market have displayed calm in the run-up to the UK general election next week. A lingering credit premium for the country’s banks, to cover for risks related to Brexit and the economy, has left investors feeling comfortable about any likely outcome of the vote.

Bank capital experts were taken aback this week after UniCredit suggested that it would use subordinated debt to count towards its Pillar 2 capital requirements — a development that, if copied, could lead to a surge in the supply of additional tier one (AT1) and tier two bonds. It could also help financial institutions offset the negative capital impact of Basel IV. Tyler Davies reports.

Houlihan Lokey’s European corporate finance land grab has made its fifth acquisition since 2014, writes David Rothnie, at a time when the fluctuations of the credit cycle may be about to lead to more restructurings.

Certain US private placement (PP) investors are beginning to fear a turn in the famously prudent market, towards a world with looser financial covenants. Let us hope this remains a fear and does not become reality.

While capital markets professionals might be preparing to pop champagne corks in the expectation of a Conservative Party victory in the UK’s general election on December 12, they should remember that the government’s key policy is appalling for the UK.

The Pebble Group closed 17% higher on Thursday after the UK promotional products company priced its £135.4m IPO on the London Stock Exchange after lowering the offer price to accommodate investor feedback.

Equity capital markets professionals are hoping that the Conservative Party emerges victorious from the UK general election on December 12, in the hope that issuance conditions will return to normal after a year of uncertainty. However, the possibility of modest market gains are outweighed by predictions of dire consequences should the Labour Party win.

The listing of Italian luxury yacht maker Sanlorenzo is due to be priced at €16, the bottom of the initial range, despite a tough market backdrop for IPOs.

The European Securities and Markets Authority (ESMA) has said a consolidated tape for equity instruments is needed for EU market participants, based on forcing trading venues to enter data. It says this is in order to unify capital markets in the bloc.

High grade corporate bond bankers have warned of near-pandemonium in the UK market if the Conservative Party fails to form a government after the general election on December 12. They fear rocketing spreads and constricted market access during the busy January issuance window.