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FIG MTNs and CP

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Higher rate expectations have sharply reduced the possibility of bonds being redeemed this year
Higher rates from the outbreak of the war have enhanced callable MTNs' yield appeal
Varied issuance in senior credit this week, including blue and green bonds, as ultra-long vanilla duration returns in SSA private placements
The winning institutions, deals and individuals revealed at our inaugural gala dinner in London
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  • FIG
    Financial issuers were able to issue at longer maturities than normal in the European commercial paper market this week. Dealers said the phenomenon was likely driven by investors seeking better yields.
  • FIG
    Callable residual maturity swap, constant maturity swap and Libor range accruals continued in popularity this week as rates remained close to the highest of this quarter — this week 10 year swaps reached a level not seen since mid-October.
  • FIG
    Commonwealth Bank of Australia sold a Eu100m 10 year bullet equity-linked note via BNP Paribas this week. The note pays a coupon of 7% for the first two years, and redeems at par plus the performance, if positive, of the Dow Jones Euro Stoxx 50 Index.
  • FIG
    Standard & Poor’s said on Thursday that it will no longer rate obligations with variable principal payments linked to commodity prices or equity prices, or to indices linked to either of the two.
  • FIG
    EBS Mortgage Finance, a subsidiary of EBS Building Society, sold a Eu50m five year fixed to floating rate asset covered security via Credit Suisse on Wednesday. The deal pays a 4% coupon for the first two years, then 121bp over three month Euribor capped at 5.5%.
  • FIG
    Fitch Ratings has resumed its coverage of structured MTNs after briefly halting the practice because of worries investors could confuse its opinions on credit with the market risk of embedded derivatives.