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Issuing bonds became a lot harder for every type of borrower in 2022 — and sovereigns, supranationals and agencies were no exception. After a long spell of issuing into a market buttressed by central bank bond buying and rock bottom interest rates, all of a sudden the capital markets became a less certain place as interest rates and yields rocketed in response to a host of macroeconomic and geopolitical shocks from soaring inflation to the effects of the invasion of Ukraine. No longer did any deal work at any time, as had been the case, and the art of syndication was back. Execution for some could no longer be guaranteed as the number of pulled deals mounted but, despite this, there were a number of standout trades that helped to haul this group of borrowers through their funding tasks for the year by either re-opening markets in volatile times or by showing ingenuity and pragmatism to get funding done. By Addison Gong and Ralph Sinclair.

By redeeming its AT1 bond early, UBS has gained a handy advantage over its local and international competition

New ideas in the capital markets this year have come from an unlikely source: emerging market governments

GlobalCapital reveals the top deals, banks, investors and advisers voted for by the market. Winners to be revealed in February

After a year in which global capital markets were utterly dominated by the war in Ukraine, Toby Fildes sits down with the country’s finance minister Serhiy Marchenko and head of debt management Yuriy Butsa. They discuss what it would take to strike a peace deal with Russia, how Ukraine is financing itself and how it is determined that the Russian aggressor will pay up when it comes to rebuilding its villages, towns and cities.

Across the Street, big names came and went as many of the big players mixed up their senior management teams. Some saw more activity than others, but the tumultuous market conditions meant most had a very busy 2022. David Rothnie reviews a year that may come to be remembered as the catalyst for a new world order in investment banking.

The emergence of several major macro risks across the year caused a paradigm shift in primary markets, increasing the complexity and challenge of funding to a level many sovereign, supranational and agency issuers have not endured in over a decade. Yet, many SSA issuers rose to the challenge, demonstrating a strength, agility and composure in successfully executing their funding plans, some even earlier than planned. As we move into 2023, the macro environment will remain challenging, but how challenging and what does this mean for the SSA market? GlobalCapital discusses this, together with analysing the impact of the market turbulence during the past year, with some leading funding and investor participants from across the SSA market.

SSA issuance is likely to increase in 2023, but so too will demand as higher yields draw in more buyers. However, the transition away from central bank support means borrowing will be far from straightforward. By Addison Gong.

Public sector borrowers have faced a changed market in 2022. As rates — and market volatility — have risen and central bank support has retreated, this elite group of borrowers has had to face up to the reality that there are no longer any easy deals, as analysis of proprietary data reveals. By Ralph Sinclair.

The next 10 years will be a period of intense change for multilateral development banks. The demands on them, already high, are set to multiply as climate change worsens. The system as it is cannot bear much more load. Reform is coming. As Jon Hay reports, it will be difficult, but could unleash great innovation and a more co-operative, efficient sector.

An unvarying supply of senior bonds has been the multilateral development banks’ contribution to capital markets for many years. As Jon Hay reports, that is about to change. As they strive to optimise their balance sheets, risk sharing will proliferate and the first hybrid capital issues should appear. There may even be public equity issuance. If all these techniques work, they will also trigger a big increase in senior bond sales.

Triple-digit rises in swap rates across the curve propelled the Swiss franc bond market to its busiest year since 2014. With swaps firmly in positive territory, Swiss franc dealers are confident investors will flock back to fixed income products in 2023. By Frank Jackman.