Germany

Reports that the European Central Bank (ECB) could ask banks to suspend dividend payments until the end of 2020 sent subordinated debt higher and stocks lower this week.

Credit analysts hope that European banks will be able to report much stronger capital levels in the second quarter, amid early signs that risk-weighted asset (RWA) volumes could be lower than expected.

KfW made a strong return to the benchmark green bond market on Tuesday, taking advantage of a more attractive pricing dynamic for green bonds over conventional issuance compared to earlier in the year.

The German covered bond market is famed for its stability but S&P has drawn attention to the diversity of its borrowers' cover pools, suggesting that their performance will begin to differ. One major investor said he favours bonds secured on residential loans, rather than commercial ones, as a result of prevailing economic conditions.

ADO Properties, the German real estate developer, concluded its €450m rights issue on Monday, with a high take-up from its shareholders.

KfW will lead the charge in the euro public sector bond market on Tuesday with a €3bn green bond that will match its biggest ever deal in the format. Eurofima and the State of Berlin are also preparing to bring bonds to the euro market.

NordLB has promoted two bankers to its FIG coverage and SSA teams, and plans to make further external hires soon.

Germany’s Federal Ministry for Economic Affairs has improved a scheme guaranteeing export credit agency (ECA) loans, which could help boost the moribund public sector Pfandbrief market.

Germany is calling for bids for state-owned Depfa Bank, the once prolific issuer of Irish and German covered bonds whose parent, Hypo Real Estate, was taken into public ownership as a result of the 2008 financial crisis. There is little chance, however, that the transaction could see the issuer return to the covered bond market.

Short sellers who for years have complained that BaFin, the German financial markets regulator, ignored their criticisms of Wirecard, the collapsed payments company, and instead prosecuted the critics, have begun to be vindicated with the news that the European Securities and Markets Authority (ESMA) has opened a review into the organisation. By Silas Brown.

BMW Finance braved huge volatility in China’s bond market to sell a Rmb2.5bn ($357m) Panda bond this week, achieving a record coupon despite ballooning yields on domestic bonds. Rebecca Feng reports.

Andreas Petrie, who is thought of as being a key figure in cultivating the Schuldschein market into an established corporate alternative to bonds in Europe, is to retire at the end of the year.