Germany

German e-commerce company Fashionette, which sells designer handbags and accessories online, has set a price range for its IPO on the Frankfurt stock exchange.

The impact of Covid-19 lockdowns on the hotel and retail loans securing German Pfandbriefe is likely to present serious challenges. But conservative lending and high interest rate coverage ratios provide solid protection, so managing a prospective rise in risk-weighted assets will likely be the bigger challenge for certain issuers, said bankers on Tuesday.

Investors crowded into a €929.3m trade in German remote access software company TeamViewer, as Permira returned to the market to sell down more shares in the company.

Guarantor: Federal Republic of Germany

It was a moderate week for supply in the primary euro public sector bond market but the issuers that did come found ample demand, setting up a decent backdrop for the expected arrival of the European Union’s big borrowing programme next week.

After an extensive marketing period, done with the intention of issuing a benchmark sized deal, Bausparkasse Schwäbisch Hall’s first Pfandbrief, issued on Thursday, attracted more demand, at a tighter spread and a longer duration than a Pfandbrief its compatriot building society, Wüstenrot Bausparkasse, issued this week.

Bausparkasse Schwäbisch Hall (BSH) mandated leads for its debut covered bond on Wednesday. The benchmark sized deal will take advantage of the strong demand seen for Tuesday’s Pfandbrief from German building society peer, Wüstenrot Bausparkasse.

Wilhelm Beier, the German billionaire founder of Dermapharm Holding, has trimmed his stake in the pharmaceuticals company.

Covestro, the German chemicals company, priced a €447m capital increase on Tuesday night to partially refinance an acquisition. Investors supported the deal in large numbers, despite a rough night for secondary markets and an incredibly tight discount.

Morphosys, the German biotech company, has tapped the equity-linked market with a new €325m convertible bond, adding to the flood of issuance from the sector during the pandemic.

KfW and Ville de Paris grabbed the attention of investors at the opposite ends of the euro curve on Tuesday in what has been a thin week for issuance in the currency by public sector borrowers ahead of the expected arrival of the EU’s first syndicated bond under its Support to Mitigate Unemployment Risks in an Emergency (SURE) funding programme next week.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, October 12. The source for secondary trading levels is ICE Data Services