Germany

With yields compressed in the short end, bank treasuries are moving further along the SSA curve for bigger returns, creating a sweet spot in the 15-20 year segment.

Shares in Deutsche Bank, the largest bank in Germany, fell as much as 4.5% on Thursday after reports that it is considering raising fresh equity capital to finance its potential merger with Commerzbank, two years after its last €8bn rights issue.

Germany saw strong demand this week for its first 10 year auction with a negative yield since May 2016, as investors pile into safe haven assets amid fears of a global slowdown in growth.

Goldman Sachs this week completed a €612m delta placement of shares in Hochtief, the German construction company, to hedge itself after providing a funded collar transaction to Atlantia.

Sean Tai, founder of Debtdomain, spoke exclusively to GlobalCapital to discuss digital platforms in the Schuldschein market: their future, barriers to entry, the risk of fragmentation — and the possibility that Debtdomain's functionality could broaden.

Land Berlin saw orderbooks swell to around four times the size of its €500m no-grow trade on Tuesday, with leads saying the 15 year maturity is the sweet spot to attract bank treasuries.

Raiffeisen Bank International has launched a digital platform for Schuldschein and loan transactions, called Yellowe.

Deutsche Börse has run an amend and extend operation on a €750m loan to add a sustainable element to its debt, as some lenders continue to rail against the proliferation of what they see as refinancing in all but fees.

Mersen, a French technology manufacturer, will not accept bids from UK-based lenders for its new Schuldschein “in anticipation of a potential Brexit”. Three bankers away from the transaction said they have also discussed excluding UK lenders with other borrowers.

Europe’s most prolific corporate bond issuer re-entered the market on Monday for its second multi-tranche deal of the year, and issued €2.75bn, slightly more than at its €2.5bn outing in January. The book for Volkswagen Financial Services' three tranche issue was somewhat smaller this time, however.

VC Trade, the leading digital challenger in the Schuldschein market, has begun cooperating with Scope Ratings, which will now offer optional credit opinions for any borrower using the platform. This will add efficiency and transparency to the market, proponents claim.

Barclays and Natwest Markets have come first and second in league tables for cross-border activity in the US private placement market. As US private placements become more popular in the UK, British banks have strengthened their status in the market.