Germany

The RMB hub in Frankfurt could benefit from London’s loss of Euro-clearing privileges, but for now the focus remains on developing existing platforms including the ground-breaking Sino-German joint venture exchange, Jochen Metzger, director general for payments and settlement systems, Bundesbank, told GlobalRMB.

Rating: A1/A+

The Basel Committee said on Wednesday that it had not figured out how the regulatory capital regime could deal with the IFRS 9 accounting rules set to come in next year and backed a transitional period, as few banks are ready for the ‘capital shock’ that could result.

The European Commission delivered the final blow to a proposed merger between Europe's biggest stock exchange operators, Deutsche Börse and the London Stock Exchange, on Wednesday, but some market observers wondered whether the parties themselves had gone cold on the deal.

The euro market looks set to swing back into full action next week as borrowers launch into their second quarter funding requirements, with an unusual amount of attention clustering around shorter maturities.

K+S, the German potash processor and mining group, launched on Thursday its first bond since losing its investment grade ratings.

The European Commission on Wednesday struck down the all-but-dead proposed merger of the London Stock Exchange Group (LSEG) and Deutsche Börse.

S&P Global Ratings raised German banks’ additional loss-absorbing capacity (ALAC) ratios this week, after changing its ratings approach in light of Germany’s decision to subordinate certain senior debt instruments in resolution.

Hochtief, the German construction firm, has raised €500m with a Schuldschein issue, more than triple the €150m it initially sought, as domestic and international investors welcomed a favourite issuer back to the market.

Shares in Aumann, the German maker of wire enamelling and electric motors for cars, rose 20% above its IPO price on Friday after making its debut on the Frankfurt Stock Exchange, giving it a market cap of €704m.

German auto parts maker Adler Pelzer Group drove into a European high yield bond market already loaded with offerings from other six borrowers on Wednesday, but it stood out as a rare chance for investors to buy a single-B rated bond.

Volkswagen stormed back into bonds on Thursday for the first time since its emissions test cheating scandal 18 months ago. And the €8bn blowout that paid investors a chunky premium to allay their fears about the company is just the start of the firm’s market rehabilitation, writes Michael Turner.