HSBC

Equity capital markets bankers are ready for the UK general election to produce a period of disrupted markets if the result is inconclusive. But they emphasise that wider factors governing supply and demand for European stocks are likely to be the dominant factor in whether UK ECM is busy for the rest of 2015.

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The dollar market is providing public sector issuers with an opportunity for primary issuance as other major currencies — euros and sterling — are wracked with uncertainty.

Profit in HSBC’s global banking and markets division in the first quarter increased 10% on the year to $2.95bn, a surge which took group profits up 4% to $7.06bn.

HSBC’s gains in ECM and M&A are offsetting fee compression in its traditional areas of strength such as DCM, writes David Rothnie.

Bankers are preparing the ground for the first Turkish covered bond with Akbank and Garanti Bank lining up for issuance. Pricing for both will be wide of the sovereign and the banks are preparing extensive investor roadshows. While funding officials are confident that the bonds will sell well, syndicate bankers question whether they will find a substantial buyer base.

Equity capital markets bankers are ready for the UK general election to produce a period of disrupted markets if the result is inconclusive — but they emphasise that wider factors governing supply and demand for European stocks are likely to be the dominant factor in whether UK ECM is busy for the rest of 2015.

Swedbank returned to covered bonds on Wednesday for its third funding exercise of the year, deciding to launch in Reg S format for its first dollar benchmark of the year instead of using its 144A programme. The decision came as the euro rates markets suffered a further bout of intraday volatility following last week’s instability.

NordLB put its debut additional tier one print on ice on Thursday morning, with a sharp sell-off in AT1 paper causing the leads to postpone the deal.

Votorantim Cimentos on Thursday morning opened books on the first international Brazilian deal since a Petrobras corruption scandal in November. But the euro denominated reopener struggled in a rotten primary market and was unable to move pricing.

The year’s first bank capital deal from China ended with a bang as China Construction Bank (CCB) took full advantage of pent-up demand to print a jumbo $2bn tier two offering. The largest Reg S only tier two from China was not only impressive for its size but also because it was able to achieve a record low spread.

Far East Horizon has been at the centre of its second selldown in less than a month, with KKR offloading shares via a HK$1.54bn ($199m) block trade on the evening of May 4. While there were plenty of orders, they were small in size because of the Hong Kong-listed stock’s recent run-up in value.