Italy

Market participants are nervously awaiting the results of Banca Monte dei Paschi di Siena’s debt-for-equity swap, which could derail the Italian lender’s ambitious rescue plan — notwithstanding any potential volatility following the country’s referendum on Sunday.

Pressure mounted on Italian sovereign bonds and credit default swaps this week, as rumours of increased European Central Bank support were quickly dampened and traders positioned for a 'No' vote in this weekend’s referendum.

Italy’s Mediobanca is adapting its approach and preparing for European expansion, following a hiring spree in its corporate finance division, writes David Rothnie.

Rumours of increased European Central Bank support have failed to take pressure off Italian sovereign credit default swaps, despite a rally on Tuesday, with the country resuming its widening divergence from European peers on Wednesday ahead of this weekend’s referendum.

The Italian referendum on December 4 has been lurking in SSA bankers' diaries as a dangerous risk event but, on Tuesday, rumours of enhanced European Central Bank support led to a rally in Italian government paper.

Italy’s bond yields hit their highest levels at auction since June 2015 at the country’s final bond sale before Sunday's constitutional reform referendum that could lead to the resignation of prime minister Matteo Renzi.

German building materials manufacturer HeidelbergCement capped a month of good rating agency news with a blowout order book as it tapped the euro bond market for €1bn on Monday.

The Italian Treasury is on Tuesday set to hold its last bond auction before the country holds a referendum on constitutional reform that analysts believe could have an impact on eurozone periphery spreads into the new year.

Bondholders will be able to take part in Banca Monte dei Paschi di Siena’s debt-for-equity swap this week, as market participants hope the Italian lender can pull off its ambitious rescue plan in what is set to be a key month for the Italian banking sector.

Rising jitters around the approaching Italian referendum and ECB meeting in early December are keeping European credit spreads elevated, say traders, but many see the potential for a big rally given the extent of underperformance versus the US in November.

Autostrade per L’Italia hit the euro bond market for a long 10 year transaction on Thursday, selling to a euro investor base that is still cool on longer dated maturities.

UBS's former global head of DCM and client solutions has landed a new role at Citi, as head of markets and securities for Italy at the US bank.