Italy

UniCredit’s second quarter profits were up almost 30% from last year, with the commercial and investment bank and Italian commercial bank taking most of the credit. The CEE business remains important, but Russia dragged the division sharply down.

The European Covered Bond Council (ECBC) will present its new dual-recourse bond structure to an audience of regulators, central bank heads and other stakeholders in October – a meeting which will be a barometer of official sector appetite for backing the product.

Ente Cassa di Risparmio di Firenze, the Florence based banking foundation, sold a chunk of Intesa Sanpaolo shares on Tuesday in a block trade managed by Goldman Sachs.

CVC Capital Partners’ Cerved Group, an Italian credit information provider, will call €530m of bonds in January 2016, funded by a €660m loan, which will make the firm interest savings.

Italy’s biggest listed investment bank has agreed to acquire a controlling stake in UK asset manager Cairn Capital, as it seeks to broaden its footprint outside Italy.

Banca IMI has hired a global loan syndication head to front its new London syndication desk.

Italy’s 10 year borrowing costs fell at auction for the first time since March on Thursday, although the sovereign fell slightly short of its maximum target for the sale.

The secondary market is no longer a relevant tool for covered bond price discovery, say bankers, as spreads have come only to reflect the level at which the eurosystem will buy bonds rather than regular investors.

Italy is almost certain to cut its 10 year borrowing costs for the first time since March in an auction on Thursday — and readied itself for that by selling debt at a smidge above 0% on Wednesday.

Italy kick-started a series of auctions this week by selling near the upper end of its target of inflation linked paper on Tuesday.

Coils Lamiere Nastri, an Italian automotive parts producer, has made its first foray into the bond markets and could be back for more.

Italian steelmaker Finarvedi on Monday launched its €300m note, the company’s first issue, with the aim of cutting down the group’s use of short term funding.