Italy

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.

The European high yield market this week saw towering deals like SoftBank’s $4.5bn and Synlab’s €1.1bn, but investors also found a place in their portfolios for smaller notes.

Beni Stabili, the Italian property company largely owned by Foncière des Régions, priced on Thursday a €200m convertible bond at a 0.875% coupon and 32.5% conversion premium.

Two periphery banks this week made clear that their market is back in business. Like the wider FIG market, the periphery had been closed since early June. There is room, albeit temporarily, for more, writes Virginia Furness.

The primary market for peripheral European covered bonds leapt back to life this week after a 12 week hiatus, with investors queuing up to buy a series of deals that emerged in quick succession.

Fiat Chrysler Automobiles put to rest rumours about the bank group working on its much-hyped spin-off of Ferrari, the Italian luxury sports car manufacturer, on Thursday, as it announced that two European houses and one American one were to lead the transaction.

StormHarbour said it has hired Federico Buccellati, the former head of advisory for southern Europe at HSBC, as a senior advisor.

Banca Popolare di Vicenza, the 150 year old Italian bank, has picked three banks to lead its initial public offering in Milan.