Italy

The appeal of populist, often nativist, agenda to electorates disgruntled with economic stagnation and rapid demographic change has been underestimated in recent years — not least by bond markets.

Negotiations over Italy’s 2019 budget deficit looked set to go down to the wire as GlobalCapital went to press on Thursday night, with the outcome likely to have a large bearing on the sovereign’s future issuance costs.

Banca Carige has shaken up its management team and is preparing to return to the European Central Bank with a new plan for keeping its capital ratios in check. But the troubled Italian lender is going to have its work cut out in accessing the debt or equity markets before the end of the year, with a whole host of its peers waiting to do the same, write Tyler Davies and Sam Kerr.

If Banca Carige cannot raise capital or find an acquirer, it should be put out of its misery.

Italian government bond yields jumped around as jittery investors digested another day of conflicting messages from the country’s government, ahead of an expected announcement on the 2019 budget later on Thursday. But even if the deficit plans meet investors’ hopes, there may not be a large BTP rally, said SSA bankers.

Mediobanca has privately placed a €250m tap of its Obbligazioni Bancarie Garantite six year deal issued in July.

Two Italian IPOs are being marketed to investors this week and bankers are hoping that the release of the government’s updated stability programme on Thursday will not scupper the deal processes.

Koos Timmermans, the outgoing chief financial officer of Dutch bank ING, will be stepping down from his role as the chairman of the working group on euro risk-free rates, according to a European Central Bank (ECB) spokesperson.

Rating: Baa2/BBB/BBB

Signs emerged in the SSA market this week that not all SRI bonds are equally worthwhile as far as investors are concerned, particularly when market conditions are not ideal. A series of bonds with a green label went through with little difficulty but a pair of social bonds were undersubscribed. Craig McGlashan reports.

Outstanding bonds issued by supermarket Casino Guichard-Perrachon, and three construction credits, Astaldi, CMC Ravenna and Aldesa, were in the spotlight this week, after dropping to their lowest price yet in September.

Credito Emiliano (Credem) is planning a series of fixed-income investor meetings from October 1 to reintroduce its soft bullet covered bond programme.