Italy

After months of preparation, one of this year's most highly anticipated European IPOs got going on Monday, when Pirelli, the 145-year old Italian tyre maker, announced its intention to float on Borsa Italiana.

Italy’s Banco di Desio e della Brianza picked banks on Tuesday to arrange the sale of its first euro covered bond, in a deal that could kickstart issuance from the European periphery following the summer break.

Stiga, the company known until June as Global Garden Products, is out with a refinancing loan deal led by one of its shareholders, the speculative grade investor Alcentra.

The European Central Bank’s asset purchase programme is forcing down the yield on Italian debt, prompting Italian bank investors to reduce exposure to their sovereign’s paper.

Lima Corporate, the Italian maker of orthopaedic implants, kept the euro high yield new issue market in motion with a floating rate bond deal, which, unusually, will be used to refinance the loans that funded its buyout by EQT from Ardian.

Italian maker of orthopaedic implants, Limacorporate, cancelled its bond roadshow in continental Europe on Wednesday, as investor demand from its London meetings accelerated the pricing of a deal to refinance a loan with floating rate notes.

Limacorporate, the Italian maker of orthopaedic implants, is set to keep the euro high yield new issue market in motion with a floating rate bond deal, which unusually will be used to repay the loans that funded its buyout by EQT from Ardian.

China plans to increase a limit on foreign equity investors, the PBoC renews a currency swap line with Switzerland, and the International Monetary Fund (IMF) says the renminbi is broadly moving in line with fundamentals.

With no new issues pricing on Thursday, and no sign of Superstrada Pedemontana Veneta’s €1.55bn dual tranche deal, it could be left to The Housing Finance Corp (THFC) to save the investment grade corporate bond market from a three day run without any issuance.

The three new issues and one tap that priced in the investment grade corporate bond market this week were all two to three times oversubscribed, but a thinning supply pipeline and the excuse of a Fed meeting meant no deals were launched on Wednesday or Thursday. However, three issuers are looking to issue before the summer break, following meetings with investors.

Covered bond issuers in Europe’s periphery should wake up to the fact that current spread levels are artificially tight and unsustainable. The first bank that recognises and takes advantage of this will have a distinct advantage over its competitors.

Although Obbligazioni Bancarie Garantite (OBG) supply has been limited this year, the universe of borrowers is set to expand as Fitch assigned a rating to a programme for Banco di Desio e della Brianza’s (Desio) in the expectation of a €500m deal.