Japan

Covered bond issuers were urged to do their toughest covered bond trades in the wake of an outstanding result on Thursday for Sumitomo Mitsui Banking Corporation, which attracted a deeper and broader range of higher quality demand for its first negative yielding structured covered bond than any of its previous deals.

Sumitomo Mitsui Banking Corporation sent a positive signal to hesitant Asian covered bond issuers on Thursday when it was set to price its first negative yielding covered bond, attracting a deeper and broader scale of demand than on any of its previous deals.

Shinzo Abe, Japan’s prime minister, who has decided to retire, will be missed by many bankers.

Nomura has cut jobs in its investment banking business in Europe over the summer, following losses in leveraged finance, as its new chief executive eyes up other regions for growth, writes David Rothnie.

Indian Railway Finance Corp has returned to the Japanese market for a $300m-equivalent Samurai loan.

While bankers in the Northern hemisphere plan well-deserved summer breaks, the Australian and New Zealand dollar markets are set to remain open for business, with some competitive pricing on offer.

A trio of SSA borrowers hit the market for dollar paper this week, testing the waters across the curve and finding investors receptive. Although the top tier names are mostly well funded, demand is still hot for the extra yield offered by the second layer of SSA borrowers.

Caisse des Dépôts et Consignations issued its yearly Samurai bond on Thursday, raising ¥20bn ($190m) with a dual tranche.

Equity investors have welcomed rumours that Japanese conglomerate Softbank is exploring a potential IPO for Arm, the UK semiconductor and software designer, and are hoping that the company might return to the London Stock Exchange.

Following investor calls last Friday, two public sector borrowers hit the market for new dollar bonds on Monday, with IDB Invest going for a three year maturity and the Japan International Cooperation Agency making a rare appearance for a 10 year trade.

Japanese duo Mizuho and Nomura both hit the market with new issues on Monday as the primary market re-opened on a positive note following the July 4 holiday weekend.

The Republic of Indonesia returned to the yen market this week for its annual Samurai bond outing, raising ¥100bn ($930m).