Japan

Rating: A1/A+

Japanese telecoms group Softbank opened the week in the European high yield market with a multi-billion refinancing deal to redeem its old 2013 bonds — and delete a covenant that could get in the way of its flotation.

The International Development Association, part of the World Bank Group, is on screens with its debut bond issue. The trade is offering a handful of basis points over seasoned World Bank Group issuer the International Bank for Reconstruction and Development (known as World Bank), according to bankers away from the mandate.

Investors showed healthy interest in a dual-tranche offering from Mizuho Financial Group on Wednesday, with the bank making only its second ever entry into the public euro bond market.

Hungary has priced its first Japanese yen deal in over a decade, achieving its lowest ever funding cost, as its love affair with Asian currencies for diversification continues.

China Eastern Airlines Corp has raised ¥50bn ($468m) in Tokyo’s Pro-Bond market, breaking new ground in Japan with a standby letter of credit (SBLC) structure. Some bankers reckon the deal could be the first of many to come.

Nomura has appointed Yo Akatsuka as its new global investment banking head, amid an annual management re-shuffle, according to an announcement on Tuesday.

European implied equity volatility has fallen after Angela Merkel secured a fourth term as German chancellor and despite Italy's general election producing a hung parliament.

Intesa Sanpaolo is looking to become the first ever Italian bank to sell a deal in the Tokyo Pro-Bond format, less than two weeks away from a general election in Italy which has made some investors nervous.

The viability of short volatility strategies in derivatives markets was dealt a severe blow this week, after a historic spike in equity volatility torpedoed popular exchange traded notes. Costas Mourselas reports.

Panda bond issuance has so far been dominated by overseas-incorporated Chinese names. That bolsters volumes, but it does little to help the market fulfil its role of boosting RMB internationalisation. Policymakers have the chance to fix it — but only if they are bold enough to let markets play a bigger role.

Data releases by a number of monetary authorities show uneven turnover in RMB-denominated FX transactions around the globe.