Japan

Convertible investors in Europe gobbled up an unusually large deal on Wednesday from a Japanese issuer, Kansai Paint Co, which raised ¥100bn with a two tranche structure, of which one tranche appealed more to hedge funds and the other to outright investors.

Tullett Prebon, the interdealer broker, has hired a global head for its alternative investments division and, separately, has become the first platform to send a swap execution facility (SEF) trade for clearing in Japan.

Japan’s SoftBank Group Corp has blown open the equity-linked market with the launch of a $5bn bond exchangeable into shares of Alibaba Group Holdings, part of a planned $7.9bn sell-down in the e-commerce giant’s stock.

Equity and currency derivatives markets were ill-prepared for any major policy changes coming out of the G7 meeting this week, with prices reflecting low expectations of volatility. But even as the first day's session on Thursday passed without shocks, there was a growing sense that Friday could bring a bigger showdown.

Danske Bank has filed to sell its first bonds on the Tokyo Pro-Bond market, as the yen sector looks set to get off the ground in 2016.

Danske Bank has filed to sell its first bonds on the Tokyo Pro-Bond market, as the yen market looks set to get off the ground in 2016 after a ¥110bn trade from Bank of America last week.

The Republic of Indonesia has mandated three banks to work on a Samurai bond that is expected to launch later in the year.

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Japan’s approach to total loss absorbing capacity (TLAC), issued last month, leaves the option of government support if one of its megabanks gets into trouble open, reflecting the remarkably different experience to Europe and the US that Japan’s banking sector had in the 2008/9 financial crisis.

Uncertainty regarding the outcome of the US Federal Open Market Committee’s (FOMC) meeting in June drove public sector borrowers to target the short end of the dollar curve this week, said bankers.

Public sector issuers are printing at the short end of the dollar curve, a tactic they are likely to stick to in the build-up to the next US Federal Reserve rate decision on June 15, said bankers.

A weaker than expected set of non-farm payroll data last week did little to deter issuers on Monday as a pair of borrowers awarded mandates.