JP Morgan

After months of spread tightening and an unremitting stream of successful deals, the positive mood in the primary covered bond market finally broke this week. Amid a weakening secondary market, OP Mortgage Bank only just managed to get a deal away and AIB Mortgage Bank became the only covered bond issuer to postpone a deal this year.

Alibaba’s landmark $8bn bond has had an unpredictable time in secondary markets in the week since it was completed, as US and Asian investors reflected different views on pricing. But this does not take away from the deal’s achievements.

Philippine property firm SM Prime raised an additional Ps4.49bn ($100m) in a block trade that raised Ps17.96bn as the company offloaded a huge chunk of treasury shares and priced the deal at the bottom.

The Republic of Indonesia has picked the banks that will sit on its bond panel next year, dropping one bank and appointing two new members.

Big acquisition financing trades graced the dollar market ahead of the Thanksgiving holiday while Medtronic rounded off investor calls ahead of an anticipated $10bn M&A trade expected to come next week. All told, November has been the busiest month for US high grade supply — $87bn —since September 2013.

Kenya tapped its 2019 and 2024 bonds on Tuesday paying no premium, by some estimates, to its outstanding bonds and growing the longer dated deal to $2bn, the biggest single tranche from a sub-Saharan African borrower.

Ethiopia is meeting investors for its long touted dollar bond debut. The strong African growth story, diversification play and JP Morgan EMBI eligibility left bankers in no doubt that demand for the offering will be robust, but debate has already started over where the deal will be priced versus neighbouring Kenya, which is also in the market.

The Republic of Kenya has released initial price thoughts for a tap of its $500m 2019s and $1.5bn 2020s that equate to a 20bp new issue premium. The tap will be priced later on Tuesday.

United Biscuits drew a flock of lenders to the bank meeting on Friday for its £985m-equivalent loan for its acquisition by Yıldız of Turkey. Banks in particular are eager to gain a relationship with a new company in the European leveraged finance market.

Bank of New Zealand and Rabobank sought to revive the senior unsecured market on Monday following a wobbly patch at the close of last week when syndicates pulled several deals. Both issuers took to the belly of the curve, BNZ looking for euros and Rabo dollars.

CGN Power is on track to be Hong Kong’s biggest IPO in 2014 as investors jostled for a piece of China’s largest nuclear energy producer, with institutional books already multiple times subscribed on day one of bookbuilding.

Korea East-West Power Company has opened books for what it looks to be the country’s last offshore bond this year. The five and half year 144A/Reg S bond had attracted an order book of $1bn by Monday afternoon.