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US issuers and insurance companies could benefit as Moody’s relaxes parts of its approach
Investors attracted by relative value versus loans but are not blind to risk
Floridian manager registered the vehicle in Ireland with article 8 SFDR classification
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Evergrande’s $1.8bn bond at the end of October sent ripples through Asia’s bond market. It also set a dangerous precedent for a market that is already accused of letting standards slip.
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A local government financing vehicle (LGFV) and a single-B rated property developer decided to take risk off the table on Tuesday, ahead of the US mid-term election and when markets such as Singapore are closed for a public holiday.
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After a week without any high yield issuance, Verisure launched €1.1bn of dividend recapitalisation and refinancing bond deals this week. The market was already growing busier under tighter secondary spreads and a new refinancing deal from Intertrust.
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The People’s Bank of China has warned that companies such as China Evergrande Group, Fosun International and HNA Group can pose major risks to the country’s financial sector. But even before being singled out by the central bank, these companies have struggled in the offshore capital markets.
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The euro leveraged loan market appears keen to counter recent criticisms against lack of financial maintenance covenants with yet more cov-lite issuance, including a buyout deal from private schools operator Inspired.
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Three US high yield bonds have been pulled in the last week after spreads widened from their tightest level since the financial crisis to their widest level in a year over the course of October.