Lloyds Bank

The UK Debt Management (DMO) and European Investment Bank reopened a quiet sterling market on Tuesday with a pair of syndicated taps, which bankers feel will leave issuers and investors "confident" to follow.

Corporate bond issuers made full use of the last few days before the European Central Bank's much-anticipated announcement on monetary policy on Thursday. Despite the hectic activity of the past two weeks, investors were still oversubscribing deals two or three times.

The frenzy of investment grade corporate bond issuance in Europe intensified on Thursday, when eight companies came to market, issuing a total of €6.6bn of paper in euros. That brought the total for the first four days of this week to over €20bn. Despite the heavy supply, issuers have found sufficient demand to support their notes.

The UK’s LXi Reit is already putting its new revolving credit facility to work, with the property investment company making acquisitions totalling £55m.

The UK Debt Management Office on Friday announced the syndicate that will run its forthcoming tap of the 2054 Gilt, as well as its plans for a further Gilt syndication to be held during the third quarter of 2019.

Buy and sell-side firms have rejected suggestions that they should have to post additional margin or participate in default funds in the aftermath of last year’s default at Nasdaq clearing.

UBS replaces EMEA president — Lloyds loses PP agent — Deutsche Bank reorganises treasury team

A private debt banker for Lloyds Securities in New York has left the bank, with one source suggesting he will start covering US private placements (US PP) for another arranger.

Volkswagen Financial Services printed a £300m 3.25 year bond on Thursday that was twice oversubscribed. It has not been long since the A3/BBB+ rated German carmaker came to the sterling market. Only last month it sold a £350m three year note.

Barclays said on Thursday that it will redeem three of its additional tier one (AT1) bonds in September, though a weaker pound means that paying the debt back will eat into its common equity tier one ratio.

As the market prepares for Libors to end their run as the world’s most prevalent reference rates, there is growing support for the benchmarks to be reprieved.

Industrial and Commercial Bank of China and Banco Santander tapped the sterling market for senior bonds this week and what bankers said were high-quality orders led both issuers to increase the size of the benchmark transactions.