Lloyds Bank

Two companies made their investment grade bow on Thursday as an improvement in sentiment encouraged borrowers to capitalise on decent conditions and wrap up funding in the final weeks of the year.

The last time British Telecommunications (BT) sold sterling bonds, the global financial crisis was still to strike. It returned on Tuesday after more than 10 years away, issuing in euros and dollars, but investors were not as welcoming as the issuer may have expected.

Lloyds Bank has priced the second largest deal in the Australian dollar market this year, bringing its annual funding in the currency to A$1.1bn. The deal followed a large A$1bn dual-tranche trade from HSBC last week.

Property has been the standout sector in a good year for sterling corporate bond issuance. On Wednesday, Places for People added to issuance with its first sterling bond of 2017, but failed to tighten from initial price thoughts.

The last time British Telecommunications sold sterling bonds, the global financial crisis was still beyond the horizon. It returned on Tuesday after more than 10 years only issuing in euros and dollars, but investors were not as welcoming as the issuer may have expected.

The FIG investment grade dollar market has scored its busiest October on record, with banks frontloading their funding programmes to top up for regulatory capital requirements.

Euro corporate bond investors see RCI Banque as a frequent borrower, pricing new issues multiple times a year, but it remains a rare name for sterling investors. Last Friday it sold its first bond in the currency for more than three years.

Red hot market conditions this autumn may tempt financial institutions into making early inroads into their funding and capital plans for 2018, bankers said this week.

As capital market participants race to meet the January deadline for MiFID II, one obscure aspect of the rules could wreck retail participation in the European bond markets.

NGA UK, the provider of human resources software, launched a €300m loan on Wednesday, which it will be hoping appeals to CLO managers that have been eager for new money deals.

Lloyds opened books on Tuesday on its first callable senior bond transactions for the minimum requirement for own funds and eligible liabilities (MREL) on Tuesday, following Santander UK into the dollar market as banks start to think about pre-funding for 2018.

Euro corporate bond investors see RCI Banque as a frequent borrower, pricing new issues multiple times a year. But it remains a rare name for sterling investors. On Friday it sold its first bond in the currency for over three years — a bond that has already matured.