Loans and High Yield
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Borrowers are unloading a still increasing number of new deals in the leveraged debt primary markets in September, hoping to find sufficient demand. But investor appetite, while supportive, is showing a selective taste this week. -
Like many corporate bond market participants Bluebay Asset Management has been keeping a close eye on the volatility that has been and likely will be further caused by emerging markets, political events in Italy and the ongoing Brexit negotiations.
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Exchange group Chicago Board Options Exchange Global Markets on Monday launched high yield corporate bond index futures, in collaboration with data firm IHS Markit and Blackrock.
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The deal flow of high yield bonds kept rising in euros and sterling this week. Four new issuers joined the already heavy pipeline, including a euro bond from UK premium car manufacturer Jaguar Land Rover.
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Sterling leveraged loan volumes are on the rise, even as sterling high yield bond volumes have been heavily curtailed, said Marlborough Partners this week.
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The UK’s RPC Group is in talks with two private equity firms for a potential sale, with the plastics packaging company’s pre-acquisition leverage well below covenant breaching levels.
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Weak emerging market investor sentiment is dragging on Indonesian high yield bonds, with market watchers blaming the dive on a spill-over effect from other emerging markets. But there are still some silver linings for the island nation.
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Taiwan-listed agro-chemical maker Rotam Global Agrosciences is tapping the loan market for $100m to refinance debt.
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Issuers and debt bankers in Asia have their eyes fixed on the coming week for primary deal flow to gather momentum, following a relatively slow pace of issuance at the start of September.
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China’s drug developer Luye Pharma Group has launched a $300m loan into general, to back the acquisition of two antipsychotic medical products.
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On Friday, AkzoNobel and Suse announced new deals in the already bustling European markets for high yield bonds and leveraged loans, bolstering expectations of record volume for September.
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India’s JSW Steel has launched a $140m dual-tranche loan into general syndication, with the funds to go towards its acquisition of US-based steel plant Acero Junction Holdings.
