Loans and High Yield

Deutche Bank’s wealth management arm, Deutsche AWM, this week launched a new exchange-traded fund tracking a basket of 97 euro corporate high yield bonds with tenors of one to three years.

European leveraged finance investors are having to get to grips with a new and challenging sector, as a spate of buyouts of technology companies is coming to market - and some investors are anxious that they lack the skills to analyse these credits.

The European Investment Bank will soon begin working on the first projects to be financed by the European Fund for Strategic Investments, the new EU initiative to unlock €315bn of investment over the next three years.

Poultry feed producer Charoen Pokphand (CP) Indonesia’s $350m dual currency loan, which comes with a $50m greenshoe, has entered general syndication.

It is rare for a successful fundraising for a reputed name to shed light on some of the deeper problems in the loan market. But some recent acquisition loans in Asia have done exactly that — and have re-opened the debate between syndication and club loans.

Hornbach Baumarkt, a German DIY retailer, is planning to refinance its existing bond with a new high yield issue.

Asian companies hoping to raise money in the bond market had better be patient — and ready to strike at a moment’s notice, said bankers on Monday. The region’s stock markets plummeted en masse as investors dumped their holdings or took out new short positions following Standard & Poor’s downgrade of the US last week, and bankers think the psychological effect of such prolonged and violent falls will make any new bond activity unlikely.

French listed investment holding company Wendel completed a Eu300m seven year unsecured junk bond in line with price talk on Monday, although the notes widened on the break.

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Borrowers showed no signs of taking a summer holiday rest this week, kicking off August with a healthy $11bn of new issues in the dollar corporate bond market.