Morgan Stanley

Analysts saw early signs of MiFID-driven consolidation when US banks published their first quarter results that included strong equity trading performances across the board.

Public sector bankers lined up to laud a new SSA borrower this week, as the International Development Association (IDA) surpassed expectations on its bond debut. Now, many are eager to see the its next move, with many anticipating a Washington supranational with greater currency flexibility, writes Craig McGlashan.

After selling €4.6bn of loans in March, Unilever Spreads unveiled the €1bn high yield bond portion of its leveraged buyout funding package on Wednesday. But as well as jumbo deals, other borrowers with smaller offerings are also vying for investor attention.

The European Bank for Reconstruction and Development on Thursday achieved what on-looking bankers called a “fantastic” result as it sold its largest ever deal and matched the lowest spread on a three year dollar benchmark of the year so far — despite tightening swap spreads.

Controls have been tightened after the high-profile losses that banks took on margin loans when retail conglomerate Steinhoff ran into trouble late last year. But strategic equity solutions businesses remain central to equity capital markets, writes David Rothnie.

Several Chinese real estate companies, including Sunac China Holdings and Central China Real Estate, took advantage of relatively stable markets to ride the dollar issuance momentum this week. But supply pressure meant that many saw their bonds then trade under water.

Rocket Internet has completed the first sale of shares in HelloFresh, the German meal kit delivery company, since its €276m IPO on the Frankfurt Stock Exchange in October.

The EMEA IPO market is fully underway again after the Easter break, with bankers fresh from the Courchevel ski slopes or St Tropez sunbeds to provide investors with some fresh IPO powder. But high volumes means buyers have the ability to be selective.

Virginia-based GTT Communications launched a €1.7bn-equivalent package of leveraged loans this week, the first leg of funding for the acquisition of UK peer Interoute. The credits are well known, bankers said, but European investors have become more circumspect after overcoming a recent bout of volatility.

Japanese telecoms group Softbank opened the week in the European high yield market with a multi-billion refinancing deal to redeem its old 2013 bonds — and delete a covenant that could get in the way of its flotation.

Four high yield property companies, Sunac China Holdings, Central China Real Estate, Jingrui Holdings and Yanlord Land Group, raised a total of $2.05bn on Monday, with some of them focusing on price and the others on size. But irrespective of their strategy, recent heavy supply pushed their bonds lower in the secondary market.

Vinhomes is gearing up to launch the largest IPO in Vietnam, kicking off investor education for the up to $2bn share sale.