Morgan Stanley

Investors have been forced to think twice about buying euro-denominated UK bank paper following the country’s vote to leave the European Union, though the borrowers remain strong and spreads on their debt securities are at attractive levels.

Two of the five US subsidiaries of European banks under the Federal Reserve’s supervision failed the regulator’s stress test this week, despite having some of the highest common equity tier one ratios under the Fed’s worst case scenario. The banks, mostly with US headquarters, that passed largely plan to increase dividends and buybacks

Investors have been forced to think twice about buying UK bank paper following the country’s vote to leave the European Union, though lenders remain strong and spreads on their debt securities appear at attractive levels.

The loans team at Standard Chartered in Hong Kong has undergone a number of changes, with new bankers coming into the fold to replace those who have left recently.

Brazilian meatpacker Marfrig clinched a drive-by bond reopening on Wednesday to notch up another success in its proactive liability management programme, raising $250m of seven year bonds that it will use to buy back existing debt.

Electricité de France has named 16 banks to underwrite its €4bn rights issue, of which €3bn will be bought by the French government.

Citigroup bulked up parts of its Irish operations last year, in what may have been long term preparation for a potential UK vote to leave the European Union. But other US firms, including Goldman Sachs and Morgan Stanley, continue to rely heavily on their UK subsidiaries to access international markets.

Greentown Service Group has thrown off any concerns about Brexit-induced volatility and kicked off bookbuilding for its potential HK$1.7bn ($220.5m) IPO, with investor response so far being positive, according to a source with direct knowledge of the deal.

Barclays has hired a managing director from Morgan Stanley to join its distressed debt business.

China Resources Pharmaceutical Group and Cofco Meat Holdings are planning to float on Hong Kong’s main board, having filed for approvals from the city’s exchange on Monday.

Morgan Stanley has appointed a new chief China economist, poaching from Goldman Sachs.

European bank debt was thrashed in the wake of the UK's vote to leave the European Union on Friday morning. And though the panic hasn't matched that seen in February, when concerns on AT1 coupon payments triggered a selloff, the worst may be yet to come as markets face unprecedented governmental change.