Natixis

Bond investors are set to start the new year with some trepidation, due to uncertainty around the US-China trade relationship and rising defaults in the Mainland. While there will be opportunities, not all issuers will have easy access to liquidity as buyers turn selective.

Big European investment banks pivoted towards the Americas during 2019 in an attempt to boost revenues and position themselves for the next downturn, writes David Rothnie. With large M&A across the industry still off the table, banks are finding scale through joint ventures and alliances.

Power company Electricité de France has agreed to buy back almost €1.2bn-equivalent of its hybrid capital bonds, marking the end of a busy period for the company in the debt markets.

Hebei-based steelmaker HBIS Group raised $300m from a bond this week ahead of an April maturity. It hit the market when investor confidence was shaken by recent and upcoming defaults from China.

Groupe BPCE benefited from a bookbuilding process that was shorter than usual on a visit to the Samurai bond market this week, raising about $670m equivalent of preferred and non-preferred senior debt.

Mediobanca was looking to sell its second six year senior bond of 2019 on Monday, revealing its preference for deals in the belly of the maturity curve.

Groupe BPCE and BNP Paribas issued green bonds this week, attracting strong levels of demand for such a late stage in the year.

Merlin Properties, the Spanish real estate investment trust, launched on Wednesday a €500m no-grow 15 year benchmark bond, rated Baa2/BBB, with a positive outlook from S&P Global.

Islamic Development Bank took €1bn out of the euro market on Wednesday, as it made its green sukuk debut with investors.

Electricité de France attracted huge demand for a €500m hybrid capital bond issue on Tuesday, as the continued grinding tighter of corporate bond spreads meant subordinated bonds enjoyed solid demand from investors.

BPCE appealed to a wide range of investors by adding a green element to its preferred senior bond on Tuesday. The trade was met with hefty orders, even though investors are showing signs of winding down for the year.

Arkema, the French speciality chemicals and advanced materials company, launched a €500m no-grow benchmark bond on Monday, which it managed to price in line with its outstanding debt.