NatWest Markets

The UK Debt Management Office has announced which banks will be on its next bond syndication, a conventional Gilt with a maturity of at least 40 years, scheduled for the second half of July.

The corporate bond market got back on its feet with vigour on Wednesday, as Capgemini in particular impressed, with a hefty size and even heftier order book for a triple tranche deal — though it had to pay a large new issue premium.

When UK Chancellor George Osborne fired the starting gun on the re-privatisation of Royal Bank of Scotland on Wednesday, he signalled willingness to book a large loss on the deal.

One of the biggest privatisations of recent years is set to begin in the coming months, quite possibly with an accelerated bookbuild, as George Osborne, chancellor of the exchequer, said the time was right for the UK government to begin selling its 79% stake in Royal Bank of Scotland.

Two first time bond issuers joined the corporate pipeline this week, with TDF Infrastructure and the University of Liverpool preparing to debut, despite a choppy primary market.

Euro high yield investors on Thursday had more than €1.8bn of bonds to consider and two more tranches in euros whose final sizes were yet to be set — New Look, the UK fashion retailer, being at the forefront with the largest offering.

Europe's investment grade corporate bond pipeline swelled even more on Thursday, though the primary market stayed silent, as HJ Heinz announced a roadshow to prepare funding for its merger with Kraft.

Two first time bond issuers joined the corporate pipeline on Tuesday, with TDF Infrastructure and the University of Liverpool preparing to debut, despite a choppy primary market.

New Look, the UK fashion retailer, will begin a roadshow on Tuesday for a £1.2bn-equivalent high yield bond issue to redeem all its bonds and repay its PIK notes after being acquired by Brait, the investment firm.

Royal Bank of Scotland has been mooted as one candidate to print additional tier one debt before the summer, after Santander UK this week proved the market is ready for more supply.

A difficult week for credit markets and a turbulent interest rate environment has left bankers divided on the prospects for corporate issuance in the near future — is it better to wait out the volatility, or hit the market before things get worse?

Motability Operations Group, the UK provider of cars and powered wheelchairs for disabled people, drew a chunky order book for an eight year euro bond on Wednesday, using a generous new issue premium to offset difficult market conditions.