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Oman electrical distribution company Mazoon managed to print a $500m 10 year sukuk inside its sovereign’s curve on Wednesday as investors pounced on rare corporate JP Morgan Emerging Market Bond Index (EMBI) eligible paper from the Middle East.
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The euro corporate bond market launched its first new issues of the week on Thursday following two days of public holidays in Germany. Frequent issuers, Aroundtown and Daimler, broke the silence, with the former paying no premium.
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The first UK interest rate rise for 10 years, announced on Thursday, may stimulate sterling corporate bond issuers, because the Bank of England’s accompanying statement was even more dovish than expected.
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After two days of public holidays in Germany, euro corporate bond bankers launched the first new issues of the week on Thursday. Two frequent German issuers, Aroundtown and Daimler, broke the silence.
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Oman electrical distribution company Mazoon printed its $500m 10 year sukuk at the tight end of price guidance on Wednesday, with books hitting over $5bn for the note.
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Argentina has released price guidance for a €2.5bn triple tranche bond at levels a trader in London described as shockingly wide, while investors started to fret about how much debt the country takes on.
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The dim sum market’s recent issuance run is set to continue after Hitachi Capital (UK) priced a three year deal on November 2 – less than two months after the issuer sold a Formosa bond.
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China has not done enough to ease the concerns of international bond investors about onshore market access and risk — a failure which is set to torpedo the chances of Chinese bonds of entering Bloomberg-Barclays Global Aggregate Index this year, a Goldman Sachs economist has said.
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Corporate hybrid bond investors have been heavily scaled back on their recent orders for new deals, so they will have been pleased by French laboratory testing firm Eurofins Scientific's Halloween Tuesday announcement mandating for its latest deal.
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October will count as a relatively quiet month for most investment grade corporate bond markets, except sterling, which has already absorbed enough new paper to increase on its average monthly volume, according to Dealogic data.
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Euro corporate bond investors see RCI Banque as a frequent borrower, pricing new issues multiple times a year. But it remains a rare name for sterling investors. On Friday it sold its first bond in the currency for over three years — a bond that has already matured.
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Syndicate bankers were quietly confident that the European Central Bank would not surprise with its quantitative easing announcement on Thursday, and they were proven correct. While only RCI Banque used Friday to print a new deal, the market remains in rude health. But public holidays will mean next week’s issuance will be limited too.