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Good news from the US Federal Reserve — in the form of a more dovish rate announcement than some market participants had expected — brought a sanguine close to a turbulent week for credit derivatives and boosted equity markets, but only added to the pressure on emerging market countries and their currencies.

Persistent volatility has left the vast majority of bank capital trades trading wider in 2015, with poor periphery performers joined by some notable big hitters at the bottom of the pile.

UBS successfully completed a cash tender offer for Sfr6.1bn ($6.12bn) of its securities on Thursday, as the group looks to further strengthen its capital base.

Market participants expect a large step up in senior holdco issuance early next year, putting further pressure on spreads and pushing some issuers further afield for funding.

Italy could soon ban banks from selling subordinated debt to retail investors, heaping pressure on funding costs and potentially eliminating a large portion of the industry’s investor base. Tyler Davies reports.

The covered bond market is likely to see more supply in 2016 than it did in 2015 even as the European Central Bank reduces covered bond purchases in favour of other asset classes, said analysts this week.

The auction to settle credit default swaps referencing Abengoa will take place in January, after the Spanish renewable energy company last week triggered both failure to pay and bankruptcy credit events.

Corporate borrowers in peripheral Europe have a golden opportunity to borrow thanks to the European Central Bank’s targeted long term refinancing operation (TLTRO) help for banks — stalling the march towards bond and private placement predominance.

The dollar market for corporate bonds came to a shuddering halt as potential issuers kicked borrowing plans into next year amid choppy market conditions.

Faced by a dwindling market for single name credit default swaps and the prospect that dealers could retreat from the product due to higher margins on non-cleared derivatives, a group on the buy-side has taken clearing into their own hands, in what one seasoned observer said is an attempt to “head off” an uncertain regulatory foe.

Investors appear to be confident that a Spanish general election this weekend will return a market-friendly result, with the sovereign enjoying much tighter spreads to its nearest comparable than earlier in the year — despite its yields rising at a debt auction this week.

Dentsply International, the US dental equipment maker, printed a dual tranche private placement Swiss franc note on Tuesday, as a part of its private placement funding programme.