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A trio of European public sector issuers tapped Kangaroo and Kauri deals on Wednesday as bankers bemoaned the shortage of larger deals in Australian dollars.

The stop-start progress of global mergers and acquisitions this year kangarooed forward yesterday, as news broke of AB InBev's interest in SABMiller. Details remain hidden, but hints as to the financing emerged from the rating agencies' reactions.

Public sector borrowers have been printing floating rate medium term notes in dollars as investors look to avoid interest rate risk ahead of Thursday’s US Federal Reserve meeting, say bankers.

Latin America’s bond bankers are contending with shrinking fees, while bond volumes in the region have hit their lowest year to date volume ebb since 2009.

Spain’s borrowing costs dropped in five years but rose in threes and 10s at an auction on Thursday, as Italy shelved its BTP Italia product for the year.

Dutch chemical company Royal DSM issued into a quieter corporate bond market on Tuesday but encountered much the same conditions as those who jostled for attention on Monday.

The Republic of Latvia sold its €500m 10 year bond on Wednesday attracting a €800m book and a new SSA investor base.

Tikehau IM has arranged a unitranche debt facility for the primary leveraged buyout of Pennel & Flipo by IDI and Cabestan Capital. The French company makes specialised fabrics, for use in industry and inflatable boats.

There was an air of caution in Asia this week ahead of the Federal Open Market Committee (FOMC) meeting. At the time GlobalCapital Asia went to press on Thursday evening, market participants were largely mixed on the prospect of the Fed’s rate hike, but most agreed that its impact on the region’s bond market, irrespective of the direction, would be fairly limited, writes Narae Kim.

China’s National Development and Reform Commission (NDRC) this week released new guidelines for offshore corporate bond issuance. While the move is supposed to further simplify the process and relax existing restrictions, the new rules have created a lot of uncertainty and led to fears that it will make offshore bond issuance more difficult, writes Carrie Hong.

Chinese auto company Geely International (Hong Kong) ventured into the bond market with an uncommon structure on September 16, raising $300m with a floating rate note backed by a loan from Bank of China.

The sharp fall in commodity prices over the past 12 months has placed the energy sector under increased scrutiny from credit investors. But it tends to be exploration and production firms, as well as mining companies, that have borne the brunt of negative sentiment. Utilities often benefit from lower prices in raw materials and their spread performance over the last year has been typical of the sector’s defensive status.