News content

Bulgaria stormed back into the market with a giant triple trancher on Thursday — the largest ever euro-denominated bond from an emerging market sovereign.

One investor was seen buying a sizeable number of put options on the PowerShares DB US Dollar Index Bullish exchange-traded fund this week, indicating that they are seeking to mitigate exposure to the US dollar if its performance slows down or weakens, according to strategists.

The European Investment Bank this week sparked a vehement discussion over new issue premia in euro benchmark issues in the era of European Central Bank quantitative easing.

Auto Trader shares shot up on the start of trading Thursday, at one point reaching a high 16.5% above issue price, after the new and used car sales website completed its £1.39bn London listing.

Italy showcased the rampant demand at the long end of the euro curve with a record equalling €8bn deal this week — but also highlighted new hedge fund behaviour.

Corporate hybrid capital bonds have been a big beneficiary of this year's credit bull run in Europe, powered by quantitative easing, writes Richard Metcalf. But they have not lost their power to cause controversy and upsets.

Talks around Russian loans gathered pace this week, with Uralkali looking increasingly likely to arrive first and Gazprom Marketing & Trading joining the potential pipeline.

Covered bonds saw a week of two halves, characterised by profit taking and weakness to begin with which was followed by a more stable tone over the rest of the week. And, with offers likely to dry up before long, the first zero coupon new issue covered bond could be seen in a few weeks.

A trio of issuers got dollar deals away on Tuesday ahead of a Federal Open Market Committee meeting on Wednesday when the US Federal Reserve dropped “patience” from its language on rate rises, causing US Treasury yields to drop.

While most bankers in London this week were probably celebrating St Patrick’s day on Tuesday, or at least wishing they could be, one fellow from the MTN world had his eye firmly focused on the southern hemisphere.

Demand for callable MTNs from sovereign, supranational and agency issuers has skyrocketed in 2015 but, when short term rates start rising in the US, investors could be left holding expensive paper. While many issuers will come to the rescue and buy back on demand, some buyers will have to live with their investment.

Thursday’s accelerated bookbuild action comprised the first block trade in Com Hem, the Swedish cable company, since its IPO.