North America

European banks will be subject to some of the Federal Reserve’s highest capital targets, after the US regulator switched to using stress test results as the main input for its requirements.

The convertible bond market has played a vital role during the Covid-19 global pandemic in funding corporates that were in urgent need of liquidity as the crisis took hold. Deals have performed for investors too, although they should be concerned about the potential for rising defaults.

US-listed OneConnect Financial Technology Co, a Chinese company whose stock price has doubled this year, is tapping equity investors for new funds.

Ke Holdings, which operates Chinese real estate platform Beike, is set to close the orderbook for its $2bn US listing a day earlier than planned, according to a source close to the deal.

FIG deal arrangers say the euro market could reopen for business as early as next week, with more investors set to return from their holidays.

Chinese electric vehicle manufacturer XPeng is aiming to raise up to $100m from a listing on the New York Stock Exchange.

Ke Holdings has kicked off bookbuilding for a $2bn US listing. But it has come as one of its largest shareholders, internet giant Tencent Holdings, was blindsided by the US with sanctions.

Freeline, the UK gene therapeutics company, has priced its IPO on the Nasdaq exchange at the top of the pricing range, with investors willing to pay a big premium for the stock. The company is the latest deal in a global biotech issuance spree that has passed $60bn.

In this round-up, China and the US will examine the progress made from the phase one trade deal, the Chinese foreign minister says a ‘new Cold War’ is not what Beijing wants, and a pair of executive orders by president Donald Trump will ban US transactions involving WeChat and TikTok’s parent companies.

Subordinated debt transactions in dollars from a trio of European banks left no doubts about the strength of the Yankee market this week. Bookrunners are encouraging issuers to execute trades in the asset class quickly, as they are unlikely to encounter better conditions before the end of this year, writes David Freitas.

Equity capital markets bankers are hoping that global markets maintain the extraordinary bullishness of the last few weeks in what should prove a busy final quarter of the year for issuance. But an unholy trinity of risks are causing concern, particularly for IPOs.

Carnival Cruises has launched a partial buy-back of the $2bn three year 5.75% convertible bond it issued in April to provide itself with more liquidity during the Covid-19 global pandemic.