North America

Corporate debt levels have increased to a point where a sudden shift in financial conditions could trigger disruptive capital outflows from emerging markets, the head of the International Monetary Fund has warned finance ministers of the G20 group ahead of their summit beginning on Saturday. Christine Lagarde also said that the G20 should streamline the topics it concerned itself with.

Guarantor: Caisse de dépôt et placement du Québec

Securitization investors and traders have told GlobalCapital that CLO anchor investor Norinchukin Bank has taken a step back from both the US and European markets. As Tom Brown writes, some have suggested that the bank’s domestic regulator has voiced concerns about its surging holdings of senior CLO debt.

Chinese online tutoring company GSX Techedu has raised $207.9m after pricing its US listing at the mid-point of guidance, according to a source familiar with the matter.

Moody’s and Fitch took negative rating actions on Mexico within three minutes of each other late on Wednesday afternoon as concerns over state oil firm Pemex filtered into assessments of the sovereign’s creditworthiness.

The American lender issued a dual tranche transaction on Wednesday, its first ever euro-denominated bond. It is the first American regional bank to go to market since May 2017. Meanwhile, Aegon Bank is looking to issue its first senior non-preferred bond in the currency.

Equity investors are priming themselves for the US Federal Reserve to cut the Federal Funds Rate after dovish comments from the Fed’s chairman, Jerome Powell.

The US Federal Reserve and European Central Bank were jockeying for the SSA market’s attention this week, after the Fed governor hinted on Tuesday that the it might cut US rates. Investors are showing caution before wading into new deals

Peripheral and UK covered bonds have weakened amid broader deterioration in credit market conditions. But with activity muted the main focus is on Tuesday’s Euromoney/ECBC Covered Bond Forum in Toronto.

In this round up, the Ministry of Commerce (MoC) is planning to publish a list of ‘unreliable entities’, clearly echoing the US’s ‘entities list’, the State Council issued a white paper detailing China’s stance on trade tensions, and the People’s Bank of China (PBoC) said its takeover of Baoshang is a ‘one-off’.

Spreads on Latin American bonds widened sharply on Friday after US president Donald Trump said he would enforce tariffs on Mexican imports, with recent issues from the region losing ground.

In this round up, China floated rare earth exports as a weapon in its trade war with the US, May’s PMI fell across the board and the People’s Bank of China (PBoC) activated a fund to protect domestic depositors’ savings