North America

In this round-up, trade talks between the United States and China continued, the Foreign Investment Law was passed by the National People’s Congress and the US urged Germany to ban Huawei

PepsiCo took one of its rare sips at the euro bond market on Monday, and was rewarded with two bonds, seen as priced flat to and through its curve.

Financial institutions, ranging from Wall Street heavyweights to regional lenders, dominated the dollar bond market this week, offering supply across the size and credit rating spectra.

Dollar borrowers continued to enjoy decent spreads this week but syndicates complained of indigestion as foreign investors scuttled to the sidelines.

The exceptionally strong demand in Europe’s corporate bond market has remained unaffected by the turmoil in the UK’s Parliament, as MPs vote night after night on repeated motions that could determine the country’s future inside or outside Europe. On Thursday, two issuers attracted huge books: Marsh & McLennan Companies, the US insurance and investment services group making its debut in euros, and Incommunities Group, a Leeds-based housing association, in sterling.

Several CLO issuers in the US and Europe have come to depend on Japanese investors to anchor triple-A tranches, but observers say Japan’s banks may no longer be able to soak up foreign paper if a bubbling banking crisis forces banks to clean up their act at home.

Up Fintech, parent of online trading platform Tiger Brokers, has launched bookbuilding for a smaller-than-expected $91m IPO.

Deutsche Telekom became the latest blue chip company to issue a two tranche bond with no new issue concession on Tuesday, making it three deals out of three so far this week that have come without any sweetener for investors, compared with secondary spreads.

High yield bond issuance in Europe is perking up, with several deals being marketed or just about to be launched. Beginning its roadshow on Monday was Sappi, the South African paper company, which wants to issue €450m to replace an older bond; starting on Tuesday is French car parts group Faurecia, seeking €500m.

Pepsico took one of its rare sips at the euro bond market on Monday, and was rewarded with two bonds, seen as priced flat to and through its curve. After the European corporate bond market was clouded by weak secondary trading last week, it was back on form on Monday.

In this round-up, both exports and imports slowed in February, the US and China have not started preparing for a deal-signing summit and the People’s Bank of China (PBoC) has released its February financial data.

In this round-up, Huawei filed a lawsuit against the US government, China’s foreign reserves rose for the fourth month, and the International Monetary Fund can now invest in Chinese domestic bonds and stocks