North America

A global equity sell-off mid-week caused some jitters among bankers covering a live Kommunalbanken dollar deal on Wednesday, but the nervousness proved unfounded as the trade came through to acclaim. The deal was typical in a week where SSAs priced tight and with big books despite choppy wider markets.

A sharp sell-off in US equities on Wednesday led to global panic on Thursday as other indices followed suit. Asian and European markets showed some sign of life on Friday, although were still a long way down, but the ramifications of a change in risk sentiment could have lasting effects across capital markets, write Sam Kerr, Ross Lancaster, Costas Mourselas, Craig McGlashan and Aidan Gregory.

Japan’s Sumitomo Mitsui was one of two benchmark issuers in dollars in a week cut short by holidays, as markets were battered by volatility ahead of the start of US bank earnings season.

Conagra Brands became the biggest high-grade casualty of market volatility when it pulled a multi-billion M&A financing on Thursday.

Issuer rating: Baa3/BBB+

Equity markets in the UK, US and eurozone sold off late Wednesday and on Thursday, leading to a mixed reaction from equity derivatives strategists.

There are more than $512bn worth of bonds that will need to switch to an alternative reference rate if global regulators execute plans to ditch the Libor benchmark by the end of 2021, Linklaters said on Wednesday. GlobalCapital asked the law firm what needs to happen for a successful switchover.

China’s Niu Technologies has launched bookbuilding for a $103.8m Nasdaq IPO, but despite plenty of pre-deal interest, sources said they did not expect the trade to be a blowout.

The speech by US vice president Mike Pence, delivered at the Hudson Institute on October 4, was the closest to a cogent China strategy formulated by the Trump administration since it took over the White House. Market participants should beware, as the picture those words paint is far from pretty.

The benchmarking arm of Intercontinental Exchange (ICE) opened an online portal on Wednesday that gives market participants information on alternative risk-free rates designed to replace the Ibors, as well as forward-looking term rates based on the sterling overnight index average (Sonia).

SSAs are enjoying strong conditions in dollars, with KfW and the Province of Ontario finding plentiful demand on Wednesday despite bringing deals that on-looking bankers said were “pretty much” in line with secondaries. Kommunalbanken will price a dollar benchmark on Thursday that leads said was following a similar pattern.

American data centre owner Digital Realty extended its sterling corporate bond curve on Wednesday. The issuer’s fourth deal in sterling showed no sign of investor fatigue.