North America

Investors this week showered orders on to the first bond issue from Teva Pharmaceuticals since a recent downgrade to high yield ratings. The hook? A 50bp-100bp premium over its old bonds in the secondary market.

Swedish Export Credit Corporation on Wednesday priced what bankers away from the deal said was a “very strong trade”, as it printed in the same five year tenor that has brought success for SSAs over the last few weeks. But one borrower is set to attempt a tenor that has not been visited since late January.

On Wednesday, German business software company SAP printed a €1.5bn triple tranche deal at tight spreads following more than a year and a half without issuing, while American IT services firm DXC sold its first non-dollar deal.

Fresh doubt has been cast on whether the record-breaking $100bn loan package for US chip maker Broadcom will come to fruition, after a US national security committee took the unusual step of issuing a public warning against the acquisition that the funds will finance.

Bank of Montreal offered investors a €500m four year floating rate bond on Wednesday, continuing a trend of issuers looking at the FRN format. The order books were thinly subscribed despite the defensive format of the trade.

Even allowing for the pause in European corporate bond issuance caused by the volatility of global markets early in February, the month's primary activity proved to be meagre. But investors are hoping the signs for March are better.

Chinese live streaming platform YY is looking to take its online game broadcasting platform Huya public with a US IPO.

Derivatives exchanges around the world reported strong February volumes this week, potentially painting a rosy picture for the year ahead as markets seem set to return to higher volatility.

National Bank of Canada and Commerzbank both came to the market with seven year covered bonds on Tuesday.

The low rates in Europe are making the euro high yield market an attractive option for US issuers like Belden, a St Louis-based manufacturer of telecoms equipment, which is launching a new euro bond to buy back old deals in euros and dollars. More US issuers are coming to euros, say bankers and investors.

Standard Chartered has hired a JP Morgan banker to lead part of its North American corporates team.

European implied equity volatility has fallen after Angela Merkel secured a fourth term as German chancellor and despite Italy's general election producing a hung parliament.