North America

Derivatives counterparties in the US have made enormous strides towards compliance with the September 1 end date for a grace period on variation margin rules for uncleared swaps, a stark change from six months ago.

Six corporate investment grade borrowers took home a combined $3.75bn as the US dollar market finally took a breather for the summer after the breakneck pace of issuance for the month so far.

Two deals were priced this week in the European corporate bond market, and next week already looks busier. With a roadshow under way and four others coming up, the window before September’s European Central Bank meeting looks full.

High yield bond portfolios have been left dangerously undiversified under central bank policies, meaning investors have little margin for error, French investor Tobam warned this week, ahead of the Jackson Hole meetings in Wyoming.

Third quarter profits in Royal Bank of Canada’s capital markets business fell by 4% on Wednesday, a C$24m drop that the bank attributed to benign market conditions and low volatility.

The new chair of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, chose Bruce Tuckman to succeed Sayee Srinivasan as the regulatory body’s chief economist on Monday.

European corporate bond market participants are expecting supply to start again after the UK bank holiday on August 28. Kimberly-Clark was the first issuer into the pipeline when it announced a European roadshow on Monday morning.

This week Brian Quintenz was sworn in as a commissioner at the Commodity Futures Trading Commission (CFTC), after he was confirmed alongside chairman Christopher Giancarlo and Rostin Behnam by the Senate two weeks ago.

You are looking to buy an item on Amazon. The first two reviews could not be more contrasting. One is a glowing five star rating. The other is a one star hatchet job. Which do you believe? This was akin to the situation facing investors considering Amazon’s new bond on Tuesday, with Moody’s opinion of the company four notches lower than that of S&P.

Goldman Sachs opened the Swiss market in the middle of the summer holidays on Thursday, selling the largest US financial Swiss franc bond in the last two years — a consequence, bankers said, of clever timing from a respected name.

Amazon dominated US corporate bond issuance this week, but aside from the online retailer’s $16bn jumbo deal, there was over $8bn of paper from five other issuers. However, bankers believe this will be the last week of material supply before the annual two week break in the US market.

Chinese live streaming platform YY tapped the US market this week with a block sale of American Depositary Shares (ADS), capitalising on a surging stock price. Bankers are preparing for a raft of similar block sales — as well as a growing list of US IPOs from Chinese companies. Jonathan Breen and John Loh report.