North America

Canada’s low debt to GDP ratio and stable politics have made it a haven in a turbulent era in global politics. But, with fears of a wave of protectionism growing, the trade-focused country faces problems ahead. However, with its fiscal stimulus programme an example to other nations wishing to promote growth, Canada’s borrowers are confident they can adapt and prosper in the new political reality. GlobalCapital hosted this roundtable in early December.

The US Commodity Futures Trading Commission has given Goldman Sachs a $120m penalty for trying to manipulate dollar Isdafix and falsely reporting benchmark swap rates.

At around €10bn Canadian banks are expected to issue the highest net volume of euro-denominated covered bonds in 2017. And, given high dollar redemptions, a favourable cross-currency swap and an active mortgage market, supply could even beat expectations.

The US District Court for the Northern District of Illinois has fined Igor Oystacher and 3Red Trading $2.5m for spoofing, but did not impose a jail sentence or market ban.

The European subsidiary of US commodity trader Louis Dreyfus Company has extended the tenor of its European revolving credit facility and increased the deal by $200m, though the borrower did not tighten pricing on the loan, according to a lead banker.

Första AP Fonden, the Skr300bn government buffer fund of Sweden’s national pension system, is planning to diversity its high yield allocation in favour of the European and global high yield markets.

The stream of dollar issuance from European non-investment grade companies may thin in 2017, market participants believe, as central banks in the US and Europe further diverge their monetary policies.

ICE Benchmark Administration, a unit of Intercontinental Exchange, is to assume the secretarial role on the credit derivatives determinations committees previously held by the International Swaps and Derivatives Association.

Australian casino tycoon James Packer sold his stake in Melco Crown Entertainment, his Asian joint venture with Hong Kong magnate Stanley Ho, in a $669.9m overnight bookbuild on Thursday.

After a fall in 2016 supply, the allure of euro bonds for US issuers looks to be set on a path of relative decline, as the market loses its technical shine and faces the prospect of cash repatriation for corporate America.

Another piece of next year’s equity capital markets issuance puzzle was turned over today, when Lonza, the Swiss pharmaceutical and chemical company, announced a Sfr3.3bn rights issue to pay for the acquisition of Capsugel from KKR.

United Healthcare Group became the first dollar issuer to jump into the market after the US Federal Reserve’s hawkish hike led to a sell-off in Treasuries amid predictions that 2017 could prove to be a more subdued year for high grade supply.