North America

UK investment firm Melrose will rely on relationship banks for $1.25bn of debt to support its acquisition of Nortek, as the loan market continues to support deals in the wake of the Brexit vote.

The result of the UK referendum on EU membership is likely to encourage Japanese triple-A investors to focus more heavily on US CLO paper, said CLO market participants this week.

A procession of blue-chip corporate and Yankee names re-opened the dollar market with jumbo deals this week as investors displayed a strong appetite for US high-grade paper.

Lloyds reopened the dollar market for European borrowers for the first time since the UK’s vote to leave the European Union last week, surprising market participants who thought the country’s banks would need longer to recover from 'Brexit'.

Two of the five US subsidiaries of European banks under the Federal Reserve’s supervision failed the regulator’s stress test this week, despite having some of the highest common equity tier one ratios under the Fed’s worst case scenario. The banks, mostly with US headquarters, that passed largely plan to increase dividends and buybacks

Brandywine Global Investment Management, which manages about $70bn in assets, has hired three for its global fixed income group.

US brewer Molson Coors didn’t miss a beat as it hopped into the European corporate bond market on Wednesday, sweeping away Brexit-related uncertainty to issue an €800m eight year bond after closing a $5.3bn deal the day before.

The US high grade corporate bond market has rebounded strongly following the UK’s decision to leave the European Union, after Molson Coors unveiled a multi-billion dollar M&A financing.

The RMB remained a tiny portion of payments between the US and China in May, according to the latest Swift data. Meanwhile, the RMB remained in sixth position among the most used payment currencies.

The market reaction to the UK’s surprise decision to leave the European Union has been immediate with stocks falling, the pound weakening and the country downgraded by international rating agencies. But market participants are worried that the worse has yet to come and London could be set to lose its shine as a premium renminbi hub.

US and Asian regulators should hold fire on imposing margin rules on uncleared swaps to allow Europe to catch up, said the International Swaps and Derivatives Association (ISDA).

Brexit is here, and so is our round-up! This week: Fullgoal Asset Management launches its first RMB ETF in Europe, the Hong Kong Exchange runs further Shenzhen Connect testing, and China announces direct trading of the RMB against the Korean won. Plus, a recap of our coverage this week.