North America

Most futures traders in the US believe that the Federal Reserve will raise rates next month, but derivatives markets show few aftershocks priced in.

Simon Property Group, the US property company that is the world’s largest real estate investment trust, launched a benchmark seven year euro bond this morning, its first issue in the currency for over two years.

Ethypharm, the French pharmaceuticals company, has allocated €287.5m of new loan facilities at a wider margin than it initially proposed.

Halliburton jumped at the chance to wrap up its jumbo M&A financing, after the US Federal Reserve chief Janet Yellen said that a rate rise in December was a ‘live possibility’.

This week’s landmark conviction in a Chicago court of a high frequency trader for ‘spoofing’ and commodities fraud has delivered a chilling statement of intent by US authorities to other suspects in the firing line and cranked up nervousness across the markets.

BorgWarner, the US car engine and drivetrain maker, furthered the return of reverse Yankee bonds to Europe's corporate market on Monday, by issuing a €500m seven year no-grow deal.

Plunging swap spreads, coupled with data releases and holidays in the US, are set to make dollar benchmark issuance difficult in all but the most defensive of tenors next week, public sector bankers have warned.

Bankers are expecting the Financial Stability Board (FSB) to loosen up its final total loss-absorbing capacity (TLAC) rule, set to be published on Monday, after the Federal Reserve published its own draft consultation of the rule last week.

A supranational issuer is understood to be mulling a visit to the belly of the dollar curve, but may have to pay up to do so as five year swap spreads have fallen into negative territory.

Veritas, the Californian data management company, has become the first US borrower to roadshow for a euro high yield bond in the second half of this year — and bankers say it will soon have company.

The Province of Manitoba has placed its largest ever medium term note in euros, reaching what may be the largest cost effective size possible for swapping the proceeds into Canadian dollars, according to the issuer.

Not content with being the first foreign government to issuing an offshore renminbi bond, the Province of British Columbia (BC) is now aiming to access the reopened onshore Panda bond market as the next step in reinforcing its commitment to China, says Michael de Jong, BC’s Minister of Finance, to GlobalRMB in a phone interview.