North America

As credit markets prepare for the FOMC announcement on Thursday, some traders said they are exhausted with speculation about the timing of a hike.

Pentair, the UK-headquartered maker of fluid and thermal systems, priced a €500m bond in line with initial price thoughts on Monday, after deciding to plough ahead with its funding plans despite a difficult market.

The Ontario Teachers’ Pension Plan (Teachers’) has appointed Nicole Musicco to helm its Hong Kong operations in a newly created position. The move demonstrates the growing importance of the Asia Pacific region for the fund, which invests across asset classes.

The International Swaps and Derivatives Association is likely to have to change its licensing practices as a result of a $1.9bn credit default swaps price fixing settlement by banks, according to a source familiar with the case.

Bank of Montreal (BMO) returned to the covered bond market for the fourth time this year to issue its third benchmark in euros. At seven years, the tenor was longer than the borrower’s previous two benchmarks, but at €1bn it was considerably smaller even with a wider spread.

Intesa Sanpaolo’s inaugural AT1 note, which was priced 7.7% on Thursday, was hailed as an impressive trade by London bankers.

An improved picture is emerging for credit, said traders and strategists this week, as concerns around global growth and energy prices abate. But the immediate beneficiary is more likely to be the US than Europe, they said, although borrowers on both sides of the Atlantic have a great issuing window.

An improved picture is emerging for credit, said traders and strategists this week, as concerns around global growth and energy prices abate. But the immediate beneficiary is more likely to be the US than Europe, they said, although borrowers on both sides of the Atlantic have a great issuing window.

Nordic Investment Bank re-entered the euro market with its first syndication in the currency in six years on Thursday — a seven year green bond.

Bank and financial names led a dramatic revival in the dollar primary market this week, printing more than $20bn of bonds after a three week lull.

On Thursday Intesa Sanpaolo gave US FIG markets its first tier one trade since August and ABN Amro is set to price an AT1 sale next week. With markets looking healthy, more capital trades could follow later this month.

The pace of new exchange traded fund launches has slowed since the markets’ recent swoon, but issuers are betting that investors will be coaxed by new offerings with hedged currency risks.