Pre-migration untagged articles

Simple structures and vanilla trades in niche countries dominated the market this week as investors continued to pursue this avenue in the search for higher yields.

Kommunalbanken priced its largest ever Kangaroo bond last Friday (October 9), a A$350m ($305.8m) five year bond that was its first new issue in Australia since March 2007.

The cédulas hipotecarias market showed signs of fatigue on debut issues launched by Cajamar and CAM over the last week, although Portugal’s Banco Santander Totta was able to take out a solid Eu1bn from the covered bond market in between.

Strong investor demand for corporate borrowers has allowed several names to opportunistically tap the European commercial paper market this week.

A proposed amendment to Sweden’s covered bond law to clarify the options available to an administrator to obtain liquidity in the event of an issuer’s insolvency gives little extra comfort, said Fitch this week.

Dealers of private EMTNs: Non-syndicated deals for less than $250m excluding financial repackaged SPVs, GSE issuers, self-led deals and issues with a term of less than 365 days.

NIBC has put on hold its plans to issue a debut public covered bond, citing the Dutch central bank’s takeover of DSB Bank.

CIF Euromortgage and Deutsche Pfandbriefbank spotted the opportunity to sell 10 year covered bond benchmarks this week, taking advantage of a back-up in yields to lure in investors.

Air France-KLM, the unrated Franco-Dutch airline, returns with a benchmark euro seven year issue this week, after a two year absence from the corporate bond market. While some bankers warned that bad news surrounding the airline industry could have made this a difficult issue, investor demand for unusual and higher yielding names is still soaring, as demonstrated by a Eu300m 7.25% five year deal for German automotive parts supplier Hella Hueck on Tuesday. Read EuroWeek on Friday for the latest on this deal as well as on other investment grade issues.

Banco do Brasil, the country’s largest bank, priced an 8.5% perpetual tier one issue three times bigger than initial indications, having cut its roadshow short due to exceptional demand. With orders of $13bn for the year’s first tier one bond from an emerging market issuer, will it herald more tier one from the region? See Friday’s EuroWeek for this and all the week’s other EM news

HeidelbergCement is poised to make further headway in its debt restructuring when it issues a Eu2.5bn high yield bond this week. The deal confirms effervescent investor demand for high yield debt in Europe — on Tuesday Heidelberg added a 10 year tranche to the already announced five year and seven year portions. But, with its bonds rated B3/CCC+, and the five year expected to price to yield just 7.875%, there are concerns that this is too much, too soon for the still-nascent European high yield revival. Read EuroWeek on Friday for more on this and other high yield issues.

The collapse of retail lender DSB Bank will give the Dutch securitisation market its toughest test yet. While the originator had a relatively small market share, the precedents set in resolving its situation will have consequences for the whole sector. Read EuroWeek on Friday to find out the latest developments as the issuer scrambles to protect its cashflows.