Pre-migration untagged articles

Hypo Investmentbank sold a Sfr150m November 2012 covered bond through Credit Suisse on Monday at a spread of 42bp over swaps, in a deal that enabled it to match Swiss franc assets in its cover pool.

Standard setters were again the centre of attention this week as the Basle Committee on Banking Supervision finalised its proposals on trading book capital and remuneration, swiftly implemented in draft legislation by the European Commission, while the International Accounting Standards Board laid out its vision for a new fair value accounting system. EuroWeek finds out what the radical changes mean for banks and other market participants.

The ever-popular Philippines returned to the dollar bond markets in style on Monday, setting the tone for another busy week in the Asian markets. Korea Electric Power Corp and Suhyup Bank also sold dollar deals, while Korea’s Woori Bank embarked on another non-deal roadshow as the flow of international issues showed no sign of letting up. Read EuroWeek on Friday for a full report on this week’s new issues, plus news of more restructurings from Asia’s troubled high yield market.

CareFusion has captured the headlines in the US corporate bond market so far with a $1.4bn three, five and seven year deal issued in connection with its spin off from Cardinal Health. Are bigger deals waiting round the corner? Read EuroWeek this week to find out.

Ahorro Corporación Financiera is said to be preparing an AyT Cédulas Cajas issue for launch next week that could be the biggest test of the covered bond market since the European Central Bank’s Eu60bn purchase programme was announced. The level of support from central banks for this and other so-called second tier names is expected to be key to how broad the market’s recovery is on the back of the ECB scheme. Read EuroWeek on Friday for more on the deal’s prospects and how the ECB purchase programme is developing.

The government guaranteed market is hotting up again this week with HSH, Hypo Alpe-Adria International, Irish Nationwideand Slovenian guaranteed Nova Ljubljanska Banka taking advantage of continued demand amid a dearth of other issuers. Allianz and UBS are raising senior unsecured money. Allianz is coming with a 10 year at 130bp over mid-swaps, much tighter than Axa’s 2015 that came a month ago at 245bp over mid-swaps.

The UK Debt Management Office has appointed Barclays Capital, HSBC, JP Morgan and Royal Bank of Scotland for its upcoming 2042 index-linked transaction to be launched the week of July 20. The group of lead managers is almost identical to the one on the issuer’s syndicated conventional earlier this year but for Goldman Sachs. To find out reaction to the DMO’s picks read EuroWeek this week.

Yorkshire Water wowed the sterling market on Tuesday with a triple tranche transaction of 10 year, 30 year and long 30 year paper. After setting out to raise £575m, the utility grew the transaction to £650m, including £175m of inflation-linked bonds to mature in December 2039. However, Yorkshire Water Services’s exchange offer, to migrate its outstanding debt into a new ring-fenced structure that closed today, may have added up to 30bp to the price of yesterday’s bonds. To find out how the sterling market reacted to the transaction this week, read EuroWeek this Friday.

The regulatory net appears to be tightening around the CDS industry with the announcement that the US Department of Justice is to investigate the market for possible anti trust abuses. What does this mean for the beleaguered market? Read EuroWeek this week to find out.

A flurry of New Zealand dollar trades are about to hit the MTN markets over the next couple of weeks as over NZ$6bn of private placement credit lines mature. KfW has already tested market temperatures with a NZ$100m four year fixed rate note via TD Securities. Read EuroWeek this week to find out which other issuers have cashed in on the demand.

The strong appetite for Gulf credit continues unabated this week with Qatar’s Ras Laffan LNG poised to price a big $2.3bn 144a/Reg S benchmark on Thursday. The deal, via Citigroup, Credit Suisse and HSBC, is in a three-tranche format: a proposed three year $500m, a five year $1.15bn and a $615m 10 year. Read EuroWeek on Friday to assess the demand for the Gulf’s largest corporate issue of the year.

Rabobank issued the first tier one capital bond in the Swiss market for over a year, and only the third one ever. It sold Sfr550m with a 6.875% coupon — more expensive than initial guidance of 7%, and much more expensive than its dollar perpetual, which came with an 11% coupon, but which has since tightened. Read EuroWeek on Friday to see how leads Credit Suisse, Sarasin and UBS found a price and investors, and whether it’s a one off.