Pre-migration untagged articles

Dollar issuance is still focused on two and three years as the yield curve continues to steepen. The Asian Development Bank’s $1bn three year global was well received, the book reaching $1.2bn in the space of five hours despite the deal being priced flat to its outstanding February 2011s at mid-swaps plus 25bp. But KfW printed only $2bn in its two year global at plus 30bp rather than the $3bn plus the issuer had hoped to raise. Cades is now in the market with a two year Eurodollar bond, also at plus 30bp. Is the appeal of the big borrowers wearing thin despite the generous spreads on offer? Read this week’s EuroWeek to get market opinions.

A clutch of German names crowded into the Swiss market this week, which also hosted the first Danish guaranteed bank bonds. North Rhine Westphalia issued five and a half years at plus 25bp, L-Bank sold a short two year at plus 25bp and Rentenbank printed nine years at plus 20.5bp. Meanwhile, Svensk Exportkredit’s nine year came at 65bp over mid-swaps and L-Bank is coming back this afternoon to increase Monday’s deal 2bp or so tighter. Nykredit became the first Danish guaranteed bank to come to the Swiss market yesterday (Tuesday) with a Sfr150m August 2010 bond organised by HVB (Unicredit Group) and UBS, while Société Nationale Des Chemins De Fer France (SNCF) raised Sfr200m for 10 years via Credit Suisse.

Those making suggestions that the long-end of the market is an unfriendly place for borrowers should think again after Spain’s success in generating a huge book — Eu15bn — and printing its largest-ever single tranche bond, despite the Kingdom’s recent downgrade by Standard & Poor’s. The Eu7bn deal was priced at mid-swaps plus 90bp from early guidance of plus 85bp to 95bp, representing a new issue concession of around 25bp. The European Investment Bank however has only managed Eu2bn for its long awaited 10 year EARN despite the borrower widening the spread to mid-swaps plus 55bp from guidance of 45bp-50bp.

Skandinaviska Enskilda Banken (SEB) is finding support from its largest shareholder, Investor AB, for a potential SKr15bn ($1.7bn) rights issue. SEB has however not given any details about a deal and only said that “a capital increase is considered”. Bankers say that potential underwriters, said to be Morgan Stanley and Goldman Sachs, have been sounding investors for support over the past week, and that transaction details have leaked in that process. Will the rights issue go ahead? Turn to EuroWeek on Friday.

After rumors circulated that two banks were considering reintroducing assignment fees, Assignment Fee Czar (because seriously, the loan market needs a czar) Barry Zamore hit the keyboard.

The following charts show the top five advancers and decliners in terms of % moves in the loan, bond and credit default swap markets for the previous week. Data provided by Markit Group.

--Elliot Ganz, general counsel at the Loan Syndications and Trading Association, on why taxes previously were not applied even if a significant modification on an amendment occurred.

Red & Black, a French securitisation vehicle established by Société Générale, has issued four floating rate guaranteed home loan notes that feature a dual recourse structure comparable to that of covered bonds.

Moody’s this week warned that there will be further negative pressure on covered bond ratings this year as the challenges they faced in 2008 continue unabated.

Investors have been enquiring about credit linked notes for much of the last fortnight, but few issues have been brought to life.

The proportion of dollar issuance in the European commercial paper market increased this week, as borrowers took advantage of a wide basis swap.