Pre-migration untagged articles

For weeks, the alluring basis swap pick-up out of dollars for the non-US borrower has been spurned, but this week European bond issuers found the cost savings too good to ignore.

Financial institutions made a strong comeback in the Swiss franc bond market this week, as five deals out of six new issues and a large tap came from financial sector issuers.

Banca Popolare di Milano could launch the first issue under the Italian covered bond framework this month, with its roadshow due to kick off this week. The bank has finalised its choice of lead managers. Spanish and Scandinavian issuers also mandated deals.

Caja de Ahorros del Mediterráneo continued the Spanish march to increasingly wide levels when it priced its debut Eu1bn two year cédulas last Friday (June 13) afternoon.

Compagnie de Financement Foncier’s Eu500m 18 month obligations foncières issued last Friday (June 13) was in keeping with the low profile it has maintained in the public markets this year.

Goldman Sachs has finalised the arrangements for the long awaited rescue of the £3.6bn structured investment vehicle (SIV) Cheyne Finance, creating a model that may be used to restructure some other underwater SIVs.

Corporate issuance continued to diminish this week in the EuroCP market, though dealers disagreed on the reasons why.

Moody’s downgraded Ambac from Aaa to Aa3 late last night (Thursday) and gave the rating a negative outlook. Ambac has been on review for downgrade since June 4.

A loan of around Eu1bn is expected to be issued as part of the financing supporting the buyout of Converteam. Barclays Private Equity, LBO France and management bought the German power conversion product maker earlier this week for around Eu2bn. HSBC, Lehman Brothers, Royal Bank of Scotland and Société Générale are expected to arrange the debt, having provided stapled financing during the bidding process. Read EuroWeek this week for the market’s view on one of this year’s biggest leveraged loans.

Goldman Sachs has completed the restructuring of the Cheyne Finance SIV. The long-awaited restructuring should set a template that other SIVs still in the process of restructuring can follow. EuroWeek will have the available details of the restructuring, as well as feedback from market participants on what this means for other SIVs.

The Eu11.5bn jumbo loan for Pernod Ricard, the French distiller, has closed and gone free to trade, with its pro rata paper trading at around 98% of face value. Find out in EuroWeek on Friday more about how the deal fared in primary syndication, and what is now happening to it in the secondary market.

GSO Capital Partners has taken over from Washington Square Investment Management as manager of Carador, the listed CDO equity fund. GSO has also hired the five executives in charge of Carador’s portfolio. Carador was the first publicly listed CLO equity fund. After Pimco’s ABS hires last week, EuroWeek asks if real money funds expect structured finance to bounce back.