Pre-migration untagged articles

The credit default swap indices have become entirely detached from fundamentals and equities over the last couple of weeks. In the face of economic and financial news that can hardly be thought encouraging, the iTraxx indices have gone from strength to strength.

Dexia Municipal Agency opened the books on a seven year euro benchmark at lunchtime yesterday (Thursday) in the first test of demand beyond the short end of the curve since covered bond issuance picked up again early last week.

Equity markets in Morocco, Egypt and Nigeria yielded the highest returns in the first quarter for investors complying with Islamic law, while sharia-compliant equities in Turkey, China and India suffered the largest declines over the first quarter.

It has all been about Libor settings in the dollar swap market this week. Two year swap spreads bounced over 100bp yesterday (Thursday), breaking through the 100bp barrier for the first time since March 11 as three month dollar Libor set 8bp higher.

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

Nordea Hypotek priced a Eu1.5bn three year new issue on Tuesday at 11bp over mid-swaps, taking advantage of the continued appetite for short dated issuance from "core" countries to launch a larger than expected transaction.

Bank of America has priced Halcyon Structured Asset Management European Long Secured/ Short Unsecured CLO 2008-1, a Eu404m CLO managed by Halcyon.

Turkish gold miner Koza Altin is going ahead with its IPO but is awaiting the right market conditions. Exactly when conditions will be right for Koza, managed by UBS and Merrill Lynch, remains the question. So far, the Istanbul stockmarket index has lost 24% this year. But government officials said an international roadshow for the IPO of a 15% stake in landline operator Türk Telekom will be held at the end of April. Read EuroWeek on Friday for a full analysis.

US dollar swap spreads widened due to convexity-based selling. Instituto de Crédito Oficial’s issue of $1.5bn of five year bonds was swapped, which exerted a little downward pressure.

The biggest talking point in high grade euro bonds will be the Eu1bn three year from Eksportfinans, its first benchmark deal since it pulled a Eu1bn two year transaction in November. It should work as the Norwegian agency is paying mid-swaps plus 10bp-15bp, a far cry from its inaugural euro deal in September 2007 at mid-swaps less 3bp.

The US Federal Deposit Insurance Corp yesterday put forward interim proposals for a policy statement on covered bond issuance in the US. As revealed yesterday by EuroWeek’s sister publication The Cover, the FDIC has invited comment on a limit for covered bond issuance of 4% of total liabilities, and a 10 day repudiation period.

The 15bp upward pricing flex forced on Finnish generator Fortum’s Eu3.5bn loan saw it through syndication. Like the $4.35bn loan for Anglo-Dutch publisher Reed Elsevier, the facility was only modestly oversubscribed. Both these deals had margins that 12 months ago would have been laughably wide for single-A borrowers. Find out what this means for the market on Friday.