Pre-migration untagged articles

Despite ASB Finance, BPCE and Deutsche Pfandbriefbank issuing euro benchmarks this week, supply expectations are low for the coming weeks as origination teams look ahead to a September revival.

As the latest eurozone summit approaches – this time scheduled for Thursday and Friday rather than a weekend – this is likely to be a modest week for corporate bond issuance in Europe.

The European Bank for Reconstruction and Development has sold its largest privately placed rouble-denominated medium term note in two years, just one month after selling its debut deal in Uruguayan pesos.

Legal experts this week poured cold water on proposals for a rapid move towards issuance of Eurobills as a way of easing the eurozone’s sovereign debt crisis. According to one leading financial lawyer, the instruments cannot be issued without changes to the EU Treaty, striking down their touted advantages of being quick and easy to launch.

Norddeutsche Landesbank (NordLB) is due to start roadshowing what will be a first for the global capital markets next week — an aircraft Pfandbrief (Flugzeug-Pfandbriefe). It should attract interest from local, second and third tier investors in NordLB’s network thanks to the winning combination of an attractive spread and a low risk weighting.

Moody’s has welcomed a proposal from the Association of German Pfandbrief Banks (vdp) to take account of peripheral sovereign risk in public sector backed cover pools by applying haircuts based on the probability of default.

City of Paris has broken the record for the longest-dated private placement from a French local authority or region, with a €50m 20 year note sold through HSBC on Monday.

Dealers of private EMTNs: Non-syndicated deals for ≤ €300m excluding financial repackaged SPVs, GSE issuers, self-led deals and issues with a term of less than 365 days

The European Financial Stability Facility took advantage of a slight pick-up in sentiment on Wednesday to venture out with the only benchmark sized deal from a sovereign, supranational or agency so far this week. Elevated sovereign yields in Europe’s periphery have dogged the markets since the beginning of the week.

FIG issuers wasted no time getting deals on screen after Tuesday’s rally, with BNP Paribas and Zurich Insurance finding enthusiastic demand for senior unsecured deals. While the causes of Tuesday’s rally perplexed syndicators — they attributed it to a delayed reaction to Greek elections, combined with an increased expectation of policy action — there was no doubting the strength of demand for FIG paper.

There was little rejoicing in financial markets as New Democracy edged ahead of the radical leftists in Greece’s election. Italy and Spain’s yields still showed pessimism. But it would undoubtedly have been much worse if Syriza had won. Against this background, the pragmatic approach of corporate borrowers has been proven right.

The EM bonds market is easing back into life, with a long-awaited $500m dollar deal from Russian Agricultural Bank printed on Monday via Citi, JPMorgan and VTB Capital and a $1bn tap of Turkey’s 2041s priced on Tuesday via Deutsche Bank, Goldman Sachs and Morgan Stanley.