Pre-migration untagged articles

The story of the week in the euro swaps market was extensive paying across the curve, which widened swap spreads considerably. At the close yesterday (Thursday), the five year swap spread to the Bobl 148 was 17bp, while 10 year spreads to the Bund due January 2016 were 19.5bp. These levels were at least 1.5bp wider on the week.

The Private Finance Initiative returned to the public capital markets in style this week with the financing of one of the largest projects so far coming to market for Aspire Defence, arranged and underwritten by Citigroup and HSBC. Deficits at many NHS trusts caused the government to institute a review of unclosed PFI projects earlier this year, putting some projects on hold, while a deal for Newcastle Hospital at the end of last year was snapped up privately.

Bond issuance was subdued this week, with the Japanese year end and the US rate rise the main culprits.

A few dealers in London reported good investor enquiry in the EuroCP market, but the end of the quarter has slowed flows this week.

Bond issuance was subdued this week, with the Japanese year end and the US rate rise the main culprits.

AIB Mortgage Bank split its Eu3.5bn asset covered security into two tranches this week to achieve the broadest possible distribution on its inaugural covered bond.

The stakes in the battle over investor protection in the bond market were raised again this week when Swiss chemicals group Clariant insisted on a novel change of control option for investors, which may set the tone for future issuance.