Pre-migration untagged articles

Moody’s expects negative rating actions on covered bonds to substantially outnumber any positive actions in the year ahead, due principally to weakness in the sovereign and banking sectors.

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

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

The euro/dollar basis swap fell at the start of the week, driving dollar issuance from European sovereign, supranational and agency borrowers. The Netherlands took particular advantage of the move to issue in large size at the short-end of the money market curve and dealers predicted more sovereign issuance in the shortest tenors.

Optimism is an emotion that is hard to keep in check. So desperate are capital market participants for an end to the eurozone debt crisis that any good news is latched on to immediately and proclaimed as the key moment that marks the beginning of the recovery.

The Massachusetts Supreme Court ruled on January 7 that US Bank and Wells Fargo could not foreclose on houses bought by the Ibanez and LaRace families, in a judgment that ignited fears about collateral quality across the US RMBS sector.

Following successful Spanish and Italian government bond auctions, the primary covered bond market picked up pace this week with three mandate announcements, two of which were from peripheral European jurisdictions. And, as long as conditions hold out, there are likely to be a few more mandates in the wings.

The Republic of Portugal placed a Eu1bn 18 month note via Deutsche Bank last Friday (January 7), despite its 10 year government bond yields heading north of the critical 7% level.

MTN investors pursued trades from sovereign, supranational and agency issuers in exotic currencies as well as light structures this week — a theme carried over from last year — as low interest rates coupled with rates volatility made it hard for investors to find adequate returns from vanilla trades.

Five French issuers came to market this week, in line with analysts’ predictions that France would be the most active jurisdiction in 2011.

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

Non-core currencies were in focus this week with large Norwegian krone and Turkish lira deals proving popular. L-Bank and European Investment Bank sold Nkr200m ($33.9m) taps of existing deals, while the European Bank for Reconstruction and Development sold a TL570m ($368.3m) Uridashi note.