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Fossil fuel companies seen as changing faster are feeling the benefit in pricing

Bank pounces on credit rally with opportunistic trade to end its funding for the year

Emerging market corporate bonds have rallied, but investors cannot find paper to buy in illiquid market

Hedge funds desperate for liquidity boost block activity but kept discounts wide

Senior bankers want a common sense approach to UK regulatory reform but a plan to scrap the bonus cap means pay will rear its ugly head

UK’s change of tone could bring two very different markets in years to come

Context and market conditions are always important when considering the merits of any new issue, but this was particularly the case in 2022, given how volatile markets were. Every CEEMEA issuer had to pay a high all-in price to get their deal away, and new issue premiums varied between issuers. EM issuers faced the toughest conditions in many years during 2022. The Russian invasion pushed investors to flee from riskier assets. The war had practical effects too: disruption to energy and food supplies sent inflation soaring and the resulting interest rate rises meant borrowing costs jumped sharply for CEEMEA issuers. New issue volumes dropped from 2021, particularly among CEEMEA corporates. By George Collard and Oliver West.

Easing inflation, slowing rate rises and stabilising spreads should encourage issuers to return

It was a year of two halves, as bond market dynamics fundamentally changed after quantitative tightening began. These corporate deals are outstanding for either pushing limits and taking advantage of conditions at the start of 2022, or for navigating some of the toughest markets in over a decade.

As the world came out of the coronavirus pandemic, bond market conditions in 2022 did the opposite of what was expected of them and sharply deteriorated. Rising inflation, in part a result of the war in Ukraine, supply bottlenecks and fast tightening central banks all hurt banks’ abilities to access stable funding in international markets. Accessing unsecured primary financing, even senior debt, was no mean feat as new issue premiums moved higher for most of the year on top of skyrocketing spreads. Refinancing subordinated bonds at economic levels was far more challenging amid extreme volatility that brought back memories of the 2008 global financial crisis. Four bellwether deals are recognised this year for their market-leading achievements and successful execution that empowered the rest of the FIG market in Europe. They not only re-opened market access to a broader issuer base but also gave much needed confidence boost to battered investors. By Atanas Dinov and Frank Jackman.

Issuing bonds became a lot harder for every type of borrower in 2022 — and sovereigns, supranationals and agencies were no exception. After a long spell of issuing into a market buttressed by central bank bond buying and rock bottom interest rates, all of a sudden the capital markets became a less certain place as interest rates and yields rocketed in response to a host of macroeconomic and geopolitical shocks from soaring inflation to the effects of the invasion of Ukraine. No longer did any deal work at any time, as had been the case, and the art of syndication was back. Execution for some could no longer be guaranteed as the number of pulled deals mounted but, despite this, there were a number of standout trades that helped to haul this group of borrowers through their funding tasks for the year by either re-opening markets in volatile times or by showing ingenuity and pragmatism to get funding done. By Addison Gong and Ralph Sinclair.

Fed comments keep issuers out of the market as year-end nears