Search results for

The European Stability Mechanism has received its first ever credit rating from Standard & Poor’s to complete its set of top notch grades from the three major credit rating agencies.

Covered bond issuance usually picks up around this time of year and bankers believe next week is likely to be particularly promising. Though funding needs have generally been cut, borrowers may be tempted to move before an expected surge in competing EU government bond supply that is likely to make covered bonds look expensive.

Equity capital markets bankers are expecting to have more mergers and acquisitions to finance in the coming months as companies seek to acquire rivals weakened by the Covid-19 pandemic or try to save themselves by bulking up.

A UK government spokesperson has told GlobalCapital that the UK is exploring ways to support private equity-backed businesses that fall foul of EU rules around state aid. Accredited lenders under the UK government’s emergency corporate loans schemes are rejecting applications by many private equity-backed companies, fearing they do not fit the eligibility criteria.

World Bank has printed a $700m bond linked to the Secured Overnight Financing Rate (Sofr) with a seven year maturity — the longest ever Sofr-linked bond from an SSA borrower.

Struggling Gulf state Bahrain has fallen further into junk territory, with its budget deficit expected to balloon as a result of an oil price slump and the Covid-19 pandemic. But it is not all gloom, experts said, as bond markets remain wide open for high yield issuance.

Royal Bank of Canada agreed to a further extension for a performance trigger waiver on its securitization facility with Amigo Holdings and slimmed the facility down from £300m to £250m. Separately, founder James Benamor vowed to return to the company.

A financial markets legal charity has warned the UK against diverging from EU law through its transposition of the Bank Recovery and Resolution Directive (BRRD II), arguing that significant changes could increase the ‘operational burden’ on firms after Brexit.

Investment grade corporate funds are swimming against the tide of other assets and seeing a steady stream of money flowing in, as European syndicate bankers say that this will lead to excellent conditions when deal flow starts again after the summer break.

Supply chain finance company Greensill has hired Peter Charles as vice-chairman of distribution and Dolph Habeck as managing director, head of distribution of the Americas, the company told GlobalCapital.

Bank capital funds have been recouping losses and welcoming new inflows after suffering heavily in the early stages of the coronavirus pandemic.

The period since March has been a turbulent time for financial markets, and the CLO sector in Europe dealt with a complex set of disruptions when the pandemic arrived this spring. From sudden and acute stress at the corporate level, to an unprecedented shift in working conditions, CLO players in Europe experienced uncertainty not seen since the last crisis. Yet, the market has adapted, and while the shape and size of deals may be different, CLOs in Europe are pushing ahead. BNY Mellon and GlobalCapital gathered market experts to discuss the present state of the European CLO market and its prospects.