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Heathrow lands in Swiss francs, Austria extends green curve

International borrowers dominate this week's flow in the currency
Gulf AT1 deluge will be a challenge, with or without drone strikes

Easing won't be easy for new Fed boss

Lower rates will need lower inflation — and an FOMC consensus

CLOs prop up loan prices, betting on short Iran war

Leveraged loan prices have rallied from their post-war dip, with CLO demand remaining strong despite subdued LBO activity
Gulf AT1 deluge will be a challenge, with or without drone strikes
Sub-sections
  • US and European stocks rallied this week, recovering some of the losses suffered during the worst equity market sell-off since the 2008 financial crisis, but investors are not ready to pile back into the market yet, fearful of the spread of the Covid-19 coronavirus in the United States.
  • Toronto Dominion Bank attracted a slightly larger order book for its three year dollar covered bond on Friday than Bank of Nova Scotia did for a similar deal issued on Wednesday. Both deals offered a considerable pick-up to where they would have been expected to be priced in euros, but the overall spread outlook remains a subject for hot debate. At the same time on Friday, Canadian Imperial Bank of Commerce was set to issue a ‘blow out’ three year Swiss franc deal.
  • The euphoria that infused Europe’s corporate bond market from Tuesday to Thursday has cooled somewhat, although investors are still open for business. Bankers had said on Thursday that Friday would bring an interesting crop of deals, but there is only one, for paper company Mondi, rated Baa1/BBB+.