TD Securities

The public sector market is awaiting the final big event of 2016 in the shape of the US Federal Reserve’s rate decision later on Wednesday. But while a US rate rise looks all but a certainty, some funding officials are anxious about the potential for volatility in the dollar market next year from a different source — politics.

KfW tapped a December 2019 sterling line on Tuesday, printing £200m to round off the agency's strongest year in sterling since 2008.

A pair of public sector borrowers hit screens this week for dollar syndications, providing an unexpectedly strong climax to 2016.

Kommunalbanken raised A$40m ($29.7m) from an Australian dollar tap on Tuesday after sole-arranger Daiwa found two more Japanese life insurers to take an earlier reverse enquiry above the Norwegian agency's minimum size of A$30m.

The Canadian province of Alberta sold on Thursday its largest ever dollar benchmark with a deal that benefitted from a double whammy of being its first as an SEC-registered issuer and a strong credit story for the oil producer following a rise in the commodity's price in the wake of Opec’s decision on Wednesday to cut production.

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Violent volatility as bond investors adapted to a new rates landscape following the election of Donald Trump as US president quelled demand for public sector paper this week, with one issuer understood to have opted against bringing a planned deal. There is hope that calm will return in time for the January funding rush — but some fear the president-elect represents a continuous risk to market harmony.

Bank Nederlandse Gemeenten has fallen just shy of full subscription with its first ever dollar sustainability bond, as bankers lamented a volatile backdrop in one of the last clear funding windows of the year. GlobalCapital understands that choppy markets put off another borrower from issuing a dollar green bond.

Public sector borrower supply is beginning to trickle through after a volatile Monday, but bankers are warning that market conditions are far from perfect — and some issuers are still unwilling to take a chance on a deal.

TD securities has hired a banker to join its origination and syndication team in London.

The European Investment Bank added a A$100m ($75.5m) tap to its August 2026 Kangaroo bond on Monday.

Donald Trump may have pledged to “make America great again”, but his election as US president this week could also make 10 year dollar benchmarks trade again.