UBS

The political upheaval in Italy is already making US investors go cold on European risk, which could magnify the market disruption Europe is likely to face in the coming months. The effects are even changing expectations on US monetary policy.

The Swiss franc bond market showed this week that it is well insulated from the turmoil affecting the euro market as South Korea’s Hyundai Capital raised Sfr300m from a tightly priced five year bond. With cross-currency basis swaps coming down, and low new issue premiums, Zurich-based bankers are keen to showcase the pricing competitiveness as well as the stability of their market.

A topsy-turvy market backdrop is pushing a slew of Chinese borrowers, mainly property companies, to raise funds by tapping their existing dollar bonds. Buy side interest remains, but only for the right names, writes Addison Gong.

Hyundai Capital returned to the Swiss franc bond market after roughly four years away on Wednesday. The South Korean car company was a regular feature in Switzerland up until 2014, but as conditions grew worse for international borrowers each bond expired and was not refinanced like for like. But this is beginning to change as the Swiss market proves more resilient to European political volatility than core markets.

UBS has hired senior investment banker Ranjan Sharma as head of equity capital markets for India, according to a source familiar with the matter.

Property developers Times China Holdings, Central China Real Estate and China South City Holdings raised funds from the dollar bond market on Monday, with all three finding sufficient buy-side interest.

Lord Jonathan Hill, the former EU commissioner and architect of the Capital Markets Union project, has joined UBS as a senior adviser in its investment banking business.

China Energy Reserve & Chemicals Group Co (CERCG) said on Sunday evening that it has officially defaulted on its dollar bonds, marking the third offshore default from Greater China in recent weeks. Markets participants are not stressing about it though, but are instead optimistic about a strong week for primary and secondary markets.

China Overseas Grand Oceans Group (Cogo) raised a larger than expected $500m from a three year bond on Thursday, a week after pulling a 2023 transaction. Future Land Holdings Co also managed to woo investors to a $200m tap.

Food and beverage company Del Monte Pacific has got the nod from the Philippine market regulator to spin off its local subsidiary, according to a stock exchange filing.

Polish financial institution mBank has returned to the Swiss franc bond market. Like many sold in the past few weeks, the bonds were priced at the wider end of guidance — a sign that the market is returning to more conventional spread levels, and investors are expecting higher returns.

UBS has merged its corporate client solutions team for China with the Hong Kong and Taiwan unit, according to an internal memo seen by GlobalCapital Asia.