UK

Technical support for the sterling bond market still remained strong, investors said this week, as the UK’s Debt Management Office starts to shape up its multi-billion sterling issuance schedule.

Skipton Building Society took advantage of a strong credit market and brief hiatus in the quickly evolving and politically chaotic backdrop to Brexit to issue a £600m five year Sonia linked covered bond. The deal was more heavily subscribed and attracted a broader range of investors than any of its previous deals, yet was priced with little or no new issue premium.

Skipton Building Society has mandated leads for its first Sonia-linked covered bond. The issuer follows National Westminster Bank and takes advantage of an improvement in sentiment that followed a UK Parliament vote last week.

Investors and market makers have told the UK’s Debt Management Office (DMO) to bring a syndicated bond in May, but there are mixed views on what maturity the issuer should target.

UK capital goods firm CNH Industrial has signed a €4bn revolving credit facility in a rare bout of activity in the high grade loan market, with bankers saying the lethargy is going to continue for the foreseeable future.

Lloyds Bank and National Westminster Bank issued exceptionally well subscribed covered bonds respectively in euros and sterling on Monday as Virgin Money announced roadshow plans for its debut deal. The three borrowers took advantage of the UK Parliamentary vote to avert a ‘no deal’ Brexit.

US Solar Fund, the new investment trust focused on US solar power assets, has extended the bookbuilding period for its $250m IPO on the London Stock Exchange, citing political and economic uncertainty caused by the Brexit process in the UK.

Shares in Just Group, the UK life insurance and annuity provider, have stayed above water in the aftermarket after it completed a £75m daytime capital increase on Thursday to strengthen its balance sheet. The deal was to meet stricter capital regulations imposed on equity release mortgage lenders by UK regulators.

Interserve, one of the largest outsourcing companies in the UK, plans to file for administration after shareholders rejected a proposed debt for equity swap at a general meeting on Friday.

The sterling public sector market was on pause this week as the UK parliament held a series of votes to determine the outcome of Brexit this week.

The exceptionally strong demand in Europe’s corporate bond market has remained unaffected by the turmoil in the UK’s Parliament, as MPs vote night after night on repeated motions that could determine the country’s future inside or outside Europe. On Thursday, two issuers attracted huge books: Marsh & McLennan Companies, the US insurance and investment services group making its debut in euros, and Incommunities Group, a Leeds-based housing association, in sterling.

Bank of America has appointed two co-heads of UK investment banking.