UK

Despite offering an attractive premium, TSB Bank was unable to garner enough interest for its five year sterling covered bond on Thursday, forcing it to postpone the deal. The decision followed a high level UK government resignation that caused considerable market volatility in the UK banking sector.

London-based clearing house LCH has started processing swaption trades through its SwapAgent service, making a play for the largely uncleared market.

A large UK council has held discussions with a selection of US private placement (US PP) arrangers over the possibility of raising more than £200m in a single issue, according to a senior banker familiar with the situation.

An unfortunately timed Gilt auction recorded the highest yield tail — an indicator typically inversely proportional to an auction’s perceived success — in nearly a decade on Thursday, as several UK government ministers resigned over the draft Brexit agreement with the EU. But SSA bankers said that while the tail was “optically” bad, the wider context meant the Gilt sale had been a success.

Corporate bond investors have had to pick their way through a tricky market in 2018. A number of headwinds, both predictable and not, have made it difficult to produce the returns of previous years. However, there are a number of positives that remain, so how should investors move forward from here?

The European Commission, on Tuesday, told UK clearing houses and securities depositories to pre-apply to the European Securities and Markets Authority (ESMA) for recognition, should hard Brexit take place.

Renewables Infrastructure Group, the UK renewable energy investment company, has begun bookbuilding for a £80m follow-on offering on the London Stock Exchange, after the deal was given the green light by shareholders at a general meeting on Friday.

Kazatomprom, the world’s largest producer of natural uranium, priced a $451m IPO this week with a strong, but concentrated, book backing the deal.

The Restaurant Group, the London-listed owner of Frankie & Benny’s, is pressing ahead with the £315m rights issue it announced last month to finance its acquisition of Wagamama, the Japanese restaurant chain, despite concern from some investors over the rationale for the takeover.

Yorkshire Building Society (YBS) broadened its investor base on Friday with its first sterling covered bond in six years. The deal was set to price in line with a similar five year Sonia-linked bond issued this week by Coventry Building Society but with less demand. Even so, supply hopes remain alive.

In this round-up, China’s foreign reserves in October decrease $34bn due to the stronger dollar, monthly exports climbed more than expected, Singapore Exchange signed cooperation agreements to develop more opportunities for Chinese enterprises in Singapore.

Ireland’s Dalata Hotel Group has signed a €525m-equivalent loan facility, with new banks joining the acquisitive borrower’s lending group.