UK

Panda bond issuance has so far been dominated by overseas-incorporated Chinese names. That bolsters volumes, but it does little to help the market fulfil its role of boosting RMB internationalisation. Policymakers have the chance to fix it — but only if they are bold enough to let markets play a bigger role.

The UK Debt Management Office drew praise on Tuesday as it priced the final syndication of its 2017-18 financial year at the tight end of a tiny guidance range. Bankers said that result, coupled with the behaviour of the UK’s outstanding curve over the course of the deal, was particularly impressive given a turbulent backdrop in the wider financial markets.

Ocado, the UK online grocer, raised £143m of fresh equity on Tuesday morning in an early day accelerated bookbuild led by Goldman Sachs and Numis Securities that finished “a few times covered”, according to a banker involved.

After a year of predictions that a bear market is coming off the back of monetary policy normalisation, people shouldn’t be surprised that investors are a little jumpy.

HICL Infrastructure Co, the UK infrastructure fund advised by InfraRed Capital Partners, has refinanced its £400m ($556m) revolving credit facility and managed to negotiate cheaper funding from its banking group.

Investors who financed bearish European equity positions with US short volatility strategies have been burned as the S&P 500 continued its downward trend on Monday, and realised volatility spiked.

Some loans bankers are looking forward to a wave of consolidation in the telecoms sector, as Vodafone said it was in talks with Virgin Media owner Liberty Global to buy some of the US company’s European assets.

Anglo-Dutch consumer goods company Unilever has become known in the corporate bond markets for its multiple tranche deals. On Monday it announced its third such trade in the last three years and investors showed they still have plenty of appetite for the name, helping the company print its largest ever deal.

Despite the latest bout of negative publicity surrounding it having used monkeys in emission tests lingering in the press, investors were still keen to buy Volkswagen’s new sterling corporate bond on Friday. The German car maker got over £500m of orders for the 4.5 year fixed rate deal.

Borrowers issuing sterling bonds with speculative grade ratings should find a receptive market despite the potential fallout of Brexit this year, Moody’s said in a report. It was a sentiment bankers and investors agreed with.

Just Group, the UK insurer, met with very strong demand of more than £1.1bn for a £230m tier three bond in the sterling market on Thursday.

Issuer Rating: Aaa/AAA