UK

The charging of four Barclays executives and the group itself on Tuesday after a UK Serious Fraud Office (SFO) investigation might, at last, satisfy the public desire to see bankers banged up. But it’s hard to see what else it will achieve.

British Telecommunications brought its second triple tranche euro bond transaction in 16 months on Tuesday. The orderbooks were heavily oversubscribed, with demand skewed toward the longest tranche.

Bank of England governor Mark Carney welcomed parts of the European Commission’s draft proposals on euro clearing this week while warning against relocating the activity from its base in London.

The multi-tranche theme of the week continued on Tuesday. British Telecommunications and Coentreprise de Transport d’Electricité both launched triple tranche bond deals, with the volume skewed towards the longer tranches.

Compass Group, the UK food service group, offered investors a choice of main courses on Monday, combining a €750m seven year bond with a £300m 12 year. Demand was plentiful for both and the new issue premia were minimal.

Greencoat Capital, the renewable energy investment manager, started investor education on Monday for a mid-July listing of a new Irish wind farm vehicle on the London and Dublin bourses, hoping to raise €250m.

As temperatures across Europe hit new highs for the year, primary issuance is also hotting up in its corporate bond market. Borrowers led the charge on Monday with three well received deals totalling five tranches.

European corporate bond markets have quickly shrugged off the uncertainty surrounding the UK election result and central bank meetings, and look set for a busy end to June.

A few months ago political risk was the new big driver of the markets. Yet as UK politics enters its most uncertain period in decades, the country’s banks are jumping into the market and accessing credit cheaply. Supply dynamics, not politics, are king, writes Jasper Cox.

In contrast with its US counterpart this week, the Bank of England elected to keep its base interest rate on hold at 0.25% at its meeting on Thursday. However, the vote was closer than expected and the circling hawks caused a sell-off in Gilts and may have spoiled the outlook for sterling borrowing.

US telecoms company AT&T returned to European markets on Wednesday with a £1bn September 2037 bond, as it followed up a €7bn multi-tranche deal it sold just a week earlier.

In contrast with its US counterpart this week, the Bank of England elected to keep its base interest rate on hold at 0.25% at its meeting on Thursday. However, the vote was closer than expected and the circling hawks caused a sell-off in Gilts.