UK

The Financial Conduct Authority (FCA) has released a study of UK bond market liquidity arguing that regulation has not damaged bond market liquidity — a view starkly at odds with that of many market participants. The study, however, has serious limitations as a study of trading practice.

UK covered bonds have not tightened alongside covered bonds from other jurisdictions in recent weeks, but they have not yet seen any real selling either. While it seems likely the UK market would be sold following a potential Brexit, this should provide a buying opportunity given that the market should not widen any further than Canada.

UK moves to restrict the tax deductibility of debt have worried borrowers, such as commercial real estate companies and private equity, whose business model relies on high leverage. But the changes, which follow existing tax avoidance plans from the OECD, have a big escape clause for most firms.

UK utility company SSE is in the market for its first private placement since its debut in 2012 and investor appetite for the firm’s paper appears as strong as before.

Deutsche Börse and the London Stock Exchange Group have agreed terms for an all-share ‘merger of equals’, in a push for European derivatives dominance that turns up the pressure on US rivals.

The UK Debt Management Office is reshuffling its funding strategy for the 2016-17 financial year, including adding the possibility of selling short to medium term conventional Gilts via syndication.

Simon Nixon, co-founder and one-time CEO of UK price comparison website MoneySupermarket.com, completed his exit from the firm on Wednesday night in the last of five block trades that together have brought him over £600m.

Barclays plc launched €1.5bn in five year senior debt on Wednesday, as it became the third UK issuer in the last two weeks to take strong investor demand for holding company level funding.

Credit Suisse launched a block trade in MoneySupermarket.com, the UK price comparison website, on Tuesday night. The trade is the fifth and last public block sale by Simon Nixon, the company's co-founder.

Royal Bank of Scotland returned to the market for its first holding company senior issue in nearly two years, raising €1.5bn in seven year debt as spreads across the asset class continue to perform strongly.

Secure Income Reit, the UK business that listed on London’s junior stock exchange nearly two years ago, has launched a secondary placing of shares in a bid to widen its shareholder base.

A number of UK banks are expected to tender for operating company debt in the coming months, following in the footsteps of Barclays, which announced the results of its latest buyback on Wednesday.