United States

Goldman Sachs and JP Morgan became the first banks to hit the dollar market after the election of Donald Trump as US president provided an unexpected fillip to credit markets.

Bizarre trading dynamics conspired to save over-confident trades backing a Hillary Clinton victory in the US presidential election, with a ‘Trump bounce’ in the aftermath curtailing volatility and sending many short-volatility plays back into the money. But the shock of the Republican victory adds to that of the Brexit vote in June and has jolted market complacency on other political events in the coming months.

It wasn’t just pollsters that were left scratching their heads this week in the US as syndicate bankers were also expressing surprise at the resilience of domestic credit markets following the election of Donald Trump as their president.

US and European financing markets are wide open for business despite the shock US election result, and banks are pressing on with M&A mandates with seemingly renewed vigour. Elly Whittaker reports.

The FIG market showed poise following Donald Trump’s shock victory in the US presidential election this week, with new issuance restarting within a single day. But the result has not passed without consequence, as market participants prepare themselves for further political turmoil.

One thing needs to be made clear about a Trump presidency in the US: the president-elect is not a Wall Street Republican and he did not rely on the support of bankers to win the White House.

Deutsche Bank and HSBC are co-ordinating the loans for British American Tobacco’s acquisition of a 57.8% stake in Reynolds American.

Two corporates hit the new issue market on Thursday, one clinching a 0% yield and the other paying only a single digit new issue premium, despite volatility in rates markets.

UK banks will be allowed to use one year call structures to optimise the capital eligibility of their senior bonds, after the Bank of England published new rules governing the minimum requirement for own funds and eligible liabilities (MREL).

US and European equity investors have reacted with a degree of equanimity to Donald Trump’s capture of the White House, fastening on to the idea that he is likely to stimulate the US economy with deficit spending.

Citigroup has made a new appointment in its Americas equity capital markets business.

Velocity, a derivatives blockchain project, has closed, saying that financial derivatives “are a little too early” for the Ethereum ecosystem.