United States

Rating agency Standard & Poor’s said this week that global credit markets are poised either for a "slow burn" of deteriorating market conditions or something even worse: a credit exit, or "Crexit" — where a major economic or political shock triggers a shutdown of global markets altogether.

Morgan Stanley reported profits of $1.6bn for the second quarter of 2016 compared with $1.8bn in the prior year quarter.

US packaging firm Coveris is hoping to join a rush of transatlantic issuance, as it marketed a $350m dollar and euro denominated loan over a lender call on Wednesday.

Persistent dislocations between the CDS and cash bond markets are only likely to continue, because of the increased cost of regulations, limited balance sheet capacity at banks, and relative illiquidity in the cash bond markets, according to a staff report from the New York Federal Reserve.

With its $15bn of new bonds ratcheting tighter, Israeli-American pharmaceutical company Teva has set out the structure of the euro part of its M&A bond financing for the acquisition of Allergan's generic drugs business.

Bank of America Merrill Lynch kept pace with JP Morgan and Citi in the second quarter earnings announcements, with profits up across all four divisions, and especially so in the banking and markets divisions.

Mizuho Americas has hired Thomas Harnett as senior managing director and head of fixed income sales and trading.

US territory the Commonwealth of Puerto Rico has triggered a failure to pay credit event, the International Swaps and Derivatives Association’s Determination Committee has ruled after a week of deliberation.

Citi on Friday announced a drop in earnings during the second quarter, with CEO Michael Corbat blaming heightened uncertainty in light of recent geopolitical events, even as the bank beat analyst estimates and reported higher trading revenue in fixed income.

JP Morgan, fresh off the back of its projection-beating results, was the sole issuer in the European FIG senior market on Monday. The bank was sole bookrunner on its benchmark euro-denominated 7.5 year senior unsecured bond.

The Michael Bloomberg-led working group is seeking to establish a RMB clearing hub in the US. Michael Knorr, head of payments and liquidity risk management at Wells Fargo, and a member of the group’s operating model options subcommittee, gave GlobalRMB his views on the challenges ahead.

In this round-up, Singapore Exchange reports strong trading of RMB currency futures, China’s RMB cross-border trade settlement jumps and sales under Mutual Recognition of Funds (MRF) pass Rmb2bn in May. Plus, a recap of GlobalRMB's coverage this week.