United States

Buy and sell side credit traders expressed disappointment on Thursday, after the US Federal Reserve elected to keep interest rates on hold.

As derivatives markets girded for an FOMC announcement on Thursday, some traders said they were exhausted with speculation about the timing of a hike.

There was speculation this week among credit market participants that a recent high profile US legal settlement could open the door for a wider array of credit default swap clearing houses and exchanges. But firms at the heart of the battle refused to be drawn on whether the outcome could change the structure of the market.

Equity capital markets bankers are looking forward to a busy autumn season of deals in Europe, now that the Federal Open Market Committee’s much-anticipated interest rate decision is out of the way. Deals that had been kept back are now likely to be announced next week.

Indian pharmaceutical companies are creating a buzz in the loan market by seeking debt to fund outbound acquisitions. While other sectors in the country are yet to kick off such spending in a big way, the pharmaceutical industry has been an exception, and bankers are hoping for more opportunities to finance purchases. Shruti Chaturvedi reports.

The US risks becoming “incredibly isolated” in its approach to securitization regulation, as Europe and potentially other regions implement standards for high quality securitization, delegates at IMN’s ABS East conference heard.

A measure of calm is returning to energy commodity markets after a series of wild weeks, but implied volatility measures remain heightened across the sector.

UBS is planning to raise senior debt at group level in what has been a busy year for the borrower.

Exasperated European FIG bankers are unsure whether the US Federal Reserve will raise rates on Thursday but they do agree that the central bank should “get on with it”.

Two Indian pharmaceutical companies, Cipla and Lupin, are sounding out banks for loans to fund recent acquisitions in the US.

As credit markets prepare for the FOMC announcement on Thursday, some traders said they are exhausted with speculation about the timing of a hike.

Pentair, the UK-headquartered maker of fluid and thermal systems, priced a €500m bond in line with initial price thoughts on Monday, after deciding to plough ahead with its funding plans despite a difficult market.