US election 2016

Leading US financial institutions were quick to condemn the shocking attacks on the US Capitol on Wednesday — a sign that they are willing to take positions on important social issues, in line with the industry’s eagerness to align with good environmental, social and governance standards.

Equity capital markets bankers and investors are finally starting to put their feet up at the end of a historic but tumultuous year. Issuance has been at the forefront of the economic response to the coronavirus after being shuttered by the initial pandemic sell-off with innovation and perseverance ensuring that companies had the funds to survive. In order to mark the end of 2020, GlobalCapital looks back on some of the most noteworthy events and deals.

Three banks launched new senior deals in euros on Monday, taking advantage of a jubilant tone in the market following Joe Biden’s victory in the US presidential election. That sentiment received a further boost during the morning trading session when Pfizer and BioNTech revealed successful Covid-19 vaccine trials.

The US presidential race was still on a razor’s edge as GlobalCapital went to press on Thursday. The US political landscape — and with it, the trajectory of the capital markets — looked set to unfold in individual voting districts over the coming hours and days. But soon, the focus will broaden once more and investors will attempt to map out their long-term view of where to place their money, write Lewis McLellan, Sam Kerr, Mariam Meskin and Oliver West.

Just because it seems unlikely that in the US election the Democrats will take both the White House and the Senate, it does not mean that capital markets should become despondent about a fiscal stimulus package that could have reached $2.3tr had the so-called "blue wave" made a clean sweep.

Capital markets bankers are preparing to restart issuance next week to take advantage of a rally should Joe Biden be confirmed as president-elect of the US by the end of this week, write Sam Kerr, Tyler Davies, Oliver West, Mariam Meskin, Michael Turner and Lewis McLellan

Asia’s dollar bond issuers hit pause this week as all eyes turned to the outcome of the nail-bitingly close US presidential election. With the result still uncertain on Thursday, but signs showing a Joe Biden victory as a possibility, some bankers in the region reckon the debt market may be at full throttle from next week. Morgan Davis reports.

Germany found lacklustre demand for its second ever green bond on Wednesday. The sovereign had to contend with a big drop in Bund yields following uncertainty over the US election result.

Global equity markets have reversed earlier losses after former US vice-president Joe Biden gained momentum in the presidential race on Wednesday afternoon, giving capital markets bankers hope that a decisive result this week might be possible.

The eventual result of Tuesday's US presidential election could have a monumental impact on the position of key emerging markets states like Russia and Turkey in the international arena.

The US presidential election result was far from clear on Wednesday morning but, while uncertainty is never a popular result, the SSA market is unlikely to be derailed for long.

Convertible bond investors are preparing for elevated levels of volatility in the wake of the extremely close US election results, but many are waiting for more results in key states before taking a view on the direction of the market.

Uncertainty over the outcome of the US presidential election is threatening to delay deal plans in the bank bond market, with issuers having lined up new transactions in the aftermath of a successful results season.

European high grade corporate bankers have dubbed the immediate aftermath of Tuesday's US elections the “worst of all worlds”, but are confident that the euro primary market will resume next week.

Equity markets awoke on Wednesday morning to an inconclusive US presidential election where there is no clear winner between US president Donald Trump and his challenger, former vice president Joe Biden. Equity capital markets are likely to remain shut for at least the next few days as they wait to find out who has won especially as vitriol between the candidates increases.

As Americans went the polls on Tuesday, equity investors were positioning themselves for a decisive Democrat victory and a rally in stocks. While primary markets fell silent across asset classes, the pipeline for SSA bonds will likely spring back to life whatever the result. For riskier asset classes, the immediate future for primary markets is less clear.

Oil-dependent emerging market countries have once again found themselves at the fore of capital markets discussions amid another drop in oil prices. Ahead of tomorrow’s US presidential elections and with a wave of lockdowns announced across Europe, commodity markets are coming under pressure.

Ion Analytics has postponed a $1.85bn leveraged loan financing the combination of Dealogic and Acuris, blaming "market volatility ahead of today’s US presidential election". With final commitments due on Monday, closing the issue was always going to be tight, but liquidity dried up too early for the company to clear out its costly private debt.

Bank bond spreads have moved tighter on the secondary market over the last two days, driven in part by a lack of supply and the prospect of a victory for Joe Biden in the US presidential election. But not all segments are seeing gains, as investors are still shying away from riskier paper amid uncertainty around the vote.

Bond markets in Latin America were quiet on Monday ahead of Tuesday’s US election. But the Mexican peso, and bonds issued by state-owned oil giant Pemex, could be most vulnerable to a surprise or uncertain result given they are two of the most liquid assets in EM.

Donald Trump and Joe Biden each present a different set of medium-term risk factors for emerging markets if they win next week’s US presidential elections. But the US Federal Reserve’s promise to keep rates lower for longer — combined with unprecedented monetary policy support from other developed market central banks — should provide a cushion that is more relevant to EM bonds than the Oval Office’s occupant. Mariam Meskin and Oliver West report.

The US presidential election is next week but, unlike the rest of the world, capital markets professionals are not rooting for Joe Biden or the incumbent, Donald Trump, to win. Instead, they just want a clear result that will spur issuance for the rest of the year. Sam Kerr, Mike Turner, Lewis McLellan, Mariam Meskin, Frank Jackman and Aidan Gregory report.

The UK's shock election result, in which prime minister Theresa May failed to secure a majority, has led to a slight fall in equity volatility, as the FTSE 100 rose on a weaker pound and European stocks rallied.

The corporate credit market has given an almighty shrug on Friday to the surprise UK election result that came in overnight, with primary issuance expected to resume as normal next week helped by technical factors.

Market participants were unfazed by the hung parliament result in the UK election on Friday morning.

Emerging market loans bankers felt positive about the first round of French presidential election results on Monday but cautioned that they expect little immediate reaction in their sector.

The result of the first round of the French election has imbued the markets with a fresh confidence, prompting the European Financial Stability Facility (EFSF) to mandate banks for its third dual tranche trade in a row.

The corporate bond market is readying itself for a flurry of primary market trades, with risk appetite ramping up after the French presidential election first round passed without any major surprises.

French election anxieties dropped out of derivative markets with astonishing speed this week, as centrist pro-EU candidate Emmanuel Macron’s first round election showing set him on course for the French presidency.

A strong showing from Emmanuel Macron in the first round of the French election has been greeted as an “overwhelmingly positive development” by those in capital markets, according to a head of SSA DCM, and provides an exceptional backdrop for the European Financial Stability Facility’s expected benchmark.

French and European periphery covered bond spreads were tighter on Monday following the result of the French presidential election first round vote. Bankers have urged issuers to take advantage of the bounce to secure funding.

Risk appetite has returned to the corporate bond market after independent centrist Emmanuel Macron came out on top of the first round of voting in the French presidential election on on Monday morning.

Following several months of apprehension in the run-up to Sunday's first round vote in the French presidential election, French banks can now look forward to better issuance conditions and lower funding costs as they build towards their regulatory capital requirements.

Emerging market debt was tighter across the board on Monday morning, after a favourable outcome in the first round of the French presidential election spurred a rebound in core market asset prices.

The leveraged finance market in Europe has shared in the cheerful sentiment across markets on Monday morning as the first round of voting in the French presidential election suggested centrist Emmanuel Macron was the favourite to win the run-off in two weeks’ time.

Fears of a far right victory in the French presidential election receded on Sunday night after Emmanuel Macron won the largest share of the vote to make it into the second round alongside Marine Le Pen, the National Front leader.