The US investment-grade bond market shifted back into overdrive last week, with a surprise burst of new deals led by a US$17.75bn jumbo acquisition financing by AT&T.
Australian miner Fortescue Metals Group sealed a crucial US$2.3bn refinancing last week, but was forced to pay investors a lot more than they had demanded on last month’s aborted first attempt.
The European Banking Committee voted on Friday to postpone new capital rules for clearing houses, amid speculation that negotiators will fail to resolve an impasse over US-based operators before a June 15 deadline.
European regulators have conditionally settled on a final definition of high frequency trading, increasing momentum for tighter regulation of the controversial market.
The European Central Bank’s quantitative easing programme has pushed yields to such low levels that ratings agencies and market players have warned that eurozone countries have less incentive to put in place reforms that are key to future growth.
Ukraine took a significant step forward in its debt restructuring plans last week, after reaching agreement with an ad hoc committee of creditors to the State Export-Import Bank of Ukraine – or Ukreximbank – about the broad outlines of restructuring a US$750m bond that comes due this Monday.
Argentina won a small victory in its long legal war against holdout bondholders last week when it overrode litigant investors’ objections to raise US$1.416bn through a local tap of its Bonar 8.75% 2024s.
Brazilian corporate bonds in the secondary market were on a tear on Thursday after oil company Petrobras avoided a covenant breach with the publication late on Wednesday of its long-awaited audited results for 2014.
Russian potash producer Uralkali became the first Russian corporate to complete an internationally syndicated loan in 2015 when it signed a US$530m four-year secured pre-export financing.
A US$6.4bn bond from China’s biggest oil refiner has paved the way for more jumbo debt sales from the country as global monetary easing continues to drive offshore borrowing.
The European Financial Stability Facility last week successfully accessed bond markets at a time when its largest debtor, Greece, is at a key stage of bailout negotiations that could decide whether or not it defaults.