Carlos Slim’s America Movil last week gave the equity-linked market a much-needed shot in the arm with a record-breaking €3bn bond exchangeable into Dutch telecoms firm KPN. Investors rushed to buy with a flood of orders at strike, allowing the deal to be priced at the best terms for the issuer and still be 2.5 times covered.
Chinese brokerage Huatai Securities took full advantage of the frenzy in China’s stock markets last week to price its Hong Kong IPO at the top of its target range to raise HK$34.7bn (US$4.47bn).
The European Central Bank has asked European banks to provide detailed information on their leveraged lending operations as it starts to pay closer attention to a market that has come under regulatory scrutiny in the US.
Investors are snapping up pieces of a bond at the centre of a new US legal battle, betting it will deliver huge profits if regulators can prove it was part of an elaborate fraud.
Acquisitive European telecoms firm Altice surprised the market with yet another large M&A deal last week, revealing plans to buy US regional cable firm Suddenlink Communications for US$9.1bn.
Primary dealers are intensifying calls for European government issuers to harmonise the way they auction bonds. Facing a crippling capital regime under Basel III, rates businesses are on an efficiency drive and the complex web of auction systems, processes, procedures and calendar clashes that make up the European government bond market is proving costly and cumbersome to manage.
Canadian ecommerce platform provider Shopify gave the US technology IPO market a much-needed thrill last week, surging on its NYSE/TSX debut amid massive levels of oversubscription.
A rally in oil prices that has pushed WTI spot levels above US$60 has drawn a spate of hedging activity as producers look to lock in 2016 cashflows.
Ongoing discussions on the Greek debt crisis are likely to have a big impact on just how much enthusiasm the European Financial Stability Facility will generate for a planned return to bond markets this week.
If local newspaper reports prove to be true, Argentina’s Province of Buenos Aires is all set to launch a new bond deal worth at least US$500m in the next few days.
China’s plan to help local governments swap their debt for bonds might avert a funding crunch for the provinces and help its slowing economy, but it risks suspending reform of its dysfunctional credit markets just to push the debt problem down the road.