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Friday, 15 December 2017

Logo of Tesoro Corp.

Investors endeavor to buy Andeavor bonds

15 December 2017 By

Investors went piling into Andeavor’s bond deal on Thursday, pushing final order books to US$8bn for the US$1bn two-part trade.

Teva

Teva inches closer to junk ratings

14 December 2017 By ,

Teva Pharmaceuticals inched closer to junk Thursday after Moody’s placed its rating on review for downgrade, saying new cost cuts - including slashing 14,000 jobs - were not enough.

ECB and BoE

ECB leaves door open for longer, bigger QE

14 December 2017 By

ECB president Mario Draghi stressed that the bank’s asset purchase programme might be further extended and/or increased depending on financial conditions during a press conference on Thursday, adding that at present an ample degree of monetary stimulus remained necessary.

EU flags fly in front of the ECB headquarters in Frankfurt

ECB changes collateral eligibility criteria for UBBs

14 December 2017 By

The European Central Bank has tweaked the collateral eligibility criteria for unsecured bank bonds (UBBs) in a move that is likely to discourage banks from holding other lenders’ loss-absorbing debt.

Inter Milan fans, San Siro Stadium

Unusual structure for Inter Milan's rare football bond

14 December 2017 By

Inter Milan has closed books on its €300m debut high-yield bond, brushing aside concerns about a rare structure that borrows project finance techniques.

UniCredit

UniCredit AT1 treads water in secondary

14 December 2017 By

UniCredit’s Additional Tier 1 trade was bid just below reoffer in the secondary market on Thursday morning after lower liquidity ahead of year-end seemed to take its toll on demand.

Belgian flag

BNPP and Credit Agricole to advise on Belgium's Green bond

14 December 2017 By

The Kingdom of Belgium has hired BNP Paribas and Credit Agricole to advise on its forthcoming Green bond, only the third such issue from a European sovereign.

Disney bonds

IFR SNAPSHOT: It's animal planet as Mouse snags Fox

14 December 2017 By

Disney is buying the entertainment businesses of Rupert Murdoch’s Fox empire, including the studios that make the Marvel superhero films, in a US$52bn all-stock deal.

Rentenbank logo

Rentenbank issuance to drop slightly in 2018

14 December 2017 By

Rentenbank plans to borrow up to €11bn with maturities of more than two years in 2018, a decrease on the €12.3bn raised in the capital markets so far in 2017.

Turkey, Islamic finance, sukuk

CBRT hike wrong-foots market

14 December 2017 By

Expectations of the Central Bank of the Republic of Turkey hiking the late liquidity facility by at least 100bp hike were dashed as the institution announced an increase of just 50bp to 12.75%.

SUNAC

Morgan Stanley launches Sunac top-up

14 December 2017 By

Morgan Stanley is in the market with a top-up placement of shares in Hong Kong-listed property company Sunac China.

Barcodes

Trading venues stall on MiFID II swaps reporting utility

14 December 2017 By

Many large trading venues are yet to sign contracts for a new service that allows them to create International Securities Identification Numbers for over-the-counter derivatives – a crucial step for MiFID II reporting requirements that come into play on January 3.

ESM

EFSF and ESM increase 2018 funding target

14 December 2017 By

The European Financial Stability Facility and European Stability Mechanism have increased their combined funding programme for 2018 by €6bn from the initial target following a decision to pre-fund early 2019 rollover needs.

Societe Generale headquarters

MOVES-Societe Generale promotes Garnier in global markets

14 December 2017

Societe Generale has promoted Yann Garnier to head of sales for global markets as part a number of changes in the business.

Blessing CEO of Commerzbank addresses news conference in Frankfurt

MOVES-Veteran banker Blessing to head UBS's wealth arm

14 December 2017 By Michael Shields, Oliver Hirt

Veteran German banker Martin Blessing will replace Juerg Zeltner as the head of UBS’s market-leading wealth management business at the turn of the year, Switzerland’s biggest bank said on Thursday.

Green light

Tax breaks could help UK's Green bond credentials

14 December 2017 By

The UK should consider tax breaks for firms issuing Green bonds and set up a green standards board to help it become a global hub for finance linked to environmental or climate-related benefits.

All Latest news

Made to be broken

IFR 2213 9 December to 15 December 2017

Last week the three main US bank regulators, including the Federal Reserve, told Congress they would consider revising the post-crisis guidelines on leveraged lending. It was a victory for Republicans trying to roll back financial regulation – or at least it looked like one.

Top News

An olive branch is seen during harvest

Regulators to soften US loan rules

IFR 2213 9 December to 15 December 2017 By ,

US regulators said they are open to revising restrictions on leveraged lending, offering an olive branch to a Republican-controlled Congress keen to roll back banking regulations.

A CVS pharmacy

CVS lines up US$49bn jumbo loan

IFR 2213 9 December to 15 December 2017 By Lynn Adler

US drugstore operator CVS Health Corp has lined up US$49bn of loans to back its US$69bn acquisition of health insurer Aetna, supporting the largest corporate merger of the year with the second biggest US acquisition financing on record.

Indonesian President Joko Widodo (C) makes a statement on the U.S. recognition of Jerusalem as Israel's capital, at the Presidential Palace in Bogor, West Java, Indonesia.

Indonesia goes Global with SEC trade

IFR 2213 9 December to 15 December 2017 By

The Republic of Indonesia capped its return to full investment-grade status with a strong US response to last Monday’s US$4bn Global offering, its first SEC-registered bond issue in more than 20 years.

Steinhoff International logo

Steinhoff scandal leaves banks gauging exposure

IFR 2213 9 December to 15 December 2017 By ,

Banks that financed Steinhoff International’s rapid expansion have been left gauging their exposure – both financial and legal – to the South African retailer after “new information” emerged relating to possible accounting irregularities.

Christmas trees await recycling

Busy Christmas looms for banks' MiFID geeks

IFR 2213 9 December to 15 December 2017 By

Holiday leave has been cancelled and hundreds of technology and compliance staff are set for a busy holiday period in Europe as banks rush to prepare systems for MiFID II, one of the biggest overhauls of trading ever seen.

A booth of Lufax is seen during an exhibition in Beijing, China, August 4, 2016.

Lufax nears IPO as HK pipeline swells

IFR 2213 9 December to 15 December 2017 By

Chinese online wealth management and peer-to-peer lending company Lufax has set the ball rolling on a Hong Kong IPO that could raise US$3bn–$5bn, even as China takes steps to crack down on consumer finance.

Freddie Mac headquarters

Freddie Mac tunes HARP for new bond deal

IFR 2213 9 December to 15 December 2017 By

Freddie Mac has sold its first ever securitisation of mortgages from the HARP relief programme that helped underwater borrowers stay in their homes after the financial crisis.

A farmer removes dried plants from his parched paddy field on the outskirts of Ahmedabad, India.

Banks reject aggressive buyout loans

IFR 2213 9 December to 15 December 2017 By

Bank lenders to European leveraged loans are increasingly rejecting deals due to aggressive pricing and documentation, but are being quickly replaced by institutional investors targeting higher-yielding term loan B paper.

Us dollar and euro banknotes

High-yield issuers in late-year frenzy

IFR 2213 9 December to 15 December 2017 By , ,

The junk bond market is ending the year on a frantic note with some 25 different issuers from both sides of the Atlantic jumping into the primary last week after a brief spell of weakness a month back.

DZ Bank headquarters

Bond platform raises small-cap hopes

IFR 2213 9 December to 15 December 2017 By

Attempts to extend capital markets funding to small and mid-cap firms took a step closer to reality last week as a new European private placement platform aimed at low-cost bond issuance completed its first deal, a €1m two-week commercial paper transaction for DZ Bank via ABN AMRO and DZ Bank.

IFR Magazine Top News in Full (subscription required)

People & Markets

At last: Basel capital rules agreed

IFR 2213 9 December to 15 December 2017

Financial regulators have finally agreed a deal to harmonise global banking rules, capping a decade-long effort to make banks more resilient and a year-long row over a key measure.

US banks brace for 15% Q4 trading fall

IFR 2213 9 December to 15 December 2017

The largest US banks are predicting revenue from bond and equity trading will fall about 15% in the fourth quarter from a year ago, putting trading revenues for the top five firms on course to end the year down 7% from 2016.

CEO of HSBC Stuart Gulliver speaks during a meeting with Chinese Premier Li Keqiang (not pictured) during China Development Forum 2017 at Diaoyutai State Guesthouse in Beijing, China.

HSBC Qianhai plans 50-person research team

IFR 2213 9 December to 15 December 2017

HSBC has expanded its Asia research business with a 15-person team in Shenzhen following the official launch this week of its HSBC Qianhai Securities joint venture, and expects to have 50 people in the medium term.

Managements and officials present a ceremony for founding China Great Wall Asset Management Co. in Beijing, China.

Errors build on Asia's record bond issuance

IFR 2213 9 December to 15 December 2017

The record volume of Asian bond issuance, coupled with a reduced number of staff at many banks and law firms, is leading to increasing errors in documentation, market participants have warned.

Credit Suisse gears up for Europe pick-up

IFR 2213 9 December to 15 December 2017

Credit Suisse is shifting its investment banking resources towards Europe ahead of what’s expected to be a substantial pick-up in deals in the region next year following years of subdued activity and false starts.

    More from People & Markets

    Bonds

    LBBW sells largest European Green senior

    IFR 2213 9 December to 15 December 2017

    LBBW sold the European banking sector’s largest Green senior unsecured bond yet, setting the size at €750m after attracting over €1.4bn in orders.

    NRW issues at longer end of the curve

    IFR 2213 9 December to 15 December 2017

    German Land North Rhine-Westphalia was back in the market once again last week, pricing a 25-year LSA transaction.

    Ultra-long bond bandwagon to roll on in 2018; ECB effect lingers

    IFR 2213 9 December to 15 December 2017

    Eurozone countries aim to tap persistent demand for extremely long-dated government bonds by borrowing more at these extraordinary maturities through 2018 as ECB bond buying drives yield-seeking investors further out along the time horizon.

    Foreign inflation biggest risk to IG in 2018: BAML

    IFR 2213 9 December to 15 December 2017

    The number one risk to the US high-grade corporate bond market in 2018 is a pick-up in foreign inflation, which could impact foreign flows into the asset class, according to Bank of America Merrill Lynch credit strategists.

    General Electric takes another hit to ratings

    IFR 2213 9 December to 15 December 2017

    General Electric was downgraded for the third time in the space of a month on Monday, after S&P cut the company’s rating by two notches to A from AA– due to increasing debt leverage and weaker cashflow.

      More from Bonds

      Loans

      An olive branch is seen during harvest

      Regulators to soften US loan rules

      IFR 2213 9 December to 15 December 2017 By ,

      US regulators said they are open to revising restrictions on leveraged lending, offering an olive branch to a Republican-controlled Congress keen to roll back banking regulations.

      A CVS pharmacy

      CVS lines up US$49bn jumbo loan

      IFR 2213 9 December to 15 December 2017 By Lynn Adler

      US drugstore operator CVS Health Corp has lined up US$49bn of loans to back its US$69bn acquisition of health insurer Aetna, supporting the largest corporate merger of the year with the second biggest US acquisition financing on record.

      Credit Suisse gears up for Europe pick-up

      IFR 2213 9 December to 15 December 2017 By

      Credit Suisse is shifting its investment banking resources towards Europe ahead of what’s expected to be a substantial pick-up in deals in the region next year following years of subdued activity and false starts.

      Acleda lures Taiwan banks to longer maturity

      Acleda lures Taiwan banks to longer maturity

      IFR 2213 9 December to 15 December 2017 By

      Acleda Bank, Cambodia’s largest lender, has successfully placed a US$50m five-year syndicated loan, becoming the latest frontier market borrower to take advantage of bank liquidity to extend loan maturities.

      Banco General defies Taiwanese chill

      IFR 2213 9 December to 15 December 2017 By ,

      Banco General has increased the size of an Asia-targeted three-year loan to US$800m from an original target of US$500m on support from Taiwanese banks, despite a diplomatic rift between Panama and Taiwan.

      A farmer removes dried plants from his parched paddy field on the outskirts of Ahmedabad, India.

      Banks reject aggressive buyout loans

      IFR 2213 9 December to 15 December 2017 By

      Bank lenders to European leveraged loans are increasingly rejecting deals due to aggressive pricing and documentation, but are being quickly replaced by institutional investors targeting higher-yielding term loan B paper.

      HNA to extend third offshore loan

      IFR 2213 9 December to 15 December 2017 By Yan Jiang

      Debt-laden HNA Group is extending another offshore loan related to its 2016 acquisition of Swiss airline catering firm Gategroup Holding, amid growing concern over the conglomerate’s access to funding.

      Hong Kong: CNHE makes loan debut

      IFR 2213 9 December to 15 December 2017

      Hong Kong-listed China New Higher Education Group is making its market debut with a HK$1.5bn (US$192m) five-year loan.

      More from Loans

      Equities

      Policybazaar readies India's first fintech IPO

      India prepares for first fintech IPO

      IFR 2213 9 December to 15 December 2017

      Policybazaar.com has started preparations to become the first Indian financial technology company to go public with plans for a US$200m–$400m domestic IPO.

      Japan: Nissin Foods IPO brings HK$952m

      IFR 2213 9 December to 15 December 2017

      Nissin Foods, a spin-off of Tokyo-listed Nissin Foods Holdings, has raised HK$952m (US$122m) from a Hong Kong IPO after selling shares at the bottom of the indicative price range.

      China: Listing approvals for duo

      IFR 2213 9 December to 15 December 2017

      Red Star Macalline Group and Deppon Logistics have both cleared China Securities Regulatory Commission hearings for their proposed Shanghai IPOs.

      China: Guanghui Energy seeks rights approval

      IFR 2213 9 December to 15 December 2017

      Guanghui Energy will seek China Securities Regulatory Commission approval on Monday for a rights issue of up to Rmb4bn (US$604.2m).

      China: CDB Securities readies float

      IFR 2213 9 December to 15 December 2017

      China Development Bank Securities has hired Citic Securities as pre-listing adviser for a proposed Shanghai IPO.

      China: China Education bookbuilding wraps up

      IFR 2213 9 December to 15 December 2017

      China Education Group could raise up to HK$3.51bn (US$450m) through a Hong Kong IPO.

      China: Hebei Construction book covered

      IFR 2213 9 December to 15 December 2017

      The book of Hebei Construction Group’s Hong Kong IPO of up to HK$2.32bn (US$297m) is covered.

      China: HNA Investment pulls placement

      IFR 2213 9 December to 15 December 2017

      HNA Investment Group has withdrawn an application to the China Securities Regulatory Commission for a proposed private share placement of up to Rmb5.22bn (US$789m).

      More from Equities

      Derivatives

      Aroundtown spreads rally on rating upgrade

      IFR 2213 9 December to 15 December 2017

      Spreads on Aroundtown bonds have rallied in the wake of a one-notch rating upgrade.

      Listed equity swaps grow to 10% of OTC market

      IFR 2213 9 December to 15 December 2017 By

      Listed futures that recreate the economics of over-the-counter equity swaps have grown to represent 10% of their OTC equivalents just a year into trading, defying the notoriously low success rate of futures launches.

      Banks seek tech partners for FICC trading edge

      IFR 2213 9 December to 15 December 2017 By

      Banks that once prided themselves on cutting-edge in-house systems are partnering with technology specialists to gain an edge in fixed income trading, as reshaping legacy architecture for a new, largely electronic market structure becomes prohibitively costly.

      BoE warns on Brexit's £12trn swaps headache

      IFR 2212 2 December to 8 December 2017 By

      The Bank of England has called on Britain and EU states to legislate to protect the long-term servicing of derivatives contracts whose legal status becomes unclear once the UK exits the bloc in March 2019.

      LCH SwapAgent goes live with cross-currency swaps

      IFR 2212 2 December to 8 December 2017 By

      Credit Suisse and Deutsche Bank have completed the first cross-currency basis swap on LCH’s SwapAgent platform for uncleared derivatives trades.

      More from IFR Derivatives

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      Special Reports

      German Corporate Funding Roundtable 2017 IFR+German+Corporate+Funding+RT+2017+Cover
      IFR’s seventh annual German Corporate Funding roundtable, which took place in Frankfurt in early November, found participants upbeat but at the same time pensive and rather preoccupied. It was an unusual emotional juxtaposition.

      IMF/World Bank Roundtable 2017 IFR+IMF+RT+cover
      Normality redefined: There comes a time when things have been out of kilter with what would generally be construed as normal for so long that they begin to become accepted as ‘just the way it is’. And so it is in the debt markets. Few would claim that conditions are currently normal, although just what that actually means is open to question.

      From the practice of placing a bell around the neck of a castrated ram to lead the flock

      Heel raiser

      IFR 2213 9 December to 15 December 2017

      IF YOU’RE THE sort of person whose perfect idea of a Christmas present is a pair of socks designed by someone who used to spend his days eavesdropping on people’s conversations in the lift at Goldman Sachs, then read on.