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Thursday, 18 January 2018

Prime auto ABS deals come at tight spreads

17 January 2018 By

A trio of prime auto asset-backed bond deals from BMW, CarMax and Mercedes-Benz were expected to price on Wednesday with the offerings mostly coming at tighter levels than first guided.

Banks have bumper session for bond issuance

17 January 2018 By

Banks hit the high-grade bond market in force on Wednesday, with Citigroup, Deutsche Bank, PNC Bank and Westpac offering investors a variety of tenors and structures.

RCN poised for strong junk bond demand

17 January 2018 By

RCN looked poised for strong demand Wednesday for a junk bond backing its acquisition of fellow internet provider Wave Broadband despite concerns about leverage and stiff competition.

Altice bonds drop after S&P outlook change

17 January 2018 By

US dollar bonds issued by Altice’s European entities dropped for the second day in a row Wednesday after rating agency S&P put the telecom giant’s B+ rating on negative watch.

Hidrovias debuts on quiet day for LatAm

17 January 2018 By

Hidrovias do Brasil launched a US$600m seven-year non-call four bond on Wednesday, the latest debut borrower to come to market out of the LatAm region in the first weeks of the year.

RBI

"Frenzied" reception for RBI AT1 reopener

17 January 2018 By

Blink and you missed it: books on Raiffeisen Bank International’s perpetual NC2025 swiftly closed at 10:15am, a clear demonstration of the enduring appeal of the Additional Tier 1 asset class.

Goldman Sachs sign

Goldman sees FICC fall 50%

17 January 2018 By

Goldman Sachs continued to be vexed by fixed income commodity and currency trading in the fourth quarter as revenue fell by 50% to just over US$1bn.

European Central Bank (ECB) headquarters

Real money disdain leaves ECB to do covered heavy lifting

17 January 2018 By

Real money investors, deterred by the tight pricing levels on covered bonds, have shrunk the size of their orders in primary, leaving the ECB to do the heavy lifting when it comes to new issues.

A man walks past the Standard & Poor's building in New York's financial district

S&P opens door on hybrid early refi

17 January 2018 By

S&P’s revised methodology gives corporates the ability to refinance hybrid debt prior to the five-year anniversary of an issue, a change that opens the door to liability management.

Austria

Austria to jump on 10-year bandwagon

17 January 2018 By

The 10-year segment is ever-popular this month, with Austria being the latest name to be added to the mix.

Logo of Charter Court Financial Services

Charter Court sells BTL RMBS

17 January 2018 By

Charter Court Financial Services priced a £254m UK buy-to-let RMBS on Wednesday, in a heavily oversubscribed deal which brought in more than £1bn of orders.

xcibs canada

CIBC makes promising return in euro covered

17 January 2018 By

Canadian Imperial Bank of Commerce returned to the euro covered bond market after 18 months away, getting away with one of the smallest new issue premiums for a large benchmark so far this year.

IFR SNAPSHOT: Spreads keep up non-stop grind tighter

17 January 2018 By

The average investment-grade bond is at a new post-crisis low of just 94bp over Treasuries, according to ICE BAML data out this Wednesday morning.

Pure Gym logo

Summit upsizes, Pure Gym accelerates in strong primary

17 January 2018 By

High-yield issuers have flexed their muscles in primary as Summit Germany upsized and Pure Gym accelerated pricing.

Exit, pursued by bulls

Market bullish as bonds spreads set post-crisis lows

17 January 2018 By

US high-grade corporate bonds have rallied since the start of the year, and some analysts see further scope for tightening for the asset class.

Citi sign

Citigroup announces three-part benchmark bond

17 January 2018 By

Citigroup on Wednesday announced a three-part benchmark US dollar bond for pricing later in the day, a market source told IFR.

All Latest news

Don’t look back in anger

IFR 2216 13 January to 19 January 2018

Remember when, 15 years ago, HBOS issued the first UK covered bond? Suddenly, UK high street lenders were able to tap this long-standing sector for wholesale secured funding, in addition to selling billions of dollars of RMBS.

Top News

Alibaba Group Executive Chairman Jack Ma gestures as he attends the 11th World Trade Organization's ministerial conference in Buenos Aires, Argentina.

Listing reform boosts HK pipeline

IFR 2216 13 January to 19 January 2018 By

Hong Kong’s decision to allow dual-class share listings is paying off even before the rules are introduced, with a growing number of Chinese technology companies already seriously looking at IPOs in the city.

Logo of cable and telecommunications company Altice

Altice makes U-turn with debt sale

IFR 2216 13 January to 19 January 2018 By , Andrew Berlin

Telecoms giant Altice returned to the debt market last week to finance the spin-off of its US unit, making an effort to appease both wary banks and disgruntled shareholders.

Flag bearer of Oman Hatem Al Hamhami leads the team into the Opening Ceremony of the 17th Asian Games

Oman lands heavyweight blow

IFR 2216 13 January to 19 January 2018 By

Oman raised the equivalent of 10% of its GDP in the bond market on Wednesday, financing a hefty chunk of its burgeoning deficit in one swing despite a volatile rates backdrop.

Tencent Chairman and CEO Pony Ma attends a news conference announcing the company's results in Hong Kong, China.

Tax reform reprices Tencent curve

IFR 2216 13 January to 19 January 2018 By

Chinese internet giant Tencent Holdings has printed its largest offshore bond to-date, raising US$5bn in four tranches as hot demand from US investors, due in part to the effects of US tax reform, helped it reprice its curve.

Brazil

PagSeguro eyes New York with US$1.9bn IPO

IFR 2216 13 January to 19 January 2018 By

The first LatAm-to-US IPO of the year is a big one with PagSeguro Digital’s float expected to total US$1.9bn.

Deutsche Bank

Deutsche feels squeeze on costs and trading

IFR 2216 13 January to 19 January 2018 By ,

Deutsche Bank’s warning that fourth-quarter trading revenues will fall 22% was accompanied by something even more worrying for its investors: costs are no longer falling.

Mortgage

UK RMBS primed for 2018 rebound

IFR 2216 13 January to 19 January 2018 By

With the end of cheap government funding, UK banks’ need to optimise assets used for funding coupled with new ring-fencing rules will lead to increased RMBS this year, with previously mothballed programmes set to rejoin regular issuers that never went away.

for sale property estate agent

Zoopla bonds stand out from UK crowd

IFR 2216 13 January to 19 January 2018 By

A deal for the company that owns online property platform Zoopla – Europe’s first high-yield bond issue of the year – showed appetite for convincing UK consumer names despite the turmoil faced by several retailers last week.

PDVSA

Vene bonds 'should trade minus interest'

IFR 2216 13 January to 19 January 2018 By

The Emerging Markets Traders Association last week in effect joined the chorus of voices calling a credit event in Venezuela when it recommended that sovereign bonds trade flat – the way defaulted debt is typically priced.

Mizuho Bank's signboard is seen in front of Mitsubishi UFJ Financial Group's Bank of Tokyo-Mitsubishi UFJ in Tokyo, Japan.

China welcomes Japanese Pandas

IFR 2216 13 January to 19 January 2018 By

China’s Panda bond market welcomed its first Japanese issuers last week against the backdrop of improved diplomatic relations between the two countries.

IFR Magazine Top News in Full (subscription required)

People & Markets

JP Morgan Q4 dragged down by trading

IFR 2216 13 January to 19 January 2018

JP Morgan’s corporate and investment bank was dragged down by a tough period in fixed income trading in the fourth quarter and a big hit to equity trading from a single margin account.

Kashkari calls for 15% leverage ratio

IFR 2216 13 January to 19 January 2018

The Minneapolis Federal Reserve is pushing for big US banks to double the amount of capital they hold to slash the risk of a massive financial crisis in the next century to 9% from 67%.

MiFID II setbacks build with dark pool cap delay

IFR 2216 13 January to 19 January 2018

Europe’s sweeping financial market overhaul suffered another setback last week as plans to shift more share trading into lit venues were put on hold after poor quality data thwarted publication of the MiFID II double volume cap.

Citi's Winter springs to BNP Paribas

IFR 2216 13 January to 19 January 2018

Investment banker Eirik Winter has left Citigroup after more than 20 years to move to BNP Paribas as chief executive officer for the Nordic region and head of corporate and institutional banking Nordics.

Who's moving where

IFR 2216 13 January to 19 January 2018

Dave Friedland has been named global head of financial and strategic investor M&A at Goldman Sachs, succeeding Stephanie Cohen, who became chief strategy officer for the firm in November. Friedland has been with Goldman since 1998. He is currently head of M&A for the real estate and consumer retail groups, and will continue in the real estate role. Goldman also appointed David Kamo as head of the financial and strategic investor M&A group in the Americas and Antonio Gatti to head the unit for EMEA.

    More from People & Markets

    Bonds

    Businessmen use their phones as they stand in the central business district of Sydney in Australia.

    Aussie majors rush back to bonds

    IFR 2216 13 January to 19 January 2018

    Australia’s four major banks have locked in almost US$10bn of wholesale funding at tight spreads in the first two weeks of 2018, even though their borrowing requirements are declining.

    Investors pile in for Sempra Energy bond

    IFR 2216 13 January to 19 January 2018

    Sempra Energy on Tuesday launched the first benchmark M&A investment-grade bond of the year, a US$5bn deal to help finance its acquisition of Texas power distributor Oncor.

    KfW, NIB secure tight pricing levels

    IFR 2216 13 January to 19 January 2018

    SSA issuers found solid demand for sterling paper last week, pricing in line with fair value as bank treasuries put cash to work.

    Week in Numbers - January 13 2018

    Week in Numbers - January 13 2018

    IFR 2216 13 January to 19 January 2018

    ADB bucks five-year trend, Munifin chooses floating

    IFR 2216 13 January to 19 January 2018

    Asian Development Bank and Municipality Finance offered some welcome diversification in the dollar market on Thursday after a week of heavy five-year supply.

      More from Bonds

      Loans

      The logo of PT Telekomunikasi Indonesia is seen at the PT Telekomunikasi Indonesia (Telkom) branch office in Jakarta, Indonesia.

      Telkom dials up euro debut

      IFR 2216 13 January to 19 January 2018 By

      State-owned Telekomunikasi Indonesia has approached banks for its first euro-denominated loan, in a rare example of an Asian borrower tapping the single currency.

      HNA Group CEO Adam Tan gives a speech during the 2017 Asia Game Changer Awards and Gala Dinner in Manhattan, New York, U.S.

      China: HNA in funding talks

      IFR 2216 13 January to 19 January 2018

      Debt-laden HNA Group is in exclusive talks with Hong Kong developer Sun Hung Kai Properties for a loan to help refinance maturing liabilities and develop plots of land in Hong Kong acquired recently.

      UAE: ADNOC to raise US$3bn

      IFR 2216 13 January to 19 January 2018

      Abu Dhabi National Oil Co plans to raise a US$3bn syndicated loan with the participation of Japan’s export credit agency, Japan Bank for International Cooperation, Reuters reported.

      Russia: Metalloinvest signs US$240m club

      IFR 2216 13 January to 19 January 2018

      Metals and mining company Metalloinvest has signed a US$240m pre-export financing with a club of eight banks from Russia and Europe.

      Qatar: Doha Bank extends two-year loan

      IFR 2216 13 January to 19 January 2018

      Doha Bank, Qatar’s fifth-biggest lender, has extended by one year a two-year, US$575m bank loan that it raised in December 2015, but has reduced the size of the facility to US$400m.

      EQT goes double Dutch

      IFR 2216 13 January to 19 January 2018

      Dutch telecom infrastructure operator Delta has launched €650m of loans backing its combination with Dutch peer Caiway, following EQT Infrastructure’s announced purchase of the latter late last year.

      UK: ZPG lines up refi

      IFR 2216 13 January to 19 January 2018

      Digital property platform operator ZPG intends to refinance its existing debt through a combined £400m loan and bond package.

      Germany: Wacker Chemie doubles Schuldschein

      IFR 2216 13 January to 19 January 2018

      Chemical company Wacker Chemie has placed a €300m Schuldscheindarlehen after launching the deal for €150m in November.

      More from Loans

      Equities

      Hong Kong: Maple Leaf prices placement

      IFR 2216 13 January to 19 January 2018

      International schools operator China Maple Leaf Educational Systems has raised HK$1bn (US$128m) from a top-up placement of 110m shares priced at the bottom of a HK$9.10–$9.40 range.

      Hong Kong: C-Mer prices IPO at top

      IFR 2216 13 January to 19 January 2018

      C-Mer Eye Care raised HK$571m (US$73m) from its Hong Kong IPO, having priced the shares at the top end of the indicative range. This was after it attracted the highest level of oversubscription from retail investors in three years, according to people close to the IPO.

      China: Chongqing Rural applies to list

      IFR 2216 13 January to 19 January 2018

      Chongqing Rural Commercial Bank has applied to the China Securities Regulatory Commission for a proposed Shanghai listing of up to 1.36bn A-shares, or about 11.95% of its enlarged capital.

      China: Agile spin-off to pre-market IPO

      IFR 2216 13 January to 19 January 2018

      A-Living Services, the property management business of Chinese property developer Agile Group Holdings, is set to start pre-marketing a Hong Kong IPO of US$300m–$500m on Monday, according to people close to the deal.

      China: BCIA block fetches HK$2.36bn

      IFR 2216 13 January to 19 January 2018

      Fortland Ventures sold 208m H-shares in Beijing Capital International Airport to raise HK$2.36bn (US$301.7m).

      China: ZhengTong goes for more

      IFR 2216 13 January to 19 January 2018

      China ZhengTong Auto Services has raised HK$1.74bn (US$222m) through an upsized placement of shares.

      China: Zhenro IPO brings HK$3.99bn

      IFR 2216 13 January to 19 January 2018

      Zhenro Properties Group has raised HK$3.99bn (US$510m) from its Hong Kong IPO of 1bn primary shares at HK$3.99 each.

      China: Tencent-backed Douyu plans IPO

      IFR 2216 13 January to 19 January 2018

      Tencent-backed game-streaming platform Douyu aims to raise about US$300m–$400m from an IPO this year, according to people close to the plans.

      More from Equities

      Derivatives

      ISDA drafts EU-governed contracts on Brexit qualms

      IFR 2216 13 January to 19 January 2018 By

      ISDA is drafting French and Irish law-governed versions of its Master Agreement to provide greater certainty over the legal footing of a document underpinning much of the €542trn over-the-counter derivatives market when Britain leaves the European Union.

      LCH hits swap clearing records amid Brexit noise

      IFR 2216 13 January to 19 January 2018 By

      London-based LCH cleared a record US$873trn of over-the-counter derivatives notional in 2017, as the introduction of new products and the rising cost of bilateral exposures overcame uncertainty around the clearinghouse’s future after Brexit.

      Spread to BTPs curbs interest in UBI covered

      IFR 2216 13 January to 19 January 2018

      UBI Banca returned to the covered bond market last Monday, though the eye-wateringly tight print versus BTPs appeared to take its toll on investor demand.

      Hopes mount for Alpha Bank covered

      IFR 2216 13 January to 19 January 2018

      Alpha Bank was rumoured to be among the names lining up a transaction for this week, the only one of the big four Greek banks yet to return to the debt capital markets.

      Rare issuers in the pipeline

      IFR 2216 13 January to 19 January 2018

      Two infrequent borrowers are looking to come to market in what is expected to be another busy week for corporates after €12.55bn of supply last week.

      More from IFR Derivatives

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      IFR/Save the Children

      Making a difference

      Making a difference

      Banks and issuers have donated more than £25.5m to Save the Children through the IFR Awards over 22 years. In 2017, IFR deputy editor Owen Wild visited projects in Ethiopia that have been beneficiaries of that support.

      Special Reports

      IFR Review of the Year 2017 IFR+RoY+Cover+2017+Homepage
      Markets, as the cliche has it, hate uncertainty. To which the only sensible response is “who doesn’t?”.

      But markets don’t seem to hate it very much at the moment.

      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.

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

      Winter has come

      IFR 2216 13 January to 19 January 2018

      BARELY HAD BNP Paribas sent out its press release announcing the appointment of Eirik Winter as head of its Nordic operations than Game of Thrones fans devoured it like a pack of like-minded journalists thrown a gift from the Pun Gods. “Winter is coming” screamed just about everyone, in perhaps the only catchphrase from the show that everyone knows. Let’s hope neither Winter nor BNP Paribas are Thrones aficionados or they might be offended.