New sanctions imposed on Russia by the US have dashed hopes that Russia’s syndicated loans market is reopening, while the international bond market, which has shown strong appetite for Russian borrowers in recent weeks, may also now be off limits for the country’s issuers.
Trading in China sovereign credit default swaps has more than doubled in the past year as fears over slowing growth and rising corporate defaults in the world’s second-largest economy have transformed the contract into the go-to Asia hedge for macro investors.
Cote d’Ivoire put its chequered past behind as investors swarmed the sovereign’s new bond last Wednesday in a deal that showed just how strong the technical backdrop remains for new issues from emerging markets.
Web giant Yahoo indicated last week it would sell fewer shares than planned in the forthcoming IPO of Alibaba Group after amending a share buyback agreement with the Chinese e-commerce company.
Chinese budget smartphone maker Xiaomi, accustomed to making waves in the world of telecoms and technology, looks set to do the same in the loan markets, with a US$1bn borrowing following a botched attempt earlier this year.
News that the long-awaited merger between Portugal Telecom and Brazil’s largest telecoms company Oi will go ahead sent bonds and shares in both companies sharply higher last Wednesday, only for them to slump again by the end of the week.
KfW set the bar higher for Green bonds last week with a debut issue that trumps others both in terms of size and transparency.
Advanced Semiconductor Engineering has sold the first Green bond from Asia’s private sector in a deal that highlights the potential for sustainable investing in the region.
Federal Reserve chair Janet Yellen did no favours to the IPO market last week by calling into question valuations in growth sectors of the US equity market, notably biotech and social media.