Sunday, 01 May 2016


VTB Bank logo

Out in the open

IFR 2131 30 April to 6 May 2016

When a Mozambique state agency called Ematum issued a bond in September 2013, the country could hardly have expected that the deal would still be dogged by controversy more than two years later.

Top News

Norske Skog sign

GSO’s win-win on Norske Skog CDS

IFR 2131 30 April to 6 May 2016 By , Robert Smith

Blackstone Group’s credit unit GSO appears to have pulled off a major coup on its credit investments in Norske Skog, after it emerged that an apparently ill-fated sale of default protection ahead of a recent credit event is unlikely to lead to significant losses on an otherwise highly profitable trade.

Maputo's skyline

Mozambique investors decry 'secret' loans

IFR 2131 30 April to 6 May 2016 By

Investors in Mozambique’s newly exchanged bond are speaking to lawyers about bringing a lawsuit against the deal’s arrangers, Credit Suisse and VTB, after claiming that crucial information was withheld by the banks.

Telepizza Executive Chairman Pablo Juantegui

Telepizza arrives cold and soggy

IFR 2131 30 April to 6 May 2016 By Graham Fahy

Telepizza just could not quite live up to its hype. The “hot” €550m IPO for the Spanish pizza delivery company was covered minutes after launch and apparently multiple times covered when books closed, yet ended with some investors pulling their orders over concerns about the quality of demand.

Novo Banco logo

Court questions ​Novo Banco transfer

IFR 2131 30 April to 6 May 2016 By

A Portuguese court has said that the Bank of Portugal’s decision last December to transfer some bonds of Novo Banco back to its predecessor entity, Banco Espirito Santo, which failed in August 2014, should be provisionally cancelled.

A Unilever sign is seen on an office building

Corporates vie to go negative

IFR 2131 30 April to 6 May 2016 By

The race is on to print the first negative-yielding corporate bond in euros, after Unilever narrowly missed out on doing so last week.Bankers had speculated the week before that a highly rated corporate would price a €300m short-dated bond at a negative yield. So when Unilever announced a three-tranche issue on Monday that included a €300m no-grow four-year tranche, observers assumed that it was the deal in question and that the company would push to sell the four-year portion at a negative yield.

Zero percent sign

Money for nothing spreads to European ABS

IFR 2131 30 April to 6 May 2016 By Mariana Ionova

European asset-backed securities became the latest debt market where investors are happy to lend money for nothing last week, when BMW Bank printed the first 0% coupon ABS deal.

Labourers work on a scaffolding

State sale shocks China creditors

IFR 2131 30 April to 6 May 2016 By Ina Zhou

The surprise privatisation of a state-owned Chinese construction company has ignited a debate over creditors’ rights in the country’s fast-growing capital markets.

Travelodge sign

Travelodge reopens sterling junk sector

IFR 2131 30 April to 6 May 2016 By Robert Smith

Discount hotel chain Travelodge on Friday priced the year’s first sterling high-yield bond, showing that highly-leveraged UK companies are still persevering with funding plans ahead of the looming EU referendum in June.

World's top banks: depressed valuations

Big banks: unloved and depressed

IFR 2131 30 April to 6 May 2016 By Steve Slater

When HSBC chairman Douglas Flint told his shareholders this month they were not suffering alone and only six of the world’s top 30 banks were trading above book value, he was just scratching the surface.

UK Treasury

Brexit, what Brexit? Investors back UK

IFR 2131 30 April to 6 May 2016 By ,

The United Kingdom’s reopening of its 2.5% July 2065 benchmark bond drew one of the largest ever order books for a DMO syndication last Tuesday as investors voted “Yes” for the new tap.

IFR Magazine Top News in Full (subscription required)

People & Markets

Jonathan Rogers

Despair and dismay in Japanese bonds

IFR 2131 30 April to 6 May 2016

DESPAIR REIGNS IN the yen bond market. That was the word used by a market veteran whom I recently visited in Tokyo – and it’s easy to see why.

Deutsche Bank headquarters

Deutsche hurt by late start to turnaround

IFR 2131 30 April to 6 May 2016

Deutsche Bank bore the scars in the first quarter from its late attempts to restructure as it reported a steep drop in investment banking income, in contrast to a more resilient performance by Barclays.

A man walks next to a sign for Nomura Securities in Tokyo

Nomura outlines US$1.3bn cost cuts as wholesale revenues sink

IFR 2131 30 April to 6 May 2016

Nomura said it aimed to cut costs in its wholesale business by US$1.3bn, or a fifth, as it outlined details of its strategy to pare back its international wholesale business in Europe and the Americas.

Evercore Partners

Evercore and Moelis see M&A rebound after rocky start

IFR 2131 30 April to 6 May 2016

Boutique investment banking firms Evercore Partners and Moelis have reported record first-quarter advisory revenues and offered upbeat assessments of the M&A market.

Bob Diamond

Diamond circles Barclays Africa

IFR 2131 30 April to 6 May 2016

Former Barclays boss Bob Diamond is circling the African business of his former bank and says he has teamed up with US private equity firm Carlyle and has funding lined up for a possible bid.

    More from People & Markets


    A UBI Banca branch office

    Fledgling second-tier sub recovery

    IFR 2131 30 April to 6 May 2016

    Europe’s smaller lenders staged a subordinated debt comeback last week but trade execution showed that meeting both issuer and investor targets remains a delicate balancing act.

    McDonald's logo

    McDonald's sees McFlurry of demand

    IFR 2131 30 April to 6 May 2016

    McDonald’s Corporation garnered over €14bn of demand for its first benchmark foray into the European bond market since May 2015 as investors super-sized their orders for a taste of yield.

    BoQ reopens Aussie T2 market

    IFR 2131 30 April to 6 May 2016

    Bank of Queensland took advantage of revived institutional appetite for Tier 2 paper with a well-received A$150m (US$116m) 10-year non-call five note that resuscitated a stalling market.

    Belgian flag

    Belgium joins long-end march with 50-year

    IFR 2131 30 April to 6 May 2016

    Belgium brought a long-rumoured 50-year bond to market last week, becoming the latest sovereign to extend the duration of its debt and lock in ultra-low rates as investors scramble for yield.

    Unilever shows negative yields still out of range

    IFR 2131 30 April to 6 May 2016

    Unilever capitalised on strong ECB-inspired conditions to sell a zero coupon bond on Monday but missed out on being the first company to print negative-yielding euro paper.

      More from Bonds


      Petroleum Development of Oman

      Oman deals fail to satisfy lenders

      IFR 2131 30 April to 6 May 2016 By Sandrine Bradley

      Loans for two major Omani state-owned oil companies – Petroleum Development Oman and Oman Oil Company – have been welcomed by banks starved by a lack of lending opportunities in the Gulf, but the outlook for new deals in the region still appears bleak.

      Citi sign

      Citi drops out of Americana deal

      IFR 2131 30 April to 6 May 2016 By David French, Tom Arnold

      Citigroup has dropped out of the group of banks providing a US$1.5bn bridge loan to Gulf-based Adeptio for its proposed purchase of a majority stake in Americana (Kuwait Food Co).

      Loan Market Association logo

      ​Economic stability key for developing markets

      IFR 2131 30 April to 6 May 2016 By

      Economic stability is the most important factor for syndicated loan market growth in developing markets, according to a survey conducted by the Loan Market Association (LMA) in the run-up to its third Developing Markets Conference on Tuesday.

      A Sports Authority store

      DIP loans mount with Chapter 11 filings

      IFR 2131 30 April to 6 May 2016 By Lynn Adler

      Distressed US companies including a coal producer, a sporting goods retailer and a brokerage firm received loans this year to sustain business while reorganising, and the number is expected to swell as troubled energy companies increasingly file for bankruptcy protection.

      Fitch Ratings logo

      ​BDC leverage ratios pose challenge – Fitch

      IFR 2131 30 April to 6 May 2016 By Leela Parker Deo

      Increasing leverage among business development companies is a consistent trend across the sector, despite varied risk appetite and investment strategies, Fitch Ratings said in a report.

      Asciano logo

      Asciano acquisitions woo lenders

      IFR 2131 30 April to 6 May 2016 By Sharon Klyne

      US infrastructure fund manager Global Infrastructure Partners and its consortium members are raising loans of A$3.95bn (US$3.02bn) to finance the acquisition of rail assets of Australian logistics operator Asciano.

      AbbVie logo

      ​AbbVie loads up for acquisition

      IFR 2131 30 April to 6 May 2016

      Drugmaker AbbVie plans to fund its US$5.8bn acquisition of privately-held oncology company Stemcentrx through new debt and stock.

      Shriram tests new Masala recipe

      IFR 2131 30 April to 6 May 2016 By

      Shriram Transport Finance is making its debut in the international capital markets with an offshore rupee loan, becoming the first to test a structure that has so far failed to fly with bond investors.

      More from Loans


      Red Rock Resorts

      Red Rock rolls downhill on debut

      IFR 2131 30 April to 6 May 2016

      Investment bankers have struggled to shrug off the derogatory moniker of casino bankers, but Red Rock Resorts is a case in which the label was deserved. In this case Deutsche Bank was both lead underwriter and, thanks to an earlier bankruptcy, owner.

      Philips Lighting store

      Netherlands: Philips talks up IPO as part of bulging Dutch pipeline

      IFR 2131 30 April to 6 May 2016

      Dutch ECM bankers are looking forward to a bumper year as dual-track sales are abandoned in favour of public offerings.

       Intellia Therapeutics logo

      Intellia has designs on public markets

      IFR 2131 30 April to 6 May 2016

      Biotechnology IPOs were back last week after a month’s hiatus in US ECM, with two deals expected to price.

      Blackstone Group office

      Banks prepare for return of block business

      IFR 2131 30 April to 6 May 2016

      Bankers are expecting block sales to pick up significantly in the coming weeks as private equity firms take advantage of stock market strength and the end of first-quarter earnings blackouts to monetise some of their largest public stock holdings.

      SapuraKencana Petroleum logo

      Signs of life

      IFR 2131 30 April to 6 May 2016

      The deathly quiet South-East Asian equity capital markets are finally showing some signs of life, with IPOs moving ahead and blocks changing hands as volatility continues to subside.

      Bottles of SABMiller's flagship brew, Castle Lager

      Credit Suisse enjoys a beer

      IFR 2131 30 April to 6 May 2016

      Bankers at Credit Suisse placed £1bn of SABMiller in just 25 minutes on Tuesday evening, in the largest sole-run European ECM transaction in two years.

      Abbott Laboratories logo

      US ECM looks past earnings distractions

      IFR 2131 30 April to 6 May 2016

      The US IPO market continues to make only an uneven recovery, but broader ECM activity should pick up this week now that around two thirds of S&P 500 companies have reported earnings.

      India: Solid response to NHPC sale

      IFR 2131 30 April to 6 May 2016

      NHPC’s offer-for-sale of Rs27bn (US$411m), India’s first state sale for the 2016–2017 financial year, received a solid response.

      More from Equities


      US Federal Reserve building

      Swap doubts on new Fed benchmark

      IFR 2131 30 April to 6 May 2016 By

      Trillions of dollars of derivatives may be repriced in the coming months, amid speculation that the US Federal Reserve is set to abandon its key fed funds rate and adopt a new benchmark.

      Magnifying glass

      Options auctions under scrutiny

      IFR 2131 30 April to 6 May 2016 By

      Price improvement auctions offered by options exchanges as a means to attract lucrative retail order flow are coming under close scrutiny for the role that they may be playing in stifling growth in the US options market.

      The Commodity Futures Trading Commission building in Washington, DC

      End-users deride bank capital requirements

      IFR 2131 30 April to 6 May 2016 By Mike Kentz

      Bank capital requirements aimed at protecting markets from a repeat of the 2008 crisis came under fire last week from several corporate end-users of derivatives who say the regulations are too tough and will leak into Main Street.

      Margin rules show regional divergence

      IFR 2131 30 April to 6 May 2016 By

      Forthcoming rules requiring margining of non-cleared derivatives show some striking differences between regions, despite the fact that compliance dates are globally aligned with the largest derivatives users required to post collateral backing their swaps exposures from September.

      ISDA, Markit address EU antitrust concerns

      IFR 2131 30 April to 6 May 2016 By

      ISDA and Markit have committed to address antitrust concerns surrounding licensing of credit default swap pricing and index data, following a five-year investigation into the issue by the European Commission.

      More from IFR Derivatives

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      Portugal's Finance Minister Mario Centeno

      Portugal retains investment grade rating from DBRS, outlook stable

      29 April 2016

      (Reuters) - Rating agency DBRS delivered a huge relief to Portugal on Friday by maintaining its only investment grade rating, ensuring that its bonds remain eligible for the European Central Bank’s bond buying programme and helping keep a lid on its borrowing costs.

      A man checks his mobile phone as he walks past a shop displaying the Vodafone logo on its shutter in Mumbai.

      Vodafone India mandates for up to US$3bn IPO

      29 April 2016 By S Anuradha

      UK telecom giant Vodafone has mandated Bank of America Merrill Lynch, Kotak and UBS as joint global coordinators for the IPO of its Indian unit, according to two sources.

      Couche-Tard convenience store

      Bullish market boosts Couche-Tard euro debut

      29 April 2016 By Mariana Ionova

      Couche-Tard snagged tight pricing on a debut euro print on Thursday, as a red-hot market helped the Canadian convenience store operator gain access to cheap European funding.

      Inovyn logo

      Inovyn joins growing high-yield pipeline

      29 April 2016 By Robert Smith

      PVC producer Inovyn announced a €300m high-yield bond deal on Friday, adding to the steady trickle of mandates in a busier European market.

      Standard & Poor's building in New York

      Defaults rising at fastest pace since crisis – S&P

      29 April 2016 By

      Defaults are rising at their fastest clip since the financial crisis as two more this week took the tally to 53 so far this year across the globe, rating agency S&P said in a note Friday.

      Family sale of Hella comes at small discount

      29 April 2016

      Bankhaus Lampe found strong demand from across Europe for an offering of 1.57% of automotive lighting maker Hella yesterday evening. The sale by a single member of the founding family was covered in 25 minutes and priced at a 2.49% discount to last night’s close.

      P&M: Penn moves to Cleary Gottlieb

      29 April 2016

      Financial services regulatory lawyer Bob Penn has joined Cleary Gottlieb Steen & Hamilton in London as a partner. He joins from law firm Allen & Overy, where he was a partner in charge of non-contentious financial services regulation. Penn has worked for a number of major banks on living wills, capital requirements and other new aspects of UK and European Union regulation. He had been at Allen & Overy for 17 years. He is required to serve a period of notice, which is yet undetermined.

      P&M: Deutsche Bank head of integrity committee Thoma quits

      29 April 2016 By Harro ten Wolde

      Deutsche Bank said Georg Thoma, head of the supervisory board’s integrity committee, has resigned.

      LOANS: GIP-led group seeks A$3.95bn for Asciano rail takeover

      29 April 2016

      US infrastructure fund manager Global Infrastructure Partners and its consortium partners are raising loans of A$3.95bn (US$3.02bn) to finance the acquisition of rail assets of Australian logistics operator Asciano.

      P&M: SG appoints Williams to replace Olano

      29 April 2016

      Societe Generale has announced the appointment of Gareth Williams as head of loan syndicate and sales in Asia Pacific, replacing Jose-Antonio Olano.

      PNC Bank building in Washington

      Bank bonds lose steam amid heavy supply

      28 April 2016 By

      The rally in bank debt slowed this week, with new deals from Citigroup, BNY Mellon and PNC Bank failing to achieve the blistering post-pricing performance of their peers.

      Novo Banco logo

      UPDATE – Portugal court suspends Novo Banco bond transfer

      28 April 2016

      (Reuters) - A Portuguese court has provisionally suspended a central bank decision to transfer some bonds from state-rescued Novo Banco to “bad bank” BES, court documents showed on Thursday, in a step that could complicate the sale of the lender.

      John McFarlane

      Barclays targets "clean and prosperous" 2018 as overhaul continues

      28 April 2016

      (Reuters) - Barclays Chairman John McFarlane has pledged to deliver a “clean and prosperous” 2018 to investors, putting a deadline on a vast programme of restructuring and asset sales that will cause staffing numbers to fall by 50,000.

      BP logo

      BP, Philip Morris have market to themselves

      28 April 2016 By Hillary Flynn

      Only two investment-grade deals hit the market on Thursday after the Bank of Japan’s decision to hold off monetary stimulus sent markets lower and kept several borrowers on the sidelines.

      Lampe leading family sale in Hella

      28 April 2016

      Bankhaus Lampe has this evening launched an accelerated bookbuild of 1.74m shares in Hella on behalf of the founding family.

      PGIM logo

      Pramerica eyes tighter spreads for euro CLO

      28 April 2016 By Mariana Ionova

      Pramerica Investment Management is looking to price its latest euro CLO as early as this week, after floating price talk at the tighter end of the market.

      All Latest news

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

      Lollipop man

      IFR 2131 30 April to 6 May 2016

      AGM SEASON IS a great opportunity for bank chiefs to meet the little people and for the little people to give a live airing to the gags and grievances they’ve been storing up all year. It’s not just a cathartic experience, but a unique one – it’s like a love-hate-in.


      keith mullin

      Watch out for India’s coming IPO boom

      TO MUMBAI, WHERE I hosted IFR’s 2016 India ECM conference. And what a fabulous contrast to the gloom in Europe. A vicious ice storm had descended on London while I was on my way to Heathrow and the temperature plunged to an unseasonal 5oC.

      Anthony Peters columnist format

      A reflection on the month

      Another month gone and, to be fair, not too bad a one in most peoples’ books. Despite a soft day on Wall Street which saw the Dow fall by 1.17% and the S&P by 0.92%, both indices are still in positive territory for the month.

      James Saft - June 2014

      Whatever will 'whatever it takes' mean in Japan?

      The Bank of Japan’s Haruhiko Kuroda may learn that if action doesn’t work and inaction doesn’t work, the phrase “whatever it takes” loses meaning and hence power.

      Anthony Peters columnist format

      Bank of Japan trips the market

      Oh dear, oh dear! This morning the Bank of Japan tripped up the entire market by not obliging with another all-problem-resolving stimulus package aimed at resolving all the problems left by the last all-problem-resolving stimulus package. 

      Frankfurt skyline

      Frankfurt: ready to help

      What may happen in post-Brexit EU.

      James Saft - June 2014

      The advantages of taking on more risk as you age

      Your lifecycle fund with its tapering equity allocation may be injurious to your wealth.

      Green opinions

      Green bonds need a 'big-tent' approach

      Aaron Franklin, a capital markets lawyer at Latham & Watkins, has submitted this article in response to an earlier piece about Green bonds written by IFR editor-at-large Keith Mullin.

      German Chancellor Angela Merkel

      Back to hopelessness

      Germany’s post-Brexit isolation.

      Anthony Peters columnist format

      A look-ahead to the FOMC

      Big day today? Probably not, even though the FOMC convenes. The chances of anything coming out of the meeting other than some soothing and dovish words are fairly remote. 

      James Saft - June 2014

      Mitsubishi, measurement and Goodhart’s law

      The Mitsubishi Motors mileage scandal illustrates a key weakness at the heart of most investment processes: management by measurement and target setting often leads to chicanery.