Negative yields are making a comeback in the European corporate primary market as growth fears rekindle memories of an era that investors thought had passed after the ECB stopped QE at the end of last year.
The value of credit derivatives used to insure against a default on Schaeffler collapsed last week after the German car-parts supplier announced changes to its debt structure that traders worried could make credit-default swaps on the firm all but worthless.
It’s official: Deutsche Bank and Commerzbank are in talks about a possible merger, German Finance Minister Olaf Scholz confirmed on Monday.
Deutsche Bank’s top bosses owned shares in the bank currently worth just €3.5m, far less than peers at rival institutions, which has prompted criticism they have little invested in the bank’s fortunes – or a lack of confidence in its prospects.
JP Morgan is expected to make a tidy profit on a tap of Ukraine’s November 2028 bonds after the US bank acted as sole bookrunner and buyer of the deal.
The first securitisation to comply with Europe’s new STS regulations was announced by Volkswagen on Wednesday morning, potentially clearing a major blockage in 2019’s sluggish new-issue pipeline.
Corporate bonds have rebounded strongly in their best start to a year since 2012, a welcome boon for investors and bank trading desks that nursed hefty losses during a dismal end to 2018, while also providing the perfect backdrop for borrowers. But such has been the rally that investors and bankers are increasingly nervous that it has gone too far and may now reverse.
Hong Kong’s securities regulator has suspended UBS from sponsoring IPOs for one year and fined it and three other banks a total of HK$786.7m (US$100m), in an unprecedented step by the city’s chief watchdog to clamp down on sub-standard sponsorship work.
Trinidad Petroleum Holdings is in advanced debt restructuring talks with banks and has secured new loans of up to US$1.4bn based on oil reserves to ease a looming US$850m bond maturity in August.
When law firm DWF Group filed its registration document at the start of February, the omens were not good for a UK IPO as it remained unclear if the UK would leave the European Union with a negotiated deal. Most bankers covering the UK were not keen to attempt an IPO in that climate.
MercadoLibre secured US$2bn of investment at a canter last week as the Latin American e-commerce platform agreed a tie-up with PayPal to fend off competition and drive growth higher.