European ECM bankers are increasingly optimistic about the prospects for issuance in the rest of 2016 thanks to the double-digit percentage returns from IPOs in the region this year. Volume-weighted returns from EMEA listings this year are a handsome 10%, a level only two major EMEA indices can top – those in the niche markets of Russia and Egypt.
The World Bank is facing scant investor interest for its landmark offering of Special Drawing Rights bonds in China’s domestic market due to an expected record low yield.
Global commodity giant Cargill’s distressed debt arm has turned fixed-up mortgages into a hot-ticket item with the largest deal yet from its Mill City bond issuance programme.
Yankee bank issuance has soared this month as tighter spreads, favourable currency moves and huge demand for higher-yielding US assets has lowered the cost of borrowing in US dollars.
Investment bankers are setting up shop in Midland, Texas as the oil industry drives equity issuance, despite the commodity struggling to break back above US$50 per barrel.
Japan’s mega-banks are emerging as the biggest victims of a worsening squeeze in the US$1trn US commercial paper market, as rising short-term rates and high swap costs threaten their access to cheap dollar funding.
The European Commission could give another fillip to the rapidly rebounding Additional Tier 1 market, if it adopts proposals laid out in a recent policy document that would make it easier for banks to meet coupon payments.
Resistance is futile for some investors eyeing risky Triple C bonds as spreads and absolute returns continue to tighten across the board.
Faced with anaemic returns available in fixed income, investors are flocking to the US equity market in the hope of closing performance gaps. And with stock market valuations near historic highs, shareholders are rushing to cash in on a rare opportunity.
A worsening dislocation in the US money markets is helping to drive a run of jumbo dollar bond sales from Australia’s major banks, as the likes of Westpac take advantage of attractive hedging costs to lock in low rates.