The Republic of Italy made an unexpected return to the syndicated bond market last week, swiftly raising a €6bn 20-year in a deal that showed that the spat between the European Commission and the country over its budget has done little to derail market access.
South Korea and Indonesia charged into the international bond markets last week, raising a combined US$3.1bn as expectations of a US rate cut helped stir demand for emerging-market assets.
Piraeus Bank will attempt to sell the first bank capital trade from a Greek bank in over a decade this week as it looks to turn the page on its chequered bond market past and leverage shareholder support to bolster its balance sheet.
The pick-up in European corporate defaults continues to weigh on bank trading desks this quarter, with JP Morgan and HSBC on the hook for sizeable losses after French holding company Rallye entered bankruptcy protection last month.
The US-China trade war is spilling over into the capital markets after US legislators tabled measures that could block Chinese companies from going public in the US and force the delisting of a host of well-known companies including Alibaba, JD.com and PetroChina.
Trainline’s £602m-£678m London IPO was covered after around two hours on Wednesday and by Thursday afternoon the deal was covered at the top of the 318p-360p price range. The rapid coverage and lack of price sensitivity is a boost for a European IPO market that has struggled to build any momentum in 2019.
Companies that fund their businesses with loans and bonds are set to benefit from changes to the US tax code that will allow them to raise cheap new financing by guaranteeing the debt by pledging foreign assets, although the move could make life more complicated for existing creditors.
Ukraine found good support for its first euro offering in nearly 15 years on Thursday as investors pin their hopes on newly elected president Volodymyr Zelenskiy’s ability to push ahead with critical reforms.
The bonds on which Mozambique defaulted in early 2017 are now trading back at par after the beleaguered African sovereign earlier this month agreed a generous “restructuring” with bondholders controlling at least 60% of the notes by value. The bonds had traded as low as 53 cents on the dollar after the default.
Slowing investment by Japanese financial institutions has pushed pricing on the most senior tranches of European CLO funds to its widest point in nearly three years as investors such as Norinchukin Bank scale back multibillion-dollar investments.
CrowdStrike, a fast-growing cybersecurity company led by former McAfee executives, produced one of the hottest US IPOs in recent memory when it raised US$612m last week, but the outcome also underscored the frothy current state of the US new issue market.