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Saturday, 21 October 2017

This way to the hen-coop, Mr Fox

IFR 2206 21 October to 27 October 2017

What’s the best way to avoid being accused of cheating? Invent the rules of the game yourself, of course.

Top News

Andrew Bailey, Chief Executive Officer of the Financial Conduct Authority, speaks during a "Reuters Newsmaker"

'Life after Libor' language puts banks in control

IFR 2206 21 October to 27 October 2017 By , , Kristen Haunss,

Who would you trust to decide the precise levels of coupon payments you receive on your debt holdings after Libor is discontinued?

Senator Pat Toomey

Door opens for Congress to end lending rules

IFR 2206 21 October to 27 October 2017 By

The investigative arm of Congress said on Thursday that US bank guidelines on leveraged lending are subject to Congressional review, clearing the way for them possibly to be overturned.

A young Chinese athlete exercises in front of a Chinese flag at a gymnastics hall at the Shichahai sports school in Beijing.

China snubs rating agencies for sovereign return

IFR 2206 21 October to 27 October 2017 By

The People’s Republic of China will go without international ratings for its first US dollar sovereign bond since 2004, raising doubts over whether it will still achieve its goal of setting a liquid global benchmark.

Rio Tinto CEO Jean-Sebastien Jacques poses for photographs before announcing Rio Tinto's 2017 first-half results in London, Britain.

Rio Tinto faces fraud allegations

IFR 2206 21 October to 27 October 2017 By , Jim Regan

The US Securities and Exchange Commission last Tuesday charged Rio Tinto and two of its former top executives with fraud, saying they inflated the value of coal assets in Mozambique and concealed critical information while tapping the market for billions of dollars.

Qudian leads Chinese US IPO rush

Qudian leads Chinese US IPO rush

IFR 2206 21 October to 27 October 2017 By

Online microlender Qudian has raised US$900m from the biggest Chinese listing in the US in a year, underscoring the strong appetite of American investors for fast-growing and reasonably priced mainland companies.

Santander

Yankees show love for Santander's SNP debt

IFR 2206 21 October to 27 October 2017 By ,

Spain’s Banco Santander returned to the US dollar market last week raising US$2.5bn of so-called senior non-preferred bonds in a widely expected deal that will help it close in on one of the biggest shortfalls of loss-absorbing debt among the world’s largest banks.

ECB Exit

ECB eyes end of QE but retains corporate commitment

IFR 2206 21 October to 27 October 2017 By

After more than €2trn of bond purchases, the European Central Bank is expected on Thursday to announce the phasing out of its quantitative easing programme, with plans to reduce – and eventually halt – its purchases over the course of next year.

Global support for Vincom IPO

Global support for Vincom IPO

IFR 2206 21 October to 27 October 2017 By

Global investors piled into Vincom Retail’s D15trn (US$680m) IPO, Vietnam’s largest, as it offered a rare opportunity to buy into the frontier market’s rapid economic growth.

Commercial properties line the western side of Sydney's Central Business District in Australia.

Aussie cooling worries investors

IFR 2206 21 October to 27 October 2017 By

A cooling property market is prompting some global fund managers to take a defensive approach to Australian credit.

novo banco espirito santo bes

Novo Banco CDS settlement to include deposits

IFR 2206 21 October to 27 October 2017 By

The package of assets used to determine settlement on credit default swaps referencing Novo Banco will include a fixed-term deposit option granted to noteholders who redeemed their bonds in the bank’s US$4.74bn tender offer.

IFR Magazine Top News in Full (subscription required)

People & Markets

CLSA outlines ambitious growth plans

IFR 2206 21 October to 27 October 2017

One year after announcing its integration with Citic Securities International, CLSA is looking to grow its market share across multiple product lines.

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

I box

IFR 2206 21 October to 27 October 2017

THERE’S NOTHING ECM bankers like more than beating up their rivals, but after retiring from Barclays earlier this year, Sam Dean appears to be taking this literally.

Banco Popular investors denied rescue details

IFR 2206 21 October to 27 October 2017

Former investors in Banco Popular, the Spanish bank bought by Santander for €1 in a rescue deal in June, have had their attempts to obtain documents blocked by the European authorities and are considering their next steps in seeking compensation.

Junior creditors agree to revised Norske Skog recap

IFR 2206 21 October to 27 October 2017

Norske Skog said an agreement has been reached between its shareholders and two main creditor groups to recapitalise the ailing pulp and paper producer, seemingly bringing the long-running dispute to an end.

Swaptions begin electronic shift

IFR 2206 21 October to 27 October 2017

Interest rate options have started a voluntary shift onto electronic platforms as Garda Capital Partners completed the first fully electronic swaption trade on Tradeweb’s swap execution facility.

    More from People & Markets

    Bonds

    Aflac serves generous spread

    Aflac serves generous spread

    IFR 2206 21 October to 27 October 2017

    US insurer Aflac last week paid its second visit of the year to the yen market, this time for an offering of hybrid Global yen bonds – a first from a foreign life insurer.

    CBA prints three-year Dim Sum

    IFR 2206 21 October to 27 October 2017

    Commonwealth Bank of Australia (Aa3/AA–/AA–) has priced Rmb1.5bn (US$227m) of three-year Dim Sum bonds at par to yield 4.20%, flat to final guidance.

    Daimler readies three-year Pandas

    IFR 2206 21 October to 27 October 2017

    Germany’s Daimler aims to raise Rmb4bn (US$604m) from a private placement of Panda notes in China’s interbank bond market, according to market sources.

    Boral hires two for dollar issue

    IFR 2206 21 October to 27 October 2017

    Australian building materials producer Boral, rated Baa2/BBB (Moody’s/S&P), hired Citigroup and JP Morgan to arrange meetings with fixed-income investors in Sydney, Asia and the US, starting last Tuesday.

    BEN Bank markets AT1 notes

    IFR 2206 21 October to 27 October 2017

    Bendigo and Adelaide Bank has announced an offering of Australian Stock Exchange-listed Converting Preference Shares 4 (CPS4) to raise approximately A$300m (US$236m).

      More from Bonds

      Loans

      Senator Pat Toomey

      Door opens for Congress to end lending rules

      IFR 2206 21 October to 27 October 2017 By

      The investigative arm of Congress said on Thursday that US bank guidelines on leveraged lending are subject to Congressional review, clearing the way for them possibly to be overturned.

      Chairman of Dalian Wanda Group Wang Jianlin speaks during a strategic cooperation signing ceremony with Sunac China Holdings Ltd. and R&F Properties in Beijing, China.

      Banks call time on Wanda

      IFR 2206 21 October to 27 October 2017 By Yan Jiang

      Some of Dalian Wanda Commercial Properties’ offshore lenders are demanding immediate repayment of loans after the Chinese property company was downgraded to junk status.

      Shibor loan scores with lenders

      Shibor loan scores with lenders

      IFR 2206 21 October to 27 October 2017 By Yan Jiang, Evelynn Lin

      The first loan priced over the Shanghai interbank offered rate (Shibor) has closed oversubscribed, marking a strong debut for the new benchmark rate, as well as borrower Merchants Union Consumer Finance.

      India: Mu Sigma buy loan closes

      IFR 2206 21 October to 27 October 2017

      The US$394.3m acquisition loan for Mu Sigma founder Dhiraj Rajaram to buy an additional stake in the Indian management consulting company has been signed.

      India: Yes Bank signs bigger Samurai

      IFR 2206 21 October to 27 October 2017

      Yes Bank has signed a ¥16.5bn (US$146m) one-year Samurai loan, which was increased from the ¥5bn target after being heavily oversubscribed.

      Hong Kong: Forestry doubles offshore loan

      IFR 2206 21 October to 27 October 2017

      State-owned China Forestry Group has doubled the size of its three-year offshore maiden term loan to HK$4bn (US$510m) from the initial target after drawing 18 lenders in general syndication.

      More flock to HGC LBO loan

      IFR 2206 21 October to 27 October 2017

      The HK$7.137bn (US$914m) five-year loan for investment manager I Squared Capital’s leveraged buyout of the fixed-line phone unit of Hong Kong tycoon Li Ka-Shing has had a blowout response, with more than two dozen banks joining.

      China: Yunnan Water seeks to tap

      IFR 2206 21 October to 27 October 2017

      Hong Kong-listed Yunnan Water Investment is in the market for a three-year loan of up to US$200m, 14 months after raising a US$130m facility.

      More from Loans

      Equities

      China eyes Saudi Aramco stake

      IFR 2206 21 October to 27 October 2017

      China is offering to buy up to 5% of Saudi Aramco directly, in a move that would give Saudi Arabia the flexibility to consider various options for its plan to float the world’s biggest oil producer on the stock market, sources have said.

      Lean Aussie banks bring ECM joy

      Lean Aussie banks bring ECM joy

      IFR 2206 21 October to 27 October 2017

      The slimming down of Australia’s large banks threw up another win for equity capital markets last week after financial services company IOOF Holdings completed a A$461m (US$361m) placement to part-fund its acquisition of ANZ’s wealth business.

      China: Huaneng Lancang gets IPO okay

      IFR 2206 21 October to 27 October 2017

      Huaneng Lancang River Hydropower has cleared a China Securities Regulatory Commission hearing for a proposed Shanghai IPO of up to Rmb8bn (US$1.2bn).

      China: Qingdao Port files for IPO

      IFR 2206 21 October to 27 October 2017

      Hong Kong-listed Qingdao Port International has applied for China Securities Regulatory Commission approval for a proposed Shanghai listing of up to Rmb8.48bn (US$1.29bn).

      China: High value for China Literature

      IFR 2206 21 October to 27 October 2017

      China Literature, the online bookseller and publisher of internet giant Tencent Holdings, is valued at US5.7$bn–$7.8bn, according to pre-deal reports from its IPO sponsors.

      China: Trio pre-market US listings

      IFR 2206 21 October to 27 October 2017

      Sogou, Ppdai and Four Seasons Education have started pre-marketing US IPOs, intending to raise a combined US$1.07bn.

      China: ZhongAn fully exercises greenshoe

      IFR 2206 21 October to 27 October 2017

      ZhongAn Online P&C Insurance has fully exercised the 15% greenshoe on its Hong Kong IPO, taking the final deal size to HK$13.7bn (US$1.75bn) and lifting the greenshoe to 16% from 13.8% on the base deal.

      China: Sinochem plans IPO of oil assets

      IFR 2206 21 October to 27 October 2017

      Sinochem Group has called on three banks to work on the possible Hong Kong listing of its key oil assets, according to people close to the plan.

      More from Equities

      Derivatives

      Swaptions begin electronic shift

      IFR 2206 21 October to 27 October 2017 By

      Interest rate options have started a voluntary shift onto electronic platforms as Garda Capital Partners completed the first fully electronic swaption trade on Tradeweb’s swap execution facility.

      Quantile makes swaps compression run

      IFR 2206 21 October to 27 October 2017 By

      Quantile Technologies has completed its first compression run of over-the-counter swaps cleared at LCH, after becoming the first firm in almost a decade to be granted ‘Approved Compression Service Provider’ status at LCH’s SwapClear platform.

      New tights for euro covereds

      IFR 2206 21 October to 27 October 2017

      Bank of Montreal and Helaba sold some of the tightest covered bonds from their respective jurisdictions last Thursday, with the latter setting the spread on its 10-year tap from the outset.

      Nestle dusts off Lux vehicle for multi-tranche first

      IFR 2206 21 October to 27 October 2017

      Nestle dusted off a Luxembourg-domiciled entity to issue its first multi-tranche euro trade since announcing a SFr20bn share buyback programme, the starkest sign yet of a shift in issuance strategy to accommodate shareholders.

      novo banco espirito santo bes

      Novo Banco CDS settlement to include deposits

      IFR 2206 21 October to 27 October 2017 By

      The package of assets used to determine settlement on credit default swaps referencing Novo Banco will include a fixed-term deposit option granted to noteholders who redeemed their bonds in the bank’s US$4.74bn tender offer.

      More from IFR Derivatives

      Bankers see boom times in LatAm bond primaries

      20 October 2017 By

      Latin American bond issuance surged past last year’s levels this week, making 2017 the second-busiest year ever and putting the region on course to perhaps set a new record.

      AIG logo

      AIG back in RMBS after summer debut

      20 October 2017 By

      American International Group, which made a splash this summer with its first bond sale backed by home loans, is back in the market with a follow-up trade.

      Commuters travel in a Metrocable cabin in Caracas

      Venezuela bonds drift lower ahead of payments due

      20 October 2017 By

      Venezuela bonds were again drifting lower on Friday as investors kept awaiting late coupon payments ahead of a wall of debt maturities falling due in the coming weeks.

      Libor phase out issues for structured finance:S&P

      20 October 2017 By

      With LIBOR and related IBOR benchmark references slated to be phased out after 2021, S&P Global Ratings performed an initial review of structured finance IBOR exposures.

      Subtle shifts in IG corporate bond investor base: Barclays

      20 October 2017 By

      While the investor base for investment grade corporate bonds has remained “fairly stable,” subtle shifts are underway, including drawing in more international investors, Barclays said in a report on Friday.

      IFR SNAPSHOT-One deal seen in high-grade market, otherwise quiet

      20 October 2017 By

      Glencore Funding, rated Baa2/BBB, has the market’s full attention on Friday as the sole issuer in an otherwise quiet market.

      CVC Credit Partners logo

      MOVES-CVC Credit hires Ho for CLO

      20 October 2017

      CVC Credit Partners said Cary Ho will join from Nomura as global head of CLO origination, based in New York.

      A man uses a cash dispenser at a Santander branch next to a Banco Popular branch in Madrid

      Banco Popular investors denied access to resolution documents

      20 October 2017 By

      Former investors in Banco Popular, the Spanish bank bought by Santander for €1 after a dramatic resolution in June, have had their attempts to obtain documents blocked by the European authorities and are considering their next steps in seeking compensation.

      Different types of chocolates are seen at the Nestle headquarters in Vevey

      Nestle dusts off Lux vehicle for multi-tranche first

      20 October 2017 By

      Nestle has dusted off a Luxembourg-domiciled entity to issue its first multi-tranche euro trade since announcing a SFr20bn share buyback programme, the starkest sign yet of a shift in issuance strategy to accommodate shareholders.

      China Merchants Bank logos

      China Merchants Bank adds supply to Chinese bank AT1s

      20 October 2017 By

      The supply of Chinese US dollar Additional Tier 1 securities continues to rise, with yesterday’s US$1bn offering from China Merchants Bank (Baa1/BBB+/BBB) and today’s marketing of US$1.5bn of proposed AT1s by Bank of Jinzhou.

      MOVES-Varde Partners hires Mehta

      20 October 2017

      Hemang Mehta is joining US hedge fund Varde Partners in Singapore to focus on private credit, special situations and illiquid assets in Australia.

      GAO opens door for Congress to review leveraged lending

      19 October 2017 By

      The investigative arm of Congress said Thursday that US bank guidelines on leveraged lending are subject to Congressional review, clearing the way for them to possibly be overturned.

      The national flag and emblem of Belarus

      Investors take punt on Eurotorg

      19 October 2017 By

      Eurotorg brought a different flavour to the bond markets on Wednesday as it became the first Belarusian corporate to issue.

      IFR SNAPSHOT: Spreads grind tighter (again)

      19 October 2017 By ,

      Spreads keep grinding tighter, with Triple B, Double B and IG bonds overall ratcheting in to post-crisis tights, according to data out from Bank of America Merrill Lynch this morning.

      Logo of the European Stability Mechanism (ESM)

      ESM could make dollar debut next week

      19 October 2017 By

      The European Stability Mechanism is rumoured to be coming with its debut US dollar issue next week, according to market sources.

      Salini Impregilo logo

      Salini draws large crowd on crossover appeal

      19 October 2017 By

      Salini Impregilo is set to price a €500m seven-year trade at 1.75%, becoming the sixth high-yield issuer in 2017 to bring a new issue with a one handle and demonstrating the continued appeal of crossover-like names to investment-grade accounts.

      All Latest news

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      Special Reports

      IMF/World Bank Report IFR+IMF+Report+2017+Cover+web
      Emerging market countries, where the IMF has concentrated much of its resources, reveal a strange state of affairs.

      Top 250 Borrowers Top+250+Borrowers+2017
      Normality redefined: There comes a time when things have been out of kilter with what would generally be construed as normal for so long that they begin to become accepted as ‘just the way it is’. And so it is in the debt markets. Few would claim that conditions are currently normal, although just what that actually means is open to question.

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

      I box

      IFR 2206 21 October to 27 October 2017

      THERE’S NOTHING ECM bankers like more than beating up their rivals, but after retiring from Barclays earlier this year, Sam Dean appears to be taking this literally.