Global high-yield markets were shaken by a number of pulled deals last week but investors insist it’s not yet panic time for the asset class.
Investors piled into the €1.835bn leveraged loan and high-yield bond financing for Swedish alarms company Verisure last week, despite an aggressive structure that left many describing the deal as “top of the market” issuance.
Private equity firm Hellman & Friedman had to sweeten the terms Thursday on an aggressive new junk bond that saddles one of its companies with another US$1.3bn of debt just to pay itself a dividend.
Banca Carige’s management scrambled to save the Italian bank’s capital-strengthening plan on Friday after the banks that provided volume underwriting for its €560m rescue capital increase balked at signing up for full underwriting.
Rating agencies and ISDA declared Venezuela in default last week, but with the sovereign continuing to pay debt, the situation for investors is anything but clear.
The Green bond market hit a milestone last week as issuance for the year passed the US$100bn mark, according to the Climate Bonds Initiative, an international organisation that promotes Green finance.
Battery giant Contemporary Amperex Technology is working on a record A-share IPO from China’s private sector, tapping into investor enthusiasm for new energy technology.
The fabric underlying the US IPO market is unravelling. Stitch Fix, a six-year-old online fashion store, became the latest victim of investor push-back, selling 8m shares at US$15 to raise US$120m, below the US$18–$20 targeted and less than the 10m shares launched.
Chinese online micro-lender LexinFintech filed for a Nasdaq listing last week, joining an IPO pipeline that is already showing signs of indigestion after a glut of offerings from the sector.
BNP Paribas has partnered with electronic market-making firm GTS for US Treasury trading, cementing a new era of collaboration between banks and automated trading firms in an increasingly electronic market where technology is providing the competitive edge.