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Thursday, 23 March 2017

Troubled US retail space spells pain for bondholders

22 March 2017 By ,

Investors are shunning the bonds of US retailers, even though much of the paper from the troubled sector is available at bargain-basement prices.

Market sell-off bleeds into new bond issues

22 March 2017 By ,

US high-grade issuers were forced to offer higher-than-usual premiums on new bond deals Wednesday following a global sell-off triggered by doubts about President Trump’s reforms.

Riverstone-backed SPAC hikes IPO to US$900m

22 March 2017 By

Silver Run Acquisition II, the specialty purpose acquisition company sponsored by Riverstone Group and headed by former Anadarko Petroleum CEO James Hackett, is having a hard time turning investors away.

Trumid acquires rival online bond trader

22 March 2017 By

Electronic bond-trading platform Trumid said on Wednesday it was acquiring Electronifie, a smaller competitor in the crowded fintech sector.

ING bonds widen after criminal probe announced

22 March 2017 By

New bonds sold by Dutch bank ING Groep sold off heavily in secondary trade on Wednesday after prosecutors announced a criminal investigation into money laundering and corruption.

Source Energy pulls plug on C$250m IPO

22 March 2017 By

The risks of marketing oil and gas IPOs are high right now.

VW bus

Investors grapple with VW bond comeback

22 March 2017 By

Investors will have to weigh up the risks of buying into Volkswagen’s unsecured euro bond comeback after the company’s head of treasury warned that more “surprises” could emerge from the emissions cheating scandal.

Six issuers announce deals in US high-grade market

22 March 2017 By

Six issuers announced high-grade bond deals on Wednesday, despite widening in secondary credit markets and a sell-off in stocks.

Easterly Government pre-funds acquisitions

22 March 2017 By

As FBI Director James Comey testified before Congress on Monday, investors were listening to one of the agency’s landlords, Easterly Government Properties, outline its latest acquisitions.

European financials market going gangbusters

22 March 2017 By

Financials issuers new and old hit screens on Wednesday in further evidence of the market’s strength after a string of tightly priced and highly oversubscribed deals this week.

Aumann narrows IPO pricing range

22 March 2017

German engineering company Aumann has narrowed the price range for its public offering to €41-€42 from €39-€43, and books are covered throughout the revised range.

DERIVATIVES-LCH kick-starts client CDS clearing with Amundi

22 March 2017 By

Amundi has become the first European buyside client to begin clearing credit default swaps through CDSClear, LCH’s Paris-based clearinghouse.

Frankfurt skyline/Deutsche Bank

Brexit banks set to avoid lengthy eurozone entry test - sources

22 March 2017 By John O'Donnell

Banks in London that relocate operations to the eurozone after Brexit are likely to be spared a lengthy entry test by regulators, making it easier for them to shift, according to two officials with knowledge of the matter.

VW

Volkswagen seeks to widen bond market return

22 March 2017 By

Volkswagen plans to return to the US dollar bond market this year, the company’s head of group treasury said on an investor call on Wednesday.

Anthony Peters columnist format

Bearing up

22 March 2017 By

There has always been some truth in the old rule that the time to start selling is when the bears begin to get bullish. 

Jefferies 1Q investment banking revenue surges 77%

21 March 2017 By Philip Scipio

Jefferies Group rebounded from a big loss last year reporting strength across the board in fixed income trading, equity trading, debt and equity underwriting and merger advisory.

All Latest news

By the book

IFR 2175 18 March to 24 March 2017

The most remarkable thing about Kuwait’s deal last week was how unremarkable it all was.

Top News

Slippers at a local market in Kuwait City

Kuwait hastens Gulf market's evolution

IFR 2175 18 March to 24 March 2017 By

Bond market debutant Kuwait has overcome growing fears about higher Treasury yields to sell the biggest EM sovereign deal so far this year, marking another big step in the Gulf region’s evolution into a fully fledged market.

Bolivians stand behind their national flag

Bolivia logs lowest coupon ever

IFR 2175 18 March to 24 March 2017 By

Bolivia achieved its lowest coupon ever last week after aggressively tightening pricing on a US$1bn 11-year bond, as investors shrugged off poor credit metrics and political risks ahead of the 2019 elections.

ONEWORLD WAITS FOR SEMI-FINAL OF THE LOUIS VUITTON CUP ON AUCKLAND'S HAURAKI GULF

Kiwibank Kangaroo killed by cap rules

IFR 2175 18 March to 24 March 2017 By

New Zealand’s fifth-biggest lender aborted a Kangaroo bond last week just a day before settlement after regulators warned that some of its capital securities might be ineligible for CAR calculations.

Tesla Motors' mass-market Model 3 electric car

Tesla recharges balance sheet with US$1.2bn raise

IFR 2175 18 March to 24 March 2017 By

Elon Musk’s Tesla tapped the robust US convertible bond market last week for the bulk of its US$1.2bn capital raise, less than many envisaged but enough for the electric carmaker to fund capex to support production of its Model 3 sedan.

Sign outside Neiman Marcus Last Call store

Neiman Marcus bondholders left guessing

IFR 2175 18 March to 24 March 2017 By

Troubled retailer Neiman Marcus is considering an outright sale of the company, but that would be likely to prove extremely costly unless bond or equity holders take steep losses.

A woman wears a Canada Goose jacket at Times Square in New Yor

Scarcity value boosts Canada Goose IPO

IFR 2175 18 March to 24 March 2017 By Robert Sherwood

Canada Goose is an expert in managing stock levels to keep its US$900 parkas away from the discounters and applied the same strategy to its C$340m (US$255m) IPO, forcing investors to fill out positions in the aftermarket.

Hilton

US lev loan refi wave tops US$200bn

IFR 2175 18 March to 24 March 2017 By Jonathan Schwarzberg

More than US$200bn of US leveraged loans have been refinanced or repriced so far this year and, with two weeks to go before the end of the quarter, volume is approaching the US$245m of redone loans written in the second quarter of 2013, the last peak of activity.

Fannie Mae

Index in works to track exotic mortgage bonds

IFR 2175 18 March to 24 March 2017 By

Fannie Mae is holding talks with several index providers about the creation of a benchmark index for its more exotic mortgage bonds to help bring them into the trading mainstream.

Job hunters rush into a job fair in Binzhou, Shandong province, China

CEB kicks off China CB rush

IFR 2175 18 March to 24 March 2017 By ,

China Everbright Bank has launched the largest A-share convertible bond issue in nearly seven years, opening the floodgates for a potential Rmb85bn (US$12bn) of such deals after a regulatory clampdown on other forms of equity financing.

Kiyomura Co's President Kiyoshi Kimura (C), who runs a chain of sushi restaurants Sushi Zanmai, poses with a 212 kg (467 lbs) bluefin tuna at his sushi restaurant outside Tsukiji fish market in Tokyo, Japan

Jumbo Japanese CBs hit market before Fed hike

IFR 2175 18 March to 24 March 2017 By Robert Hartley

The Japanese convertible bond market served up its two biggest offerings in over a year last Tuesday, as issuers moved ahead of the US rate decision and risk-hungry investors snapped up US$2.6bn of new securities.

IFR Magazine Top News in Full (subscription required)

People & Markets

New York to benefit from Brexit

IFR 2175 18 March to 24 March 2017

London business could head to US rather than EU

Europe urges US to complete Basel deal

IFR 2175 18 March to 24 March 2017

Top European policymakers have called for negotiations to finalise bank capital rules to resume as swiftly as possible, with Bundesbank president and ECB board member Jens Weidmann calling the uncertainty around any amendments to Basel III as “undoubtedly a burden for banks”.

Wall Street bonuses rise on Trump bump

IFR 2175 18 March to 24 March 2017

The Trump induced stock market rally for financial stocks helped boost bonuses for New York bankers last year to end a two-year slide.

Bob Diamond and Qataris swoop for stockbroker Panmure

IFR 2175 18 March to 24 March 2017

Former Barclays chief executive Bob Diamond’s investment firm and a vehicle of the Qatari royal family are buying British stockbroker Panmure Gordon.

Early job for incoming HSBC chair Tucker: pick new CEO

IFR 2175 18 March to 24 March 2017

HSBC Holdings has picked an outsider for its top job, appointing insurance veteran and AIA Group boss Mark Tucker to take over as chairman from Douglas Flint in October.

    More from People & Markets

    Bonds

    Moto drives off with another bargain

    IFR 2175 18 March to 24 March 2017

    Motorway service area operator Moto refinanced a £175m 6.375% second-lien note at cheap levels on Tuesday, the second time it has been able to cut its funding costs.

    Verizon times it right

    IFR 2175 18 March to 24 March 2017

    Telecoms juggernaut Verizon raised US$11bn on Monday to help pay for the buyback of more expensive debt and its purchase of Yahoo’s core business.

    VW and Areva hint at capital markets return

    IFR 2175 18 March to 24 March 2017

    Volkswagen and Areva hinted at a return to capital markets last week, after internal problems cast them out and sent their borrowing costs soaring.

    Japanese lifers diversify credit holdings

    IFR 2175 18 March to 24 March 2017

    Two major Japanese life insurers, Meiji Yasuda Life and Nippon Life, have unveiled plans to diversify their credit investments, with a special focus on socially responsible debt, in a move that bankers say could expand global appetite for yen products.

    Harley-Davidson rides south

    IFR 2175 18 March to 24 March 2017

    Harley-Davidson may rev up the corporate Kangaroo market after appointing JP Morgan to arrange investor meetings for a potential Australian dollar bond.

      More from Bonds

      Loans

      Hilton

      US lev loan refi wave tops US$200bn

      IFR 2175 18 March to 24 March 2017 By Jonathan Schwarzberg

      More than US$200bn of US leveraged loans have been refinanced or repriced so far this year and, with two weeks to go before the end of the quarter, volume is approaching the US$245m of redone loans written in the second quarter of 2013, the last peak of activity.

      Bharat Petroleum calls for refinancing

      IFR 2175 18 March to 24 March 2017 By Chien Mi Wong

      State-owned Indian oil-and-gas company Bharat Petroleum has sent out a request for proposals, with an end-March deadline, for a US$150m five-year refinancing loan. 

      Rare Vietnam LBO emerges

      IFR 2175 18 March to 24 March 2017 By Chien Mi Wong

      US private equity firm Advent International is seeking a senior loan of US$150m-$200m to back the purchase of education company ILA Vietnam after beating rival bids from other sponsors including Sweden’s EQT Partners, according to sources familiar with the transaction.

      India: SBI back for US$500m financing

      IFR 2175 18 March to 24 March 2017

      State Bank of India is sounding out lenders for a US$500m three-year term loan on its return to the market a month after sealing an enlarged financing of US$750m with a similar maturity. 

      Indonesia: FIF returns for US$200m

      IFR 2175 18 March to 24 March 2017

      Federal International Finance is in the market for a US$200m one-year club loan on its return two months after sealing a US$100m facility. 

      China: Ant seeks takeout facility

      IFR 2175 18 March to 24 March 2017

      Alibaba Group founder Jack Ma’s online finance firm, Ant Financial Services Group, is tapping the offshore markets for a US$3bn loan.

      Infinitas markets €430m TLB

      IFR 2175 18 March to 24 March 2017

      Education publisher Infinitas Learning has guided pricing on a €430m term loan B, which will refinance existing debt and fund a dividend.

      Dorna launches €889m dividend recap

      IFR 2175 18 March to 24 March 2017

      Shareholders in Spanish sports management company Dorna Sports are set to take a third payout from the company in six years as it markets an €889m-equivalent dividend recapitalisation.

      More from Loans

      Equities

      China: CZB proposes A-share IPO

      IFR 2175 18 March to 24 March 2017

      China Zheshang Bank is proposing a Shanghai IPO of up to 4.49bn A-shares, or about 25% of its enlarged capital, and using the proceeds to strengthen Core Tier 1 capital.

      China: CC Land unveils rights issue

      IFR 2175 18 March to 24 March 2017

      Property developer CC Land plans a rights issue of up to 1.33bn shares on a 1-for-2 basis to raise up to HK$2.65bn (US$341m).

      China: Yuexiu REIT block raises US$72m

      IFR 2175 18 March to 24 March 2017

      Yuexiu International Investment has raised HK$555m (US$71.5m) from a sell-down of its stake in Yuexiu REIT.

      China: Minsheng Ed IPO fetches US$178m

      IFR 2175 18 March to 24 March 2017

      Minsheng Education has raised HK$1.38bn (US$178m) from its Hong Kong IPO, having priced the shares at the midpoint of the indicative range, according to bankers.

      China: Fintech duo proceeds with US floats

      IFR 2175 18 March to 24 March 2017

      Chinese online microlender Lexin Fintech has hired banks to manage its US IPO of US$300m-$500m, while Ant Financial-backed rival Qudian has filed confidentially for a US$500m US listing, according to sources close to the transactions. 

      China: CSRC approves GRCB listing

      IFR 2175 18 March to 24 March 2017

      The China Securities Regulatory Commission has approved Guangzhou Rural Commercial Bank’s application to seek a Hong Kong listing, according to people familiar with the process.

      China: Guotai wins HK listing approval

      IFR 2175 18 March to 24 March 2017

      The Stock Exchange of Hong Kong has approved the listing plan of Guotai Junan Securities to raise about US$2bn, according to people familiar with the situation.

      Australia: Alinta IPO off cards after sale

      IFR 2175 18 March to 24 March 2017

      The expected A$2bn (US$1.5bn) IPO of Alinta Energy was cancelled at the last minute after Hong Kong’s Chow Tai Fook Enterprises (CTFE) announced a plan to acquire the Australian gas and electricity utility, according to Reuters.

      More from Equities

      Derivatives

      Sign outside Neiman Marcus Last Call store

      Neiman Marcus bondholders left guessing

      IFR 2175 18 March to 24 March 2017 By

      Troubled retailer Neiman Marcus is considering an outright sale of the company, but that would be likely to prove extremely costly unless bond or equity holders take steep losses.

      Fannie Mae

      Index in works to track exotic mortgage bonds

      IFR 2175 18 March to 24 March 2017 By

      Fannie Mae is holding talks with several index providers about the creation of a benchmark index for its more exotic mortgage bonds to help bring them into the trading mainstream.

      EC cracks the whip on creditor hierarchy harmonisation

      IFR 2175 18 March to 24 March 2017 By

      There could be a light at the end of the tunnel for European lenders waiting to issue billions in loss-absorbing debt as rulemakers ramp up the pressure to accelerate the requisite legislation.

      As junk bond outflows soar, market stays calm

      IFR 2175 18 March to 24 March 2017 By , ,

      The US high-yield bond market has suffered a setback as investors yanked billions of dollars from junk funds, but analysts say the asset class remains in fairly decent health and that a larger price correction is not necessarily on the cards.

      L&I ETFs launch in Hong Kong

      IFR 2175 18 March to 24 March 2017

      Four fund managers launched Hong Kong’s first batch of leveraged and inverse exchange-traded funds tracking local indices last week, as asset managers seek to capitalise on investor interest in these products.

      More from IFR Derivatives

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      Special Reports

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      IFR convened its fifth annual German Corporate Funding Roundtable in Frankfurt in mid-November just as bond markets, led by US Treasuries, were starting their sharp re-pricing off the back of higher inflation expectations and tighter US money.

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

      Tucker the nutter

      IFR 2175 18 March to 24 March 2017

      THERE’S MORE TO new HSBC chairman Mark Tucker than just an impressive grasp of the insurance industry. He’s also able to handle himself in the rough and tumble of Sunday league football.