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Thursday, 20 July 2017

Banking district in Frankfurt

Citi plans EU broker-dealer in Frankfurt after Brexit

20 July 2017 By

US bank Citigroup said it will set up a broker-dealer in Frankfurt for its European Union operations when Britain leaves the European Union, joining other Wall Street rivals choosing to move staff to the German financial centre.

Corporates front-run ECB as July issuance volumes double

20 July 2017 By

The primary corporate bond market paused on Thursday, with borrowers opting to let the ECB policy meeting unfold before resuming with an unusually busy month for the sector.

Anthony Peters columnist format

The only game in town: Guessing future policy

20 July 2017 By

Across Europe this morning market players will be chewing their fingernails in anticipation of what the ECB president Mario Draghi the patron saint of risk asset buyers, will have to say in his post-ECB Governing Council meeting press briefing. 

Nordea bank logo

Nordea delays HQ decision until September on banking union plans

20 July 2017 By ,

Nordea has delayed its final decision on potentially moving its headquarters to September, saying it wants to assess if Nordic countries join the euro zone’s banking union.

Trafigura Beheer logo

Trafigura pays same as last year for US$1.5bn loan

20 July 2017 By

Commodity trader Trafigura Beheer has obtained the same pricing on its latest US$1.5bn-equivalent multi-tranche financing as it did on last year’s visit.

MOVES-Arab Banking Corporation appoints new Asia head

20 July 2017

Bahrain-headquartered Arab Banking Corporation has appointed Patrick Tan general manager of its Singapore branch and head of Asia.

Fannie Mae

Fannie Mae gets best pricing yet on risk-transfer bond

20 July 2017 By

Fannie Mae set a record low for pricing this week in its home-loan bond programme, which makes securities out of government-guaranteed mortgages but puts buyers on the hook for losses.

People walk past Couche-Tard store in Quebec City

Orders flood in for Couche-Tard's debut IG dollar trade

20 July 2017 By

Canadian convenience store Alimentation Couche-Tard got a whopping US$14.3bn order book on its first dollar trade as a high-grade issuer on Wednesday, according to a banker on the deal.

Morgan Stanley finally conquers fixed-rate callables

20 July 2017 By

Morgan Stanley sold a US$7bn senior unsecured deal, including its first fixed-rate callable tranche for TLAC purposes, after reporting strong second quarter earnings.

Downgrade threat for McCormick on acquisition

19 July 2017 By

S&P and Moody’s warned Wednesday of multiple-notch downgrades to the credit ratings of US spices maker McCormick, which is expected to use debt to fund a new US$4.2bn acquisition.

Greece

Greece chooses banks for bond return - sources

19 July 2017 By ,

Greece has hired six banks to arrange its comeback sovereign bond deal, according to sources, as it seeks to break a three-year impasse that has shut it out of the international debt markets.

IFR SNAPSHOT-High-grade keeps feeling hot hot hot

19 July 2017 By ,

Four high-grade deals are in play this Wednesday morning, adding to a bubbling primary market that has priced US$30bn in supply in the last two days alone.

DS Smith logo from company website

DS Smith goes both ways

19 July 2017 By

European packaging company DS Smith became the second issuer to hit the capital markets in a bid to wrap up M&A financing this week.

Alto Adige Tier 2 on ice in first test of Italian sub

19 July 2017 By

Insufficient investor interest forced Banca Popolare dell’Alto Adige Volksbank to postpone a Tier 2 issue that bankers reckon fell victim to the shadow cast by two failed Italian lenders.

Morgan Stanley announces three-part US dollar bond sale: source

19 July 2017 By

Morgan Stanley has announced a three-part US dollar bond sale, after announcing second quarter earnings on Wednesday morning.

M&A involving US buyers at 17-year high: Thomson Reuters

19 July 2017 By

US companies have been on a buying spree, with the number of M&A deals involving a US buyer at a 17-year high by number of deals, according to a Thomson Reuters report out Wednesday.

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Special delivery

IFR 2192 15 July to 21 July 2017

New credit default swap definitions, intended to reflect the latest bail-in rules for bank debt-holders, could have been written with June’s resolution of Banco Popular in mind.

Top News

Banco Popular

Value of Banco Popular legal claims set to determine CDS payout

IFR 2192 15 July to 21 July 2017 By ,

ISDA’s credit determinations committee is considering whether to include claims arising from Banco Popular’s written-down subordinated notes in the package of assets that can be delivered into an auction to determine credit default swap payouts.

The logo of Swiss-based meter maker Landis+Gyr is seen at an office building in the Swiss town of Zug

Investors pay up for Landis+Gyr IPO

IFR 2192 15 July to 21 July 2017 By

Bankers are naturally reluctant to describe IPOs as hot for fear of attracting the wrong sort of money and creating false hope for the aftermarket - but there is no doubting the excitement around Landis+Gyr’s SFr2.4bn (US$2.5bn) float.

Stada Arzneimittel

Stada banks consider €3bn debt launch

IFR 2192 15 July to 21 July 2017 By

Banks are considering launching syndication of a jumbo €3bn buyout financing for Stada even before knowing the outcome of the takeover offer, after the German generic drugmaker backed a revised bid last week from buyout groups Bain Capital and Cinven.

Softbank

SoftBank perps set record

IFR 2192 15 July to 21 July 2017 By

SoftBank set a global record in the hybrid capital market with a US$4.5bn two-tranche perpetual that tapped into demand for higher returns.

A McLaren 720S

McLaren lures with brand and yield

IFR 2192 15 July to 21 July 2017 By

McLaren brought an upsized debut trade to the bond market on Thursday, brushing aside concerns about its business model and its poor performance in the Formula One racing series.

CITIC bank's advertisement poster for currency exchange is seen at its branch in Beijing.

Citic Bank puts up for-sale sign

IFR 2192 15 July to 21 July 2017 By , Carol Zhong

China Citic Bank International has put the spotlight on mainland lenders’ risk-management tactics with a move to sell a loan portfolio totalling more than US$2.8bn in the secondary market.

Estonia's Finance Minister Toomas Toniste

Europe eyes power to strong-arm banks on NPLs

IFR 2192 15 July to 21 July 2017 By

European regulators could be given more power to force banks to tackle the €1trn of bad loans festering on their balance sheets, under new proposals put together by the region’s finance ministers.

BNP Paribas

BNPP acquires ING structured risk

IFR 2192 15 July to 21 July 2017 By

BNP Paribas has struck an agreement with ING to acquire risk relating to a €5bn portfolio of structured notes issued by the Dutch bank.

An Army soldier parachutes near a giant national flag during the Army's exhibition at Monas Park in Jakarta.

Dual-currency first for Jakarta

IFR 2192 15 July to 21 July 2017 By

The Republic of Indonesia printed its first dual-currency sovereign benchmark last Tuesday, making its first visit to the US dollar and euro bond markets since it earned its third investment-grade rating.

TrueEX

Swaps antitrust claims trigger Federal probe

IFR 2192 15 July to 21 July 2017 By Mike Kentz

Allegations of anticompetitive behaviour in the interest rate swap market have become the subject of a federal investigation after the New York State Attorney General issued subpoenas relating to a private litigation between trueEX and IHS Markit.

IFR Magazine Top News in Full (subscription required)

People & Markets

JP Morgan, Citi surf investment banking wave

IFR 2192 15 July to 21 July 2017

JP Morgan and Citigroup beat analysts’ expectations for second-quarter earnings as revenue from advisory and underwriting at both banks surged compared with last year, to offset weak trading results.

UK seeks looser IPO rules to lure Saudi Aramco

IFR 2192 15 July to 21 July 2017

Britain wants to loosen rules on listing state companies, a move that critics say is designed to help London win the lucrative IPO of Saudi Arabian oil giant Saudi Aramco but could weaken minority investor protection.

RBS hit for US$5.5bn in RMBS settlement

IFR 2192 15 July to 21 July 2017

Royal Bank of Scotland reached a US$5.5bn settlement with the US Federal Housing Finance Agency last week to resolve claims that the UK bank sold shoddy mortgages to Fannie Mae and Freddie Mac in the run-up to the 2008 financial crisis.

Marriott to join NatWest DCM team from UBS

IFR 2192 15 July to 21 July 2017

James Marriott, head of financial institutions group debt capital markets at UBS for Europe, Middle East and Africa, is joining NatWest Markets, according to sources.

New SEC chair sets sights on fixed income markets

IFR 2192 15 July to 21 July 2017

The Securities and Exchange Commission wants to extend its mandate to include closer scrutiny of fixed income markets, the SEC’s new chairman Jay Clayton said last week.

    More from People & Markets

    Bonds

    Vodafone does secret placement

    IFR 2192 15 July to 21 July 2017

    Vodafone secretly accessed the yen market late last month, privately placing ¥10bn (US$88m) of 20-year Euroyen bonds. Bank of America Merrill Lynch was sole lead manager.

    BPCE turns to retail for SNP Samurais

    IFR 2192 15 July to 21 July 2017

    French lender BPCE priced ¥10bn (US$87.7m) of senior non-preferred Samurai bonds on July 7, in the first sale of these instruments to Japanese retail investors.

    Oneok attracts strong order book on IG return

    IFR 2192 15 July to 21 July 2017

    Midstream energy company Oneok attracted nearly US$5bn of orders on Monday for its first US dollar deal as an investment-grade borrower in two years.

    Santander does Down Under first

    IFR 2192 15 July to 21 July 2017

    Banco Santander gave the Australian dollar market the honour of printing Spain’s first offering of senior non-preferred notes with a three-part trade of A$800m (US$612m).

    Places for People mandates

    IFR 2192 15 July to 21 July 2017

    Places for People Treasury, rated A3/A (Moody’s/S&P), has hired National Australia Bank to arrange investor meetings in Australia, beginning in the week of July 24.

      More from Bonds

      Loans

      Stada Arzneimittel

      Stada banks consider €3bn debt launch

      IFR 2192 15 July to 21 July 2017 By

      Banks are considering launching syndication of a jumbo €3bn buyout financing for Stada even before knowing the outcome of the takeover offer, after the German generic drugmaker backed a revised bid last week from buyout groups Bain Capital and Cinven.

      CITIC bank's advertisement poster for currency exchange is seen at its branch in Beijing.

      Citic Bank puts up for-sale sign

      IFR 2192 15 July to 21 July 2017 By , Carol Zhong

      China Citic Bank International has put the spotlight on mainland lenders’ risk-management tactics with a move to sell a loan portfolio totalling more than US$2.8bn in the secondary market.

      Estonia's Finance Minister Toomas Toniste

      Europe eyes power to strong-arm banks on NPLs

      IFR 2192 15 July to 21 July 2017 By

      European regulators could be given more power to force banks to tackle the €1trn of bad loans festering on their balance sheets, under new proposals put together by the region’s finance ministers.

      Four bag mandate for Martabe borrowing

      IFR 2192 15 July to 21 July 2017 By ,

      Four banks won the mandate for a US$560m seven-year refinancing of a loan that a consortium used to back its acquisition last year of Indonesia’s Martabe mine.

      India: IOC sends RFP for US$300m

      IFR 2192 15 July to 21 July 2017

      Indian Oil Corp has issued a request for proposals for a US$300m five-year refinancing, returning to the market a month after sealing a like-sized loan.

      Hong Kong: Lenders flock to Essence debut

      IFR 2192 15 July to 21 July 2017

      Essence International Financial Holdings has met success on its first visit to the loan market, increasing a three-year facility to HK$1.2bn on commitments from 13 banks in general syndication.

      Hong Kong: SHKF debuts with HK$1bn bullet

      IFR 2192 15 July to 21 July 2017

      Brokerage Sun Hung Kai Financial is in the market for a HK$1bn (US$128m) three-year debut loan.

      Germany: Amprion goes long-term

      IFR 2192 15 July to 21 July 2017

      German electricity grid operator Amprion has placed a €200m Schuldschein with maturities of up to 30 years.

      More from Loans

      Equities

      China: IMEE completes HK float

      IFR 2192 15 July to 21 July 2017

      Inner Mongolia Energy Engineering has raised HK$1.18bn (US$151m) from a Hong Kong IPO priced at the bottom end of the indicative range.

      China: Z Bank IPO raises HK$8.1bn

      IFR 2192 15 July to 21 July 2017

      Zhongyuan Bank has raised HK$8.1bn (US$1.04bn) from a Hong Kong IPO after selling the shares in the lower half of the indicative price range.

      China: RYB Education plans US IPO

      IFR 2192 15 July to 21 July 2017

      RYB Education, a provider of pre-school education in China, intends to raise about US$150m from a US IPO this year, according to bankers involved.

      China: Zai Lab looks to US IPO

      IFR 2192 15 July to 21 July 2017

      Shanghai-based biotech company Zai Lab is looking to raise US$150m–$200m from a US IPO this year, according to people close to the plan.

      Australia: Oaktree sells A$84.3m Nine block

      IFR 2192 15 July to 21 July 2017

      US private equity firm Oaktree Capital has sold a A$84.3m (US$65m) stake in broadcaster Nine Entertainment, according to a banker on the deal.

      Australia: Convenience Retail to raise A$162m

      IFR 2192 15 July to 21 July 2017

      The ASX listing of Convenience Retail REIT is expected to raise around A$162m (US$125m), according to a company statement.

      Cautious investors await NetLink debut

      IFR 2192 15 July to 21 July 2017

      Bankers defended the lower than expected pricing for broadband provider NetLink NBN Trust last week after a cautious response to Singapore’s largest IPO in six years.

      H-share issuers gain leeway

      IFR 2192 15 July to 21 July 2017

      China is giving H-share companies more flexibility on the timing of their follow-on offerings in a move that could encourage more issuers to sell shares in the public market.

      More from Equities

      Derivatives

      Banco Popular

      Value of Banco Popular legal claims set to determine CDS payout

      IFR 2192 15 July to 21 July 2017 By ,

      ISDA’s credit determinations committee is considering whether to include claims arising from Banco Popular’s written-down subordinated notes in the package of assets that can be delivered into an auction to determine credit default swap payouts.

      BNP Paribas

      BNPP acquires ING structured risk

      IFR 2192 15 July to 21 July 2017 By

      BNP Paribas has struck an agreement with ING to acquire risk relating to a €5bn portfolio of structured notes issued by the Dutch bank.

      BestX plans TCA expansion to liquid rates

      IFR 2192 15 July to 21 July 2017 By

      Start-up foreign exchange analytics platform BestX is set to expand its transaction cost analysis tool to fixed income markets next year, enabling participants to define and demonstrate best execution for liquid rates products in compliance with MiFID II.

      TrueEX

      Swaps antitrust claims trigger Federal probe

      IFR 2192 15 July to 21 July 2017 By Mike Kentz

      Allegations of anticompetitive behaviour in the interest rate swap market have become the subject of a federal investigation after the New York State Attorney General issued subpoenas relating to a private litigation between trueEX and IHS Markit.

      Lebanon CCP steps up capital markets push

      IFR 2191 8 July to 14 July 2017 By

      The first derivatives central counterparty clearinghouse in Lebanon is under development, paving the way for exchange-traded futures and options and over-the-counter swap products that could play a vital role in the country’s capital markets development.

      More from IFR Derivatives

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      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.

      Hedging their bets

      IFR 2192 15 July to 21 July 2017

      THE NUMBER OF sociopaths working at hedge funds is set to surge this summer after an all-party parliamentary group came up with a plan to get MPs from each of the UK political parties to shadow fund managers.