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Thursday, 14 December 2017

UPDATE 2-Auction values Venezuela debt at pennies on dollar

14 December 2017 By

Banks valued defaulted bonds of Venezuela’s state oil company PDVSA at just 17.625 cents on the dollar Wednesday in an auction to fix how much owners of insurance on the debt will be paid.

MOVES-Citi promotes Davison in FIG reshuffle in EMEA

13 December 2017

Citigroup has promoted Piers Davison to co-head its financial institutions group in Europe, Middle East and Africa, as part of a raft of changes in the FIG business at its corporate and investment bank.

Default auction values Venezuela's PDVSA bonds at 17.625 cents

13 December 2017 By

Bonds of Venezuela’s PDVSA were valued at 17.625 cents on the dollar in an auction Wednesday to determine the payout on credit default swaps tied to the state-owned oil company.

Italy's largest bank UniCredit is pictured in downtown Milan

UniCredit rounds off transformational year with AT1

13 December 2017 By

UniCredit returned to the euro AT1 market almost exactly a year after a costly club deal, the much lower coupon highlighting the progress made by the bank over the course of 2017.

Liquidnet logo

Liquidnet launches multi-protocol bond trading tool

13 December 2017 By

Electronic trading venue Liquidnet has expanded beyond its dark pool roots in corporate bond trading with additional protocols and smart execution tools that direct different order types to the most appropriate execution methods, from anonymous trading to fully lit markets.

Signage is seen outside a branch of the West Bromwich Building Society

West Brom BS to spruce up capital structure after bondholder push

13 December 2017 By

West Bromwich Building Society has bowed to investor pressure to clean up legacy hybrid debt, putting in place plans for liability management to pre-empt the securities’ potential disqualification by regulators.

Workers stand in front of a drilling rig at an oil well operated by PDVSA

PDVSA bonds initially valued at 19.25 cents at CDS auction

13 December 2017 By

Bonds of Venezuela’s PDVSA were valued at 19.25 cents on the dollar in the first stage of an auction Wednesday to determine the payout on credit default swaps tied to the state-owned oil company.

Janet Yellen

IFR SNAPSHOT: Year and Yellen winding down

13 December 2017 By

It’s Janet Yellen’s swan song today, and even as she goes out with a rates hike, the bigger news will be whatever clues the Fed puts out about the potential impact of US tax reform.

Information for stock in Morgan Stanley is displayed above the floor of the New York Stock Exchange

MOVES-MS bolsters SSA debt capital markets business

13 December 2017 By

Morgan Stanley has bolstered its sovereign, supranational and agency debt capital markets business with three hires, according to sources.

Metinvest logo

Metinvest meets investors as company eyes 2018 bond

13 December 2017 By

Ukrainian metals and mining group Metinvest is plotting a return to the international bond markets in early 2018, according to an investor.

Iceland's national flag and a church are seen in the town of Vik

Iceland takes next step in capital markets recovery

13 December 2017 By

The Republic of Iceland has received over €4.2bn of orders for its first bond in three years and since lifting capital controls.

ChemChina headquarters

ChemChina takeout attracts 15 underwriters

13 December 2017

Fifteen underwriters have lined up for a US$5.5bn loan that will refinance the jumbo bridge facility China National Chemical used to acquire Swiss seeds and pesticides company Syngenta.

Nicolas Maduro

Venezuela bonds valued in CDS auction

12 December 2017 By

Banks valued Venezuela’s sovereign bonds at 24.50 cents on the dollar Tuesday in an auction to determine the payout on credit default swaps tied to the South American country.

Picture of Two Penn Plaza, which is part of Vornado Realty Trust's Manhattan portfolio

Vornado offers first bond deal since 2014

12 December 2017 By

New York realty company Vornado is expected to sell its first bond since 2014 on Tuesday, a US$350m seven-year fixed-rate offering.

US Federal Reserve Chair Janet Yellen

Five high-grade deals hit market before Fed

12 December 2017 By

Five investment-grade bond deals are expected to price Tuesday in the US dollar market, including a benchmark trade from Banco Santander Chile, as issuers look to price deals ahead of an expected US rates hike.

Dancers from the “Fire of Anatolia” perform

Financial sector burns brightly after meteoric year

12 December 2017 By

It is hard to believe that in 2018 the financial sector can put in a repeat performance of this year’s stellar run, but bank paper remains top of the wish list of many investors who are struggling to identify what could knock the market off course.

All Latest news

Made to be broken

IFR 2213 9 December to 15 December 2017

Last week the three main US bank regulators, including the Federal Reserve, told Congress they would consider revising the post-crisis guidelines on leveraged lending. It was a victory for Republicans trying to roll back financial regulation – or at least it looked like one.

Top News

An olive branch is seen during harvest

Regulators to soften US loan rules

IFR 2213 9 December to 15 December 2017 By ,

US regulators said they are open to revising restrictions on leveraged lending, offering an olive branch to a Republican-controlled Congress keen to roll back banking regulations.

A CVS pharmacy

CVS lines up US$49bn jumbo loan

IFR 2213 9 December to 15 December 2017 By Lynn Adler

US drugstore operator CVS Health Corp has lined up US$49bn of loans to back its US$69bn acquisition of health insurer Aetna, supporting the largest corporate merger of the year with the second biggest US acquisition financing on record.

Indonesian President Joko Widodo (C) makes a statement on the U.S. recognition of Jerusalem as Israel's capital, at the Presidential Palace in Bogor, West Java, Indonesia.

Indonesia goes Global with SEC trade

IFR 2213 9 December to 15 December 2017 By

The Republic of Indonesia capped its return to full investment-grade status with a strong US response to last Monday’s US$4bn Global offering, its first SEC-registered bond issue in more than 20 years.

Steinhoff International logo

Steinhoff scandal leaves banks gauging exposure

IFR 2213 9 December to 15 December 2017 By ,

Banks that financed Steinhoff International’s rapid expansion have been left gauging their exposure – both financial and legal – to the South African retailer after “new information” emerged relating to possible accounting irregularities.

Christmas trees await recycling

Busy Christmas looms for banks' MiFID geeks

IFR 2213 9 December to 15 December 2017 By

Holiday leave has been cancelled and hundreds of technology and compliance staff are set for a busy holiday period in Europe as banks rush to prepare systems for MiFID II, one of the biggest overhauls of trading ever seen.

A booth of Lufax is seen during an exhibition in Beijing, China, August 4, 2016.

Lufax nears IPO as HK pipeline swells

IFR 2213 9 December to 15 December 2017 By

Chinese online wealth management and peer-to-peer lending company Lufax has set the ball rolling on a Hong Kong IPO that could raise US$3bn–$5bn, even as China takes steps to crack down on consumer finance.

Freddie Mac headquarters

Freddie Mac tunes HARP for new bond deal

IFR 2213 9 December to 15 December 2017 By

Freddie Mac has sold its first ever securitisation of mortgages from the HARP relief programme that helped underwater borrowers stay in their homes after the financial crisis.

A farmer removes dried plants from his parched paddy field on the outskirts of Ahmedabad, India.

Banks reject aggressive buyout loans

IFR 2213 9 December to 15 December 2017 By

Bank lenders to European leveraged loans are increasingly rejecting deals due to aggressive pricing and documentation, but are being quickly replaced by institutional investors targeting higher-yielding term loan B paper.

Us dollar and euro banknotes

High-yield issuers in late-year frenzy

IFR 2213 9 December to 15 December 2017 By , ,

The junk bond market is ending the year on a frantic note with some 25 different issuers from both sides of the Atlantic jumping into the primary last week after a brief spell of weakness a month back.

DZ Bank headquarters

Bond platform raises small-cap hopes

IFR 2213 9 December to 15 December 2017 By

Attempts to extend capital markets funding to small and mid-cap firms took a step closer to reality last week as a new European private placement platform aimed at low-cost bond issuance completed its first deal, a €1m two-week commercial paper transaction for DZ Bank via ABN AMRO and DZ Bank.

IFR Magazine Top News in Full (subscription required)

People & Markets

At last: Basel capital rules agreed

IFR 2213 9 December to 15 December 2017

Financial regulators have finally agreed a deal to harmonise global banking rules, capping a decade-long effort to make banks more resilient and a year-long row over a key measure.

US banks brace for 15% Q4 trading fall

IFR 2213 9 December to 15 December 2017

The largest US banks are predicting revenue from bond and equity trading will fall about 15% in the fourth quarter from a year ago, putting trading revenues for the top five firms on course to end the year down 7% from 2016.

CEO of HSBC Stuart Gulliver speaks during a meeting with Chinese Premier Li Keqiang (not pictured) during China Development Forum 2017 at Diaoyutai State Guesthouse in Beijing, China.

HSBC Qianhai plans 50-person research team

IFR 2213 9 December to 15 December 2017

HSBC has expanded its Asia research business with a 15-person team in Shenzhen following the official launch this week of its HSBC Qianhai Securities joint venture, and expects to have 50 people in the medium term.

Managements and officials present a ceremony for founding China Great Wall Asset Management Co. in Beijing, China.

Errors build on Asia's record bond issuance

IFR 2213 9 December to 15 December 2017

The record volume of Asian bond issuance, coupled with a reduced number of staff at many banks and law firms, is leading to increasing errors in documentation, market participants have warned.

Credit Suisse gears up for Europe pick-up

IFR 2213 9 December to 15 December 2017

Credit Suisse is shifting its investment banking resources towards Europe ahead of what’s expected to be a substantial pick-up in deals in the region next year following years of subdued activity and false starts.

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    Bonds

    LBBW sells largest European Green senior

    IFR 2213 9 December to 15 December 2017

    LBBW sold the European banking sector’s largest Green senior unsecured bond yet, setting the size at €750m after attracting over €1.4bn in orders.

    NRW issues at longer end of the curve

    IFR 2213 9 December to 15 December 2017

    German Land North Rhine-Westphalia was back in the market once again last week, pricing a 25-year LSA transaction.

    Ultra-long bond bandwagon to roll on in 2018; ECB effect lingers

    IFR 2213 9 December to 15 December 2017

    Eurozone countries aim to tap persistent demand for extremely long-dated government bonds by borrowing more at these extraordinary maturities through 2018 as ECB bond buying drives yield-seeking investors further out along the time horizon.

    Foreign inflation biggest risk to IG in 2018: BAML

    IFR 2213 9 December to 15 December 2017

    The number one risk to the US high-grade corporate bond market in 2018 is a pick-up in foreign inflation, which could impact foreign flows into the asset class, according to Bank of America Merrill Lynch credit strategists.

    General Electric takes another hit to ratings

    IFR 2213 9 December to 15 December 2017

    General Electric was downgraded for the third time in the space of a month on Monday, after S&P cut the company’s rating by two notches to A from AA– due to increasing debt leverage and weaker cashflow.

      More from Bonds

      Loans

      An olive branch is seen during harvest

      Regulators to soften US loan rules

      IFR 2213 9 December to 15 December 2017 By ,

      US regulators said they are open to revising restrictions on leveraged lending, offering an olive branch to a Republican-controlled Congress keen to roll back banking regulations.

      A CVS pharmacy

      CVS lines up US$49bn jumbo loan

      IFR 2213 9 December to 15 December 2017 By Lynn Adler

      US drugstore operator CVS Health Corp has lined up US$49bn of loans to back its US$69bn acquisition of health insurer Aetna, supporting the largest corporate merger of the year with the second biggest US acquisition financing on record.

      Credit Suisse gears up for Europe pick-up

      IFR 2213 9 December to 15 December 2017 By

      Credit Suisse is shifting its investment banking resources towards Europe ahead of what’s expected to be a substantial pick-up in deals in the region next year following years of subdued activity and false starts.

      Acleda lures Taiwan banks to longer maturity

      Acleda lures Taiwan banks to longer maturity

      IFR 2213 9 December to 15 December 2017 By

      Acleda Bank, Cambodia’s largest lender, has successfully placed a US$50m five-year syndicated loan, becoming the latest frontier market borrower to take advantage of bank liquidity to extend loan maturities.

      Banco General defies Taiwanese chill

      IFR 2213 9 December to 15 December 2017 By ,

      Banco General has increased the size of an Asia-targeted three-year loan to US$800m from an original target of US$500m on support from Taiwanese banks, despite a diplomatic rift between Panama and Taiwan.

      A farmer removes dried plants from his parched paddy field on the outskirts of Ahmedabad, India.

      Banks reject aggressive buyout loans

      IFR 2213 9 December to 15 December 2017 By

      Bank lenders to European leveraged loans are increasingly rejecting deals due to aggressive pricing and documentation, but are being quickly replaced by institutional investors targeting higher-yielding term loan B paper.

      HNA to extend third offshore loan

      IFR 2213 9 December to 15 December 2017 By Yan Jiang

      Debt-laden HNA Group is extending another offshore loan related to its 2016 acquisition of Swiss airline catering firm Gategroup Holding, amid growing concern over the conglomerate’s access to funding.

      Hong Kong: CNHE makes loan debut

      IFR 2213 9 December to 15 December 2017

      Hong Kong-listed China New Higher Education Group is making its market debut with a HK$1.5bn (US$192m) five-year loan.

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      Equities

      Policybazaar readies India's first fintech IPO

      India prepares for first fintech IPO

      IFR 2213 9 December to 15 December 2017

      Policybazaar.com has started preparations to become the first Indian financial technology company to go public with plans for a US$200m–$400m domestic IPO.

      Japan: Nissin Foods IPO brings HK$952m

      IFR 2213 9 December to 15 December 2017

      Nissin Foods, a spin-off of Tokyo-listed Nissin Foods Holdings, has raised HK$952m (US$122m) from a Hong Kong IPO after selling shares at the bottom of the indicative price range.

      China: Listing approvals for duo

      IFR 2213 9 December to 15 December 2017

      Red Star Macalline Group and Deppon Logistics have both cleared China Securities Regulatory Commission hearings for their proposed Shanghai IPOs.

      China: Guanghui Energy seeks rights approval

      IFR 2213 9 December to 15 December 2017

      Guanghui Energy will seek China Securities Regulatory Commission approval on Monday for a rights issue of up to Rmb4bn (US$604.2m).

      China: CDB Securities readies float

      IFR 2213 9 December to 15 December 2017

      China Development Bank Securities has hired Citic Securities as pre-listing adviser for a proposed Shanghai IPO.

      China: China Education bookbuilding wraps up

      IFR 2213 9 December to 15 December 2017

      China Education Group could raise up to HK$3.51bn (US$450m) through a Hong Kong IPO.

      China: Hebei Construction book covered

      IFR 2213 9 December to 15 December 2017

      The book of Hebei Construction Group’s Hong Kong IPO of up to HK$2.32bn (US$297m) is covered.

      China: HNA Investment pulls placement

      IFR 2213 9 December to 15 December 2017

      HNA Investment Group has withdrawn an application to the China Securities Regulatory Commission for a proposed private share placement of up to Rmb5.22bn (US$789m).

      More from Equities

      Derivatives

      Aroundtown spreads rally on rating upgrade

      IFR 2213 9 December to 15 December 2017

      Spreads on Aroundtown bonds have rallied in the wake of a one-notch rating upgrade.

      Listed equity swaps grow to 10% of OTC market

      IFR 2213 9 December to 15 December 2017 By

      Listed futures that recreate the economics of over-the-counter equity swaps have grown to represent 10% of their OTC equivalents just a year into trading, defying the notoriously low success rate of futures launches.

      Banks seek tech partners for FICC trading edge

      IFR 2213 9 December to 15 December 2017 By

      Banks that once prided themselves on cutting-edge in-house systems are partnering with technology specialists to gain an edge in fixed income trading, as reshaping legacy architecture for a new, largely electronic market structure becomes prohibitively costly.

      BoE warns on Brexit's £12trn swaps headache

      IFR 2212 2 December to 8 December 2017 By

      The Bank of England has called on Britain and EU states to legislate to protect the long-term servicing of derivatives contracts whose legal status becomes unclear once the UK exits the bloc in March 2019.

      LCH SwapAgent goes live with cross-currency swaps

      IFR 2212 2 December to 8 December 2017 By

      Credit Suisse and Deutsche Bank have completed the first cross-currency basis swap on LCH’s SwapAgent platform for uncleared derivatives trades.

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