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Thursday, 30 March 2017

MOVES-Wells Fargo names Li as EMEA COO

30 March 2017 By Steve Slater

Wells Fargo has appointed Louise Li as its chief operating officer for Europe, Middle East & Africa to succeed Julian Daley, who is retiring.

Bank of America Merrill Lynch sign

Excess demand to drive high-grade spreads tighter: BAML

30 March 2017 By

Even as supply of high-grade bonds slows down after a record quarter, excess investor demand should drive spreads even tighter by year end, wrote Bank of America Merrill Lynch analysts on Thursday.

Five US high-yield companies announce new bonds

30 March 2017 By John Balassi, Anthony Rodriguez

Five companies announced new US dollar high-yield bond sales on Thursday amid more stable market conditions.

Britain's permanent representative to the European Union Tim Barrow delivers British Prime Minister Theresa May's Brexit letter in notice of the UK's intention to leave the bloc under Article 50 of the

Sterling market poised after Article 50 trigger

30 March 2017 By Matt Painvin

After a busy start to the month, the sterling market has not hosted an SSA print since March 21, when the European Investment Bank added £250m to its January 2020s.

James Saft - June 2014

Of pretentious hedge fund names and bad results

30 March 2017 By

You probably already knew that hedge fund names are intended to impress, or even better to confuse just enough to make you stop asking questions, but most of all to inspire confidence.

Saudi Aramco

Saudi Aramco formally appoints banks to advise on share sale - RTRS

30 March 2017 By David French, Ron Bousso, Davide Barbuscia

Saudi Aramco has formally appointed JP Morgan, Morgan Stanley and HSBC as international financial advisers for its initial public offering, sources familiar with the matter told Reuters.

Anthony Peters columnist format

To infinity and beyond

30 March 2017 By

It is very hard to set out on a journey if one does not know the destination. 

Calsonic Kansei clubs ¥430bn LBO financing

30 March 2017

Five Japanese banks have clubbed a ¥430bn (US$3.9bn) seven-year senior financing to back US private-equity firm KKR’s leveraged buyout of Nissan Motor’s supplier Calsonic Kansei.

MOVES-Loan veteran Tibballs leaving ANZ

30 March 2017

Senior loan banker Peter Tibballs will be leaving ANZ on Friday after more than three decades in banking.

MOVES-Cheng leaves amid FGB merger with NBAD

30 March 2017

Mimi Cheng has left First Gulf Bank as Hong Kong chief representative following the Middle Eastern lender’s merger with peer National Bank of Abu Dhabi.

carbonite.jpg

Carbonite seeks to secure US$125m from CB

29 March 2017 By

Carbonite is now setting the stage for future growth after its recent acquisition of Double-Take Software.

European Union and the British Union flags

Banks ready Brexit changes, but tell staff no panic

29 March 2017 By Steve Slater

Major banks said they won’t be rushing their decisions on footprint changes due to Britain’s exit from the European Union, but said some staff will inevitably have to move and some institutions are looking at buying property in other cities.

Manhattan

Deals keep coming in US high-grade as volatility recedes

29 March 2017 By

Several companies announced new US bond deals on Wednesday, as the volumes for what is already the biggest ever quarter for investment-grade issuance marched on towards US$400bn.

sweden US$ bond

Sweden reopens SSA dollar market

29 March 2017 By Matt Painvin

The Kingdom of Sweden has successfully returned to the US dollar market with a US$2bn three-year despite rising uncertainty around fiscal policy in the US.

Novo Banco logo

Respite for Novo Banco bonds as sale nears end

29 March 2017 By

Novo Banco bonds are bid close to their highest levels since December 2015, after the Portuguese government indicated it could conclude the sale of the state-rescued lender this week.    

Ukraine

Court rules against Ukraine in Russia bond case - RTRS

29 March 2017 By Sujata Rao

A UK court ruled on Wednesday that Ukraine did not provide “justiciable defence” in a US$3bn Eurobond case brought by Russia against Kiev and that it would not be right for the case to go to full trial, Reuters reports.

All Latest news

Beetle juice

IFR 2176 25 March to 31 March 2017

Business as usual is not a mantra that Volkswagen has been able to trot out over the past 18 months.

Top News

Volkswagen logo

VW wows with blockbuster comeback

IFR 2176 25 March to 31 March 2017 By , Robert Hogg

Volkswagen left nothing to chance on its first euro unsecured bond since the emissions cheating scandal, with the issuer printing a blockbuster trade that silenced any concern about its access to the capital markets.

Glencore logo

Glencore tanks and scuppers Anglo's return

IFR 2176 25 March to 31 March 2017 By

Anglo-Swiss miner Glencore sold its first US dollar bond in two years last Tuesday, but the deal tumbled after pricing as a global sell-off added to a backlash against the deal’s tight spread.

Poland

Dino's off and running

IFR 2176 25 March to 31 March 2017 By ,

A brace of IPOs means Poland is back on equity investors’ radars for the first time in years, and the quick coverage for supermarket group Dino Polska’s float shows institutions are keen to buy.

Bucket with the colours of Argentina's national flag

Argentina's Swiss return comes at a price

IFR 2176 25 March to 31 March 2017 By

Argentina returned to the Swiss franc market last Thursday after an absence of nearly two decades, although the sovereign’s lowly ratings and chequered history meant the deal was an acquired taste for investors.

CFTC logo

SEFs gear up for brave new world

IFR 2176 25 March to 31 March 2017 By

Swap execution facilities are facing a new regime that some believe could make or break the platforms after acting CFTC chairman Christopher Giancarlo vowed to fix flawed swaps rules and allow market participants to choose the manner of execution best suited to their swaps trading.

Sears department store at Fair Oaks Mall in Fairfax

Troubled US retail space spells bondholder pain

IFR 2176 25 March to 31 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.

US dollar bills

Investors park cash in jumbo SPAC

IFR 2176 25 March to 31 March 2017 By

Silver Run Acquisition II, a special purpose acquisition company sponsored by Riverstone Group and headed by former Anadarko Petroleum CEO James Hackett, had a hard time turning investors away on its US$900m IPO. An initial target of US$400m for the energy-focused SPAC increased to US$550m before settling at US$900m. Exercise of the greenshoe, a likely outcome, would make it the largest-ever US SPAC float.

A giant panda

Rusal makes Panda statement

IFR 2176 25 March to 31 March 2017 By Ina Zhou

Highly leveraged aluminium producer United Company Rusal won over sceptical Chinese investors to complete Russia’s first Panda bond almost seven years after it first attempted to raise funds in renminbi.

The entrance of Portuguese bank headquarters Caixa Geral de Depositos is seen in Lisbon

CGD AT1 tempts investors

IFR 2176 25 March to 31 March 2017 By

Caixa Geral de Depositos cajoled investors into buying €500m of its most deeply subordinated debt, a key element in the state-owned bank’s recap plan, but the 10.75% coupon is the highest since the market’s infancy in 2013.

People stand outside the headquarters of China Oil and Foodstuffs Corporation (COFCO) in Beijing, China, November 3, 2016.

M&A scrutiny dents China loans

IFR 2176 25 March to 31 March 2017 By Carol Zhong

Chinese companies have completed only US$1.1bn of merger-and-acquisition loans so far this year, as government efforts to curb capital outflows and “irrational” overseas takeovers have taken a toll on event-driven lending, Thomson Reuters LPC data show.

IFR Magazine Top News in Full (subscription required)

People & Markets

Credit Suisse considers capital raise

IFR 2176 25 March to 31 March 2017

Credit Suisse kept shareholders guessing last week on whether it plans to launch a capital raising rather than float its domestic bank. The bank has said it needs to raise at least SFr2bn (US$2.02bn) this year.

Buoyant Q1 for Jefferies lifts expectations

IFR 2176 25 March to 31 March 2017

Jefferies Group rebounded from a big loss last year to report buoyant revenues in its latest quarter across fixed income trading, equity trading, debt and equity underwriting and merger advisory.

Who's moving where

IFR 2176 25 March to 31 March 2017

Bank of America Merrill Lynch has hired Eric Bischof from Morgan Stanley to co-head its global financial institutions group. Bischof will be based in New York and report to Diego De Giorgi, head of investment banking. He will be co-head alongside Jim O’Neil. Bischof has spent the last 20 years at Morgan Stanley, most recently as co-head of global FIG. He has specialised in insurance and worked on deals for AIG, ACE Group, Fortress Investment Group and Endurance Specialty Holdings

Deutsche softens bonus blow with €1.1bn 'retention award'

IFR 2176 25 March to 31 March 2017

Deutsche Bank has awarded deferred cash and shares worth up to €1.1bn across more than 5,500 staff in a special “retention award”, to soften the blow of a 77% plunge in the bank’s bonus pool last year.

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

Gnodding off

IFR 2176 25 March to 31 March 2017

GOLDMAN SACHS’S EUROPEAN CEO, Richard Gnodde, grabbed the headlines last week by declaring the US bank was planning to hire or relocate “hundreds” of staff in its European operations outside London as part of its contingency planning for Brexit.

    More from People & Markets

    Bonds

    InBev targets US$3.1bn exchange

    IFR 2176 25 March to 31 March 2017

    AB InBev has opened an exchange offer on 10 of its US dollar notes for a combination of new 2048 notes and cash, according to a statement from the company.

    European politics trump Asian demand

    IFR 2176 25 March to 31 March 2017

    Japanese investors, who were big net buyers of French sovereign bonds for most of 2016, have been reducing their positions since November, contributing to a dip in Asian allocations on recent SSA offerings.

    KCA Deutag forced to change structure, hike yield

    IFR 2176 25 March to 31 March 2017

    Oil services company KCA Deutag was forced to change the structure and hike the yield of its struggling junk bond offering to get the deal over the line on Tuesday.

    Spreads reach widest of year

    IFR 2176 25 March to 31 March 2017

    US junk-bond spreads gapped out to their widest levels of the year last Wednesday, moving in the opposite direction of their high-grade counterparts as investors show some jitters about the asset class.

    RSA launches tender on two securities

    IFR 2176 25 March to 31 March 2017

    RSA Insurance Group has invited bondholders to tender for purchase for cash a £500m note due 2039 and a £375m perpetual note, to optimise its capital structure.

      More from Bonds

      Loans

      Australia: BoC steps up for Alinta purchase

      IFR 2176 25 March to 31 March 2017 By Sharon Klyne

      Bank of China is financing most of the A$4bn (US$3bn) acquisition of Australian gas and electricity retailer Alinta Energy by Hong Kong’s Chow Tai Fook Enterprises.

      Netherlands: Basic-Fit ups RCF to €175m

      IFR 2176 25 March to 31 March 2017

      Dutch fitness club operator Basic-Fit has increased its revolving credit facility to €175m from €100m to help fund increased investments for its accelerated growth plan.

      Metinvest finalises restructuring

      IFR 2176 25 March to 31 March 2017

      Ukrainian metals and mining group Metinvest has completed the restructuring of its US$2.3bn debt.

      Hunkemoller seeks divi recap

      IFR 2176 25 March to 31 March 2017

      Dutch lingerie firm Hunkemoller has launched a €430m dividend recap.

      Audiotonix allocates TLB

      IFR 2176 25 March to 31 March 2017

      UK audio mixing console manufacturer Audiotonix has allocated its £142m-equivalent term loan B backing its buyout by Astorg after tightening pricing during syndication.

      Pfleiderer seeks €450m refi

      IFR 2176 25 March to 31 March 2017

      Polish wood materials company Pfleiderer Group has launched a €450m refinancing.

      Financing for Ardian’s Prosol buy

      IFR 2176 25 March to 31 March 2017

      BNP Paribas, Credit Agricole and Natixis have provided leveraged loan financing to back Ardian’s acquisition of a majority stake in Prosol, founder of fresh food retailer Grand Frais.

      Independent Vetcare raises £182m

      IFR 2176 25 March to 31 March 2017

      UK veterinary care business Independent Vetcare is raising an extra £182m-equivalent of leveraged loans to back its merger with Northern European peer Evidensia.

      More from Loans

      Equities

      India: Avenue's debut strongest in a decade

      IFR 2176 25 March to 31 March 2017

      Shares of Avenue Supermarts rose 115% last Tuesday in the strongest debut for an Indian IPO in a decade.

      China: CSRC approves 10 IPOs

      IFR 2176 25 March to 31 March 2017

      The China Securities Regulatory Commission has approved the listing applications of 10 companies, intending to raise a combined Rmb5.1bn (US$739m).

      China: Anta Sports completes top-up

      IFR 2176 25 March to 31 March 2017

      Anta Sports Products has raised HK$3.79bn (US$488m) through a top-up placement of 175m shares, priced at the bottom of an indicative range of HK$21.67-$22.13, or at a discount of close to 8% to the pre-deal spot.

      China: Dianchi Water Treatment launches IPO

      IFR 2176 25 March to 31 March 2017

      Kunming Dianchi Water Treatment started bookbuilding last Friday for a Hong Kong IPO of up to HK$1.59bn (US$206m).

      China: Haitong plans financial leasing float

      IFR 2176 25 March to 31 March 2017

      Haitong Securities is considering listing its financial leasing unit in Hong Kong, according to people familiar with the situation.

      China: ZhongAn Online revives HK IPO

      IFR 2176 25 March to 31 March 2017

      ZhongAn Online Property and Casualty Insurance has resumed work on its Hong Kong IPO, according to people familiar with the situation.

      Australia: Citi sells Evolution Mining block

      IFR 2176 25 March to 31 March 2017

      Citigroup has sold a A$174.8m (US$134m) block of shares in Australia’s Evolution Mining, according to a source close to the deal.

      Australia: PNG lender set for A$300m listing

      IFR 2176 25 March to 31 March 2017

      Papua New Guinea’s Bank of South Pacific is pressing ahead with a secondary listing in Australia that could raise up to A$300m (US$231m), according to a source close to the deal.

      More from Equities

      Derivatives

      CFTC logo

      SEFs gear up for brave new world

      IFR 2176 25 March to 31 March 2017 By

      Swap execution facilities are facing a new regime that some believe could make or break the platforms after acting CFTC chairman Christopher Giancarlo vowed to fix flawed swaps rules and allow market participants to choose the manner of execution best suited to their swaps trading.

      Hong Kong launches first RMB options

      IFR 2176 25 March to 31 March 2017

      Hong Kong Exchanges and Clearing last week launched its first currency options, rolling out more renminbi-related derivative products in a bid to cement Hong Kong’s status as the main offshore renminbi trading hub.

      LCH kick-starts client CDS clearing with Amundi

      IFR 2176 25 March to 31 March 2017 By

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

      EuroStoxx logo

      VStoxx shrugs off election risk

      IFR 2176 25 March to 31 March 2017 By

      Europe’s VStoxx volatility index continued to trade at a historically tight spread over the US VIX last week, shrugging off French election risk even as global volatility measures jumped off record lows.

      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.

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      Special Reports

      IFR Review of the Year 2016
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      IFR German Corporate Funding Roundtable 2016
      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

      Gnodding off

      IFR 2176 25 March to 31 March 2017

      GOLDMAN SACHS’S EUROPEAN CEO, Richard Gnodde, grabbed the headlines last week by declaring the US bank was planning to hire or relocate “hundreds” of staff in its European operations outside London as part of its contingency planning for Brexit.