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Tuesday, 23 January 2018

Corporate selling of short-term bonds seen modest: report

22 January 2018 By

US company treasurers will likely sell only a modest amount of their short-term corporate bond holdings to help fund returns to shareholders in the wake of tax reform, analysts at JP Morgan say.

Credit Roundtable eyes SOFR with post-Libor

22 January 2018 By

Investors association The Credit Roundtable has suggested a secured overnight rate with a term structure and risk spread quoted by regulators as an alternative to replace Libor.

Banks keep high-grade bond ball rolling

22 January 2018 By

US banks led the way Monday in a relatively quiet US high-grade primary market, which is expected to see a slower pace of issuance this week until corporates come out of blackout.

bonds bernanke spain

Spain plans 10-year bond after rating upgrade

22 January 2018 By

Spain is taking advantage of positive news surrounding the sovereign’s rating upgrade by Fitch to A- to issue a new 10-year euro benchmark.

BNY Mellon sign

BNY Mellon gets US$3.7bn of bond orders

22 January 2018 By

Investors have placed US$3.7bn of orders for Bank of New York Mellon’s two-part bond on Monday, according to a lead banker on the deal.

Nordex wind turbine factory

Nordex poised for bond market return

22 January 2018 By

German wind turbine manufacturer Nordex is gearing up for a return to the bond market, having mandated BNP Paribas, HSBC, JP Morgan (B&D) and UniCredit for €275m 5NC2 senior notes.

Sonic

Drive-in chain Sonic sets guidance on WBS

22 January 2018 By

Drive-in restaurant chain Sonic set guidance Monday on a whole business securitisation at levels tighter than where the deal was first marketed to investors.

Berlin Hyp sign is seen on an office building

Berlin Hyp starts with covered, waiting for senior clarity

22 January 2018 By

Berlin Hyp kicked off its public funding programme for 2018 with a covered bond tap, but the nature of its senior unsecured funding will depend on regulatory machinations in Germany.

IFR SNAPSHOT: Earnings blackouts mean quiet week ahead

22 January 2018 By

Earnings blackouts and not the US government shutdown will tap the brakes on an otherwise hot corporate bond market this week, with only about US$20bn in high-grade offerings expected.

View of the BPCE banking group headquarters in Paris

BPCE returns to SNP after removal from GSIB list

22 January 2018 By

BPCE brought its first euro senior non-preferred (SNP) trade since the Financial Stability Board bumped it off the list of global systemically important banks (GSIBs) in November, buying the bank more time to build its loss-absorbing buffers.

Credit Agricole Assurances logo

Rare euro Tier 2 is hot property

22 January 2018 By

Deals from Credit Agricole Assurances and IKB Deutsche Industriebank showed there is plenty of cash chasing bank and insurance Tier 2, with supply in both sectors expected to remain tantalisingly low this year.

Deutsche Telekom logo

T-Mobile announces US$2.5bn junk bond sale: lead

22 January 2018 By

US wireless carrier T-Mobile on Monday announced a US$2.5bn two-part junk bond sale to refinance existing debt, according to one of the banks managing the sale.

The SEC is likely to introduce new rules to restrict the way high-speed trading firms operate

IPO aspirants prepare for SEC shutdown with early filings

22 January 2018 By ,

Several companies seeking to go public this week moved Friday to eliminate the risk of a US government shutdown and its impact on the Securities and Exchange Commission’s ability to process their filings.

The logo of Swiss bank UBS is seen at an office building in Zurich, Switzerland.

US advisory weakness hurts UBS

22 January 2018 By

A below-average performance in advisory dragged down UBS’s investment bank in the last quarter of 2017, with fees from M&A and related work falling 41% to just SFr143m (US$149m) from a year earlier.

africa bonds

New Eskom board heralds bond rally

22 January 2018 By

Eskom’s US dollar bonds have tightened across the curve, following news that ANC leader, Cyril Ramaphosa, has appointed a new board at the state-owned power utility.

French flag

Vague rumours of new long-dated OAT

22 January 2018 By

There is very vague market talk about a new long-dated syndicated deal from France, although there are no indications about which part of the curve it would arrive in.

All Latest news

Swap this

IFR 2217 20 January to 26 January 2018

The finance industry has a well-developed ability to punch itself in the face. But no part of the market is better at doing that than the credit default swap market.

Top News

Blackstone

Investors cry foul over Blackstone's CDS 'fraud'

IFR 2217 20 January to 26 January 2018 By ,

The CDS market is up in arms over a controversial debt swap for US homebuilder Hovnanian Enterprises that has already led to a lawsuit against investment giant Blackstone for fraud.

Goldman Sachs sign

Goldman enjoys DCM boom but trading slumps

IFR 2217 20 January to 26 January 2018 By ,

At the same time that Goldman Sachs was turning in its worst performance in fixed income trading since the 2008 financial crisis, it also enjoyed its best ever quarter in debt underwriting – reflecting a shift in its focus.

A woman using her smart phone walks outside a branch of SoftBank Corp in Tokyo, Japan.

SoftBank mulls mega telecoms float

IFR 2217 20 January to 26 January 2018 By

Global equity capital markets bankers are circling one of the biggest Japanese listings on record after conglomerate SoftBank Group said it was considering listing its local telecoms business.

Construction takes place on the Western Peripheral Route in Aberdeen - Carillion

UK banks bear brunt of Carillion collapse

IFR 2217 20 January to 26 January 2018 By

Five UK banks are facing heavy losses on loans to Carillion, after the British government’s refusal to support the company pushed the UK construction and services group into liquidation on Monday.

Argentina Flag

Big year ahead for ECM in Argentina

IFR 2217 20 January to 26 January 2018 By ,

This is shaping up as a banner year for equity capital markets in Argentina, where five companies going public in the first quarter are looking to raise a combined US$2.2bn.

A security sign for ADT

Apollo falls short with US$1.47bn ADT IPO

IFR 2217 20 January to 26 January 2018 By

Apollo Global Management has a reputation for squeezing out top dollar from the listing of its portfolio companies, but investors proved unwilling to pay up for its latest effort, the US$1.47bn NYSE IPO of home security provider ADT. The IPO was priced well below range and slumped on its debut.

A teller counts yuan banknotes at a China Merchants Bank branch in Hefei, Anhui province.

China bank tackles first Aussie LBO

IFR 2217 20 January to 26 January 2018 By ,

China Merchants Bank has become the first Chinese bank to lead the financing of a leveraged buyout in Australia, marking another step in the aggressive overseas expansion of mainland lenders.

Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing, China.

China factor hampers sovereign workouts

IFR 2217 20 January to 26 January 2018 By

Highly indebted sovereigns with China as a significant creditor have little idea how to approach the Asian superpower about restructuring those debts.

US tax reform lifts Chinese bonds

US tax reform lifts Chinese bonds

IFR 2217 20 January to 26 January 2018 By

China achieved a rare feat last week as one of its US dollar-denominated sovereign bonds was quoted inside US Treasuries, thanks mainly to a rise in US rates after December’s tax reform legislation.

An employee is seen walking over a mosaic of pound sterling symbols set in the floor of the front hall of the Bank of England in London

Stronger pound prompts M&A loan spree

IFR 2217 20 January to 26 January 2018 By

A rally in the sterling to US dollar exchange rate, allied with very attractive borrowing conditions, has raised expectations of an M&A loan boom in the EMEA region and in the UK in particular in 2018 as companies strategically position themselves for life after Brexit.

IFR Magazine Top News in Full (subscription required)

People & Markets

Bumper DCM and ECM save the day

IFR 2217 20 January to 26 January 2018

Soaring revenue from investment banking for the top US banks has come within a hair of surpassing revenue from fixed income trading for the first time since the financial crisis, as trading revenue slumped.

Trading suffers as clients tune out

IFR 2217 20 January to 26 January 2018

The multi-year slide in fixed income trading gathered pace again last year after a pause in 2016 when clients were pulled off the sidelines by a fracturing eurozone and major election upsets.

Barclays cuts IB jobs, revamps treasury

IFR 2217 20 January to 26 January 2018

Barclays is cutting about 100 jobs in its investment bank and has merged responsibility for running treasury with its investor relations as it makes another attempt to streamline operations and improve returns, people familiar with the matter said.

China chief Chow quits Credit Suisse

IFR 2217 20 January to 26 January 2018

Mervyn Chow, Greater China CEO and co-head of investment banking and capital markets for Asia Pacific at Credit Suisse, is to leave the Swiss bank, according to people familiar with the situation.

Houlihan Lokey expands with Quayle Munro buy

IFR 2217 20 January to 26 January 2018

Houlihan Lokey has agreed to buy data and software advisory specialist Quayle Munro, another big step in its plan to build out its corporate finance capability in Europe.

    More from People & Markets

    Bonds

    People enter the BPCE bank headquarters in Paris, France.

    Tight Samurai reward for BPCE

    IFR 2217 20 January to 26 January 2018

    BPCE left nothing to chance in its quest for tight pricing on Japan’s first Samurai issue of 2018, a dual-tranche offering of senior preferred and senior non-preferred bonds.

    Record demand for Aussie sovereign

    Record demand for Aussie sovereign

    IFR 2217 20 January to 26 January 2018

    The Australian Office of Financial Management drew a record order book for last Wednesday’s A$9.6bn (US$7.25bn) November 21 2029 government bond, underlining the country’s continued appeal even at a tighter spread over US Treasuries.

    Stars align for Spanish issuers

    IFR 2217 20 January to 26 January 2018

    Investors piled in orders for Spanish papers last week, despite the low concessions on offer.

    BNPP offers floater in French funding flurry

    IFR 2217 20 January to 26 January 2018

    BNP Paribas and Societe Generale squeezed in a combined €1.75bn of senior non-preferred funding before entering close periods ahead of their full-year results.

    Deutsche Bank adds to SNP currency mix

    IFR 2217 20 January to 26 January 2018

    Having debuted in the euro and sterling markets on January 9, (see “Deutsche defies shareholder grumblings in debt market”, IFR 2216, p38), Deutsche Bank added three more currencies to its senior non-preferred roster last week.

      More from Bonds

      Loans

      Blackstone

      Investors cry foul over Blackstone's CDS 'fraud'

      IFR 2217 20 January to 26 January 2018 By ,

      The CDS market is up in arms over a controversial debt swap for US homebuilder Hovnanian Enterprises that has already led to a lawsuit against investment giant Blackstone for fraud.

      Construction takes place on the Western Peripheral Route in Aberdeen - Carillion

      UK banks bear brunt of Carillion collapse

      IFR 2217 20 January to 26 January 2018 By

      Five UK banks are facing heavy losses on loans to Carillion, after the British government’s refusal to support the company pushed the UK construction and services group into liquidation on Monday.

      A teller counts yuan banknotes at a China Merchants Bank branch in Hefei, Anhui province.

      China bank tackles first Aussie LBO

      IFR 2217 20 January to 26 January 2018 By ,

      China Merchants Bank has become the first Chinese bank to lead the financing of a leveraged buyout in Australia, marking another step in the aggressive overseas expansion of mainland lenders.

      Kenya: Sovereign secures US$750m loan

      IFR 2217 20 January to 26 January 2018

      Kenya has secured a US$750m syndicated loan for seven years from the Trade Development Bank to pay off creditors in another two-year syndicated loan that was extended last year, Reuters reported.

      US: GE gets US$13bn RCFs

      IFR 2217 20 January to 26 January 2018

      General Electric has agreed three separate revolving credit facilities for a total of up to US$13bn, all maturing in January 2020. There is one US$5bn facility and two US$4bn revolvers.

      Netherlands: ArcelorMittal nets loan for unit

      IFR 2217 20 January to 26 January 2018

      The European Bank for Reconstruction and Development has syndicated part of a €350m loan backing steel and mining group ArcelorMittal’s US$1.1bn investment programme at its Ukrainian subsidiary AMKR.

      UAE: ADNOC wraps up US$3bn loan

      IFR 2217 20 January to 26 January 2018

      Abu Dhabi National Oil Co has signed a US$3bn loan with export credit agency Japan Bank for International Cooperation and three commercial banks.

      Belgium: UCB completes €1bn A&E

      IFR 2217 20 January to 26 January 2018

      Pharmaceuticals company UCB has amended and extended its existing €1bn revolving credit facility.

      More from Loans

      Equities

      Nigeria: Flour Mills kicks off rights issue

      IFR 2217 20 January to 26 January 2018

      Subscription began last Monday for a N39.855bn (US$110.6m) rights issue for food conglomerate Flour Mills of Nigeria. The company said the capital raising would strengthen its capital base through deleveraging, as well as supporting working capital and providing cash for investments and acquisitions.

      Americold prepares for expansion

      IFR 2217 20 January to 26 January 2018

      Americold Realty, the Ron Burkle-controlled cold-storage REIT, has no peer, at least not one that is public. Typically a lack of comps is a good thing, since it suggests a long runway for growth.

      Israel: Nutrien exits Israel Chemicals

      IFR 2217 20 January to 26 January 2018

      US-based Nutrien has exited its investment in Israel Chemicals, with its wholly-owned subsidiary Potash Corporation of Saskatchewan selling 176m shares in an early-morning block trade on Tuesday.

      Eq WIN 2217

      Week in numbers - January 20 2017

      IFR 2217 20 January to 26 January 2018

      UAE: Shareholders back United Arab cash call

      IFR 2217 20 January to 26 January 2018

      Shareholders approved a Dh687.5m (US$187m) capital increase for United Arab Bank at a general assembly last Monday. The fundraising will comprise 687.5m new shares, representing 50% of existing share capital.

      Denmark: Hartwall Capital calls time on Royal Unibrew

      IFR 2217 20 January to 26 January 2018

      Finnish family-owned investor Hartwall Capital exited its investment in brewer Royal Unibrew on Monday night through a DKr969.5m (US$159m) selldown.

      Switzerland: Bell Food Group to finance Hugli buy

      IFR 2217 20 January to 26 January 2018

      Meat processor Bell Food Group has acquired a 50.2% stake in peer Hugli, with plans to purchase Hugli’s remaining shares.

      US: Goldman sells Golden stock

      IFR 2217 20 January to 26 January 2018

      Golden Entertainment, operator of the Stratosphere casino and hotel in Las Vegas, priced a US$182m two-day marketed all-secondary stock sale late on Thursday.

      More from Equities

      Derivatives

      BBVA signs to swaps clearing utility

      IFR 2217 20 January to 26 January 2018 By

      Spain’s BBVA has become the latest bank to outsource derivatives clearing activities to a third party in a sign that regional players are stepping up to plug a gap after larger brokers scaled back.

      Strong traction for Banco BPM's first covered

      IFR 2217 20 January to 26 January 2018

      Banco BPM priced its first covered bond issue since the merger of Banco Popolare and Banca Popolare di Milano came into force in January 2017, arguably facing an easier task than other recent Italian deals.

      Investors pick and choose in tight covered bond market

      IFR 2217 20 January to 26 January 2018

      DNB Boligkreditt and Canadian Imperial Bank of Commerce (CIBC) drew riotous responses for their five-year covered bonds last week, in contrast to ECB-eligible names where demand continues to be much more measured.

      Ring-fencing offers extra safety net for UK covereds

      IFR 2217 20 January to 26 January 2018

      Ring-fencing will give an extra boost to the safety credentials of UK covered bonds since the strong credit profiles of the new ring-fenced entities mean issuers are even less likely to stop coupon payments.

      Scales at a lawyer's office

      Court blocks appeal in Dexia swaps ruling

      IFR 2217 20 January to 26 January 2018 By

      The English Supreme Court has delivered a blow to Italian local authorities seeking compensation for soured derivatives trades after refusing to grant Comune di Prato permission to appeal against a 2017 judgement in favour of its swap counterparty Dexia Crediop.

      More from IFR Derivatives

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      IFR/Save the Children

      Making a difference

      Making a difference

      Banks and issuers have donated more than £25.5m to Save the Children through the IFR Awards over 22 years. In 2017, IFR deputy editor Owen Wild visited projects in Ethiopia that have been beneficiaries of that support.

      Special Reports

      IFR Review of the Year 2017 IFR+RoY+Cover+2017+Homepage
      Markets, as the cliche has it, hate uncertainty. To which the only sensible response is “who doesn’t?”.

      But markets don’t seem to hate it very much at the moment.

      German Corporate Funding Roundtable 2017 IFR+German+Corporate+Funding+RT+2017+Cover
      IFR’s seventh annual German Corporate Funding roundtable, which took place in Frankfurt in early November, found participants upbeat but at the same time pensive and rather preoccupied. It was an unusual emotional juxtaposition.

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

      Sour grapes

      IFR 2217 20 January to 26 January 2018

      LLOYD BLANKFEIN EMERGED from his self-imposed fourth-quarter Twitter earnings blackout on fighting form, posting a picture of the Statue of Liberty rising out of the New York fog with the comment: “View from our building today reminds me that despite all the sh*t, American values will shine through.”