Russia underwhelmed with its first US dollar new issue in nearly three years, with questions about who bought the bond overshadowing the sovereign’s efforts to score a PR coup.
VTB Capital did not expect to end up as the only bank on the deal when it pitched to lead the Russian Federation’s long-awaited return to international bond markets.
A US$10bn order book allowed HSBC to price the year’s first Additional Tier 1 bond from a UK bank flat to its outstanding curve, but it still ended up paying one of its highest yields in the asset class.
The wall of money scouring markets for any sort of yield shows no sign of crumbling, as Qatar discovered on Wednesday.
Computer giant Dell’s decision to sit out months of extreme credit market volatility appears to have paid off as it has launched the biggest US syndicated term loan since last November into a market eager for exposure to debt backing the US$67bn acquisition of EMC Corp.
Banks have cleared nearly all of the riskiest debt backing Carlyle’s leveraged buyout of Veritas after selling US$450m of an unsecured junk bond issue last week, a source close to the situation told IFR.
US Foods’ US$1.02bn float has highlighted an unlikely revival of US leverage-backed IPOs as financial sponsors take a more conservative approach to leverage and valuation.
China City Construction Holding Group’s offshore creditors find themselves in the unusual position of being first in line for repayment, while onshore bondholders continue to fret about the company’s fundamentals.
Net short positioning in VIX futures has hit its most extreme level in almost three years, raising concerns of a repeat of August 2015, when an equity sell-off was exacerbated by a surge in Wall Street’s fear gauge as investors rushed to cover their volatility positions.
DBS Bank broke new ground last week with the first covered Kangaroo bond from an Asian issuer, opening up the market for others as the senior secured format gains momentum in the region.