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Wednesday, 01 March 2017

The Trade Desk logo

Extra marketing pays off for Trade Desk

01 March 2017 By

Bankers have wistfully accepted that limited marketing and block trades are the new norm for follow-on stock sales in US equity capital markets.

RBS

Strong response for RBS holdco return

01 March 2017 By

Royal Bank of Scotland garnered over €4.25bn of demand for its first holding company trade in euros in a year, a transaction that was also the first fixed-to-floating callable from a UK bank in the single currency.

A Air Liquide transportation vehicle

French corporates defy political risk fears

01 March 2017 By

Air Liquide and RCI Banque attracted almost €5.5bn of demand combined for their bonds on Wednesday, demonstrating the strong backstop bid for corporate credit despite looming French political risk.

sharjah

​Bank of Sharjah finally crosses the line

01 March 2017 By

Bank of Sharjah finally printed a five-year issue after the deal had to wait for the central bank to sign off the lender’s 2016 results.

Avis out with HY bond after sectoral speed-bump

01 March 2017 By Robert Smith

Avis is bringing more reverse Yankee issuance to the high-yield bond market, as it looks to price a drive-by euro trade after a bumpy few months for car rental credits.

Slovenia’s national flag

Slovenia sets spread, Slovakia due

01 March 2017 By Robert Hogg

Slovenia has set guidance on the reopenings of its €1bn 1.25% 2027s and €1bn 1.75% 2040s. And the leads appear to be giving the deal their full support, with €720m lead interest swelling the combined books to over €2.5bn, with a skew towards the 2027s.

Anthony Peters columnist format

Back to the grindstone

01 March 2017 By

Anyone who had expected anything special from President Donald Trump’s address to the joint houses of Congress yesterday has either not been listening to him for the past 18 months or was smoking something for which most of us would get banged up. 

Traders Kuwait sept2012RTXAJL8_Comp[1].jpg

Kuwait makes dates with investors

01 March 2017 By Robert Hogg

The Middle East heavyweight sovereigns have taken a couple of months to get the 2017 pipeline moving, but Kuwait has added momentum to issuance from the region with a full week of roadshow dates announced ahead of a debut US dollar deal.

CIMB returns to loan market after nearly a decade

01 March 2017

Malaysian lender CIMB is returning to the loan markets after nearly a decade for a US$400m five-year amortising loan. 

BNI US$750m financing attracts over 24 banks

01 March 2017

Syndication of a US$750m dual-tranche financing for Bank Negara Indonesia has been closed with over two dozen banks joining. 

Tower Bersama seeks US$200m new-money facility

01 March 2017

Indonesian telecom tower company Tower Bersama Infrastructure is seeking a US$200m five-year new-money loan. 

Smiling Union Jack piggy banks

Non-residents sell Gilts for second consecutive month

01 March 2017 By

Breakdown of UK M4 data shows that foreign investors sold Gilts for a second consecutive month. After sales of £3bn in December 2016, non-residents sold a further £7.6bn in January 2017.

MOVES-ESM appoints Eatough as general counsel

01 March 2017

The European Stability Mechanism has promoted former Credit Suisse investment banker David Eatough to be its general counsel, filling a vacant position after the departure of Ralf Jansen.

JP Morgan tamps down trading expectations

28 February 2017 By Philip Scipio

JP Morgan increased the medium-term return target for its investment bank to 14% from 13%, setting itself up for an easy lay-up after seeing a return on equity of 16% last year.

US high-grade closes February with a bang

28 February 2017 By

Corporate and financial borrowers raised nearly US$18bn of new debt in the red-hot US high-grade bond market on Tuesday, pushing February’s final tally north of US$91bn.

TABLE-US high-grade bond volumes for February

28 February 2017 By Anthony Rodriguez

US high-grade corporate bond volumes logged their fourth busiest February with US$91.125bn of supply, according to IFR data.

All Latest news

Top News

New rules bar China follow-ons

New rules bar China follow-ons

IFR 2172 25 February to 3 March 2017 By ,

A clampdown on follow-on activity sent a shockwave through China’s equity market last week, threatening fundraisings worth at least Rmb32bn (US$4.65bn).

Premiere Global Services logo

Once struggling loans draw red-hot demand

IFR 2172 25 February to 3 March 2017 By Jonathan Schwarzberg

Web conferencing provider Premiere Global Services is considering a return to the loan market to reprice its debt and even add a little more to pay a dividend after struggling to sell the same buyout-related debt last year, illustrating growing demand for US leveraged loans.

Snapchat

Snap's IPO covered, waiting on quality

IFR 2172 25 February to 3 March 2017 By

Snap drummed up strong interest in the first week of the roadshow for its much-hyped US$3.2bn IPO, though many investors still have deep reservations.

Jean Pierre Mustier

UniCredit's near perfect rights result

IFR 2172 25 February to 3 March 2017 By ,

UniCredit has achieved overwhelming market support for its €13bn capital raise – the biggest from a bank since the depths of the crisis – with 99.8% of rights being taken up during the subscription period, an impressive result for the struggling Italian bank.

Auto ABS

Sub-prime auto bonds still in vogue

IFR 2172 25 February to 3 March 2017 By

Bond investors continued to show strong interest last week in new sub-prime auto loan bond deals, despite increasing alarm about a rising tide of missed car payments.

EFSF Logo Jan 2012

EFSF's return to long end tests investors' patience

IFR 2172 25 February to 3 March 2017 By Robert Hogg

The European Financial Stability Facility found more than €5.6bn of demand for a €4bn long four-year bond issue on Tuesday, but a concurrent €1bn 39-year generated only about €1.2bn of orders, highlighting the issuer’s woes at the long end.

FICC Markets Standards Board logo

FICC standards group sets sights on 70 'grey areas'

IFR 2172 25 February to 3 March 2017 By Alex Chambers, Steve Slater

The standards board for fixed income markets sees dozens of grey areas that could open the door to conflicts of interest, and is aiming to clarify and codify the rules around them.

HSBC headquarters

HSBC sees annual TLAC costs doubling

IFR 2172 25 February to 3 March 2017 By Steve Slater

HSBC said it plans to issue about US$30bn of loss-absorbing debt this year, similar to 2016, which will more than double the annual cost of the debt.

Monte dei Paschi bank headquaters

State aid decision looms for Monte dei Paschi

IFR 2172 25 February to 3 March 2017 By

The European Commission is unlikely to block Italy’s plan to recapitalise Banca Monte dei Paschi di Siena after the failure of the bank’s €5bn private-sector fundraising, but could impose harsh restructuring conditions to make the Tuscan lender less systemically important in the region.

Yum Brands corporate headquarters

Corvex slices US$800m Yum stake

IFR 2172 25 February to 3 March 2017 By

Activist hedge fund Corvex Management sold more than half its stake in restaurant group Yum Brands in a nearly US$800m block trade last week, the latest in a flurry of sizeable stock sales using the unregistered format.

IFR Magazine Top News in Full (subscription required)

People & Markets

Barclays keeps pace with US big guns

IFR 2172 25 February to 3 March 2017

Industry revenues down in 2016 for 4th year, but FICC rebounds

Administrative hurdle may block US regulatory relief

IFR 2172 25 February to 3 March 2017

Donald Trump has the ability to reorient key regulatory agencies, including the Federal Reserve, by appointing new chairmen, governors and commissioners, but their ability to drastically roll back rules that have stymied banks may be limited.

Banks set to uncover female pay

IFR 2172 25 February to 3 March 2017

Banks in Britain will have to reveal if they pay female staff less than male colleagues from this April as new legislation comes in, forcing employers with more than 250 staff to disclose differences in pay by gender.

Credit Suisse raises pay of top Asian bankers

IFR 2172 25 February to 3 March 2017

Credit Suisse has raised pay for a number of its top performing bankers in Asia by as much as 15%, several people familiar with the matter told IFR.

India bad bank plan met with scepticism

IFR 2172 25 February to 3 March 2017

The Reserve Bank of India’s plans to set up a new entity to buy up bad loans from ailing public sector banks have been met with initial scepticism from several observers.

    More from People & Markets

    Bonds

    Spain cuts size to fit demand

    IFR 2172 25 February to 3 March 2017

    Spain sold its first 15-year benchmark in almost two years as it looked to reinvigorate its curve, although a weak backdrop saw the sovereign put the brakes on its size ambitions.

    Tepco keeps tightening pricing

    IFR 2172 25 February to 3 March 2017

    Tepco Power Grid was on Friday marketing three and five-year bonds at respective indicative price ranges of 0.37%–0.40% and 0.57%–0.60%, according to DealWatch, a Thomson Reuters publication.

    BNP Samurai defies French fears

    IFR 2172 25 February to 3 March 2017

    BNP Paribas rose above French political worries to raise funds in the Samurai market last week. The bank priced ¥50.6bn (US$448m) of two-tranche senior non-preferred Samurai bonds on February 23 through joint lead managers BNP Paribas, Daiwa, Mitsubishi UFJ Morgan Stanley, Mizuho, Nomura and SMBC Nikko.

    Ericsson in demand despite lack of coupon step-up

    IFR 2172 25 February to 3 March 2017

    Investors rushed to buy a €1bn trade from Ericsson on Monday, despite the borrower not including a coupon step-up option, as requested the week prior during its roadshow.

    Macquarie plans AT1 sale

    IFR 2172 25 February to 3 March 2017

    Macquarie Bank will hold investor meetings and conference calls in Asia, Europe and the US starting on Monday for a potential sale of 144A/Reg S US dollar perpetual non-call 10 Additional Tier 1 notes.

      More from Bonds

      Loans

      Premiere Global Services logo

      Once struggling loans draw red-hot demand

      IFR 2172 25 February to 3 March 2017 By Jonathan Schwarzberg

      Web conferencing provider Premiere Global Services is considering a return to the loan market to reprice its debt and even add a little more to pay a dividend after struggling to sell the same buyout-related debt last year, illustrating growing demand for US leveraged loans.

      Rising secondary loans catch traders short

      IFR 2172 25 February to 3 March 2017 By

      Europe’s secondary loan market has peaked at an all-time high with the composite reaching 100.94 this month, according to Thomson Reuters LPC data, fuelled by a supply-demand imbalance that is affecting banks as traders take hits to cover costly shorts.

      Credit Bank of Moscow eyes loan market

      IFR 2172 25 February to 3 March 2017 By Sandrine Bradley

      Credit Bank of Moscow is in the market for an internationally syndicated loan, making it the first Russian investment bank to tap the international loan market in over a year.

      Bank lending undeterred by scrapped mergers

      IFR 2172 25 February to 3 March 2017 By , Lynn Adler

      Banks losing fees from a string of mega-mergers scuttled by US antitrust rulings are still eager to extend loans to investment-grade companies seeking big tie-ups, in the hope they will ultimately profit by winning business down the road.

      The logo for Australia's biggest electricity network Ausgrid adorns the headquarters building in central Sydney, Australia.

      AusGrid to lift secondary sales

      IFR 2172 25 February to 3 March 2017 By Sharon Klyne, Yan Jiang

      Overwhelming demand for the A$12.777bn (US$9.85bn) loan backing the acquisition of Australian energy distributor AusGrid has raised expectations for secondary market activity.

      Hotelbeds markets €197.5m deal

      IFR 2172 25 February to 3 March 2017

      Spanish hotel room specialist Hotelbeds Group has guided pricing on a €197.5m financing to back its acquisition of US-based travel company Tourico Holdings.

      ​SMBC leads Atos Medical repricing

      IFR 2172 25 February to 3 March 2017

      Swedish medical device company Atos Medical has shaved 100bp off a €256m term loan B, just seven months after raising the loan that backed its buyout by PAI Partners.

      Germany: Kion places debut €1bn Schuldschein

      IFR 2172 25 February to 3 March 2017

      Forklift truck maker Kion has placed a debut €958m Schuldschein to part-refinance the €3bn bridge loan that backed its US$3.25bn acquisition of automated logistics company Dematic last year.

      More from Loans

      Equities

      China: Changqing sets IPO target

      IFR 2172 25 February to 3 March 2017

      Hefei Changqing Machinery is looking to raise up to Rmb832m (US$121m) from a Shanghai IPO, having set the price at Rmb16.32 per share.

      China: Wisdom partly exercises greenshoe

      IFR 2172 25 February to 3 March 2017

      Wisdom Education International has partly exercised the greenshoe option on its Hong Kong IPO to raise a total of HK$913m.

      China: BoCom unit gets CSRC approval

      IFR 2172 25 February to 3 March 2017

      BoCom International has received China Securities Regulatory Commission approval for a Hong Kong IPO, according to an announcement from parent Bank of Communications.

      China: Feihe plans Hong Kong IPO

      IFR 2172 25 February to 3 March 2017

      Baby formula maker Feihe International, which delisted from the US in 2013, is considering listing in Hong Kong as early as this year.

      China: Minsheng Education seeks to list

      IFR 2172 25 February to 3 March 2017

      Minsheng Education sought approval for its Hong Kong IPO of about US$200m last week, according to people close to the plan.

      China: Yuhua Education completes float

      IFR 2172 25 February to 3 March 2017

      China Yuhua Education raised HK$1.54bn (US$198m) from a Hong Kong IPO, having priced the shares near the low end of an indicative range.

      China: Huang Ji Huang plans IPO

      IFR 2172 25 February to 3 March 2017

      Beijing Huang Ji Huang, a restaurant chain with more than 600 franchises in China, is considering a Hong Kong listing.

      China: Online publisher hires IPO trio

      IFR 2172 25 February to 3 March 2017

      China Reading has mandated Bank of America Merrill Lynch, Credit Suisse and Morgan Stanley for its proposed Hong Kong IPO, according to people familiar with the plans.

      More from Equities

      Derivatives

      French flag

      French CDS diverges on redenomination risk

      IFR 2171 18 February to 24 February 2017 By

      Some credit default swaps referencing the French sovereign may be more valuable than others in the event that National Front candidate Marine Le Pen wins the presidential election and leads the country out of the euro.

      Repo dislocations may be new normal - ICMA

      IFR 2171 18 February to 24 February 2017 By

      Europe’s repo market may be entering a “new normal” as a scarcity of high-quality liquid assets and leverage ratio constraints drive extreme volatility in year-end short-term funding rates, the International Capital Market Association has warned.

      Commodity desks prepare for E&P funding bonanza

      IFR 2171 18 February to 24 February 2017 By

      Bank commodity desks are gearing up for a new phase of investment by oil exploration companies as prices stabilise around US$55 - a level that brings drilling projects back into profitability.

      Listed equity swaps gain traction

      IFR 2171 18 February to 24 February 2017 By

      Total Return Futures referencing the EuroStoxx 50 have traded over €1bn notional since their launch in December, putting the instruments on track to become a viable alternative to over-the-counter equity swaps.

      CFTC logo

      CFTC gives relief on swaps margin deadline

      IFR 2171 18 February to 24 February 2017 By

      Preparations for the March 1 “big bang”, which requires derivatives participants to exchange variation margin on their uncleared swaps, continue unabated despite the CFTC bowing to industry pressure with six months’ grace for compliance.

      More from IFR Derivatives

      Three ways

      IFR 2172 25 February to 3 March 2017

      The European Financial Stability Facility raised a few eyebrows last week when it found it tough to sell long-end bonds – again.

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      Special Reports

      IFR Review of the Year 2016
      It’s normally fair to say that bankers grumbling about the state of the markets deserve the same sympathy as farmers moaning about the weather. It goes with the territory. And it is up to them to simply get on with it.

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      Markets are more agnostic about elections than the public at large. Even as half (or more) of America was gnashing its teeth over the election of the country’s first non-politician president since Eisenhower, the “Trump Rally” was in full flight.

      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

      The buzz around Barclays

      IFR 2172 25 February to 3 March 2017

      ARE THE SCRIPTWRITERS of Barclays year-end results presentation secret fans of Disney animation films?