Debt market bankers reacted with unadulterated relief last week after Greece on Monday made €7bn of repayments and primary activity quickly cranked into gear as investors turned risk-on again. But there are plenty of voices warning the party may have started too soon and headline risks remain.
PrivatBank’s insistence on protecting retail depositors at the expense of international creditors is threatening to push the Ukrainian bank into default, after investors rejected the lender’s attempt to restructure its debt.
Ferrari started rolling towards its long-awaited US$1bn IPO last week by filing initial documents with the SEC, but investors will have to wait at least three months before they can place orders in the sportscar maker.
The European high-yield market coped with a tidal wave of supply as banks cleared an enormous backlog of junk-rated debt before activity grinds to an enforced halt in August.
A new sterling offer from J Sainsbury brought the corporate hybrid market back to life on Thursday, after a combination of interest-rate and Greece-related volatility put a swift halt on new supply in recent months.
US oil exploration and production companies are again seeing their access to debt capital markets shrink, after a slide in oil prices put worries about defaults back on the radar.
Commodity trading giant Trafigura Beheer is facing further scrutiny over its China operations as it looks to attract lenders to a US$1.6bn multi-tranche refinancing.
China International Capital Corp has filed its long-awaited application for a US$1bn Hong Kong listing, kicking off a challenging deal in a market still reeling from weeks of turmoil.
International corporates are hedging their Chinese exposures for as long as a decade through the rapidly developing offshore renminbi market to protect earnings and investments. Increased hedging, including the increase in duration of hedges where five years had been considered long, is driven by a backdrop of looser monetary policy and a potential devaluation of the currency.
Bondholders in Greek banks are bracing themselves for possible restructurings of the institutions that could see them face losses, after the Greek government and its creditors in effect admitted that the four major lenders needed to be recapitalised.