The Kurdistan Regional Government is sounding out investors about a potential debt financing, although a number of grey areas need to be clarified before any deal emerges.
Evraz Canada, the North American subsidiary of the Russian steel company, is being closely watched by the market as it looks to price a US$350m debut bond at a time when its parent and other Russian corporates are shut out of debt capital markets.
Major European banks doubled their exposure to government debt in the two years running up to the latest stress tests despite a worsening in the economic fundamentals of many countries, according to an IFR analysis of European Banking Authority data.
Fiat Chrysler Automobiles set the market aflutter last week – not with its plans to recapitalise through equity and equity-linked issues totalling several billion dollars in the next two months, but with the IPO of just 10% of Ferrari.
Underwriters are facing another problem when backing leveraged buyouts – and this time it’s not regulators but unpredictable debt markets. That means that the market will be closely watching the reception given to a US$3bn-plus high-yield bond for Scientific Games to get clues on investors’ appetite for risk.
If equity markets had been less welcoming of recapitalisation deals earlier this year, the results of the ECB’s recent assessment of European banking would have been dramatically different. The list of stress test failures released by Europe’s central bank reads like a greatest hits of 2014 equity fundraisings, with the new capital mostly filling the gaps identified.
Hong Kong conglomerate Hutchison Whampoa last week beat its own record for Asia’s largest corporate bond with an opportunistic dual-currency issue that raised an impressive US$5.4bn.
A regulatory struggle to transform the trading infrastructure for over-the-counter swaps may be on the cusp of a big leap towards the exchange-like regime envisioned under Dodd-Frank regulations. Several segments of the market are poised to coalesce around a new standardised swaps contract – known as a Market-Agreed Coupon or “MAC” swap – within an order book framework that more closely resembles exchange trading.