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Monday, 21 August 2017

Getting on the pot

IFR 2197 19 August to 25 August 2017

The transformation of Japan’s capital markets is gathering pace. The latest upheaval comes in the slow-changing world of yen bonds, where desperate investors are embracing global standards in search of higher returns.

Top News

amazon

Amazon primes market with US$16bn bond

IFR 2197 19 August to 25 August 2017 By

Amazon priced last Tuesday the fourth-largest bond of the year, a US$16bn seven-parter that sailed through a market that had been showing signs of supply fatigue.

Auden's small but perfectly formed ABS

IFR 2197 19 August to 25 August 2017 By

Auden Group, a fintech company providing short-term loans to borrowers with poor credit histories, has structured and sold the first asset-backed security parcelling up such assets.

Pot system catches on in Japan

IFR 2197 19 August to 25 August 2017 By

Japan’s growing appetite for overseas bonds is raising a debate over the role of global DCM practices in the yen markets.

Tesla Motors' mass-market Model 3 electric car

Tesla goes goodwill hunting with coupon bump

IFR 2197 19 August to 25 August 2017 By

There may be no such thing as a free lunch in finance, but Tesla gave away the equivalent of about 200 of its new Model 3 cars in its junk-bond deal in what it called a goodwill gesture.

Yen volumes hit post-crisis high

IFR 2197 19 August to 25 August 2017 By

Borrowers in Japan are flocking to the bond markets, as signs of an improving economy strengthen the argument that the central bank may begin steadily reducing years of monetary stimulus.

Energy Transfer takes US$1bn equity dip

IFR 2197 19 August to 25 August 2017 By

Energy Transfer Partners, one of the largest publicly traded master limited partnerships, swallowed a bitter pill as it secured US$1bn in an overnight stock sale on Monday. The cash infusion cures the pipeline operator’s funding needs until the middle of next year, but pricing was painful as shares have fallen by nearly a quarter this year.

Air France plane passes Air Berlin plane during take-off at Tegel Airport in Berlin

CB investors take Air Berlin parachute

IFR 2197 19 August to 25 August 2017 By

Former convertible bondholders were proved right last week when Etihad Airways finally stopped propping up Air Berlin and the airline filed for insolvency. The German low-cost carrier had tried in February to keep convertible investors from exercising a put on 2019 paper by ramping up the coupon and slashing the premium in an exchange, but investors rejected the notion.

NTPC targets longest loan

IFR 2197 19 August to 25 August 2017 By ,

State-owned NTPC is aiming to become the first Indian company to complete a 10-year unsecured financing in the offshore loan market.

Novo Banco logo

Novo Banco offer unchanged by high deposit rates

IFR 2197 19 August to 25 August 2017 By

Novo Banco’s publication of the above average rates it will pay on deposits resulting from its liability management exercise targeting €8.37bn of bonds in the nationalised Portuguese bank do not materially change the economics of the offer.

A man uses a cash dispenser at a Santander branch next to a Banco Popular branch in Madrid

Popular bondholders seek to turn back time

IFR 2197 19 August to 25 August 2017 By

A group of bondholders in Banco Popular have filed challenges to European regulatory decisions that put the Spanish bank in resolution on June 7 and led to Santander’s immediate purchase of the hastily restructured entity for €1.

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People & Markets

LCH launches custodial segregation model

IFR 2197 19 August to 25 August 2017

LCH has introduced a custodial segregation model for buyside firms, enabling clients on its SwapClear platform to deliver collateral directly to the clearinghouse and retain beneficial title to it.

Swaps compression faces MiFID threat

IFR 2197 19 August to 25 August 2017

New rules forcing the most liquid over-the-counter derivatives to be traded over exchange-like platforms could make it more difficult for banks to reduce risks and streamline their balance sheets through the tear-up of redundant swaps contracts.

Deutsche confirms Patrick to lead US unit

IFR 2197 19 August to 25 August 2017

Deutsche Bank has confirmed that Tom Patrick has been made CEO of the Americas, with immediate effect, replacing Bill Woodley who is leaving the bank.

Pre-trade transparency targeted in corporate bond markets

IFR 2197 19 August to 25 August 2017

Global securities regulator umbrella body IOSCO has recommended that its members seek more information on corporate bond trading, particularly on the specifics of the market before a trade is made, and how it is subsequently reported.

Volatility bout fails to lift trading forecasts

IFR 2197 19 August to 25 August 2017

A recent bout of volatility may have shaken up the staid VIX volatility index but it has done little to lift third-quarter trading, particularly in fixed income where revenue is expected to be down double digits compared with last year, based on analyst estimates.

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    Bonds

    Week in Numbers - August 19 2107

    Week in Numbers - August 19 2017

    IFR 2197 19 August to 25 August 2017

    Philip Morris bond tries to find the right snuff

    IFR 2197 19 August to 25 August 2017

    Tobacco company Philip Morris International amassed an order book of US$2.4bn for its US$1.25bn investment-grade bond deal on Monday, leaving the trade slightly less than twice covered.

    Dell unit VMware makes US$4bn bond debut

    IFR 2197 19 August to 25 August 2017

    Software company VMware, a subsidiary of Dell, made its debut in the bond market on Wednesday with a US$4bn investment-grade offering.

    FMS chips away at increased funding needs

    IFR 2197 19 August to 25 August 2017

    FMS Wertmanagement wasted no time in addressing its increased 2017 funding needs last week, pricing a €1bn no-grow short three-year on Wednesday.

    Banks pitch high equity hybrids

    IFR 2197 19 August to 25 August 2017

    Banks are gauging investor interest for corporate hybrid bonds with high equity content, a product feasible for the first time in years as a strong backdrop allows issuers to push market boundaries.

      More from Bonds

      Loans

      Rare outing for Shibor benchmark

      IFR 2197 19 August to 25 August 2017 By Yan Jiang, Evelynn Lin

      A Chinese consumer finance firm has launched a syndicated loan priced over the Shanghai interbank offered rate (Shibor), testing appetite for a market-driven alternative to the central bank’s reference rate.

      NTPC targets longest loan

      IFR 2197 19 August to 25 August 2017 By ,

      State-owned NTPC is aiming to become the first Indian company to complete a 10-year unsecured financing in the offshore loan market.

      HGC enters senior phase

      IFR 2197 19 August to 25 August 2017

      A leveraged buyout loan of about US$900m-equivalent, supporting investment manager I Squared Capital’s winning bid for the fixed-line phone unit of Hong Kong tycoon Li Ka-shing, has been launched into senior syndication.

      Hong Kong: ZHIG increases to HK$2bn

      IFR 2197 19 August to 25 August 2017

      State-owned Zhuhai Holdings Investment Group has increased the size of its four-year term loan to HK$2bn from a target of HK$1.5bn after 11 banks joined in general syndication.

      Hong Kong: Lei Shing Hong Credit ups loan

      IFR 2197 19 August to 25 August 2017

      Lei Shing Hong Credit has increased the size of its three-year term loan to US$400m-equivalent from the US$300m target.

      China: Aier gets €174m for Spanish buy

      IFR 2197 19 August to 25 August 2017

      Four banks have joined the syndication of a loan backing Aier Eye Hospital Group’s acquisition of Spain’s Clinica Baviera.

      China: ICBC Intl seeks US$500m

      IFR 2197 19 August to 25 August 2017

      ICBC International Holdings, the offshore investment banking arm of the mainland’s biggest lender, Industrial and Commercial Bank of China, is seeking a US$500m syndicated loan.

      Australia: Data centre signs financing

      IFR 2197 19 August to 25 August 2017

      NEXTDC has signed a A$300m three-year senior secured loan with National Australia Bank to replace a A$100m undrawn facility completed last year.

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      Equities

      India: Indian pair to file for listings

      IFR 2197 19 August to 25 August 2017

      HDFC Life and Reliance Nippon Life Asset Management were set to file draft prospectuses for their proposed IPOs last Friday with the Securities and Exchange Board of India.

      China: Progress for property floats

      IFR 2197 19 August to 25 August 2017

      Dalian Wanda Commercial Properties, Guangzhou R&F Properties and four other Chinese property developers have made progress with their proposed Shanghai IPOs.

      China: Suntien works on A-share IPO

      IFR 2197 19 August to 25 August 2017

      China Suntien Green Energy has secured board approval to commence work on a proposed A-share IPO.

      China: Guanhui Energy pivots to rights issue

      IFR 2197 19 August to 25 August 2017

      Guanghui Energy has secured board approval for a proposed rights issue of up to Rmb4bn (US$599m), after scrapping plans for a private share placement of Rmb2.85bn.

      China: Carnival plans rights issue

      IFR 2197 19 August to 25 August 2017

      Carnival Group International Holdings plans to raise up to HK$1.97bn (US$252m) from a rights issue.

      China: Changjiang Securities wins approval

      IFR 2197 19 August to 25 August 2017

      Changjiang Securities has received China Securities Regulatory Commission approval to list its Hong Kong arm in the city, according to an announcement from the Shenzhen-listed brokerage.

      China: Shandong Trust tries again for IPO

      IFR 2197 19 August to 25 August 2017

      Shandong International Trust has applied again for a Hong Kong listing, which would make it the first Chinese trust IPO in more than two decades, and the first to float in Hong Kong.

      China: Zai Lab files for Nasdaq listing

      IFR 2197 19 August to 25 August 2017

      Shanghai-based biopharmaceutical company Zai Lab has filed for a US$115m Nasdaq IPO with Citigroup, JP Morgan and Leerink as joint bookrunners.

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      Derivatives

      Swaps compression faces MiFID threat

      IFR 2197 19 August to 25 August 2017 By

      New rules forcing the most liquid over-the-counter derivatives to be traded over exchange-like platforms could make it more difficult for banks to reduce risks and streamline their balance sheets through the tear-up of redundant swaps contracts.

      Freddie, Fannie refi programme

      IFR 2197 19 August to 25 August 2017 By

      Fannie Mae and Freddie Mac said last Thursday they will extend more credit to underwater borrowers next year by refinancing higher-risk home loans through a new programme.

      ISDA warns on EU swaps stay extension

      IFR 2197 19 August to 25 August 2017 By

      Europe’s financial institutions could be put at a competitive disadvantage if the EU adopts proposals to extend a freeze on closing out derivatives contracts with troubled firms, ISDA has warned.

      Blockchain bonds expected in September

      IFR 2197 19 August to 25 August 2017 By

      Europe’s first blockchain-powered public bond issue is being prepared for a September launch by start-up digital asset platform BlockEx.

      Delay sought on MiFID II swaps trading rules

      IFR 2197 19 August to 25 August 2017 By

      Investors have called for a delay to European rules that will force the most liquid over-the-counter derivatives to be traded over exchange-like platforms from January.

      More from IFR Derivatives

      Sempra eyes high-grade debt funding for Oncor acquisition

      21 August 2017 By

      Sempra Energy expects to fund part of its US$9.45bn acquisition of power transmission company Oncor with US$3bn of investment-grade debt, according to a statement from the company Sunday.

      ​MOVES-Goldman Sachs hires Saudi investment banking head

      21 August 2017 By Tom Arnold

      (Reuters) Goldman Sachs has hired Eyas AlDossari, a former banker at HSBC’s Saudi Arabian unit, as head of investment banking for Saudi Arabia, sources close to the matter said on Monday.

      Kimberly-Clark looking to clean up in euros

      21 August 2017 By

      Consumer products company Kimberly-Clark Corporation is planning an inaugural into euros, having announced roadshow dates in Western Europe ahead of a seven-year benchmark transaction.

      MOVES-Sberbank's Chuprin switches to Nomura

      21 August 2017 By

      Nomura has appointed Andrey Chuprin head of global markets sales for Russia and the CIS. He joins from Sberbank, where he was head of FICC sales, and has started his new role this morning.

      Anthony Peters columnist format

      What won't be discussed at Jackson Hole

      21 August 2017 By

      Bannon gone and Icahn gone. Two more big names depart the White House team and whether what is left constitutes a team is questionable. That said, Steve Mnuchin and Gary Cohn both now look well entrenched and the sense has to be that John Kelly is beginning to work some magic straightening out the meandering appearance of life in and around the Oval Office.

      MOVES-Standish Mellon deputy CIO leaves the company

      21 August 2017 By

      Raman Srivastava has left his position as deputy chief investment officer at Standish Mellon, an investment boutique division of BNY Mellon, according to a spokesperson.

      Freddie to use big data to appraise new home loans

      18 August 2017 By

      Starting this fall borrowers looking to buy a new home could forego a traditional appraisal as Freddie Mac expands its big data valuation alternative, the housing agency said in a statement on Friday.

      SNAPSHOT-IFR SNAPSHOT: Bond primaries take breather

      18 August 2017 By

      Primary activity in the US credit markets was at a standstill on Friday morning amid a softer tone across asset classes, with junk-rated Enova International the only issuer to print today.

      New junk bonds struggle in market

      18 August 2017 By

      New marquee junk bonds are struggling in secondary trade, as investors try to digest the biggest August of high-yield bond issuance in five years.

      Bankers brace for busy September in LatAm

      18 August 2017 By

      Bankers are bracing for a busy September in Latin America’s primaries, as issuers rev up activity ahead of looming political and market risks.

      MOVES-StanChart appoints head of digital commerce

      18 August 2017 By

      Standard Chartered has appointed Pedro Cardoso global head of digital commerce. He joined the retail banking division on August 2.

      Peters on Dimon, Cohn, markets and … clouds

      18 August 2017 By

      There’s nothing new in the observation that a week is a long time in politics and a day a long time in markets.

      CRT bonds will pool loans from new refi program

      17 August 2017 By

      Fannie Mae and Freddie Mac said on Thursday they will extend more credit to underwater borrowers next year by refinancing higher-risk home loans through a new program.

      Tesla goes goodwill hunting with free money

      17 August 2017 By

      There may be no such thing as a free lunch in finance, but Tesla gave away the equivalent of about 200 of its new Model 3 cars in last week’s junk-bond deal in what it called an act of goodwill.

      MOVES-Head of LatAm DCM leaves Scotiabank

      17 August 2017 By

      Michael Schoen, Scotiabank’s head of Latin America debt capital markets, has left the Canadian financial institution to work for a biotech firm, a source told IFR on Thursday.

      When doves cry

      17 August 2017 By

      It’s mid-August and far too early to say that the summer is over – the really, really deep holiday season is only just kicking off – but that does not detract from the ongoing conversations among market players from both sides of the divide about what direction asset prices might take through the autumn and towards the end of the year.

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      Special Reports

      IFR+Asian+Development+Bank+Roundtable+2017+Cover Asian Development Bank
      Mobilising Asian investors for sustainable development: IFR’s annual ADB roundtable, held as part of the Asian Development Bank’s annual meetings hosted this year by Yokohama, took place at a significant moment. This year marked not just the 20th anniversary of the Asian financial crisis but more importantly perhaps the 50th anniversary of the founding of the Asian Development Bank.

      Top+250+Borrowers+2017 Top 250 Borrowers
      Normality redefined: There comes a time when things have been out of kilter with what would generally be construed as normal for so long that they begin to become accepted as ‘just the way it is’. And so it is in the debt markets. Few would claim that conditions are currently normal, although just what that actually means is open to question.

      Raining Cats and Dogs

      IFR 2196 12 August to 18 August 2017

      LEAKS, LEAKS AND more leaks. That was the problem at Barclays last week.