Leveraged/non-investment grade

  • Investors push back on aggressive bond pricing

    Investors push back on aggressive bond pricing

    A number of Chinese high yield borrowers that hit the dollar bond market this week have seen mixed responses to their notes in secondary trading, which bankers say is a sign of changing market sentiment and investor response.

  • BNPP creates global banking unit in Apac

    BNPP creates global banking unit in Apac

    BNP Paribas has created a new global banking division in Asia Pacific, a move that brings the structure of its business in the region in line with its international operations, GlobalCapital Asia has learnt.

  • Falling inflation helps stable Uruguay find backing for peso deal

    Falling inflation helps stable Uruguay find backing for peso deal

    Uruguay, considered the most promising credit story among Latin America's investment grade sovereigns, raised $1.74bn-equivalent in pesos and dollars on Thursday, becoming the first sovereign from the region to issue local currency abroad in 2021 — as it was in 2020.

  • Technicals give Amazon record spread but inflation tilts curve

    Technicals give Amazon record spread but inflation tilts curve

    Amazon grabbed headlines by pouncing opportunistically into the market and pricing an $18.5bn bond this week that included a record tight spread over Treasuries on a sustainability-labelled two year note, but the bigger story was inflation fears skewing the curve steeper.

  • Lat Am sovs to come under pressure as tensions rise

    Lat Am sovs to come under pressure as tensions rise

    Investors in Latin America are growing increasingly concerned that social unrest in Colombia, where tax reform plans are in tatters and more than 40 people are dead, is a sign of things to come, with sovereigns facing severe pressure as they attempt to improve credit profiles that have been battered by the coronavirus pandemic. Yet sovereign bond markets are seeing only modest, short-lived sell-offs, given the enormous liquidity still in bond markets.

  • US banks: overvexed, overpaid and over here

    US banks: overvexed, overpaid and over here

    In the film 'Annie Hall', Woody Allen recounts two diners’ experience at a restaurant. “One of them says: ‘Boy, the food at this place is really terrible.’ The other one says: ‘Yeah, I know; and such small portions.’”

  • Issuers forced to adjust as CPI rockets past consensus

    Issuers forced to adjust as CPI rockets past consensus

    When US Consumer Price Index data shot past consensus forecasts of 3.5% to hit 4.2% this week, even hardened inflation sceptics were forced to re-evaluate their positions. The data caused sharp ructions in rates markets and equity portfolios, write Sam Kerr and Lewis McLellan, as investors caught such a dose of the jitters that issuers will have to reconsider their primary capital market plans.

  • Senior trio price tightly in euros

    Senior trio price tightly in euros

    A trio of senior borrowers paid minimal new issue premiums in euros this week as Swedbank and AIB Group tapped a sweet spot of demand for bail-inable debt, while Macquarie got attractive pricing compared to its dollar curve.

  • Amazon wonder-print belies global inflation jitters

    Amazon wonder-print belies global inflation jitters

    E-commerce giant Amazon did the unthinkable this week and printed two year debt just 10bp wide of where investors could buy US Treasuries, the closest a company has ever got to US government debt. But with a high US inflation number sending a shockwave through markets days later, corporate and FIG credit markets are wondering whether they need to brace for a period of panic, write Tyler Davies and Mike Turner.

  • Virgin Active judgement could push CVAs into obscurity

    Virgin Active judgement could push CVAs into obscurity

    The UK's High Court delivered a ringing endorsement of the country's new restructuring regime this week in a landmark ruling on gym chain Virgin Active, showing that companies have a new route other than CVAs to cut their debts to landlords. Silas Brown and Owen Sanderson report.

  • CLO reset run hits final straight before decline

    CLO reset run hits final straight before decline

    CLO refi and reset activity has departed from its usual forms, with some managers resetting a single deal in a limited time frame, while others take the opportunity to switch tranches from fixed to floating, or focus refi efforts on a limited number of tranches. Managers don't want to lose the opportunity presented by current market conditions to save costs, and are seeking different solutions to optimise their structures.

  • Oerlikon goes big with 'remarkable' triple tranche

    Oerlikon goes big with 'remarkable' triple tranche

    Triple-B credit OC Oerlikon achieved a remarkable result on Monday, said bankers, as it issued a Sfr575m three tranche deal, which it will use to fund its acquisition of INglass. It was joined on screens by Pfandbriefbank's smallest deal since 2019.

  • Mehiläinen boosts refi size to roll up existing debt

    Mehiläinen boosts refi size to roll up existing debt

    Finnish healthcare provider Mehiläinen increased the size of its ESG-linked refi loan from €300m to €1.06bn, refinancing not just the second lien loan, as originally intended, but the company’s entire first lien capital structure. Leads HSBC and Jefferies also tightened the margin range from launch levels.

  • Deutsche hires pharma banker from HSBC

    Deutsche Bank has hired Priyanka Verma, a senior investment banker specialising in pharmaceutical services and diagnostics, from HSBC in New York.

  • Euro market slackens ahead of EU’s arrival

    Euro market slackens ahead of EU’s arrival

    Demand for SSA bonds in the euro market appears to be weakening but bankers are confident it will not prevent a deal for the European Union going ahead next week, even if the level cheapens.

  • Dutch agency pair keep dealers busy

    Dutch agency pair keep dealers busy

    Dutch agencies were active in core currency MTN markets earlier this week, including FMO, which sold its first currency-linked bond for almost a year.

  • ASB re-engages with covered bond investors

    ASB re-engages with covered bond investors

    Commonwealth Bank of Australia's New Zealand subsidiary ASB Finance issued its largest covered bond on Tuesday, the first 10 year from New Zealand and the first covered bond from the country since January 2019. The focus for this week’s transaction was all about re-engaging with investors, said ASB Bank treasurer, Chandu Bhindi.

  • Peel Hunt gains muscle as Santander shakes up UK ECM

    Peel Hunt gains muscle as Santander shakes up UK ECM

    Santander’s equity capital markets tie-up with Peel Hunt finally provides it with the entry into the UK that it has been seeking while giving the UK broker the firepower to compete with the biggest banks ahead of its planned listing, writes David Rothnie.

  • New restructuring law is a step forward

    New restructuring law is a step forward

    Commercial landlords in the UK are angry about gym chain Virgin Active’s restructuring plan, and with good reason. Many of them have lost out heavily, while senior secured creditors got away with little more than an amend and extend.

  • EBA consultation may impact property markets

    EBA consultation may impact property markets

    A draft regulatory technical standard (RTS) assessing risk weights and loss given default of mortgage risk, which the European Banking Authority has opened a consultation on, should give discretionary power to member states, said a lawyer on Thursday.

  • BHG to branch out to home improvement, point of sale

    BHG to branch out to home improvement, point of sale

    Bankers Healthcare Group (BHG) is eyeing new sectors to expand into beyond its current offerings, including home improvement and point of sale lending. The company recently completed its second securitization backed by a mix of commercial and consumer loans, which served as a helpful barometer for testing the market appetite for similarly structured consumer products that BHG is looking to launch later this year.

  • Securitization stalwart Paratus AMC up for sale via Houlihan

    Securitization stalwart Paratus AMC up for sale via Houlihan

    UK specialist lender Paratus AMC is up for sale, GlobalCapital understands. If a deal is done, it will open a new chapter in the history of one of the best known names in European securitization, and change the ownership structure for a host of RMBS deals.

  • Euronext completes ‘vanilla’ €1.8bn rights issue

    Euronext completes ‘vanilla’ €1.8bn rights issue

    Euronext has completed its €1.8bn rights issue to fund its takeover of the Borsa Italiana from London Stock Exchange Group. Investors oversubscribed for Euronext shares, as is permitted under French rights issue rules, and sources said they were always confident in the transaction’s success despite recent equity market turbulence.

  • Fed economists warn of ‘regulatory arbitrage’ over IHC rule

    Fed economists warn of ‘regulatory arbitrage’ over IHC rule

    Federal Reserve economists have warned of ‘financial stability’ concerns around the US treatment of foreign banks, after publishing research suggesting that some institutions were hiding assets in branches to escape closer regulatory oversight.

  • Moves in Brief — May 14, 2021

    Moves in Brief — May 14, 2021

    Veteran SSA funding chief to retire — ECM banker heads to buyside — Citi bolsters tech in London — Deutsche hires MS industrials stalwart — Head of real estate leaves Barclays — Fixed-income investor builds PM team — BCS Global Markets names head of treasury

  • Sucafina brews up bigger sustainability loan

    Sucafina brews up bigger sustainability loan

    Sucafina, a Swiss coffee company, has signed a $500m sustainability-linked borrowing base facility, as a small wave of deals from the German speaking region come to fruition.

  • Start your engines! Auto issuers race into China ABS

    Start your engines! Auto issuers race into China ABS

    China’s ABS market had a burst of supply this week, with five auto loan finance companies announcing or pricing deals in a bid to get ahead of possible tighter monetary conditions onshore. But the diverse nature of the originators meant competition was of little concern. Addison Gong reports.

  • CRCC raises dollar and euro debt

    CRCC raises dollar and euro debt

    China Railway Construction Corp (CRCC) sold two tranches of five year bonds, one in dollars and the other in euros, to net more than $663m.

  • HK investors gobble up EV maker, dairy blocks

    HK investors gobble up EV maker, dairy blocks

    A pair of large block trades this week showed the depth of Hong Kong’s equity capital market, with more than $3bn raised by conglomerate China Evergrande Group and European food products company Danone. Jonathan Breen reports.

  • Asia’s ESG bond market surges but calls for more ‘governance’ focus

    Asia’s ESG bond market surges but calls for more ‘governance’ focus

    A group of nine issuers from Asia sold green or sustainability dollar bonds this week, propelling volumes to new highs. A large part of the debt business in the region is still focused on green and the environment, but there is growing urgency to pay more attention to governance standards. Morgan Davis reports.

  • Bimbo brings 30-year amid Treasury sell-off

    Bimbo brings 30-year amid Treasury sell-off

    Mexican food company Grupo Bimbo proceeded with a 30 year bond issue on Wednesday despite a US inflation reading that sent Treasury yields to their widest levels in a month. A strong bid from US investment grade buyers ensured a bumper order book, but some observers were surprised that the issuer had not delayed its deal in the face of a tricky market.

  • Senate votes to overturn 'true lender' law

    Senate votes to overturn 'true lender' law

    The Senate voted to overturn the 'true lender' law, a rule which makes it easy for non-bank marketplace lenders to originate loans through banks. Though the rule is unlikely to be rescinded, the efforts to roll it back show that pressure will remain on marketplace lenders, as states challenge federal regulations that they see as infringing on their licensing and usury laws.

  • Covered bonds exceed Laurentian’s hopes

    GlobalCapital talked to Sarim Farooqi, senior vice-president and treasurer at Laurentian Bank, about the issuer’s recent C$250m five year debut covered bond, established under its new C$2bn covered bond programme, and what the bank’s next moves in the covered bond market could be.

  • SSA borrowers defy worsening conditions in euros

    SSA borrowers defy worsening conditions in euros

    Two SSA borrowers landed in the euro bond market on Wednesday while a third lined up business for next week. Issuers may still be achieving good results but bankers believe conditions are turning bad.

  • Commerzbank turns profit, focuses on Germany

    Commerzbank turns profit, focuses on Germany

    Commerzbank has outperformed expectations by reporting a net profit in the first quarter of the year — even accounting for a large restructuring charge — as the German lender trims its workforce and sharpens its focus on the domestic market and German clients.

  • Lenders push back on Cerba's ESG conditions

    Lenders push back on Cerba's ESG conditions

    Diagnostics firm Cerba Healthcare has made the key performance indicators on its sustainability-linked loan more ambitious after talks with leveraged loan investors on its financing for its buyout by Swedish private equity firm EQT.

  • Opposing Views: should SSAs cut fees?

    Opposing Views: should SSAs cut fees?

    The debate over whether SSA borrowers should pay less in underwriting fees has split the market since the EU told banks it would pay less than the standard rate for its €800bn Next Gen EU bond programme. It is "the only topic" under discussion, one senior SSA banker told GlobalCapital this week. Is it fair to pay banks less when central banks underpin the market, or will issuers jeopardise their position long-term? Here, we present arguments for an against a shake-up of the way banks are paid.

  • Macquarie lands tight in euros

    Macquarie lands tight in euros

    Macquarie shed over a third of its order book on Wednesday as it priced its third euro deal in 18 months at what was deemed a “very tight” level. It was joined in the senior market by Swedbank, which was issuing its first callable non-preferred bond.

  • Danske tests AT1 as risk assets tumble

    Danske tests AT1 as risk assets tumble

    Danske Bank set a careful foot into the Reg S dollar additional tier one market this week, in the wake of a difficult trading session for global equities.

  • Barclays hops back into Kangaroos

    Barclays hops back into Kangaroos

    Barclays returned to the Kangaroo bond market this week after being absent for two years to raise A$600m across three tranches of holding company debt. The market was split over which tranche offered the most value in pricing.

  • Virgin Money blows out after swift return to T2

    Virgin Money blows out after swift return to T2

    Virgin Money UK was six times subscribed for a tightly priced tier two in the sterling market on Wednesday, despite having offered a very similar deal to investors last September.

  • HVB enjoys outstanding demand, pays rare Pfandbrief premium

    HVB enjoys outstanding demand, pays rare Pfandbrief premium

    UniCredit’s German subsidiary, HVB, enjoyed a stunning investor reception for its negative yielding eight year Pfandbrief that was issued on Wednesday, thanks to the lack of supply this year, the small but rare premium on offer and the superb market conditions.

  • Montana Aerospace soars in first day trading

    Montana Aerospace soars in first day trading

    Shares in Montana Aerospace, the Swiss-Austrian aerospace company, took to the skies on Wednesday morning, the company’s first day of trading on the Swiss SIX Exchange following its IPO.

  • Suelze Holding signs loan as more line up

    Suelze Holding signs loan as more line up

    Suelzle Holding, a German steel maker, has signed a €140m revolving credit facility, as lenders say there are a handful of similar deals in the works for borrowers in the German speaking region.

  • Judge backs Virgin Active’s precedent-setting restructuring scheme

    Judge backs Virgin Active’s precedent-setting restructuring scheme

    UK courts have endorsed gym chain Virgin Active’s restructuring plan, a precedent-setting move which shows that the UK’s new restructuring law with its ‘cross-class cramdown’ feature can be used instead of a CVA to cut debts to landlords. Some claim it represents a further attack on already-struggling landlords, but others argue than having all creditors share the pain at the outset should mean better recoveries if other chains follow this approach.

  • SAIC-GMAC opts for two-tranche structure in new ABS

    SAIC-GMAC opts for two-tranche structure in new ABS

    SAIC-GMAC Automotive Finance Co priced a Rmb10bn ($1.56bn) auto loan ABS transaction this week, its third outing in China in 2021, switching to a simple structure comprising a senior and a subordinated tranche.

  • VW cuts revolving period in year’s first China ABS

    VW cuts revolving period in year’s first China ABS

    Volkswagen Finance (China) Co came to the onshore auto ABS market for the first time in 2021 with a Rmb5.97bn ($929m) transaction this week, slashing the revolving period to three months to achieve a competitive pricing.

  • China property bond flurry continues

    China property bond flurry continues

    The rapid pace of new dollar bond issuance from Chinese property companies continued from Monday into Tuesday as four more borrowers joined the fray.

  • Chinese financial issuers court dollar buyers

    Chinese financial issuers court dollar buyers

    One of China’s big four banks, Agricultural Bank of China, and securities house Haitong International Securities Group joined the flurry of Chinese bond deals in the offshore market this week.

  • Fosun returns for $500m

    Fosun returns for $500m

    Chinese conglomerate Fosun International has sold its second dollar bond of 2021, raising $500m once again.

  • Chinese FIG names lead the way in Asia’s loan revival

    Chinese FIG names lead the way in Asia’s loan revival

    Chinese financial institutions are leading a revival in Asia’s loan market as they take advantage of a shift in market dynamics to tackle their refinancing needs. Borrowers from other industries are also likely to join the action before long — if only to get ahead of a possible US interest rate hike after a rise in inflation, writes Pan Yue.

more leveraged/non-investment grade