Coronavirus

Andrew Bailey, the governor of the Bank of England, has hinted at a dramatic reversal of the central bank’s long-standing monetary policy strategy, with the idea that it would be better to reduce the stock of its asset purchases before raising interest rates.

Dubai-based port logistics operator DP World is set to test emerging market risk sentiment by a new degree, as it announced investor calls for a hybrid capital bond offering.

Korea Housing Finance Corp (KHFC) has hired lead managers for a new social covered bond in the euro market. It is its second such deal in the currency this year, and it could face tougher conditions this time.

Italian prime minister Giuseppe Conte’s admission that Italy’s budget deficit would be wider than initially projected has caused a sell-off in the country’s bonds. The rest of the eurozone periphery has fared better, thanks in part to news of a new appointment to the German constitutional court.

The Portuguese treasury and debt management agency has unveiled its updated funding programme following the submission of its supplementary budget. The programme reveals the extent to which Portugal's borrowing needs have been elevated by the coronavirus crisis.

Aker BioMarine, a Norwegian fishing company that harvests krill to be used in nutritional products, has already attracted substantial demand for its listing on Norway’s junior Merkur Market; it will look to list on Norway’s main exchange in 2021.

Oil company Hilong Holding has defaulted on a dollar bond that matured on Monday, after failing to drum up enough support for an exchange offer that was extended multiple times.

In this round-up, the Chinese capital of Beijing conducts nucleic acid tests for Covid-19 on 2.3m local residents, the central bank leaves the benchmark lending rate unchanged for June, and a subsidiary of AIA is set to become China’s first wholly foreign owned life insurance company.

Peru's largest commercial lender Banco de Crédito del Perú (BCP) will begin fixed income investor calls on Monday as it contemplates a tier two capital bond issue, just two weeks after parent company Credicorp issued a debut $500m senior deal.

Islamic Development Bank closed a $1.5bn sukuk deal on Thursday that it will use to fund member countries’ work in cleaning up the aftermath of Covid-19.

Investors appeared to be more sensitive of price movements in new issues of covered bonds this week, with valuations in the asset class having returned to within touching distance of their January levels.

The IPO of PharmaSGP, the German manufacture of natural drugs and medicines, was a smaller affair than had been originally envisaged by the sellers, after the return of equity market volatility meant that the deal had to be priced at the bottom of the range.