Partners Group has returned to the US CLO market this year pricing a rare CLO including an ESG factor screen, a trend which is sweeping international market and which is slowly gaining traction in the US.
Container ABS thrived last year, setting a new issuance record after two decades. Several factors are working in favor of container ABS this year as well, including increased consumption of goods and an opportunity for containers to be used in vaccine distribution.
UK covered bonds are trading close to where they would be expected, given their new regulatory treatment outside the European Union. And while euro supply prospects this year could improve on last year’s paltry sum, the vast swathe of bonds redeeming in the same period translates to a technical imbalance which will support spreads.
New deals are flooding into the European securitization market, especially the UK, in the last week of January after two RMBS issues attracted unprecedented demand. Issuers are betting investors remain hungry for structured products, despite national lockdowns.
Oesterreichische Kontrollbank (OeKB) hit the market on Tuesday for a five year dollar benchmark, raising $1.5bn despite pricing coming through the issuer’s secondary curve.
The Agence France Trésor (AFT), the French sovereign debt office, has announced that it will issue up to €15bn of green bonds this year, a sharp increase in supply from last year.
 2017 2 from PA 575x375.jpg)
BlackRock wants to move a long way towards catching up with leading investors in its response to climate change, its CEO Larry Fink indicated in his annual letter to chief executives on Tuesday. BlackRock stopped short of setting a net zero carbon emissions target for its $8.7tr of assets under management, or committing to swift decarbonisation. But it did publish a ‘net zero commitment’ saying it would “support the goal of net zero emissions by 2050 or sooner”.
The European Union wrapped up its first bond of 2021 under the Support to Mitigate Unemployment Risks in an Emergency (SURE) funding programme in style with a quick execution and another impressively sized order book.
Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, January 25. The source for secondary trading levels is ICE Data Services.
The Republic of Slovenia is set to sell its longest bond ever on Tuesday, picking banks for a 60 year euro benchmark — a 36 year extension of its curve.
Dexia Crédit Local raised £750m with a December 2026 bond on Monday, gathering a generously oversubscribed order book and pulling in the spread during execution, promising a strong reception for Asian Development Bank on Tuesday. OeKB will come to market with a dollar five year.
The European Central Bank meeting on January 21 did not strike a pleasing note for investors in eurozone government bonds, and spreads are still wider. But primary market participants seem unconcerned.
The European Union hit screens on Monday morning to announce its first bond of 2021 under the Support to Mitigate Unemployment Risks in an Emergency (SURE) funding programme.
The Japan Bank for International Cooperation has picked backs for a sterling five year benchmark, replacing its last bond in the currency — a trade issued in February 2014 that matured in December 2020.
The Asian Development Bank (ADB) has hired banks to arrange a roadshow for its first Panda bond in over a decade, to be launched after Chinese New Year.
European Central Bank president Christine Lagarde refused to be drawn into naming a specific spread target that the central bank will defend in a press conference on Thursday but investors may find out for themselves in the wake of the meeting. BTPs sold off sharply after Lagarde spoke, perhaps indicating that the central bank has not done enough to convince investors of its support.
UK covered bonds are trading close to where they would be expected, given their new regulatory treatment outside the European Union. And while euro supply prospects this year could improve on last year’s paltry sum, the vast swathe of bonds redeeming in the same period translates to a technical imbalance which will support spreads.
BlackRock wants to move a long way towards catching up with leading investors in its response to climate change, its CEO Larry Fink indicated in his annual letter to chief executives on Tuesday. BlackRock stopped short of setting a net zero carbon emissions target for its $8.7tr of assets under management, or committing to swift decarbonisation. But it did publish a ‘net zero commitment’ saying it would “support the goal of net zero emissions by 2050 or sooner”.
UBS, the first major European investment bank to report fourth quarter results, smashed through expectations in global banking, with that part of its business benefitting from equity capital markets revenue more than doubling year-on-year.
Türkiye Cumhuriyeti Ziraat Bankası is in the market for its first ever sustainability bond — a five year dollar benchmark.
La Banque Postale (LBP) sold €500m of tier two paper this week, marking the normally rare issuer’s second sale in the format in just over three months.
Argenta Spaarbank has mandated leads to issue its debut covered bond deal. The mandate follows the National Bank of Belgium's decision to grant it a covered bond license taking the number of issuers in the country to five, boosting the prospects for supply this year.
BNP Paribas is set to redeem one of its legacy tier one bonds in full this quarter, as more banks follow recent guidance from the European Banking Authority and clear out old capital instruments.
Solid demand from investors for Woori Bank's sustainable bond on Monday allowed the South Korean borrower to price its $550m deal at an ultra-tight spread.
Undercapitalised banks in the crosshairs of a market rout can expect counterparties to demand higher margin calls, particularly when a lot of its assets are already encumbered, as is the case at many European banks. This is a problem of the European Central Bank’s making and one that only it can fix. Making covered bond repo haircuts more severe would be a good place to start.
The covered bond market bounced back from last week’s temporary supply indigestion on Monday, following strong deal outcomes for DZ Hyp and Société Générale, which issued the tightest French transaction of the year.
Deutsche Pfandbriefbank launched its first green bond on Monday, attracting twice as much demand as it needed for its €500m senior print.
Svenska Handelsbanken has become the latest European bank to put out a call notice for one of its additional tier ones. Market participants are expecting a clean sweep of redemptions for the asset class this year.
The European Commission is looking to fast-stream work on reforming the EU’s crisis management framework this year, given the lack of political consensus on other issues relating to the Banking Union.
Four US global banking titans roared out of earnings blackout to raise more than $20bn of debt this week, issuing deals either side of president Joe Biden’s inauguration.
DZ Hyp is preparing to print its first covered bond of the year. The deal could be launched as soon as Monday, which would allow the German lender to get its business done ahead of an expected EU deal for the Support to Mitigate Unemployment Risks in an Emergency (SURE) programme.
Caffil plans to issue privately placed covered bonds from its social framework, which secures financing for French hospitals. The longer maturities on offer will diversify from those targeted in its benchmark deals and more closely match its loan liabilities, as well as fulfilling investor needs.
Qatar National Bank, a frequent issuer in the offshore renminbi bond market, has sold its first deal of the year in the currency, raising Rmb1.5bn ($232m).
Mongolian Mortgage Corp's (MIK) dollar bond market return was cancelled on Thursday after pandemic-related protests forced the country's prime minister to resign.
Mark Soriano joins Natixis — Deutsche's Frazer Ross is taking a sabbatical — Fidelity hires private credit team
GlobalCapital is delighted to announce the winners of its Bond Awards for 2017. The results were revealed at a gala dinner at London's Globe Theatre on May 23. Thank you to everyone who supported the event by attending and voting in the polls that decided who were the best and brightest in bonds over the last 12 months.
.png){kind=logo}
GC Asia