Send us a text◆ The challenge for SSA issuers next year ◆ German banks and the commercial property millstone ◆ Hybrid hot streak explainedSSA bonds in euros have widened against swaps by quite some way in recent months. That will present a big challenge for the asset class's smaller issuers next year. We explain how the market will find a new clearing level.German banks - two in particular - have suffered from investor fears over exposure to commercial property. Those fears have aba...

Send us a text◆ Donald Trump’s threat to ESG finance in the US ◆ Why ‘woke capitalism’ won’t be put to bed ◆ UK auto ABS faces up to compensation crisisOne of the biggest areas of conflict in US politics over the next four years — and indeed, over the past four — will be over environmental, social and governance matters. Donal Trump’s administration will likely be no fan of what its supporters sometimes call “woke capitalism”.But whether this spells disaster for environment and for ...

Send us a text◆ Trump triumphs, Scholz slumps, rates roil◆ Credit issuers off to the races◆ Rates issuers contend with unprecedented Bund-swap inversionThe underlying movements between benchmark rates and bond yields are rocking the capital markets. Why? Well, this week the blame could be laid squarely at the door of politics.Donald Trump's resounding victory in the US presidential race means the world's economic currents are about to shift, turbo charging some areas and threatening others. M...

Send us a text◆ What Trump or Harris mean for EM sovereign issuers ◆ The outlook for UK capital markets after the Budget ◆ Creditors turn on each other in Thames Water sagaIn a year of elections, now comes the big one — the US votes on November 5 for either Kamala Harris or Donald Trump as its next president. Whoever wins, and whichever of the Democrats or Republicans ends up controlling Congress, the effect of the results will be felt around the world, including in its capital mark...

Send us a text◆ New CEO revamps HSBC to be leaner and meaner ◆ What markets think of idea to make UK water sector non-profit ◆ The swap spread dynamic hammering SSA bondsNew HSBC boss Georges Elhedery is restructuring the bank. It's what new CEOs do; and it has certainly been tried at HSBC before, with mixed results. But plenty of people think this time could be different. We explain why Elhedery's plan could work and what the motivations are behind it.A corporate restructuring idea...

Send us a text◆ Iconic NYC spot powers CMBS revival ◆ Gilt market braces for Labour Budget ◆ Banks plan bonds for November undaunted by US electionThe US CMBS market lapped up its biggest deal of the year this week, backed by loans on New York's famous Rockefeller Center. We look into what the deal tells us about the revival of offices and the pipeline for the CMBS market, which has been troubled for years by changing working practices and high interest rates.In the UK, the Gilt mar...

Send us a text◆ T+1 is coming but is it worth the hassle? ◆ Despite appearances, bank bond issuers are not getting it all their own way ◆ Where the EU slots into the reshuffled SSA packThe UK has launched a draft framework for settling securities trades a day after deals are done — T+1 settlement. The EU is expected to follow, with both markets aiming to catch-up the US, which cut settlement time down to one day in May. But not everyone is thrilled at the prospect as they face up to...

Send us a text◆ The new pecking order in eurozone government bonds ◆ Can the bond market build Britain? ◆ UniCredit v Commerzbank: after Orcel's gambit, the Orlopp defenceEverything you thought you knew about eurozone government bonds is wrong. Well, maybe not quite everything but certainly big shifts have taken place in how the market views the creditworthiness of different sovereigns with Spain, for example, now trading tighter than France for the first time in 16 years. We look at the shif...

Send us a text◆ Emerging market and financial institution bonds on fire after Fed cut ◆ Huge demand spurs massive issuance ◆ But signs of weakness appear in corporates and public sector bonds Markets were unsure what they wanted from the Federal Reserve, but the 50bp rate cut it doled out last week turned out to be just the ticket. In credit markets, all cares and qualms have been forgotten, in one wild party of risk-taking and risk-issuing.Emerging market issuers of all classes, from Sa...

Send us a text◆ The new rate cycle begins at last ◆ Can Deutsche Bank avoid being overtaken by UniCredit? ◆ Carmakers in trouble ◆ The DLT help no one wantedUniCredit’s stealth raid to grab 9% of Commerzbank last week threatens Deutsche Bank’s historic primacy in German banking. What can Deutsche CEO Christian Sewing do about it? We discuss three courses of action — one clearly better than the others.That’s not the only trouble in Germany: BMW is having to make a €1bn product recall and Volks...

Send us a text

Send us a text◆ Corporate bond issuers swarm on new measure of success to chagrin of their banks ◆ An utter riot at one end of the credit spectrum for bank debt... ◆ ... while investors take their sweet time at the other endIssuers in the European corporate bond market are beginning to fixate on the amount they are able to move pricing in their favour when they bring a new deal to market as a key marker of the trade's success. But just how good an indicator is that? Certainly t...

Send us a text◆ Slovenia debut emblematic of issuers tapping Japanese market despite carry trade chaos ◆ Being all things to all investors in the covered bond market ◆ Corporate issuers keep it short and sweetThis week we take an in-depth look at the techniques bond issuers are using in the race to get as much funding done before the US election. Benchmark issuance resumed early this year after the summer lull and it is clear that issuers are keen to get their bonds sold as quickly ...

Send us a text◆ Why benchmark issuance has resumed earlier than usual ◆ What lies ahead for capital markets ◆ African issuers switch out of loans to bondsUnpredictable weather is increasingly a feature of modern times. Indeed, as GlobalCapital recorded this week's show, summer appeared to have ended abruptly in its corner of the UK, with distinctly autumnal weather dampening both the pavements and the mood despite there still being a chunk of August to go.The bond market was also looking dist...

Send us a textBanks have started to reveal how they will restructure the pay of front office staff following the removal of the bonus cap in the UK. We investigate who will benefit from the new rules (spoiler alert: it's probably the banks).Recent market volatility has thrown up opportunities for corporate issuers. Firstly, we discuss why we are about to see more US companies issuing bonds in euros.Then we travel to the US convertible bond market where we delve into a new debt package for the...

Send us a text◆ Issuers and investors look for clues after violent price swings ◆ Which borrowers will lead autumn deal spree ◆ How pricing has shifted in primary marketThere are moments that change what is to come. When poor US employment data and corporate earnings, and a rise in Japanese interest rates last week sent the markets into a tailspin at the start of this one, it changed how issuers will approach the capital markets when issuance volumes start to ramp up later this mont...

Send us a text◆ First eurozone government sells bond on distributed ledger ◆ The rate cutting wheel turns fasterMaking innovations a reality is partly about who does them, so the first eurozone sovereign issuer selling a bond on a blockchain is a milestone that takes the market up a notch in credibility.GlobalCapital’s reporters discuss their findings after speaking to Slovenia’s treasury this week about why it wanted to take the lead among peers by trialling this new technology wit...

Send us a Text Message.◆ Ukraine restructures $20bn of bonds ◆ Excitement in digital bonds ◆ Is UK water going down the plughole?Swiftly after Ukraine was invaded by Russia, it agreed a two year suspension of debt service with bond investors. That expires on August 1. While many thought Ukraine would negotiate an extension, it has chosen instead to do a full restructuring, issuing new bonds in exchange for the old. We explore why, and whether this was a wise move.We a...

Send us a Text Message.◆ UN circles banks on circular economy ◆ Topping out on Turkey ◆ CLOs: summer recess or summer resets?ESG capital markets are undergoing another revolution. The UN is beckoning banks to police their corporate clients' transition to being part of the circular economy. But what is the circular economy and are other shapes available? How can banks put pressure on businesses to better manage resources? We explain all.Turkey's bond issuers have absolutely obliterat...

Send us a Text Message.◆ Political shift threatens Paris's growing status ◆ The liberation of securitization in Europe as Macron weakened ◆ Bond issuance returns, mostlyAs new parliaments form after the EU, UK and in particular, French elections, we uncover how, despite each poll resulting in the widely expected outcome, capital markets might never be the same again.Paris's remarkable rise as a capital markets hub at London's expense after Brexit has been staggering. But will an emb...

Send us a Text Message.◆ UK ousts Tories from power... ◆ ... setting up final round of French elections as only bar to primary market revival ◆ EM debt restructurings: balancing what creditors demand with what voters needThis week, we looked once again at the intersection of politics and capital markets. The Labour Party, as predicted, won the UK general election by a landslide, with departing prime minister Rishi Sunak on his way to Buckingham Palace to resign as prime minister as ...

Send us a Text Message.◆ Natixis’s sometimes requited love affair with elite M&A bankers ◆ What the French election could to ESG, and to the bank bond marketWhen a posse of high-powered Paris dealmakers threatened to walk out of Natixis because they were being treated like “just another employee”, rivals said ‘I told you so’. They were sure Natixis’s unique way of doing M&A banking was falling apart.Nine months later, not so. France’s fourth largest investment bank, owned by the mutua...

Send us a Text Message.◆ Banks need a bond market leader, just not a French one ◆ From Golden Goose to lame duck ◆ CMBS problems, rise of solar ABSEurope's banks have been unwilling or unable to issue bonds since French president Emmanuel Macron sent the markets into a tailspin a couple of weeks ago by calling parliamentary elections. We explain why the uncertainty the election is causing is so bad for so many bond issuers, and also which banks can restart issuance in their ma...

Send us a Text Message.◆ Politics panic slaps SSAs, FIG but what of corporate bonds? ◆ EU denied its wish ◆ Introducing Primary Market MonitorWell, you can't say we didn't warn you. On last week's show we talked about European elections and the likelihood of volatility following the ECB's historic rate cut.Et voila!French president Emmanuel Macron's decision to call snap parliamentary elections in the wake of far-right successes in the EU equivalent has caused havoc in bond markets ...