By Lewis McLellan
08 Jan 2021
European Investment Bank kicked off a strong first week of issuance with an impressive outing in the Kangaroo market, raising A$1.25bn ($973.2m) with a Climate Awareness Bond. ANZ, RBC Capital Markets and TD Securities ran the books for the trade, gathering A$1.4bn of orders from over 50 investors despite targeting a minimum of A$300m. The deal will mature in July 2027 and carries a 0.75% coupon, offering 26bp over the matched asset swap, 28bp over
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By Lewis McLellan
24 Dec 2020
We are finally able to look back over a uniquely stressful year in capital markets. To describe it as unprecedented has become cliché, but it is an unavoidable term when describing the economic disruption the world faced, and the way in which the SSA market responded. Now, with the end of the year in sight, we take stock some of the SSA bond market’s biggest moments of 2020.
JanuaryThe year got off to a flying start with a host of sovereign deals setting new records for order book size and maturity. Those records have since been eclipsed many times over, but at the time, the SSA market seemed remarkably potent.
Capital markets were breathing a sigh of relief on Christmas Eve after a deal between the UK and EU on their future relationship appeared close, ending fears that the country would crash out of the single market without a trade deal at the end of the year.
By Lewis McLellan, Sam Kerr
23 Dec 2020
The US stimulus package seemed all but a done deal until Tuesday night. The $900bn, 5,593 page bill was passed by both houses and requires only President Donald Trump’s signature to become law. Though this seemed a foregone conclusion, Trump is threatening to withhold his signature unless the size of the relief is increased, not that bond markets seemed fazed by the late upset. The bill would send $600 “direct relief” checks to Americans who earn below a certain amount. Trump said that he will withhold his signature until Congress ups the size of the checks to $2,000 each. The direct relief checks comprise $166bn of the $900bn in the bill. If
By Lewis McLellan
22 Dec 2020
The UK Debt Management Office has responded to a letter from the chair of Parliament’s Treasury Select Committee Mel Stride, questioning whether the DMO’s syndications were priced to obtain the best value possible for the taxpayer. Stride’s original letter questioned the DMO’s record of always pricing at the tight end of guidance, suggesting that this was an indication that guidance was not set “keenly enough”. DMO chief Sir Robert Stheeman responded that finishing at the tight end of guidance “with a stable aftermarket… is
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