DEALûUNIQUEûINû'ERMANYû4OûDATE û'REENû
covered bonds from Germany have been
backed exclusively by commercial
MORTGAGES
The bank already has enough eligible
Green residential loans for another
BENCHMARKû%COLOGICALû%3'ûISSUEûNEXTûYEAR û
and it plans to be a regular issuer in the
FORMAT
)NûTHEûMOREûDISTANTûFUTURE û-UN(YPû
ALSOûPLANSûTOûISSUEû3OCIALû0FANDBRIEFEûTOû
lNANCEûAûFAMILYûLOANûPRODUCTûROLLEDûOUTû
THISûYEAR
SWISS FRANCS
RARE, TIGHT SWISS COVERED FROM
HYPO VORARLBERG
HYPO VORARLBERG BANKûBROUGHTûAûRAREû!USTRIANû
covered bond to the Swiss market on
7EDNESDAY ûPRICINGûINSIDEûTHEû3WISSû
DOMESTICûCURVE
It mandated Credit Suisse and UBS for a
MINIMUMû3&RMû53M ûSEVEN
YEARû
lXED
RATEûMORTGAGEû0FANDBRIEFû"OOKSû
OPENEDûATûMID
SWAPSûMINUSûBPûAREA ûANDû
THEûISSUEûCAMEûINûAû3&RMûSIZEûWITHûAû
ûCOUPONûATûMINUSûBP ûEQUIVALENTûTOûAû
ûYIELD ûORûBPûOVERûGOVERNMENTû
BONDS
Vorhyp’s only outstanding Swiss franc
COVEREDûISûAû3&RMûû/CTOBERû û
ANûOLDû
YEARûFROMû
)TSûNEWûBONDûCAMEûBP
BPûINSIDEûTHEû0F:û
ANDû03(YPOûCURVES ûANDûINûLINEûWITHûITSûOWNû
euro curve when adjusted for currency
DIFFERENCES
!û
STRONGûGROUPûOFû3WISSûINVESTORSûWASû
spearheaded by asset managers and
PENSIONûFUNDSû$ESPITEûITSûEXPECTEDûREPO
ELIGIBILITYûWITHûTHEû3WISSû.ATIONALû"ANK û
treasury accounts only took around 6% of
THEûPAPER
4HEûBONDûISûRATEDû!AAûBYû-OODYS
HIGH-YIELD
UNITED STATES
GFL PULLS JUNK BOND AS INVESTORS
SHUN LOWER-RATED DEBT7ASTEûRECYCLINGûCOMPANYûGFL ENVIRONMENTAL
PULLEDûITSûPLANNEDû53MûJUNKûBONDûSALEû
on Thursday as some nervy investors are
shying away from lower-rated deals after
HEIGHTENEDûVOLATILITY
4HEûBOND ûRATEDû#AA### ûWASûPARTûOFûAû
BIGGERûlNANCINGûPACKAGEûTOûHELPûPAYûFORûTHEû
merger with solid waste management
company WASTE INDUSTRIESû4HEûLOANûPORTIONû
OFûTHEûlNANCINGûWASûUPSIZEDûAFTERûTHEûJUNKû
BONDûWASûDROPPED
“The loan deal was oversubscribed but
DEMANDûFORûTHEûBONDûWASûWEAKERû4HATSûAû
manifestation of what we have seen this
WEEK vûSAIDûONEûSOURCEûCLOSEûTOûTHEûDEAL
h)TSûBEENûVERYûVOLATILE ûANDûHIGH
YIELDûHASû
BEENûVERYûCORRELATEDûWITHûEQUITIESû'OODû
deals are getting done as investors are
MOVINGûUPûINûCREDITûQUALITY ûBUTûDEALSûWITHû
high leverage and lower ratings are seeing
WEAKERûINTERESTv
4HEû""ûTERMûLOANûWASûORIGINALLYûSIZEDûATû
53BNûBUTûWASûINCREASEDûTOû53BN û
ACCORDINGûTOûAûLEADû4HEû
YEARûTERMûLOANû
PRICEDûATûAûSPREADûOFû,IBORûPLUSûBP
4HEûSHIFTûINûlNANCINGûFOLLOWSûAûVOLATILEû
TIMEûFORûSTOCKS ûWHICHûHAVEûBEENûWHIP
SAWINGûAROUNDû4HATûHASûBLEDûINTOûTHEûJUNKû
BONDûMARKET
!VERAGEû53ûHIGH
YIELDûBONDûSPREADSûHAVEû
WIDENEDûSOMEûBPûTOûBPûOVERû
4REASURIESûSINCEû/CTOBERû ûWHENûTHEYûHITûAû
POST
lNANCIALûCRISISûLOWûOFûBP ûACCORDINGû
TOû)#%û"!-,ûDATA
But the widening in Triple C rated debt
HASûBEENûEVENûMOREûACUTE ûWITHûAVERAGEûspreads now 72bp wider over the same
PERIOD ûATûBPû4HEûAVERAGEûYIELD
TO
WORSTû
ONû4RIPLEû#ûDEBTûISûNOWûTOP HEAVY
4HEû'&,ûBOND ûAû53MûEIGHT
YEARûNON
CALLûTHREEûYEARûISSUE ûHADûBEENûEXPECTEDûTOû
price on Thursday following investor
MEETINGSûTHATûBEGANûONû4UESDAYû0RICEû
whispers on the trade were heard earlier in
THEûWEEKûATûLOW
TO
MIDû
-OODYSûANDû30ûDOWNGRADEDû'&,Sû
unsecured rating earlier this month by
ONEûNOTCH ûTOû#AAûANDû### û
RESPECTIVELY
They each said this was because of the
increase in the amount of senior debt
ranked above the unsecured bonds in the
CAPITALûSTRUCTURE
h4HISûMIXûOFûlNANCINGûRESULTSûINûWEAKERû
recovery prospect for GFL’s unsecured
LENDERS vû30ûSAID
The ratings agency said leverage through
ûWASûX
XûONûAûPROûFORMAûBASIS ûFROMû
MID
TO
HIGHûXûBEFOREûTHEûACQUISITION
Barclays,BMO and RBC provided the
commitment for the acquisition and are
BOOKRUNNERSûONûTHEûlNANCING
The companies announced the
53BNûMERGERûEARLIERûTHISûMONTHû
"#û0ARTNERS û/NTARIOû4EACHERSûANDûSOMEû
of GFL’s other shareholders provided
NEWûEQUITYûlNANCINGûFORûTHEûACQUISITIONû
The merger is expected to close this
QUARTER
Demand for higher rated junk bonds still
SEEMSûTOûBEûLARGELYûINTACTûFORûNOW
One investor said buyside demand for a
53BNûISSUEûFROMûUNITED RENTALS ûRATEDû
"A"" ûWASûMOREûTHANû53BNû4HATûDEALû
PRICEDûATûPARûTOûYIELDûûONû7EDNESDAYûINû
the midst of another volatile session for
STOCKS
The clearing level was in line with price
TALKûANDûATûTHEûTIGHTûENDûOFû
û
WHISPERSALL US$ DENOMINATED HIGH-YIELD BONDS
BOOKRUNNERS – 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 132 19,717.57 10.9
2 Goldman Sachs 104 14,406.93 7.9
3 Credit Suisse 99 13,261.74 7.3
4 Wells Fargo 88 11,556.93 6.4
5 BAML 115 11,531.03 6.4
6 Barclays 88 10,965.88 6.0
7 Deutsche Bank 94 10,268.14 5.7
8 Morgan Stanley 85 10,037.76 5.5
9 Citigroup 87 9,848.02 5.4
10 RBC 62 6,647.95 3.7
Total 341 181,467.98
Including US domestics, Euro, foreign, globals. Excluding equity-related
debt.
Source: Refinitiv SDC code: B5
ALL NON-DOLLAR DENOMINATED HIGH-YIELD BONDS
1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 Deutsche Bank 46 4,714.69 8.2
2 JP Morgan 42 4,023.98 7.0
3 Goldman Sachs 35 3,867.96 6.7
4 BNP Paribas 48 3,744.18 6.5
5 Credit Suisse 40 3,121.93 5.4
6 Citigroup 29 2,961.31 5.1
7 HSBC 35 2,748.80 4.8
8 BAML 27 2,719.42 4.7
9 Barclays 31 2,600.27 4.5
10 Credit Agricole 23 2,037.45 3.5
Total 133 57,527.20
Excluding equity-related debt.
Source: Refinitiv SDC code: B6ALL ASIAN HIGH-YIELD ISSUERS
1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Haitong Securities 40 1,943.79 6.4
2 Citic 24 1,665.37 5.5
3 Guotai Junan Securities 40 1,651.03 5.5
4 Deutsche Bank 24 1,607.02 5.3
5 HSBC 25 1,521.49 5.0
6 JP Morgan 8 1,518.99 5.0
7 Bank of China 19 1,394.25 4.6
8 Credit Suisse 19 1,328.57 4.4
9 Goldman Sachs 9 1,237.67 4.1
10 BAML 14 1,124.31 3.7
Total 92 30,151.90
Excluding equity-related debt.Source: Refinitiv SDC code: B06d