(Bloomberg) –
Global borrowers shunned the corporate debt market in Europe for a second day as a cluster of new coronavirus cases in Italy sent significantly higher yields, which halted sales of new bonds.
A single corporate deal surfaced on Tuesday, joining a reduced ING Groep NV sale yesterday in a week expected to generate more than 20 billion euros ($ 22 billion) in sales, according to a Bloomberg News survey. Spain and the European Stability Mechanism are also braving the market today.
Investors may have underestimated the impact of the foreclosure on supply chains and the global economy due to the virus epidemic “and yesterday we were reminded of it,” said chief executive Holger Mertens. portfolio, global credit, at Nikko Asset Management. Martens said he expects “supply will continue to be strong” once volatility subsides.
The fall in the business of selling corporate bonds is far from January, when the debt market in Europe had its best start to the year with 238.8 billion euros in sales. February also started in the same way, with LVMH Moet Hennessy Louis Vuitton SE’s largest corporate bond offering since 2016, which boosted a record week for sales of corporate debt.
Abandoned plans
Since then, global markets have plummeted as the virus spreads to new countries, with the number of cases worldwide now exceeding 80,000. In addition to closing businesses to the market, borrowers are also adjusting their plans for marketing of potential offers, the Hamburg Commercial Bank cutting investor meetings in Italy next week in favor of a conference call.
Investment-grade borrowing costs have risen more than 18 months, while credit risk measures hit their highest level since September, Monday. That did not deter PACCAR Inc. from offering 300 million euros in notes via its European financing arm on Tuesday, the first sale in the currency of a non-financial borrower since February 20, according to data compiled by Bloomberg.
(Tuesday debt sales updates, quote in third paragraph, details throughout)
– With the help of Paul Cohen and Tasos Vossos.
To contact journalists on this story: Hannah Benjamin in London at [email protected]; Alice Gledhill in London at [email protected]
To contact the editor responsible for this story: Vivianne Rodrigues at [email protected]
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(Bloomberg) –
Global borrowers shunned the corporate debt market in Europe for a second day as a cluster of new coronavirus cases in Italy sent significantly higher yields, which halted sales of new bonds.
A single corporate deal surfaced on Tuesday, joining a reduced ING Groep NV sale yesterday in a week expected to generate more than 20 billion euros ($ 22 billion) in sales, according to a Bloomberg News survey. Spain and the European Stability Mechanism are also braving the market today.
Investors may have underestimated the impact of the foreclosure on supply chains and the global economy due to the virus epidemic “and yesterday we were reminded of it,” said chief executive Holger Mertens. portfolio, global credit, at Nikko Asset Management. Martens said he expects “supply will continue to be strong” once volatility subsides.
The fall in the business of selling corporate bonds is far from January, when the debt market in Europe had its best start to the year with 238.8 billion euros in sales. February also started in the same way, with LVMH Moet Hennessy Louis Vuitton SE’s largest corporate bond offering since 2016, which boosted a record week for sales of corporate debt.
Abandoned plans
Since then, global markets have plummeted as the virus spreads to new countries, with the number of cases worldwide now exceeding 80,000. In addition to closing businesses to the market, borrowers are also adjusting their plans for marketing of potential offers, the Hamburg Commercial Bank cutting investor meetings in Italy next week in favor of a conference call.
Investment-grade borrowing costs have risen more than 18 months, while credit risk measures hit their highest level since September, Monday. That did not deter PACCAR Inc. from offering 300 million euros in notes via its European financing arm on Tuesday, the first sale in the currency of a non-financial borrower since February 20, according to data compiled by Bloomberg.
(Tuesday debt sales updates, quote in third paragraph, details throughout)
– With the help of Paul Cohen and Tasos Vossos.
To contact journalists on this story: Hannah Benjamin in London at [email protected]; Alice Gledhill in London at [email protected]
To contact the editor responsible for this story: Vivianne Rodrigues at [email protected]
bloomberg.com“data-reactid =” 40 “> For more articles like this, visit us on bloomberg.com
Subscribe now to stay one step ahead of the most trusted source of business information. “data-reactid =” 41 “> Subscribe now to stay ahead with the most trusted source of business information.
© 2020 Bloomberg L.P.
