Reverse Yankee Bond: IBM’s €8.1bn-equivalent five-tranche bond

The key events for US bond underwriters in 2023 were the spate of interest rate hikes, bank failures in March – including Credit Suisse and Silicon Valley Bank – and the reopening of the high-yield market after an extremely dismal 2022. Dealmaking picked up across the board, for the most part. Overall investment-grade corporate bond issuance in the US climbed less than 1% to US$1.23trn, according to LSEG data. The high-yield market for new offerings rebounded significantly. The data show US volumes rose 67% to US$169bn in 2023 – though that...

The US Federal Reserve's campaign in 2023 to crush inflation was not without its casualties, including a handful of regional banks suffering portfolio rate shock which in turn triggered a crisis that bordered on systemic. For a few weeks in the spring of 2023, the world watched in shock as the Fed and banking regulators rushed to prevent a banking crisis from undermining markets and the economy, both domestic and international. That turmoil was only one of series of quakes to shake the US and global markets in 2023, and in the process forcing...

The euro market may never match the depth of its US dollar counterpart but for non-European borrowers it still offers a valuable alternative funding channel. Naturally, the pricing arbitrage will have a big influence on issuance volumes, but strategic needs also play a key role, especially for the biggest corporates and financial institutions. In 2023, reverse Yankee issuance bounced back from a poor 2022, albeit at volumes well below their pre-Covid-19 peak. Corporates such as AT&T, Caterpillar, Paccar, Ford, GM, Toyota and McDonald’s were all...

Momentum is defined as the product of mass and velocity, something that aptly sums up Credit Agricole CIB’s successes across markets in 2023. Such achievements do not merely arrive overnight, however, and the bank embarked on a long and patient journey to ensure it attained them in a sustainable way. While not absent from conversations when it came to mandate awards before, CACIB built up its reputation over the years to such a degree that 2023 saw it firmly seated at the top table across myriad asset classes. The withdrawal of support from the...

The yen market was shaken by rising US interest rates and changing expectations for the Bank of Japan's monetary policy, but, contrary to expectations, issuance volume did not shrink in either domestic or cross-border yen markets. The yen markets were quiet in the first quarter amid heightened uncertainty about whether new BoJ governor Kazuo Ueda would scale down his predecessor Haruhiko Kuroda's bold monetary easing policy when he took over in April. Still, Mizuho helped Nissan Motor raise ¥200bn (US$1.4bn) from a three-part sustainability...

While high inflation, rates volatility and relatively weak economic growth prospects made for tricky conditions in 2023’s sterling bond sector, there was also the chance to showcase capabilities long in the making. “The time to show that strength is when markets are tough,” said Alexandra Miani, head of corporate coverage, derivatives and financing solutions. “Clients have consistently relied on NatWest to navigate them through the heightened volatility and uncertainty, particularly in the sterling market.” Indeed, it is not as if the bank is a...

The Swiss market in 2023 had its biggest shake-up since the financial crisis with the disappearance of one of its biggest financial institutions in Credit Suisse. That left an opportunity for others to grab market share, though it was Credit Suisse’s acquirer, UBS, which benefited most. It became the dominant bond house, popping up on almost every deal across all sectors. In short, the Swiss franc market became a one-horse race in 2023. UBS took first place in every league table with the exception for SSAs. It was the second year in a row in...