◆ Politics panic slaps SSAs, FIG but what of corporate bonds?
◆ EU denied its wish
◆ Introducing Primary Market Monitor

Well, 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 this week. SSA and FIG issuers abandoned deal plans. We discuss which bits of the market are still working, just how bad this bout of volatility is compared to recent times and what new issuance prospects are for the immediate future.

The EU didn't have a vintage week as a borrower either. It priced a successful syndication, though as we discover, it lacked the glossy finish of other deals. Then it was denied access to MSCI's government bond indices. We reveal why this matters so much to the borrower, and the way forward.

Finally, GlobalCapital is about to launch a new data product: Primary Market Monitor. We tell you what it is, what it does and how you can get an early look at it.

◆ Private credit, regulation and cuddly toys at Global ABS in Barcelona
◆ What the European parliamentary elections mean for EU bonds and Capital Marekts Union
◆ Will volatility follow the ECB's historic rate cut?

The incursion of private credit into the securitization market, and how securitizations are regulated, were two of the big topics at Europe's biggest industry conference this week. We were joined by our colleagues from the Another Fine Mezz podcast to discuss all of that, the best freebies at the event and the perils of live podcasting.

Meanwhile, the ECB made its first cut to interest rates in five years on Wednesday. It was well expected but now uncertainty is back as capital markets puzzle over where next for rates.

Finally, June's EU parliamentary elections will have an influence not only on securitization regulations but also the future of the EU as a bond issuer and the path to Capital Markets Union. We discuss the likely outcomes.

◆ Which banks sell in run-up to rate cuts
◆ South Africa election and the bond market
◆ Saudi Arabia leaves peers behind

Rates volatility returned to the European FIG market this week. We ask what credits investors are buying ahead of a key ECB monetary policy meeting, when it is expected to cut interest rates, and why.

South Africa's election this week was, at the time of writing, likely to result in the African National Congress losing its exclusive grip on power for the first time in 30 years. We discuss what that and the likely outcomes mean for the bond market.

As Saudi Arabia returned to the debt markets with another blockbuster sukuk, we examine just where the issuer sits in the debt capital markets and how it manages to keep investors keen when it has to raise so much compared to its peers.

◆ Capital Markets Union: gauffre it
◆ The EMEA investment banking riddle
◆ Why EM bond investors keep buying deals that end up under water

Mairead McGuinness, the European Commissioner for financial services, financial stability and Capital Markets Union urged those attending the International Capital Markets Association's conference in Brussels this week to get on with building CMU. But were they listening? We cut through the waffle to discuss the path to a common capital market .

Meanwhile, investment banks are reassessing how they make money from M&A and advisory in the EMEA region. We reveal the new approaches to client coverage and staff pay that are emerging.

Finally, a plethora of borrowers from the emerging markets have been bringing deals at ever tighter spreads and paying very little in new issue premiums. But as we discover, these deals are not performing in secondary trading. We investigate why investors keep showing up for the paper.

◆ A pivotal moment for digital capital markets
◆ Who really benefits from bonds on the blockchain?
◆ FIG M&A in Europe

There is no shortage of evangelists for digital capital markets. But adoption of bonds on the blockchain has been slow, not least because it hasn't always been obvious what problem the tech is solving, or how it can be widely implemented. This week, however, the ECB took a big step forward by launching trials of distributed ledger technology for bonds.

We discuss what the ECB hopes to achieve with this initiative. We also debate whether it will change the face of finance or we know it, will fizzle out into nothing, or something in between. One thing is for sure: everything is to play for at this critical moment in the digitalisation of the bond market.

We also took a keen interest in French president Emmanuel Macron's opinion this week that there is a need for consolidation among the EU's banks. Is big bank M&A on the agenda, and if so which firms? We also look into the likelihood of it happening as well as the pitfalls and benefits.

◆ Etihad to lead fleet of airline listings as IPO market and aviation sector blossom
◆ Air Baltic's historic coupon
◆ Open season for bank AT1s

An airline IPOs are a rare bird. In the last nine years, there have been three. The industry has rebounded from Covid, however, as UAE carrier Etihad's results proved this week and now it and at least eight others are looking to list on stock exchanges this year, or next. We look at what is driving them to the equity market and what reception they will likely find when they get there.

One of those airlines is Air Baltic. It was in the bond market this week raising €340m of five year debt, callable after two, at a cost of a whopping 14.5%. We look into the airline's capital markets strategy.

Meanwhile, banks piled into the additional tier one capital market this week. We examine how they managed to cram so much issuance into such a small window at such tight pricing.

◆ Sustainability-linked bonds lose appeal...
◆ ... as do the loan versions, come to think of it
◆ The favourites to take over from Quinn at HSBC

When Enel missed a KPI on its sustainability-linked bonds, it could have marked a moment of maturation for a youthful product but issuance volumes are plummeting.

Meanwhile, the international banks that lend to Turkey's financial institutions seem to prefer to make green loans rather than the sustainability-linked versions they made previously.

We ask what is going on with sustainability-linked products — does all of this signify the last rites for an asset class that was supposedly so well-suited to funding the green transition?

Meanwhile, Noel Quinn caused a surprise this week by announcing his plans to retire from HSBC, where he is chief executive. We look at who might replace him, and we think we've identified a clear favourite.

◆ The 'marginal madate': it seemed like a good idea at the time
◆ GlobalCapital's new columnist, Craig Coben
◆ World Bank boosts lending capacity

What do you do when that mandate you accepted in a quiet market to keep busy is still lurking about, taking up time and energy, when the market has picked up and juicier deals are to be done?

Is extending balance sheet to clients as a second tier firm when the top tier won't anything other than an exercise in futility in the long term?

GlobalCapital's new columnist and capital markets veteran Craig Coben joined us to discuss these very matters and more.

Meanwhile, we have an update on the fast developing situation with the capital of multilateral development banks, the not so secret weapon in their campaign to increase their lending to the developing world.

Also, hear from our sponsors, KfW, about their latest advance into blockchain-based digital bonds.