Execution strategies and investor engagement in a post-Covid world
Global Capital organized a roundtable on the market for new corporate bond issues in September, with the main players in the market from Société Générale, Aberdeen Standard Investments, Amundi, Atlantia, Equinor, GM Financial and Wendel. You can read the discussion here.
Interest rates and inflation dominate the conversation in corporate bond markets, as well as ESG. But as awareness of environmental, social and governance issues will only increase, rates could move one way or the other. They could be on the cusp of a new upward road – or 2021 could just be a hiccup in the low for a longer period.
Businesses and investors must navigate these unpredictable seas. Our roundtable explored how treasurers can get the most out of today’s market and what investors would like to see.
Speakers noted the curious correlation between spreads and rates, debated whether issuers should try to offer investors performing trades, and discussed the pros and cons of multi-currency financing. Participants on all sides of the market are unhappy with the current tendency for spreads to tighten away from initial price thinking, which may waste investors’ time, but issuers have not jumped on the line. suggestion of an investor to pay a new issue premium of 10bp. .
Virtual roadshows have been hailed as a breakthrough in efficiency, but investors still want physical meetings, including site visits in some cases. Two issuers discussed their thinking on future sustainable financing, in a market where the story of an issuer’s transition is now at the heart of all investor relations.
Click on here to read the round table, or download it in PDF format.
The roundtable participants were:
Herve Boiral, responsible for euro credit, Amundi
Ivan Giacoppo, Financial director, Atlantia
Rick gokenbach, treasurer, General Motors Financial
Luke Hickmore, investment director, Aberdeen Standard Investments
Andrew Menzies, Global Head of Corporate Debt Capital Markets, Societe Generale
Jerome Michiel, financial director, Wendel
Sverre Serck-Hanssen, Head of Capital Markets, Equinor
Jon Hay, Editor-in-Chief of Corporate Finance and Sustainability, Global Capital (moderator)