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After two years of net negative issuance, the primary market for corporate hybrid bonds1 is poised for a strong rise in activity

Edmond de Rothschild Corporate Finance advises Ardian regarding the acquisition of Alstef Group. Ardian has entered exclusive negotiations to acquire a majority stake in Alstef Group, alongside the management team, its founders, and Future French Champions.

Edmond de Rothschild Corporate Finance has supported the shareholders of Wagram Food Service in the capital reorganization with BPI France and Groupe ERAM, in order to accelerate the development of existing and future brands.

Edmond de Rothschild Corporate Finance supported the shareholders and management of the Sandaya Group in the acquisition of a platform of four campsites in Italy from PGIM Real Estate, in order to accelerate its development in Europe.

After hitting new highs, equity markets were stopped by fresh bond market volatility. This week’s US Treasury auction saw low demand just before a record $340bn in new global issuance in June from the US, the European Union: and the UK. Goods inflation in Australia and services inflation in Germany also pushed bond yields higher.

Edmond de Rothschild has hired three seasoned professionals to support the development of its Real Estate Investment Management (REIM) capabilities across Europe. Industry veterans DJ Dhananjai and Robbert Zoet join the group’s London office, respectively as Chief Investment Officer UK for Real Estate Investment Management and Head of Real Assets Distribution. Fabrice Lefevre-Sory joins the Paris office as Senior Real Assets sales.

As expected, the Fed left rates unchanged. Jerome Powell said markets would need to be patient as little progress had been made on the disinflation front since the beginning of the year, and especially not in services. But ...

The week’s PMI data provided confirmation of a manufacturing slowdown but suggested services would drive a recovery in the coming months.

The AT1¹ bond segment has been back in favour since end 2023, even if the long-term consequences remain uncertain.

Geopolitical risk mounted further in the Middle East after Iran made a direct strike on Israel over the weekend. Nobody wants the situation to escalate but there is a risk it could happen following Thursday night’s riposte against Iran.

After the previous week's indications of labour market resilience in the US, this week saw inflation proving sticky. March’s  CPI increased by 0.4% vs. 0.3% expected, the third month in a row in which it had come in hotter than consensus expectations.

The macroeconomic environment appears favourable for emerging sovereign and corporate bonds, which display robust fundamentals. The Fed’s policy pivot and a weakening dollar expected in 2024 could prompt investors looking for yield to return to the asset class.