UK Debt Capital Markets Forum Roundup 2019

Thank you for for attending London Stock Exchange’s inaugural UK Debt Capital Market’s Forum on 1 March 2019, organised in partnership with Industrial & Commercial Bank of China - London Branch and Barclays.
 
Whether you attended the Forum or were one of the 100+ viewers who were live-streaming the event via London Stock Exchange’s dedicated issuer services portal, we hope you enjoyed interacting with the global DCM community bought together at Paternoster Square.

This edition of our Fixed Income Pulse provides a round up of the event for those who could not make it and those who would like to re-watch some of the day’s presentations. Below you’ll find an overview of the Forum’s discussions and links to watch the full panel sessions.

Round up

Nikhil Rathi, CEO, London Stock Exchange plc and Director of International Development, LSEG, provided the opening remarks, with key fixed income highlights from 2018. 

Rohan Churm, Head of Foreign Exchange Division at Bank of England delivered the keynote speech: “Where next for fixed income markets: Thriving in a world of change” (available here) – painting a picture of how debt markets, and capital markets more generally, have evolved since the establishment of the Bank’s Royal Charter in the 17th century to the increasingly electronified markets of today. A must read for both the economic historian and the futurist, as well as the Lewis Carroll aficionado (Pub Quiz – What is the ‘Red Queen hypothesis’?).

Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, London Stock Exchange, provided a deeper dive into the current macro trends in Debt Capital Markets and new product innovations we have made at London Stock Exchange, including recent deals on the International Securities Market (ISM). You can find Darko’s and other presentations from the Forum here.

Watch the assosciated videos here:

> Sterling bond market: Seizing the Opportunities 

> Financing China’s growth through the debt capital markets 

> Going Green: Scaling up UK’s Green bond market 

> Switching to SONIA 

Sterling bond market: Seizing the Opportunities

Barclays, S&P Global Ratings and UK Debt Management Office joined a lively discussion, moderated by London Stock Exchange plc’s resident Debt Product Specialist Elena Chimonides, on the state of the sterling bond market. The discussion touched on supply dynamics, arbitrage opportunities for issuers, steps taken to encourage more international issuers to consider sterling issuance, enhancing liquidity, the innovative structures supported by the UK Government such as the 2014 sovereign sterling sukuk, and the future of the sterling retail market.

Financing China’s growth through the debt capital markets

Our China panel provided a perspective from investors (Amundi), marquee issuers (ICBC), financial infrastructure (Shanghai Clearing House) as well as a legal perspective (Linklaters) on international DCM transactions from China. The discussion included the challenges facing international investors, the key role played by debt capital markets to finance the Belt and Road Initiative and utilising the London financial ecosystem to further RMB financing. The panel also presented views on the potential for more innovative offshore green bond transactions from Mainland China. To read more about ICBC London Branch's landmark bond issuance click here.


Going Green: Scaling up UK’s Green bond market

This popular panel featured issuers IFC and Tideway London, Barclays, Aberdeen Asset Management and Environmental Finance discussing the key themes relevant to scaling up the UK’s green bond markets. The discussion summarised developments in the ESG space, including the current status of the Green Bond market in the UK and internationally. The panel also provided their perspectives on potential room for new ESG categories, green bond pricing relative to vanilla issuances, reducing transactional costs on green issuances and the future of green bond financing in the UK and internationally.


Switching to SONIA

The SONIA panel focussed on drivers and challenges for the SONIA market, common approaches to manage the transition and detailed London Stock Exchange Group wide solutions to support SONIA transition. The panel discussed the development of SONIA versus SOFR, the potential for non UK issuers utilising the benchmark amongst other topics. The panel featured discussion from the perspectives of a regulator (FCA), issuer (EBRD), the industry association (ICMA) and DCM banks’ (RBC).