High yield companies come back to market

Japanese telco operator Softbank has sold JPY130 billion (€1.2 billion) of 1.245% three-year unsecured notes, its largest ever straight bond issuance. Proceeds will be used redeem 2011 bonds. Softbank’s credit default swaps have traded in a narrow range over the past week at around 220bp, but rallied sharply from 290bp at the start of August.

In Europe, Continental priced an upsized issuance of €1 billion 7.5% 2017 notes below par at a yield of 7.625%. The deal re-opens the European high yield primary market after the August lull, with Continental using the proceeds to pay down bank debt. Continental CDS is now below 450bp, having been quoted around 490bp earlier this week.