www.rbccm.com Open in urlscan Pro
23.13.164.158  Public Scan

Form analysis
2 forms found in the DOM

<form id="mktoForm_1168" novalidate="novalidate" class="mktoForm mktoHasWidth mktoLayoutLeft" style="font-family: Arial, Verdana, sans-serif; font-size: 13px; color: rgb(51, 51, 51); width: auto;">
  <style type="text/css">
    .mktoForm .mktoButtonWrap.mktoSimple .mktoButton {
      color: #fff;
      border: 1px solid #75ae4c;
      padding: 0.4em 1em;
      font-size: 1em;
      background-color: #99c47c;
      background-image: -webkit-gradient(linear, left top, left bottom, from(#99c47c), to(#75ae4c));
      background-image: -webkit-linear-gradient(top, #99c47c, #75ae4c);
      background-image: -moz-linear-gradient(top, #99c47c, #75ae4c);
      background-image: linear-gradient(to bottom, #99c47c, #75ae4c);
    }

    .mktoForm .mktoButtonWrap.mktoSimple .mktoButton:hover {
      border: 1px solid #447f19;
    }

    .mktoForm .mktoButtonWrap.mktoSimple .mktoButton:focus {
      outline: none;
      border: 1px solid #447f19;
    }

    .mktoForm .mktoButtonWrap.mktoSimple .mktoButton:active {
      background-color: #75ae4c;
      background-image: -webkit-gradient(linear, left top, left bottom, from(#75ae4c), to(#99c47c));
      background-image: -webkit-linear-gradient(top, #75ae4c, #99c47c);
      background-image: -moz-linear-gradient(top, #75ae4c, #99c47c);
      background-image: linear-gradient(to bottom, #75ae4c, #99c47c);
    }
  </style>
  <div class="mktoFormRow">
    <div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 10px;">
      <div class="mktoOffset" style="width: 10px;"></div>
      <div class="mktoFieldWrap mktoRequiredField"><label for="FirstName" id="LblFirstName" class="mktoLabel mktoHasWidth" style="width: 0px;">
          <div class="mktoAsterix">*</div>
        </label>
        <div class="mktoGutter mktoHasWidth" style="width: 10px;"></div><input id="FirstName" name="FirstName" placeholder="First Name" maxlength="255" aria-labelledby="LblFirstName InstructFirstName" type="text"
          class="mktoField mktoTextField mktoHasWidth mktoRequired" aria-required="true" style="width: 285px;"><span id="InstructFirstName" tabindex="-1" class="mktoInstruction"></span>
        <div class="mktoClear"></div>
      </div>
      <div class="mktoClear"></div>
    </div>
    <div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 10px;">
      <div class="mktoOffset" style="width: 10px;"></div>
      <div class="mktoFieldWrap mktoRequiredField"><label for="LastName" id="LblLastName" class="mktoLabel mktoHasWidth" style="width: 0px;">
          <div class="mktoAsterix">*</div>
        </label>
        <div class="mktoGutter mktoHasWidth" style="width: 10px;"></div><input id="LastName" name="LastName" placeholder="Last Name" maxlength="255" aria-labelledby="LblLastName InstructLastName" type="text"
          class="mktoField mktoTextField mktoHasWidth mktoRequired" aria-required="true" style="width: 285px;"><span id="InstructLastName" tabindex="-1" class="mktoInstruction"></span>
        <div class="mktoClear"></div>
      </div>
      <div class="mktoClear"></div>
    </div>
    <div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 10px;">
      <div class="mktoOffset" style="width: 10px;"></div>
      <div class="mktoFieldWrap mktoRequiredField"><label for="Title" id="LblTitle" class="mktoLabel mktoHasWidth" style="width: 0px;">
          <div class="mktoAsterix">*</div>
        </label>
        <div class="mktoGutter mktoHasWidth" style="width: 10px;"></div><input id="Title" name="Title" placeholder="Title" maxlength="255" aria-labelledby="LblTitle InstructTitle" type="text" class="mktoField mktoTextField mktoHasWidth mktoRequired"
          aria-required="true" style="width: 285px;"><span id="InstructTitle" tabindex="-1" class="mktoInstruction"></span>
        <div class="mktoClear"></div>
      </div>
      <div class="mktoClear"></div>
    </div>
    <div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 10px;">
      <div class="mktoOffset" style="width: 10px;"></div>
      <div class="mktoFieldWrap mktoRequiredField"><label for="Company" id="LblCompany" class="mktoLabel mktoHasWidth" style="width: 0px;">
          <div class="mktoAsterix">*</div>
        </label>
        <div class="mktoGutter mktoHasWidth" style="width: 10px;"></div><input id="Company" name="Company" placeholder="Company" maxlength="255" aria-labelledby="LblCompany InstructCompany" type="text"
          class="mktoField mktoTextField mktoHasWidth mktoRequired" aria-required="true" style="width: 285px;"><span id="InstructCompany" tabindex="-1" class="mktoInstruction"></span>
        <div class="mktoClear"></div>
      </div>
      <div class="mktoClear"></div>
    </div>
    <div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 10px;">
      <div class="mktoOffset" style="width: 10px;"></div>
      <div class="mktoFieldWrap mktoRequiredField"><label for="Email" id="LblEmail" class="mktoLabel mktoHasWidth" style="width: 0px;">
          <div class="mktoAsterix">*</div>
        </label>
        <div class="mktoGutter mktoHasWidth" style="width: 10px;"></div><input id="Email" name="Email" placeholder="Business Email" maxlength="255" aria-labelledby="LblEmail InstructEmail" type="email"
          class="mktoField mktoEmailField mktoHasWidth mktoRequired" aria-required="true" style="width: 285px;"><span id="InstructEmail" tabindex="-1" class="mktoInstruction"></span>
        <div class="mktoClear"></div>
      </div>
      <div class="mktoClear"></div>
    </div>
    <div class="mktoClear"></div>
  </div>
  <div class="mktoFormRow">
    <div class="mktoFieldDescriptor mktoFormCol" style="margin-bottom: 10px;">
      <div class="mktoOffset" style="width: 10px;"></div>
      <div class="mktoFieldWrap mktoRequiredField"><label for="cASLOptin" id="LblcASLOptin" class="mktoLabel mktoHasWidth" style="width: 0px;">
          <div class="mktoAsterix">*</div>
        </label>
        <div class="mktoGutter mktoHasWidth" style="width: 10px;"></div>
        <div title="Yes, you may use the information I provide on this form to send me future insights from RBC Capital Markets." class="mktoLogicalField mktoCheckboxList mktoHasWidth mktoRequired" style="width: 500px;">
          <div id="autofill" style="text-align: left; margin: 0px 0px 10px;">
            <script src="https://www.linkedin.com/autofill/js/autofill.js" async="" type="text/javascript"></script>
            <span class="IN-widget" style="line-height: 1; vertical-align: baseline; display: inline-block;"><span
                style="padding: 0 !important; margin: 0 !important; text-indent: 0 !important; display: inline-block !important; vertical-align: baseline !important; font-size: 1px !important;"><iframe frameborder="0"
                  style="width: 181px; height: 63px; display: inline-block;" title="LinkedIn auto fill" src="https://www.linkedin.com/autofill/"></iframe></span></span>
            <script type="IN/Form2" data-form="mktoForm_1168" data-field-firstname="FirstName" data-field-lastname="LastName" data-field-email="Email" data-field-company="Company" data-field-title="Title"></script>
          </div><input name="cASLOptin" id="mktoCheckbox_1445_0" type="checkbox" value="yes" aria-required="true" aria-labelledby="LblcASLOptin LblmktoCheckbox_1445_0 InstructcASLOptin" class="mktoField"><label for="mktoCheckbox_1445_0"
            id="LblmktoCheckbox_1445_0">Yes, you may use the information I provide on this form to send me future insights from RBC Capital Markets. <a href="http://www.rbc.com/privacysecurity/ca/index.html">View Privacy Policy</a></label>
        </div><span id="InstructcASLOptin" tabindex="-1" class="mktoInstruction">Yes, you may use the information I provide on this form to send me future insights from RBC Capital Markets.</span>
        <div class="mktoClear"></div>
      </div>
      <div class="mktoClear"></div>
    </div>
    <div class="mktoClear"></div>
  </div>
  <div class="mktoButtonRow"><span class="mktoButtonWrap mktoSimple" style="margin-left: 120px;"><button type="submit" class="mktoButton">Sign Up</button></span></div><input type="hidden" name="formid" class="mktoField mktoFieldDescriptor"
    value="1168"><input type="hidden" name="munchkinId" class="mktoField mktoFieldDescriptor" value="577-RQV-784">
</form>

<form novalidate="novalidate" class="mktoForm mktoHasWidth mktoLayoutLeft" style="font-family: Arial, Verdana, sans-serif; font-size: 13px; color: rgb(51, 51, 51); visibility: hidden; position: absolute; top: -500px; left: -1000px; width: auto;">
</form>

Text Content

 * Skip to main content
 * Other RBC sites
   * RBC.comBankingCity National BankGlobal Asset ManagementInsuranceInvestor
     ServicesWealth Management
 * Français
 * Our Offices
 * Sign In

Navigation Menu
 * About Us
   * Awards
   * Conferences
   * Diversity & Inclusion
   * In the Media
   * Leadership
 * Expertise
   * Global Investment Banking
   * Global Markets
   * Corporate Banking
   * Sustainable Finance
   * Research
   * US Municipal Finance
   * RBC Clear
   * RBC Elements
   * Transactions
 * Insights
   * Artificial Intelligence
   * Beyond the Ballot
   * Energy Transition
   * European Insights
   * Geopolitics
   * Healthcare
   * Podcasts
   * Powering Sustainable Ideas
   * RBC Imagine
   * Strategic Alternatives
   * Strategy & Economics
 * Citizenship
   * In the Community
   * RBC Race for the Kids
   * RBC Charity Day for the Kids
   * RBC Foundation USA
 * Careers
   * Campus Recruiting
   * Experienced Professionals
   * Culture & Values
   * Search Opportunities
 * 



 * Home
 * Insights


BOND MARKETS ACCELERATE BUT VOLATILITY AHEAD?

Redemptions from the low-rate Covid era are about to surge – will corporates
find a favorable market for refinancing?

Start Listening

Listen and Subscribe on:


Now Playing:


 * Home
 * Insights
 * Sector Expertise
 * Recent Deals


By Vito Sperduto, Allison MacKinnon & Robert McCormack
Published October 9, 2024 | 3 min read


KEY POINTS

 * Debt capital markets issuance has spiked in advance of the U.S. election.
 * Overseas-based corporates are increasingly looking to the U.S. market,
   attracted by the depth and liquidity available.
 * Demand for ESG-related issuance remains high, even as investors are
   increasingly looking to an in issuer’s ESG rating.
 * RBC’s debt capital markets function now sits within Global Investment
   Banking, allowing for more seamless client discussion about funding options.
 * With corporate redemptions about to increase, the current market offers a
   favorable opportunity for financing.


WHAT’S THE RATIONALE FOR THE RECENT REPOSITIONING OF THE DEBT CAPITAL MARKETS
FUNCTION IN RBC CAPITAL MARKETS?

Sperduto: The new global structure has merged our regional investment banking
units into a global model. As part of that, we also moved the debt capital
markets franchise from Global Markets into our Global Investment Banking
business, creating better alignment for our clients.

McCormack: It’s a natural evolution in our business. It sets us up to have a
more seamless discussion with clients right across the capital structure. Should
we bring a great M&A idea to our clients, we can instantly talk about how we
propose they could fund that with any product, from senior secured debt all the
way through to equity.


HOW ARE ISSUERS AND INVESTORS PLACED IN TODAY’S MARKET?

Robert McCormack: It’s certainly been an incredible year, with a significant
increase in issuance across all the markets we cover, as clients seek to
accelerate their issuance and get in ahead of some volatility towards the end of
the year.

Vito Sperduto: There’s a fair amount of refinancing occurring, as we start the
redemptions from the wave of Covid financings in that low-rate environment we
had in ’20 and ’21.

Allison MacKinnon: In Europe our clients are large multinational borrowers who
are funding significant debt programs on an ongoing basis. They’re looking to
optimize capital structure. Having accelerated funding plans into the first half
of 2024, they’ve taken risk off the table ahead of this election, and they’ve
been nimble around the snap elections in the UK and France this summer.


WHAT ARE THE TRENDS AROUND CROSS-BORDER ISSUANCE?

McCormack: We’ve seen a 50% increase in issuance from offshore financials into
the U.S. In preferred capital and the hybrid capital market, volumes are up
about 200% – we haven’t seen this level of issuance in that space since 2021 –
and that’s really getting noticed by financials in other regions.

MacKinnon: We’ve brought Nestlé, Vodafone, Mercedes, and Volkswagen to the U.S.
markets. Utilities are looking to different markets as they diversify financing
for increased expenditure. We brought RWE to the U.S. market for their inaugural
issuance. We worked with EDF both in U.S. and Canadian dollars – building out
that stakeholder base of long-term sustainable investors.

> ‘In preferred capital and the hybrid capital market, volumes are up about 200%
> – that’s really getting noticed by financials in other regions’
> 
> Robert McCormack, Global Head of Debt Capital Markets


WHAT’S THE CURRENT PICTURE ON ESG-RELATED FINANCING?

Sperduto: ESG-related issuance in the debt capital markets has been gaining
traction in recent years, and in 2024 we have certainly seen that trend
continue.

MacKinnon: We’re really excited to support our clients and communities as we
accelerate the transition to a greener economy. We’ve got corporates that are
continuing to feature green bonds within their issuance programs. Overall, bond
issuance is more than $800 billion year to date, so it’s up 7% from last year,
and green bonds are a key feature of that.

Sperduto: We might have seen less usage of the term ESG, but certainly the
underlying financings have still been occurring. It’s an incremental alternative
for our clients, and we want to support them with all the opportunities they can
consider.

MacKinnon: The sustainability profile of a company is very important to
investors here in Europe. We’re moving a little bit away from labels, and more
towards that holistic perspective on the company – the ESG rating as a proxy for
the issuer sustainability profile.

> ‘We might have seen less usage of the term ESG, but the underlying financings
> have still been occurring’
> 
> Vito Sperduto, Head of RBC Capital Markets U.S.


WHAT ARE THE KEY ISSUES FOR THE PERIOD AHEAD AND HOW CAN ISSUERS AND INVESTORS
RESPOND?

MacKinnon: We’ve got our eye on three key things. We’ve got this credit spread
compression that is supportive to issuers. It’s a nice opportunity for
corporates to take advantage of. Corporate redemptions are stepping up by 35%
over the next few years. Can we take advantage of this constructive market now
to start to refinance?

We’re watching interest rate curves as well – yes, we’re moving into this easing
cycle, but we’re still enjoying an opportunity to fund intermediate dates and
long-term financing.

Finally, we’re watching inflows. We’ve had consistent inflows into fixed income
and that’s supporting credit spreads.

I’m mindful of potential asset allocation shifts. If we don’t have the same
levels of inflows next year, could we see spreads widen, longer periods of
volatility and more challenging markets? These things are the counterbalance to
this really constructive environment.

> ‘Corporate redemptions are stepping up by 35% over the next few years – can we
> take advantage of this constructive market now to refinance?’
> 
> Allison MacKinnon, Head of UK & European Corporate Debt Capital Markets

View audio transcript


Share this article


RELATED CONTENT

Insights
Healthy Debt Markets are Driving Deal Flow
27 min listen
Insights
Investors Eye Canadian Energy as Game-Changing Projects Go Live
9 min listen
Insights
Why U.S. Banks Are Set for Strong Performance
23 min listen


OUR EXPERTS

Vito Sperduto
Head, RBC Capital Markets U.S.
 
Allison MacKinnon
Head of UK & European Corporate Debt Capital Markets

Robert McCormack
Global Head of Debt Capital Markets






STAY INFORMED

Get the latest insights and news from RBC Capital Markets delivered to your
inbox.

 
*



*



*



*



*




*


Yes, you may use the information I provide on this form to send me future
insights from RBC Capital Markets. View Privacy Policy
Yes, you may use the information I provide on this form to send me future
insights from RBC Capital Markets.



Sign Up
 * PRIVACY
 * ⋅
 * LEGAL & DISCLAIMERS
 * ⋅
 * ACCESSIBILITY

© RBC Dominion Securities Inc. 2001, 2003, 2010 rbccm.com is an online
information service operated by RBC Dominion Securities Inc. and the other
businesses and legal entities operating under the brand name RBC Capital
Markets.


Member - Canadian Investor Protection Fund


Connect with us:

Cookie Settings



RBC uses cookies on this website as they help us to provide the best possible
user experience while keeping the site secure. Select 'Accept all cookies' to
agree to all cookies and keep browsing or select 'Learn more' to view our policy
and review your settings. You can update your preferences at any time by
clicking 'Cookie settings' in the footer. Learn more
Accept all cookiesCookie Settings