Telecom Italia last week completed what is thought to be Europe’s largest-ever so-called liability management exercise with a €2 billion bond buyback. It is a type of transaction that has been exceptionally popular in 2015, for corporate issuers in particular.

Liability management consists of issuers using the debt capital markets to manage their debt profiles. Tools available include tenders or buybacks of bonds - Telecom Italia offered to buy back up to €8.4 billion worth of its bonds from investors - and exchange offers where an existing bond is swapped for a new one. Other options available include consent solicitations, where bondholders are asked, and paid, to agree to a change in terms.