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  • April 11 2014
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  • Bankers call time on crisis after Greek gold rush

    Greece vanquished fears that its return to the capital markets on Thursday could be a Trojan horse full of fast money, with a deal that attracted a majority of real money investors and more than 90% international participation. Around 600 accounts filled an over €20bn book in just one hour, causing one lead manager to declare the deal a “gold rush”.

    • 10 Apr 2014
  • Rapid Vimpelcom beats the blockade but lock-out fears grow for Russian credits

    Despite a quickfire loan signing for telecoms firm Vimpelcom this week, international financing of Russian credits is evaporating as geopolitical tensions and the threat of sanctions over the country’s annexation of Crimea mount, writes Michael Turner.

    • 10 Apr 2014
  • Lloyds lands covered blockbuster as UK gears for growth

    The tightest and most oversubscribed UK covered bond in three years could signal the start of banks releveraging in Britain and elsewhere in Europe, according to analysts. The €1bn Lloyds Bank deal — the country’s first in euros this year — should also tighten the UK covered curve, particularly with growth rebounding, writes Bill Thornhill.

    • 10 Apr 2014
  • Taking the FMIC: hidden GSE reform provision opens door to rental mart

    Three words may have scored US rental investors a secret success in the Senate’s latest housing reform proposal. The Crapo-Johnson bill, which aims to replace Fannie Mae and Freddie Mac with the Federal Mortgage Insurance Corporation (FMIC), may herald federal involvement in the nascent and controversial home rental securitization market.

    • 10 Apr 2014
  • Endesa, Sura snatch blowouts in rampant LatAm

    The fastest book build one syndicate banker has ever seen helped Endesa Chile to a first international bond in nearly two decades on Thursday as a universal tightening in LatAm credit entices borrowers from the region into the market at a rapid rate.

    • 10 Apr 2014
  • Bankia's Iberdrola sale latest to be hit by souring sentiment as deals flop

    Blocks went uncovered and IPOs were pulled this week amid the first real glimpse of negative sentiment this year. Even one of the most anticipated deals of the year — Bankia’s sale of all of its Iberdrola’s shares — was hit by the worries.

    • 10 Apr 2014

Derivatives

  • Leverage ratio drives bifurcation of derivative markets

    The 3% Basel III leverage ratio is driving a move towards standardization in derivatives that could result in a bifurcation of the market, according to market participants.

    • 10 Apr 2014
  • Early redemption bonus structure interest spikes

    Interest in early redemption bonus structures is increasing as investors opt for products with shorter maturities to participate 100% in the positive performance of equity underlyings.

    • 10 Apr 2014
  • Bourse linkage plan drives accumulator benefit

    Holders of accumulators referencing the China H-share market are seeing immediate benefits from a plan to tie the Shanghai Stock Exchange more closely with the Hong Kong Exchange.

    • 10 Apr 2014
  • ISDA: 90% of non-cleared derivs now collateralised

    The estimated amount of collateral in circulation in the non-cleared over-the-counter derivatives market decreased 14% from $3.7 trillion at the end of 2012 to approximately $3.17 trillion by December 31, 2013, according to a margin survey conducted by the International Swaps and Derivatives Association.

    • 10 Apr 2014

Securitization

  • ‘Regulatory incrementalism’ could derail CLO grandfathering effort

    The Fed risks derailing the lobbying momentum for grandfathering of existing deals with its decision to give banks two more years to make sure their CLO investments conform with the Volcker Rule’s ban on deals that include bond collateral, sources told GlobalCapital this week.

    • 10 Apr 2014
  • Veneto demand fuels syndicate pitches for more periphery ABS

    Veneto Banca gathered a three times subscribed book for the first public Italian RMBS deal in three years this week, strengthening ABS syndicates’ appeals to other periphery borrowers to take advantage of invester yield appetite and return to the primary markets.

    • 10 Apr 2014
  • Mitsubishi to sell first auto ABS since 2012

    Mitsubishi Motors Credit of America is roadshowing its first auto loan ABS since 2012, as the auto sector continues to pump out deals. Elsewhere, non-traditional and equipment ABS transactions are adding diversity to the pipeline, with deals from Kubota Credit Corp and Element Rail Leasing.

    • 10 Apr 2014

People and Markets

GlobalCapital View

  • Bigger banks aren't always stronger

    A bigger bank is not necessarily the same as a stronger bank, which is why the Bank of Italy’s draft proposal redefining which borrowers can issue covered bonds should be applauded.

  • Resolution framework is like a bucket with a hole in

    The European resolution mechanism should be agreed next week. But the nature of resolution means that any agreement less than 100% sound is not fit for purpose. Fault-lines in resolution planning are like holes in a bucket — if they exist at all, the bucket won’t work.

  • Pakistan should put Islamic back in its curve

    The Islamic Republic of Pakistan, rated B- / CAA1, will consider it a great result if it can re-establish a five- and 10-year international bond curve this week – following a seven year hiatus – by pricing close to higher-rated Zambia. But for a country with Islamic in its name, with a growing Islamic banking industry and with Islamic finance globally gathering momentum, it would be an oversight if it does not also re-establish a sukuk curve, and soon.

  • India's Basel III leniency comes at a cost

    India's cash-strapped state-owned banks breathed a sigh of relief last month when the country's central bank pushed back its rollout of Basel III by a year. But the move fails to reward the better functioning private sector banks and takes India a step further away from a more efficient financial system.

  • UK can never relive Lloyds sell-down success with Royal Mail

    The UK government now owns a 24.9% stake in Lloyds and a 30% stake in Royal Mail. But although the National Audit Office has recommended that lessons are learnt from the Lloyds share sell-downs, the performance of the two stocks over the past few months means that wildly different approaches are needed.

Bank News

  • Securitization fight goes global as banks pressure Basel

    Some of Europe's biggest banks are stepping up protests at the Basel securitization framework's treatment of the product, saying that even lowered risk-weightings endanger the asset class and do not reflect historical performance. Their comments echo those of top European policymakers throwing their weight behind ABS.

  • Regulators poised to pore over bank “risk culture”

    The Financial Stability Board has published guidance on examining “risk culture” in banks, the new frontier for regulatory efforts but one which is difficult to measure. Some banks, however, have already made strides in cultural change, while others have merely talked the talk.

  • Industry calls for standards in CCP risk management

    Market participants have called for risk management to be standardised across central counterparties.

More Stories

Global IB Revenue

Rank Lead Manager Amount $m No of issues Share %
1 JPMorgan 1,699.80 1279 8.29%
2 Goldman Sachs 1,501.64 819 7.32%
3 Bank of America Merrill Lynch 1,400.80 1164 6.83%
4 Morgan Stanley 1,213.19 962 5.92%
5 Citi 1,041.19 976 5.08%

Global M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
1 Goldman Sachs 557.68 165 11.24%
2 JPMorgan 413.20 128 8.33%
3 Bank of America Merrill Lynch 320.13 107 6.45%
4 Morgan Stanley 282.46 124 5.69%
5 Credit Suisse 270.17 95 5.44%

All International Bonds Ranking

Rank Lead Manager Amount $m No of issues Share %
1 JPMorgan 111,653.77 379 8.03%
2 Barclays 110,498.80 347 7.94%
3 Bank of America Merrill Lynch 101,573.05 316 7.30%
4 Deutsche Bank 99,049.91 375 7.12%
5 Citi 95,827.47 329 6.89%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
1 Credit Agricole CIB 9,929.31 26 7.07%
2 BNP Paribas 9,645.75 40 6.87%
3 HSBC 6,672.28 40 4.75%
4 Barclays 6,583.64 26 4.69%
5 Deutsche Bank 6,575.21 26 4.68%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
1 Goldman Sachs 11,056.32 30 12.83%
2 JPMorgan 8,454.91 40 9.81%
3 UBS 8,155.52 24 9.46%
4 Deutsche Bank 7,347.53 24 8.53%
5 Bank of America Merrill Lynch 6,847.17 17 7.95%