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  • Loan bankers scramble to fill void left by failing Russia

    Loan bankers have every reason to be getting twitchy. Any lingering hopes of Russian deals getting a reprieve were finally extinguished this week as fighting continued in Ukraine and tensions with Russia escalated, writes Dan Alderson.

    • 21 Aug 2014
  • Niche takes centre stage as price trumps size for SSAs

    Kangaroos and Kauris — not dollars and euros — could grab the attention of supranational agencies in the coming months, with price rather than prodigious volumes likely to be the issuers’ focus as they flirt with near-completed funding targets. Jonathan Breen and Nathan Collins report.

    • 21 Aug 2014
  • Brazil targets foreign investors in new covered bond law

    Brazil's finance ministry has told GlobalCapital that it will publish proposals for a covered bond legal framework next week. The proposals are a part of an overall package that aims to free up the flow of credit and was presented by the minister of finance, Guido Mantega, on Wednesday. Bill Thornhill reports.

    • 21 Aug 2014
  • Correction time for subprime autos as AmeriCredit squeezes through

    US auto lender AmeriCredit paid up for its latest subprime loan securitization this week, after a period of widening in the sector sparked by increased regulatory scrutiny. While the deal did get away successfully, market participants were left wondering why it was brought to market in such poor conditions.

    • 20 Aug 2014
  • Investors prepare to hedge Cocos with CDS after rule change

    Upcoming changes to credit default swap (CDS) definitions could have a positive effect on the contingent convertible securities (Coco) market, allowing investors for the first time to buy CDS protecting against the risk of conversion into equity or write-down for tier two Cocos.

    • 21 Aug 2014
  • Funds close relative value hedges as polls show Scottish secession unlikely

    Hedge funds are closing relative value trades on financial names which were traded to hedge a potential widening if a secession vote in the Scottish referendum were to occur on September 18. One such trade, tipped by strategists at BNP Paribas in London, was closed this week after polls have increasingly shown that Scotland will choose to stay part of the UK.

    • 20 Aug 2014

Derivatives

  • ISDA publishes credit derivatives definitions protocol

    The International Swaps and Derivatives Association has published the 2014 credit derivatives definitions protocol, kicking off an adherence process for counterparties to derivatives trades that will end on September 12, 10 days before trading on the new definitions is scheduled to begin.

    • 21 Aug 2014
  • PIMCO only holdout on Japan bonds in Argentine CDS auction

    PIMCO potentially sought to limit the amount it needed to pay from its credit default swaps on Argentine bonds when it voted against including two Japanese law-restructured notes from being included in the upcoming CDS auction, according to market officials.

    • 21 Aug 2014
  • Euro barriers taken out post-FOMC fuelling further options trading

    Investors have been selling puts on the euro against the dollar in a bid to take profit on any downside options they still hold, following a further decline in spot on the currency pair after somewhat hawkish Federal Open Market Committee meeting minutes were released on Wednesday.

    • 21 Aug 2014

Securitization

  • Impact of leveraged lending guidance on CLOs uncertain

    New leveraged lending guidelines issued by US regulators could change the make-up and risks of CLO portfolios, as non-traditional lenders move into the market to make up for lower lending volumes from more highly regulated banks, according to Moody's.

    • 21 Aug 2014
  • Wider euro CLO paper attracting more buyers as pipeline builds

    CLO investors told GlobalCapital this week that a recent widening in European CLOs has represented a buying opportunity, as they expect spreads to track inwards again once the next clutch of euro denominated deals emerge into the primary market.

    • 21 Aug 2014
  • GMAC’s crisis-era Dutch RMBS hit by downgrades

    Fitch has downgraded a number of RMBS tranches from GMAC RFC Nederland’s E-MAC NL series originated in the run up to the financial crisis, saying the pipeline of potential defaults mean losses are set to accelerate further.

    • 21 Aug 2014

People and Markets

  • Litigation tops agenda as BofA pays $17bn

    Bank of America has reached a record $17bn settlement with the US Department of Justice, federal agencies and six states, showing the extent to which litigation risk still dominates bank performance. The settlement comes hot on the heels of Citigroup’s $7bn settlement last month and the $9bn fine paid by BNP Paribas over sanctions violations.

    • 20 Aug 2014
  • National Bank of Abu Dhabi targets debt finance domination

    National Bank of Abu Dhabi is set to embark on a hiring push as it makes its bid for the top in loans, bonds and sukuk origination.

    • 21 Aug 2014
  • Banks prepping furiously as EBA reveals stress test shape

    The European Banking Authority has published the disclosure templates it will provide when it releases the results of its stress tests in October. Meanwhile, banks still have huge teams devoted to prepping for the test, and the ECB’s accompanying assessment, the Asset Quality Review.

    • 21 Aug 2014
  • Bank of China gearing up for RMB popularity in France

    Bank of China Paris Branch (BoC Paris) has expanded its RMB offering drastically over the past year. With rumours of a clearing bank appointment coming in September, and rising interest among corporates and investors for RMB products, the investment by the Chinese bank could be set to pay off.

    • 21 Aug 2014

GlobalCapital View

  • Dealers should pay for credit ratings

    News last week that a minor tweak in S&P’s corporate loan rating methodology could win them back market share in the lucrative new issue CLO market reignited the debate about the business model of issuers paying to be rated. Even if S&P’s internal controls and the Chinese wall which they insist exists between commercial and analytical considerations is robust, market participants clearly do not believe it. It is time to overhaul the way the credit ratings industry works.

  • Don’t cut now, the only way for CEEMEA bond volumes is up

    With all that has happened in the last few months in Russia and Ukraine, heads of DCM must be thinking about taking axes to their headcounts. But to start swinging them would be foolish when the market could still bounce back and annual refinancing volumes are about to rocket.

  • SEC's money fund plan adds worst parts of banking

    The Securities and Exchange Commission has tried to cut the risk of runs in the money market fund industry by introducing liquidity fees and redemption gates. But as the Federal Reserve has just pointed out, by doing so it has done the opposite of what it intended, and made the funds more like banks.

  • You can’t offer risk without paying up

    Indonesia’s Berau Coal Energy tried to tip the balance in its favour with its bond offering last week by asking investors to take on greater risk but not compensating them for it. Unsurprisingly, the deal did not see the finish line. BCE would do well to keep in mind the age old adage that you can’t have your cake and eat it too.

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Global IB Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Aug 2014
1 JPMorgan 4,196.46 3151 8.23%
2 Goldman Sachs 3,428.10 1808 6.72%
3 Bank of America Merrill Lynch 3,322.56 2771 6.52%
4 Morgan Stanley 2,970.89 2233 5.83%
5 Deutsche Bank 2,805.64 2184 5.50%

Global M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Aug 2014
1 Goldman Sachs 1,171.49 332 9.58%
2 JPMorgan 1,051.01 270 8.60%
3 Morgan Stanley 736.20 277 6.02%
4 Bank of America Merrill Lynch 733.77 229 6.00%
5 Barclays 628.85 213 5.14%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 19 Aug 2014
1 BNP Paribas 33,407.13 146 7.57%
2 Credit Agricole CIB 24,087.32 95 5.46%
3 HSBC 22,170.66 125 5.02%
4 UniCredit 20,938.85 102 4.74%
5 Commerzbank Group 20,285.28 116 4.60%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 20,187.61 96 9.15%
2 Goldman Sachs 19,786.26 62 8.97%
3 Deutsche Bank 18,686.20 63 8.47%
4 UBS 16,830.14 66 7.63%
5 Bank of America Merrill Lynch 16,179.41 55 7.33%