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Comment - Tuesday View

Latest Tuesday Views

  • Get your dollar funding hats on, but prepare carefully

    Dollar issuance from sovereign, supranational and agency borrowers is set to be a big theme next year as a negative euro/dollar basis swap, plus low rates in euros, encourages euro-funders to look across the Atlantic. But market participants should be prepared for a rough ride in a market which will remain vulnerable to volatility.

    • 16 Dec 2014
  • What Joseph Conrad might say about the European bond markets

    Even if you’ve never sailed a boat through a storm, avoiding a potential one is the obvious choice. But investors in the European bond markets have been sailing into storms they knew were coming all year.

    • 16 Dec 2014
  • Securitization shouldn’t over-promise on real economy benefits

    Securitization has come a long way in the past two years, not least in the minds of regulators. But the industry needs to start managing expectations. It is not going to solve Europe's problems on its own.

    • 16 Dec 2014
  • There are only bears left in Russia

    In a bid to support the weakened rouble, the Central Bank of Russia surprised the market on Monday night, hiking its main policy rate by 650bp to 17%. But the move has failed and has only served to demonstrate that even Russia’s hardiest investors have finally given up.

    • 16 Dec 2014
  • Equity-linked: New Year needs new resolutions

    China Petrochemical Development Corp (CPDC) issued a convertible bond last week that was backed by not one but two SBLCs — allowing the company to join a very small list of issuers that have used unusual structures this year to pull off successful deals. The success of transactions with new features this year shows Asia needs more innovation if it wants to develop its equity-linked market

    • 16 Dec 2014
  • Greece: what difference do two months make?

    Greece’s yield curve inverted on Tuesday, and its comeback five year bond reached its highest yield since it was priced back in April. All of this seems to have been because the country’s prime minister called a snap presidential election. But it is hard to fathom why this should suddenly concern investors holding Greek debt that matures in 2016 and beyond, considering the election was going to happen in a couple of months anyway.

    • 09 Dec 2014
  • Questions on IFFIm sukuk book miss the point

    The recent debut sukuk by the International Finance Facility for Immunisation (IFFIm) has rightly been hailed as a breakthrough for the Islamic finance market. Questions about the small order book are misplaced – the deal was a remarkable result.

    • 09 Dec 2014
  • The ABS purchase programme could be over before it’s even begun

    Since making its decision to purchase asset backed securities, the policy message from the European Central Bank has floated somewhere between credit easing and quantitative easing. One won’t work, and the other should have nothing to do with ABS.

    • 09 Dec 2014
  • How banks pay matters more than when they pay

    Moody’s argued on Tuesday that compensation at global investment banks was a credit negative for the banks’ bondholders. But the agency focuses on the wrong parts of the debate over pay. Poor compensation structures can surely make a bank riskier, but it is how banks pay, not when or what they pay which matters most.

    • 09 Dec 2014
  • Landmark ICBC AT1 is no benchmark for RMB bonds

    Industrial and Commercial Bank of China (ICBC) took plenty of plaudits last week, with a unique triple currency additional tier one (AT1) transaction that included a record-breaking offshore renminbi tranche. While some say that the trade was a testament to the depth of the CNH market, that is an argument too far. This was anything but a conventional trade.

    • 09 Dec 2014
  • More haste, less ease

    It’s hard to find market participants that don’t think that a round of ECB sovereign bond buying is on the way. But the European Central Bank would be crazy to rush into another purchase programme without exhausting the other options.

    • 02 Dec 2014
  • RSB's capital update is aggressive — but appropriate

    Russian Standard Bank is hoping to take a short cut to Basel III — using a consent solicitation to add write-down language to its old tier two debt. For investors worried about getting caught on the wrong side of the vote, RSB's proposal looks aggressive. But the function of bank capital is to protect the bank, not to simply reward investors without risk.

    • 02 Dec 2014
  • Don't let the China bears spoil the IPO market

    The Hong Kong IPO market is on for a blazing end to the year, with chunky planned listings from the likes of BAIC Motor, CGN Power and Dalian Wanda. It should be a positive news story but the China bears are out in force. They aren't all wrong, but investors would do well to evaluate these deals on a case-by-case basis.

    • 02 Dec 2014
  • There’s a hidden warning in the Petrobras scandal — and it has nothing to do with corruption

    Bonds of Brazilian corporates affected by the Petrobras corruption scandal have flunked in the last week. But prices jumping about at such speed tells us less about the credits in question than about a broader market malaise.

    • 27 Nov 2014
  • Daddy isn’t superman: Accepting the limits of easing

    Somewhere on this blue earth, there is probably a tear-stained drawing of Ben Bernanke in billowing red cape and blue spandex suit with the acronym ‘QE’ emblazoned on his powerful chest.

    • 25 Nov 2014

More Comment - Tuesday Views

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 15 Dec 2014
1 JPMorgan 342,922.92 1311 8.41%
2 Barclays 300,648.86 1032 7.37%
3 Citi 290,963.57 1128 7.14%
4 Deutsche Bank 287,219.96 1136 7.04%
5 Bank of America Merrill Lynch 282,489.76 1009 6.93%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Dec 2014
1 BNP Paribas 52,003.11 221 7.02%
2 Deutsche Bank 51,241.89 139 6.92%
3 Citi 40,105.19 112 5.41%
4 JPMorgan 36,476.66 84 4.92%
5 Credit Agricole CIB 36,447.56 151 4.92%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Dec 2014
1 JPMorgan 26,935.89 136 8.98%
2 Goldman Sachs 26,008.57 92 8.68%
3 UBS 23,085.08 92 7.70%
4 Deutsche Bank 22,844.76 91 7.62%
5 Bank of America Merrill Lynch 21,916.84 81 7.31%