People & Markets - All Articles

  • Maldives’ rating downgraded as recession looms

    Fitch Ratings has downgraded the Maldives to B from B+ and revised its outlook to negative from stable, as the Covid-19 pandemic hits the island nation’s tourism industry.

    • 31 Mar 2020
  • Corona bonds: an idea that cannot be contained

    ‘Corona bonds’ have been talked up so much that the EU risks underwhelming the market by failing to act. It has become a question of political solidarity within the region, not simply one of debt management.

    • 26 Mar 2020
  • Your country needs you, investment bankers

    The 2008 financial crisis forged a generation of investment bankers well versed in advising governments — and with many having returned to banking, they are likely to be in demand again. But history suggests banks will not be earning lucrative fees, writes David Rothnie.

    • 26 Mar 2020
  • Eurogroup shelves ‘corona bonds’ in favour of ESM credit lines

    The Eurogroup made no progress towards creating a common EU debt instrument on Tuesday night, but member states will be able to fund their responses to the coronavirus crisis through a new credit line with the European Stability Mechanism.

    • 25 Mar 2020
  • Republican bailout package is finance's Patriot Act

    There is a plan to rescue the US economy with a $500bn corporate bailout. At the time of writing, that plan is held up in the US Senate. While the country's president Donald Trump is griping about the delay, it’s a fight worth having. The Republican Party's proposal is woefully short on oversight.

    • 24 Mar 2020
  • EU corona bonds: the key questions

    Could EU member states finally come together to issue a common debt instrument? In this article, GlobalCapital takes a look at the key issues.

    • 20 Mar 2020
  • Central bank pandemic rescue packs wow global govvie markets

    Central banks attacked the coronavirus threat this week, promising swathes of new money on an unprecedented scale to help fund governments’ colossal new fiscal commitments. Bond markets reacted with relief to the swathe of multi-billion programmes aimed at fending off global financial meltdown.

    • 19 Mar 2020
  • Swaps liquidity collapse adds to SSA burden

    Wild swings in the euro/dollar basis swap, and an unreliable interest rate swap complicated bond execution in the SSA market this week. While some liquidity has returned in rates, cross currency swaps are still behaving very strangely.

    • 19 Mar 2020
  • Covid-19 trading boost mitigates pressures at big investment banks

    The biggest investment banks are enjoying strong trading revenues from the market moves related to the coronavirus pandemic, alleviating a freeze in M&A and underwriting activity. The banks appear well-placed to deal with corporate drawdowns, although there is some debate around wider liquidity profiles.

    • 19 Mar 2020
  • Lagarde shows up to close spreads, but SSA primary closed

    European government bond spreads have tightened in response to the European Central Bank's decision on Wednesday to beef up its bond buying. Italy’s spread to Germany contracted by more than 120bp since Wednesday morning's wide but SSA borrowers are not ready to return to the market yet.

    • 19 Mar 2020
  • Gilts and Treasuries sell off on fiscal promises

    The promises of economic support for economies battered by coronavirus from the UK and US governments have caused their curves to cheapen sharply, driving up borrowing costs.

    • 18 Mar 2020
  • ECB intervenes as govvies pummelled

    Eurozone government bond yields jumped higher early on Wednesday morning, unmoved by reports of a potential breakthrough for the issuance of common EU debt instruments. The European Central Bank is suspected to have stepped in to try and control the situation, with spreads to Bunds having moved to their widest points for a year or more.

    • 18 Mar 2020
  • CFTC slashes work from home rules but UK tinkers

    The US Commodity Futures Trading Commission gave market participants adapting to working from home some relief late on Tuesday, with sweeping no-action relief on voice recording requirements. The UK’s Financial Conduct Authority hasn’t gone so far, but has offered firms some flexibility.

    • 18 Mar 2020
  • Bond syndication from home: functional but not ideal

    Executing bond syndications from home has proved to be feasible, bankers said in the wake of Royal Bank of Canada’s five year covered bond issued on Tuesday. Even so, the lack of physical back-up from nearby colleagues and the seamless access to certain key functions such as trading means that working from home is very much second best in practice compared with normality.

    • 17 Mar 2020
  • Nordic funding plans respond to Covid-19

    Denmark and Sweden unveiled a number of policies to combat the economic effects of the Covid-19 pandemic this week, with big changes to their funding plans. Sweden has decided to focus on the short end with an increase in treasury bill and commercial paper borrowing, while Denmark has chosen to increase its overall funding programme.

    • 17 Mar 2020
  • AIIB re-opens Beijing headquarters following Covid-19 lockdown

    The Asian Infrastructure Investment Bank re-opened its headquarters in Beijing on Monday after being shut for weeks as a result of the outbreak of the coronavirus, which began in China but quickly spread across the world.

    • 17 Mar 2020
  • ESM's role in virus fight debated as Eurogroup unveils plans

    Market participants are debating whether the EU is responding quickly and strongly enough in the coronavirus crisis, after the bloc put off the question of how to involve the European Stability Mechanism on Monday evening.

    • 17 Mar 2020
  • Commercial paper market cries out for Fed help

    The commercial paper market is emerging as a source of stress as financial markets creak under the pressure of the coronavirus crisis. This happened in the 2007-9 financial crisis too, but this time the strains are different. Market participants want central banks to act.

    • 16 Mar 2020
  • Markets lose hope despite Fed intervention

    An extraordinary demonstration of support from the US Federal Reserve over the weekend has done nothing to lift investors' spirits, with fears about the economic consequences of Covid-19 showing through in equities, credit and even the rates market on Monday morning.

    • 16 Mar 2020
  • EU green standard could stop transition bonds

    Since the invention of green bonds 13 years ago, market participants have circled round the problem of what is green. There are many answers, such as the Climate Bonds Initiative's standards, but none have any official authority. That is about to change. The EU's Green Bond Standard is likely to become law before the year is out, and it could alter the market in several ways.

    • 13 Mar 2020
  • Solidarity vital as Italian state, banks and companies face intensifying crisis

    The outlook for Italy continues to worsen, as both the coronavirus pandemic and financial markets rout deepened on Thursday. But essential services are functioning, in society and markets, and Italians are helping each other through the crisis, including with funding difficulties. By Jon Hay and Lewis McLellan

    • 12 Mar 2020
  • Markets locked in pandemic panic despite global policy response

    Governments and central banks failed to prevent fear from taking hold of the capital markets this week, as Covid-19 reached pandemic status. European equity indices faced record falls on Thursday, before the Federal Reserve Bank of New York announced a $500bn repo operation to combat "highly unusual disruptions" in the US Treasury market. But it is far from clear if such extraordinary intervention will be enough to stop the panic.

    • 12 Mar 2020
  • Stress test turns real as virus vol hits fever pitch

    Financial market participants were left wondering this week if what felt to many like a very vivid stress test had become a complete meltdown, as searing volatility puts all players into crisis preparation mode, write Ross Lancaster, Jon Hay, Max Adams and David Rothnie. Strains are appearing in places where they were not expected, such as the US Treasury market. But markets are continuing to function and some traders have enjoyed exceptional volume.

    • 12 Mar 2020
  • Bank of England's triple whammy offers limited reassurance

    The Bank of England’s unscheduled decision to cut rates and encourage banks to lend to the real economy on Wednesday morning was viewed as a powerful step by some in the market, although it is very unlikely to put to bed economic uncertainty over the impact of coronavirus.

    • 11 Mar 2020
  • Fiscal splurge to underwrite EU's ‘coordinated’ Covid-19 response

    The European Union is set to make at least €25bn of budget funding available for sectors affected by the Covid-19 coronavirus, as its institutions join forces to tackle the economic impact of the outbreak. Rules on state aid and public finance will also be loosened, giving member states more room to launch fiscal stimulus measures.

    • 11 Mar 2020
  • Wheatcroft and Reid change roles at Mizuho

    Mark Wheatcroft has been appointed Mizuho's head of sustainability for Europe, the Middle East and Africa, a newly created post. His previous role as head of primary debt markets has been taken over by Guy Reid.

    • 10 Mar 2020
  • Crisis Talk with Andrew Cross - AIIB shows how working remotely can work

    Can the capital markets function properly with its workforce operating remotely, whether from home or at disaster recovery centres? This question is becoming increasingly important as the Covid-19 infection rate rockets and the death toll grows. One organisation that has more experience of coping than most is the Asian Infrastructure Investment Bank, based in Beijing.

    • 10 Mar 2020
  • Veteran Daiwa syndicate head to retire

    Daiwa Capital Markets Europe's co-head of syndication is set to retire in the next few months, bringing a 44 year run in syndication to an end. GlobalCapital understands his departure is not related to the recent exits from Daiwa's SSA DCM team.

    • 10 Mar 2020
  • Virus fight demands ECB triple threat

    The European Central Bank is widely expected to ramp up its efforts to prop up the eurozone economy on Thursday. It could spear the effects of an oil price shock and the spread of the coronavirus outbreak with a trident of bank lending, rate cuts and QE.

    • 09 Mar 2020
  • EU Taxonomy and Green Bond Standard: sneak peek

    The European Commission's Technical Expert Group will be publishing its much-awaited Taxonomy and Green Bond Standard on Monday. GlobalCapital has received leaked copies from a source in Brussels. The GBS endorses a use of proceeds approach and limits the inclusion of operating expenditure. The Taxonomy contains reassurance for companies whose activities are not yet covered by it and sets out human rights standards.

    • 06 Mar 2020
  • Taxonomy coming on Monday

    Sustainable finance specialists are waiting eagerly to see the precise details of the European Union's Taxonomy of Sustainable Economic Activities, the next draft of which will be revealed on Monday.

    • 06 Mar 2020
  • UniCredit changes global head of syndicate

    UniCredit has appointed a new global head of debt syndicate, as the present one is leaving the bank.

    • 06 Mar 2020
  • Market awaits BoE moves to help corporates hit by Covid-19

    The Bank of England may soon tweak its macroprudential policies and introduce a new funding scheme for banks to mitigate the economic impact of the Covid-19 coronavirus epidemic on companies. The measures would help lenders at a time when they could face pressure from lower rates and rising impairments.

    • 05 Mar 2020
  • People moves in brief

    Aberdeen Standard's Milligan to quit — Daiwa's Hultgren leaves over Frankfurt relocation — MUFG picks Domann

    • 05 Mar 2020
  • Milligan to leave Aberdeen Standard

    Andrew Milligan, head of global strategy at Aberdeen Standard Investments for the past 19 years, will be stepping down and leaving the firm at the end of March.

    • 05 Mar 2020
  • HSBC to join up securities services and markets

    HSBC is moving its securities services business into global markets to create a new unit. Allegra Berman and Richard Godfrey, co-heads of securities services, will gain new responsibilities as part of the change.

    • 04 Mar 2020
  • Coronavirus: monetary policy is not enough

    The US Federal Reserve’s emergency 50bp cut in interest rates on Tuesday failed to reassure markets. The US and European response to the Covid-19 coronavirus outbreak needs to incorporate targeted fiscal policy as well.

    • 04 Mar 2020
  • In markets, as in society, state power will determine virus resilience

    The coronavirus knows no borders — but the response is all about national power. The same will be true in markets.

    • 03 Mar 2020
  • More losses from Daiwa DCM as bankers baulk at Brexit move

    Two more bankers are leaving Daiwa Capital Markets Europe’s debt capital markets team, as the bank relocates staff to Frankfurt as part of plans to make sure it can continue to serve EU clients after Brexit.

    • 03 Mar 2020
  • Mazi and Bibbey take over as El Hayek leaves HSBC

    HSBC has made Mehmet Mazi global head of debt trading and financing, a newly created position. It comes after the departure of Elie El Hayek, a veteran of the bank who had run fixed income.

    • 03 Mar 2020
  • AIIB makes adjustments to operations amid Covid-19 outbreak

    The Asian Infrastructure Investment Bank, the Beijing-based supranational, has had to adapt fast to prevent its lending and funding operations being disrupted by the spread of the Covid-19.

    • 02 Mar 2020