People & Markets - All Articles

  • ECB’s new Peltro scheme sparks debate on carry trades

    The European Central Bank (ECB) gave lenders even more of an incentive to use its Targeted Longer-Term Refinancing Operations (TLTRO) this week, dropping the potential rate of funding down to minus 1%. But the unveiling of a new unconditional lending scheme set tongues wagging, with market participants debating which banks might use the money and what they might put it towards, writes Tyler Davies.

    • 30 Apr 2020
  • ECB may cut depo rate or buy financials' CP to lower Euribor

    The European Central Bank could take action to counter the rise in the level of Euribor at its meeting on Thursday by either cutting its deposit rate or buying commercial paper from financial institutions to ease interbank lending, according to analysts.

    • 29 Apr 2020
  • Europe's central bank is missing the mark in money markets

    The ECB has, despite an early gaffe, decided that it is its job to close spreads after all — and for the most part, it is excelling in its task. But its attention is focused on the bond market and, as a result, those who rely on the money markets for short term funding are suffering.

    • 28 Apr 2020
  • The ECB is now Europe’s foremost rating agency

    From Italian government bonds to fallen angels, nothing is junk unless the European Central Bank says so.

    • 28 Apr 2020
  • Leaked EU doc on recovery fund ‘worrying’

    The European Commission’s ideas for a “Union Recovery Programme”, based on an internal note seen by GlobalCapital, are “worrying” based on the limited size and possible conditionality attached to the measures, according to two economists.

    • 28 Apr 2020
  • Coronavirus intensifies thirst for new responsible capitalism

    The Covid-19 pandemic is an ESG issue. More than ever before, a natural phenomenon is driving markets. Suddenly, social responsibility is no longer kooky but required of all. How are responsible investors reacting — and can the crisis lead to a better model of financial markets, where all stakeholders are considered?

    • 27 Apr 2020
  • Italy and Spain romp to record books ahead of EU set-back

    Any concerns over whether the eurozone periphery would have market access after Bund spreads yawned wider during the past week were put to bed by a combined €31bn of borrowing from Italy and Spain. The sovereigns paid what was needed to put impressive dents in their ballooning funding requirements, ahead of a hotly anticipated European Council meeting on Thursday. Lewis McLellan and Tyler Davies report.

    • 23 Apr 2020
  • People moves in brief

    New ECM head at UniCredit — NIB treasurer heads to SEB — Mills takes up newly created position at UBS

    • 23 Apr 2020
  • Crisis Talk — with Frank Czichowski of KfW

    In the first in a new series of crisis-time interviews with senior capital markets participants, GlobalCapital's Toby Fildes talks to Frank Czichowski, treasurer of Germany's KfW.

    • 22 Apr 2020
  • ECB has ‘misunderstood CP market’, says agency funding boss

    The European Central Bank’s purchase programme will do little to aid agencies in raising cash in the commercial paper market, making little difference to rising borrowing costs and expanding programmes, according to Jérôme Margerin, head of short-term funding at ACOSS, one of Europe’s largest non-sovereign CP issuers.

    • 22 Apr 2020
  • NIB treasurer Denmark-bound in switch to investment banking

    The treasurer of Helsinki-based Nordic Investment Bank, is leaving the supranational to join an investment bank in Copenhagen.

    • 22 Apr 2020
  • Breaking with Tradition: Marcus leaves firm

    One of the co-heads of the London Group of Tradition, the interdealer broker that is one of the largest in the over-the-counter derivatives market, is leaving the firm.

    • 22 Apr 2020
  • Sovereigns face ratings pressure amid pandemic

    Some Asian sovereigns are at risk of being pushed out of investment grade territory as the Covid-19 pandemic takes a toll on their economies. India and Indonesia are of particular concern, with fears high that they are close to becoming fallen angels.

    • 22 Apr 2020
  • Deutsche sets up sustainable finance team to go beyond green bonds

    Deutsche Bank has set up an inter-disciplinary sustainable finance team in its capital markets group, aiming to be “viewed as [a] market leader on this important subject”, as it senses that clients, including big oil and gas companies, are having increasingly to consider environmental and social issues to access the capital markets.

    • 20 Apr 2020
  • European markets resilient but it’s safety first in primary

    European capital markets have continued to function well during the coronavirus crisis, according to a report released on Monday by the Association for Financial Markets in Europe (Afme). However, in terms of primary market activity, the industry body’s data shows quite how sharply issuance has skewed towards investment grade, with riskier debt and IPO markets closed off.

    • 19 Apr 2020
  • ECB to set up primary debt market forum to explore EDDI project

    The European Central Bank is creating a temporary forum to stimulate dialogue between the ECB, national central banks in the eurozone and the private sector on the proposed European Distribution of Debt Instruments (EDDI) project, which aims to create a one-stop synchronised platform for selling bonds across the bloc.

    • 17 Apr 2020
  • Concerns mount over Italy debt as talk of ‘coronabonds’ fades

    Italian government bonds sold off sharply this week as worries grew over the sovereign’s debt sustainability after last week’s Eurogroup meeting left any form of debt mutualisation a highly unlikely prospect in the near term. The result is that Italy will have to rely more on support from the European Central Bank as it prepares to bolt on a much bigger borrowing programme in response to the coronavirus pandemic.

    • 16 Apr 2020
  • Eurogroup leaves big questions unanswered in pandemic fight

    EU ministers finally managed to find agreement before the Easter weekend on a rescue package to help fund the bloc's response to the Covid-19 pandemic. But investors and analysts were far from convinced that critical debates about countries' ability to deal with the economic impact of the crisis and about the wider future of the EU have been settled.

    • 14 Apr 2020
  • BMO enters sterling SSA primary market

    BMO Capital Markets lead managed its first ever sterling public sector bond issue this week, with an under the radar tap for Rentenbank.

    • 09 Apr 2020
  • Failure on coronabonds, but Eurogroup dangles 'recovery fund'

    The Eurogroup has, once again, manifestly failed to come to a unanimous position on coronabonds. The bloc does appear to be incrementally adding components to its joint fiscal response, however, with some form of joint recovery fund appearing likely — even if the source of its funding remains a mystery. Jean Comte, Jasper Cox and Lewis McLellan report.

    • 08 Apr 2020
  • Conduits drew backup lines in CP market crunch

    Banks sponsoring asset-backed commercial paper conduits activated the liquidity lines backing up these vehicles in the days before Federal Reserve intervention started to stabilise commercial paper markets, as rates spiked and investors focused on only the shortest maturities.

    • 08 Apr 2020
  • Eurogroup fails to agree economic rescue package

    Finance ministers have agreed on the use of the European Stability Mechanism, the European Investment Bank and a new unemployment fund as a fiscal response to the coronavirus crisis, but they remain split on language about a possible common recovery fund. They are set to reconvene — virtually — on Thursday afternoon.

    • 08 Apr 2020
  • Asia has earned leadership — now it must show it

    The way Asian states including China have dealt with the coronavirus has put Europe and the US in the shade — now they should lead the international financial fightback.

    • 07 Apr 2020
  • EU countries near agreement on economic rescue package

    The European Investment Bank, the European Stability Mechanism and a new unemployment fund are set to play a part in EU finance minsters’ response to the coronavirus crisis. Coronabonds are likely to be mentioned at their meeting on Tuesday evening, but any concrete plans for mutualised debt look to be elusive at this stage.

    • 07 Apr 2020
  • Charities, NGOs call for developing world debt jubilee

    More than 100 charities and other organisations are urging that developing countries' debt payments be cancelled this year. They have called for interest and principal payments to be withheld from public and private sector lenders.

    • 07 Apr 2020
  • Italy to offer guarantees of up to 100% on bank loans

    Italy is set to announce a new decree law that would allow banks to use public guarantees to cover 90%-100% of their lending.

    • 06 Apr 2020
  • Rating agencies ‘doing their jobs’ in coronavirus crisis

    Investors see the rapid wave of downgrades in response to the coronavirus crisis as evidence that rating agencies are “doing their jobs”, compared to their responses during the 2008 financial crisis.

    • 06 Apr 2020
  • L-Bank funding boss still backs auction format, despite pulled trade

    Despite an unsuccessful experience in selling a trade through an auction in March, L-Bank’s international funding officer, Sven Lautenschlaeger, has not been put off by the format. He believes it is the best way to sell a bond as it gives investors the power to set the price.

    • 06 Apr 2020
  • Guggenheim tops chart as IB revenues shrink

    Investment banking revenue in March was lower than normal as the coronavirus pandemic sapped risk appetite — but it was far from a total wipeout.

    • 02 Apr 2020
  • EC vows €100bn for jobless, but still no coronabonds

    Those pleading for a shared EU-level fiscal response to the economic damage of the coronavirus outbreak were thrown a bone on Thursday when Ursula von der Leyen, president of the European Commission, promised a €100bn unemployment fund backed by €25bn from EU member states. But her silence on the prospect of further debt mutualisation spoke volumes to market participants.

    • 02 Apr 2020
  • Calm in cross-currency after Fed soothes dollar trauma

    The US Federal Reserve’s unprecedented injections of dollar liquidity calmed conditions after a chaotic month in the cross-currency swap market’s short-end, but traders are looking at its effects on the primary bond markets as the next test.

    • 02 Apr 2020