People & Markets - All Articles

  • Europe is not wasting this crisis

    The European Commission has delivered its proposal for an EU recovery fund. It may not be full debt mutualisation nor a solution to low European growth, but it is a huge step forward.

    • 28 May 2020
  • Commission proposal boosts periphery but long way to go

    The European Commission delivered its proposal for Next Generation EU on Wednesday, marking a sea change in the bloc’s relationship with the capital markets as it proposes truly shared borrowing to finance expenditure for the first time. The move could make the Commission the biggest supranational and agency borrower by some distance, Lewis McLellan reports.

    • 28 May 2020
  • European Commission proposal offers hope of grants

    The European Commission has published its proposal for an EU recovery fund. Next Generation EU, as it has been dubbed, has impressed onlookers with promises of €500bn of grants and a further €250bn of loans for countries affected by the coronavirus pandemic.

    • 27 May 2020
  • GMO: markets ‘increasingly out of step with the real world’

    Equities and investment-grade bonds are overpriced in developed markets, according to Tommy Garvey, member of the asset allocation team at GMO. The US-based investment firm has just slashed its exposure to developed equity markets.

    • 27 May 2020
  • Citi hires SSA and covered bonds trader from ING

    Michael Sansen, a trader specialising in public sector and covered bonds, has joined Citi after spending his entire career at ING.

    • 27 May 2020
  • European Commission to handle €100bn of SURE borrowing

    The European Commission has ratified the €100bn Support to mitigate Unemployment Risks in an Emergency (SURE) fund and the European Union debt office has confirmed that it will be responsible for financing loans made under the new programme.

    • 26 May 2020
  • ESM pandemic lines ‘appear insufficient’ says Cyprus debt office

    The head of the Cyprus public debt management office believes that the amount Cyprus can claim under the ESM pandemic support facility “is insufficient to justify any such action”.

    • 26 May 2020
  • Crisis Talk — with Jingdong Hua of the World Bank

    Jingdong Hua has seen his fair share of crises. In Africa when the Rwandan genocide happened, in the Philippines when the Asian tsunami hit, in New York City when the twin towers fell on 9/11, he now finds himself in Washington, DC at one of the key institutions the world is desperately looking to to lead it out of the coronavirus crisis.

    • 22 May 2020
  • Cyprus likely first up to tap ESM pandemic crisis support line

    Cyprus may become the first country to access the ESM’s pandemic support line, borrowing 2% of its GDP for up to 10 years.

    • 22 May 2020
  • 'Frugal Four' face down Macron-Merkel recovery plan

    France and Germany presented a joint plan for a €500bn grant-based EU recovery fund earlier this week. Eurozone periphery investors reacted with delight, but other member states resisted. Despite the opposition, most believe that Germany’s support of the plan marks a sea change in European politics and offers a chance for Europe to catch up with the Covid-19 spending of other developed economies, writes Lewis McLellan.

    • 21 May 2020
  • People moves in brief

    Citi picks Nick Darrant as syndicate head — And it sets up new sustainability and science units — JP Morgan reveals next layer of DCM, ECM and M&A bosses

    • 21 May 2020
  • 'Frugal Four' draw battle lines over EU recovery proposal

    France and Germany’s proposal for a €500bn recovery fund to fight the impact of the coronavirus pandemic, though it has delighted investors in periphery eurozone government bonds, will not make it without a fight. The so-called “Frugal Four” — Sweden, Austria, Denmark and the Netherlands — have made their objections known.

    • 20 May 2020
  • Crisis Talk — with ex-Macron adviser Shahin Vallée on the Franco-German rescue

    What is the significance of the agreement between German chancellor Angela Merkel and French President Emmanuel Macron on a European recovery package, funded through EU debt? GlobalCapital discussed it with Shahin Vallée, a senior fellow at the German Council on Foreign Relations (DGAP) and previously an economic adviser to Macron when he was France’s economy minister.

    • 20 May 2020
  • Another Citi bond syndicate banker leaves

    Oliver Corstjens has left his position as supranational, sovereign and agency bond syndicate banker at Citigroup, at the same time as its syndicate head for EMEA is also due to leave.

    • 19 May 2020
  • Karlsruhe ruling galvanises France and Germany to agree on recovery fund

    France and Germany have come together to support a €500bn EU recovery fund to be financed through European Commission debt issuance. Observers believe that the decision was likely encouraged by the German Federal Constitutional Court’s (BVG) recent verdict on the ECB’s quantitative easing programme.

    • 19 May 2020
  • JP Morgan keeps SSA top spot despite Citi surge as Scandi banks win big in MTNs

    JP Morgan, the leading SSA bookrunner over the last five years, is clinging onto pole position for 2020, despite a mighty effort from Citi, which has topped the rankings since the Covid-19 pandemic began disrupting markets in earnest. But it is a far different picture in SSA MTNs with Scandinavians surging to the top, thanks to a growth in niche currency supply.

    • 18 May 2020
  • Negative rates talk a problem for money market funds

    The pain that negative rates in dollars could cause money market funds hangs like an albatross around the US Federal Reserve’s neck. Talk of them has picked up over the last week as US Federal Funds Futures prices started to imply they were on their way, while president Donald Trump pushed the topic on Twitter, even though and Fed chair Jerome Powell appeared to rule them out.

    • 18 May 2020
  • Citigroup bond syndicate leader to leave industry

    One of Europe’s leading bond syndicate bankers has decided to leave Citigroup, and probably the capital markets.

    • 14 May 2020
  • ESM not enough after Germany verdict demands EC delivers recovery fund

    The European Stability Mechanism's (ESM) Pandemic Crisis Support programme may now be in place but what it has really shown up, especially in light of Germany's Federal Constitutional Court verdict on ECB QE last week, is that the eurozone badly needs the European Commission to pull its finger out and agree a recovery fund.

    • 12 May 2020
  • Libor transition deadline ‘challenging’ but unlikely to be extended, says senior lawyer

    The coronavirus crisis has severely disrupted the move away from Libor to the new recommended risk-free rates. But market participants will have to press on to meet the original deadline, with no extension on the horizon, according to a senior capital markets lawyer.

    • 12 May 2020
  • EU closes ranks around ECB over BVG verdict

    Both the European Commission and the European Court of Justice have put out statements dismissing the verdict of Germany's Federal Constitutional Court (BVG) on the European Central Bank’s Public Sector Purchase Programme, going some way to soothe concerns over the ECB’s future.

    • 11 May 2020
  • Germany ‘slaps ECB in face’ to undermine QE in hour of greatest need

    Germany's Federal Constitutional Court (BVG) fired a warning shot at the European Central Bank this week. The court’s threat to stop the Bundesbank from taking part in official asset purchasing could have serious consequences for ECB monetary policy and, by extension, bond markets, just when the markets seem to be relying on the central bank more than ever, write Jasper Cox and Lewis McLellan.

    • 06 May 2020
  • Crisis Talk — with virology expert professor Peter Openshaw on why post-Covid offices must adapt

    As Western societies begin to contemplate life returning to some semblance of normality, the financial industry is working out how best to balance the understandable desire to get back to how things were before the crisis with the very real threat of a new and more deadly wave of coronavirus brought on by a mass-return to offices. GlobalCapital’s Silas Brown spoke with Peter Openshaw, a specialist in immunology and virology and professor of experimental medicine at Imperial College, about the transmission of Covid-19 and how banks, investors and companies can reduce the risk of infection.

    • 06 May 2020
  • Morgan Stanley green bond banker moves to investment arm

    Morgan Stanley Investment Management has hired a prominent expert to be its global head of sustainability and brought a senior banker from its capital markets arm to run its sustainable bond investing.

    • 06 May 2020
  • ECB faces tough task in navigating BVG verdict

    Germany's Federal Constitutional Court (BVG) touched off a legal bombshell on Tuesday morning. It left the ECB in an impossible position: it can accept the court's verdict or ignore it, but either decision will undermine its efforts to stabilise Europe's capital markets.

    • 05 May 2020
  • German court fires warning shot at ECB QE programme

    Germany's Federal Constitutional Court ruled on Tuesday that, while it was not illegal for the Bundesbank to participate in the the European Central Bank’s Public Sector Purchase Programme, the country's central bank may not participate in it unless the ECB can provide a thorough impact assessment. The decision rejected an earlier verdict by the Court of Justice of the European Union.

    • 05 May 2020