Comment - All Articles

  • Philippines pulls it off

    • 31 Jan 2008
  • A European ABS deal at last — but it could be ages till the next one

    Volkswagen Bank has raised Eu1.25bn by securitising car loans. But don’t celebrate the revival of the European ABS market: investors will only buy top quality deals, and hardly any good issuers will pay the kind of spreads they want.

    • 29 Jan 2008
  • SG: how the industry should learn from the scandal

    Rogue traders are never going to be eliminated: human ingenuity makes that impossible. But regulators and financial markets leaders need to make sure the industry genuinely learns from such catastrophes. After all, it could be your bank next.

    • 29 Jan 2008
  • Dismiss political risk at your peril

    Reeling from horrors in the developed markets, banks and investors are piling into emerging markets, almost with their eyes shut. As Taimur Ahmad of EuroWeek's sister publication Emerging Markets argues, political risk is still very much alive and waiting to bite the unwary.

    • 29 Jan 2008
  • Wisdom of Belgium and Greece keeps market open

    Having to widen guidance on a benchmark bond issue is not something any conscientious — or proud — European government wants to do. Full marks, then, to Belgium and Greece for paying up last week rather than alarming the markets by pulling their deals. Each was rewarded with a successful Eu4bn issue.

    • 29 Jan 2008
  • Banks must reform bonuses: the first step is transparency

    Investment bankers may believe the present system of large annual bonuses is fully justified by the profits they bring in. But they can no longer expect the rest of the world to believe them. It is time for banks to stand up and make an honest case for pay policies that they can defend as rational.

    • 29 Jan 2008
  • SG has fallen down — but don’t push it off the cliff

    By allowing itself to suffer the world’s worst rogue trading loss, Société Générale has imperilled its future. But although chairman Daniel Bouton may have to step down once the crisis is past, the best solution would be for SG to remain independent. Market perception of the bank during the next few weeks will be critical.

    • 29 Jan 2008
  • Leak

    • 25 Jan 2008
  • Euroblog

    • 25 Jan 2008
  • Never trust a pundit

    • 24 Jan 2008
  • Don’t bet your shirt on the decoupling trade

    Piling into the emerging markets is a dangerous strategy for investors and bankers looking to escape from the downturn in Western economies. While EM economies and companies are growing fast and becoming ever more powerful, the view that they have decoupled from Western markets, thanks largely to their own sources of growth, has yet to be tested.

    • 22 Jan 2008
  • Rock ABS could raise cash, but risk transfer looks a sham

    The UK Treasury’s proposal to sell £24bn of bonds securitising Northern Rock’s assets has the virtue of recognising that they will need to be fully government-guaranteed to tempt investors. But the Treasury will be on much shakier ground if it tries to claim any risk has been transferred to the private sector.

    • 22 Jan 2008
  • Now is not the time to buy Asia

    This week’s sell-off in Asian equities may be a long-awaited correction, but it does not mean stocks are now cheap.

    • 22 Jan 2008
  • Loan syndications are working, but are getting thornier

    Fortunately for European companies, the syndicated loan market is still functioning at something approaching a normal rate. But it has lost its former fluency — deals are harder to do and difficult choices have to be made between different syndication strategies.

    • 22 Jan 2008
  • Stop dithering and take the money now

    Despite all the pain financial institutions have undergone in the past six months, some of them still believe they can delay coming to the bond market and expect to get better spreads later. This is folly. Spreads have done nothing but widen since last July, and there is every reason why they should slip further. Financial institutions should issue sooner, rather than later.

    • 22 Jan 2008
  • Leak table

    • 18 Jan 2008
  • Don't bet your shirt on emerging markets

    • 18 Jan 2008
  • Euroblog

    • 18 Jan 2008
  • Purse strings tighten

    • 17 Jan 2008
  • Securitise Northern Rock loans? Let’s send a man to Mars first.

    Leaks suggest Goldman Sachs is advising the government on a plan to securitise its loans to Northern Rock. Since the market is not buying the bank’s risk, any deal would need guarantees — from the state and/or insurance companies. But the more support there is, the less the deal would take risk away from the government.

    • 15 Jan 2008
  • Don’t believe the hype: ABCP has further to fall

    Official figures show asset backed commercial paper markets on both sides of the Atlantic have stopped shrinking and begun to grow again. This ignores the large amounts of SIV paper that are still outstanding — but held by banks. The real market is much smaller than the figures suggest.

    • 15 Jan 2008
  • Niche currencies make a swift start, but need to keep up the pace

    The first full week of 2008 was busy for niche currency Eurobond issuance — but it needed to be. A large quantity of bonds in these currencies mature in January, and to keep on track for their funding targets, issuers need to sell a lot more deals this month.

    • 15 Jan 2008
  • Rabobank: a victim of its own success

    Rabobank’s status as one of the world’s few triple-A banks has given it a unique position near the top of the credit pyramid. But right at the moment, that is an awkward place to be. Rabo proved last week that it can still fund at fairly tight spreads (though nothing like last year’s) — but can it raise the volume, now that credit investors are chasing after much fatter yields on weaker banks?

    • 15 Jan 2008
  • Euroblog

    • 11 Jan 2008
  • MTN Leak

    • 11 Jan 2008
  • Loan Ranger

    • 11 Jan 2008
  • Table commentary

    • 11 Jan 2008
  • Storms lash tanker

    • 10 Jan 2008
  • Don’t be fooled by the SSA issuers — markets are getting worse, not better

    The SSA sector is set for a flying start to 2008. But until second and third tier European banks start issuing, the bond market cannot be said to have put the credit and liquidity crises behind it.

    • 08 Jan 2008
  • Investors should pay more attention to Kenya’s political meltdown

    So far at least, investors are unfazed by Kenya’s rapid descent into ethnic violence in the wake of the country’s contested election result. But at a time when many investors and banks are betting heavily on the emerging markets to counter the predicted slowdown of key Western economies, the dangerous situation in Kenya must be seen as an important warning to investors of just how quickly a developing country can fall from grace.

    • 08 Jan 2008
  • No new year miracle cure for leveraged finance

    The leveraged loan market is extremely sick and needs some intensive nursing if it is to return to anything close to the ultra-competitive market it was this time last year.

    • 08 Jan 2008
  • Fine words from the UK chancellor but let’s see the detail

    The UK chancellor has announced plans to smarten up the banking regulatory system to make sure there is no repeat of the Northern Rock disaster. The plans to strengthen deposit insurance and liquidity supervision are steps in the right direction — but that was obvious. If Alistair Darling gets the detail wrong, the whole thing could be useless — or worse.

    • 08 Jan 2008
  • Loan Ranger

    • 04 Jan 2008
  • Euroblog

    • 04 Jan 2008
  • Leak Table

    • 04 Jan 2008
  • Asia to the rescue

    • 03 Jan 2008