Comment - All Articles

  • Jefferies mulls end of expansion as European corporate finance faces test

    The US firm has been on a trajectory of almost constant growth since the financial crisis. Now it is clipping its wings in fixed income and looking to capitalise on its strengths in European investment banking, writes David Rothnie.

    • 28 Jan 2016
  • US corporate bonds: go big or go home

    The US corporate bond market has once again proved it is the deepest, most mature and most reliable in the world.

    • 28 Jan 2016
  • MTN Leak: Duvet day

    Monday February 1 is National Pull a Sickie Day, the day which traditionally sees the highest number of workers call in sick.

    • 28 Jan 2016
  • Making a song and dance about it

    If my friends who work at international banks think their jobs are too demanding, they should have a look at some of the stunts those working at their Asian counterparts are expected to pull.

    • 28 Jan 2016
  • You’re only supposed to bail the bloody bonds in

    Italian non-performing loan securitizations will now come with a government guarantee, after months of negotiations between the state and the European Commission resulted in a rather rosy outcome for the country’s banks this week.

    • 28 Jan 2016
  • No more covered bond snobbery about pass throughs

    Established covered bond investors are often sceptical about conditional pass through deals. The structure allows the maturity of their investments to be extended, perhaps by decades. But they could be safer than long dated bullet deals.

    • 26 Jan 2016
  • Technicals are keeping derivative markets docile

    Markets are underpricing volatility, in stark contrast to 2015. As the underlying stock and bond markets gyrate, options markets show a strange tranquility. The market is better hedged than last year, but a flood of funds is suppressing fear signals.

    • 26 Jan 2016
  • Monte dei Paschi’s patriotic mystery

    As Monte dei Paschi di Siena’s shares gyrated last week, losing up to 34% of their value, the bank received a high honour, for a second year running — top primary dealer for Italian sovereign bonds.

    • 26 Jan 2016
  • Chinese property: Getting to grips with the unexpected

    The Chinese property sector has once again found itself in the headlines for the wrong reasons with Future Land Development Holdings saying on Friday that its chairman was being investigated by the authorities. While there was the inevitable bout of panic selling, the short time it took for things to stabilise shows a maturing market that is fast getting used to the complexities of the industry.

    • 26 Jan 2016
  • Loan Ranger: Should I stay or should I go?

    The loan market has undergone a changing of the guard with the departure of several loan market stalwarts — and loan market bodies the LMA and LMSF have some changes to boot.

    • 25 Jan 2016
  • From Russia, with fees

    After almost five years, Hong Kong has recognised Russia as an accepted jurisdiction for issuers looking to list in the city. But whether the ties would be a game-changer for Asian equity capital markets is a big question, writes Philippe Espinasse.

    • 25 Jan 2016
  • P&M Notebook: Staley stamps his mark

    Barclays, oh Barclays. GlobalCapital can’t help wonder about the disconnect between how shareholders see banks, and how their employees see them. Round after round of cuts, each one loved by the market, but ever more corrosive to staff morale.

    • 22 Jan 2016
  • Banks can still grow fat on Chinese

    While China’s impact on equity markets may have been catastrophic of late, not everything coming out of China is bad news. China’s appetite for gobbling up European firms is high, which should give Europe's debt bankers reason to cheer, despite the market misery.

    • 21 Jan 2016
  • Europe’s embarrassing corporate bond drought

    Talk about dry January. It hasn’t been the fizzy start to the year that European capital markets specialists were hoping for.

    • 21 Jan 2016
  • The icing on the awards cake

    The sweetest part of the awards season is not the moment when you get to pick up the trophy but the chance to get well oiled at the party, while someone else picks up the tab.

    • 21 Jan 2016
  • JP Morgan guards against complacency with reshuffle

    JP Morgan has unveiled the team it wants to repeat its table-topping success in European corporate finance, following three years of hard graft, writes David Rothnie

    • 21 Jan 2016
  • MTN Leak: Monkeying around

    The year’s social calendar is starting to fill up with plenty of exciting events to distract us from the terrible markets.

    • 21 Jan 2016
  • Old Money: UK banks finally losing concentration?

    Britain's banking market is a frenzy of new arrivals and challengers to the old order. The Bank of England even set up a New Banks Unit this week to welcome them all. But for most of history, the trend has run in the opposite direction.

    • 20 Jan 2016
  • International banks won't be flooding into Iran

    Iran’s re-engagement with the global financial system after the lifting of US and EU nuclear-related sanctions at the weekend will have profound consequences, but this is no “eureka” moment for its relationship with international banks.

    • 19 Jan 2016
  • Hungry eyes: Chinese M&A feeds European loans

    As Chinese companies go on an M&A shopping trip in Europe in 2016, the European loan market will benefit from the China’s spending spree.

    • 19 Jan 2016
  • Breaking up the banks by the back door

    The Basel Committee’s new trading book rules don’t force banks to split into subsidiaries or to ringfence capital. But they will still revolutionise how investment banks run their trading businesses.

    • 19 Jan 2016
  • An Aramco IPO could spark a foreign investment surge

    Ever since it emerged that Saudi Aramco was considering a public listing, equity capital market specialists have been trembling at the potential for the largest IPO in history. Such a deal could also transform the Saudi exchange, finally bringing a rush of foreign investment into the country’s stocks.

    • 19 Jan 2016
  • Italian chaos raises questions for regulators

    The ECB can’t risk large disruptions in the European capital markets it is trying to support, nor paranoid doom spirals in the banks it supervises. So it needs care when and how it communicates with the market.

    • 19 Jan 2016
  • South Korea ECM: Block the public’s view

    Doosan Group exited from Korea Aerospace Industries this month via a block, which in a move away from traditional sell-downs in Asia, was executed as a private placement. Privately placed blocks appear to be emerging as a new solution for deals during tough times — and it’s an approach that other South Korean vendors should replicate.

    • 19 Jan 2016
  • Loan Ranger: Rock stars and cabaret

    This week GlobalCapital honours rock stars and loans heads with a rock 'n' roll special.

    • 18 Jan 2016
  • P&M Notebook: Beware of regulators bearing gifts

    The Basel Committee delivered a fantastic New Year’s result for the big trading banks — an increase of only 40% in trading book capital requirements. It sounds punishing, but really, it marks a big climbdown from the Committee.

    • 18 Jan 2016
  • AB InBev: deals speak louder than words

    This was the supposed to be the week of the bears. Research analysts warned of economic doom, declaring that the savage sell-offs of the new year were just a foretaste of carnage to come.

    • 14 Jan 2016
  • It’s time to end the age of the central bank

    Central banks have become arguably the most important institutions in the world. With the autonomy to act with a resolve governments rarely match, it’s no wonder politicians have pinned so much hope on them. But elected leaders must take the reins back.

    • 14 Jan 2016
  • Gorman’s long game costs Fleming top spot

    The abrupt departure of Greg Fleming shows Morgan Stanley’s top boss is delivering on his promise to make nurturing the next generation of leaders a defining aspect of his regime, writes David Rothnie

    • 14 Jan 2016
  • Aramco IPO: ECM world must hope the Saudis move swiftly

    Equity capital market banks will love an IPO of Saudi Aramco, or parts of it, if one happens. But getting there is going to be arduous and could disrupt other business this year. The best thing for the market would be a quick and clear-cut process. Sadly, bankers say that is unlikely.

    • 14 Jan 2016
  • MTN Leak: An abstinent New Year

    Now that we’re two weeks into 2016, the majority of New Year’s resolutions are already distant memories, but David Morland has a stronger will than most.

    • 14 Jan 2016
  • Sub-sovereigns are suffering because of Draghi’s dithering

    European Central Bank needs to give Europe's regions clarity on whether it will buy their bonds. Delaying the decision costs the central bank credibility, leaves the regions in a damaging limbo and hurts issuers that tend to print private deals.

    • 14 Jan 2016
  • Southeast should step out of China’s shadow

    January kicked off with China front and centre as the upheaval in its stock market caused indices across the globe to tumble. South and southeast Asia did not escape unscathed but the chances are that when markets stabilise, investors will be eager for equity issuance from the region.

    • 14 Jan 2016
  • Some bankers are just destined to get the boot

    While nursing a whiskey at the China Club this week, I couldn’t help but notice a group of bankers crowded around some tables in the corner. While they typically wouldn’t catch my eye, what drew my attention was that they all had a tipple in their hands but seemed too busy muttering expletives to drink anything.

    • 14 Jan 2016
  • No Turkish delights for 2016

    Many loans bankers focused on Central and Eastern Europe have pinned their hopes on Turkey as a source for deal flow this year, as Russia remains thwarted, but it will not bring the hidden treasures bankers expect.

    • 12 Jan 2016
  • ISDA overhaul is grounds for dancing in the street

    The International Swaps and Derivatives Association (ISDA) pledged to tighten up the standards that govern its Credit Derivatives Determinations Committee, a welcome move at a time when the committee’s role is evolving and it is assuming greater importance as a quasi-legal authority.

    • 12 Jan 2016
  • Sub-sovereigns are suffering because of Draghi’s dithering

    The European Central Bank needs to give Europe's regions clarity on whether it will buy their bonds. Delaying the decision costs the central bank credibility, leaves the regions in a damaging limbo, and hurts those issuers that tend to print private deals.

    • 12 Jan 2016
  • Do not panic about Poland — but pay attention to premiums

    Poland’s new euro denominated dual tranche bond slumped after pricing. But one bad bond should not put off other issuers. There are plenty of reasons why CEEMEA trades should work — if bankers do their part.

    • 12 Jan 2016
  • P&M Notebook: Bond markets in the spotlight

    The bond markets had it coming. It was naïve to hope that every corner of the Eurobond market, even in these compliance-heavy days, was a model of perfect probity. While there is money to be made, corners will be cut.

    • 11 Jan 2016
  • Loan Ranger: New Year hangovers

    While equity markets began 2016 with a head-banging hangover, some loan bankers suffered worse from the repercussions of their glut of food and alcohol over the year end.

    • 11 Jan 2016
  • Lat Am issuers have nothing to gain by delaying funding

    Latin American bond bankers are already down in the dumps about a bare January pipeline, and a tough first week of trading in global markets has done little to lighten their mood. But this should not make Lat Am borrowers hesitate once they are ready for market: conditions are unlikely to get better.

    • 07 Jan 2016
  • A green bond that did what it said on the tin

    The green bond wave is set to rise higher in 2016 but, as before, most of the deals will not help the environment much. One bond that did was sold in the closing days of 2015 — but such deals are still bought only by a small fraction of investors.

    • 07 Jan 2016
  • Unhappy new year

    If bankers had to put one thing on their Christmas lists it would have been a new year free of disruptions. But it looks like Santa Claus was paying attention to all those conduct fines. One week in and we’re off to a stinker.

    • 07 Jan 2016
  • MTN Leak: January got your goat?

    The year has scarcely begun and already the calendar is filling up with exciting events. Thorrablot, Íslandsbanki’s epic annual bash, is fast approaching.

    • 07 Jan 2016
  • No more DoJing the bullet

    Bond trading has never been a gentleman’s game exactly, but it has always seemed a more dignified pursuit than the Wild West of the money markets. So as the full scale of the Libor scandal lurched into view, the bond markets in EMEA managed to maintain composure.

    • 07 Jan 2016
  • More of the same

    I remember only too well the mad dash to sign deals before December to make our year-end numbers look good. So I understood when a banker friend turned down my offer for Christmas drinks, saying he was “snowed under with work”.

    • 07 Jan 2016
  • The year of living dangerously

    While all eyes are on China and turmoil in the mainland equity markets, our columnist turns his gaze to Indonesia where once again the government is attempting to privatise state-owned companies.

    • 07 Jan 2016
  • Banks and the state: insufferable but inseparable

    We entrust our precious working capital to banks; they finance our dreams and provide revolving credit to get us through our nightmares.

    • 06 Jan 2016
  • European banks gear up for Fed’s split demands

    The US is top of every European banking chief executive’s to-do list for 2016, as they race to comply with new regulations that will define the future of their international ambitions. Consolidation beckons, writes David Rothnie.

    • 06 Jan 2016
  • BES: A nasty New Year’s resolution

    The principle of pari-passu among bondholders lays dead and buried. The Bank of Portugal’s decision to select only five of Novo Banco’s 52 senior bonds for bail-in last week has established a new precedent for bank resolutions, and what a fine mess it has created.

    • 05 Jan 2016
  • A green bond that really did what it said on the tin

    The green bond wave is set to rise higher in 2016, but as before, most of the deals will not help the environment much. One bond that did was sold in the closing days of 2015 — but such deals are still bought only by a small fraction of investors.

    • 05 Jan 2016
  • Volatility is here, but have no fear

    Equity markets had an inauspicious start to 2016, as China triggered yet another global sell-off and a new circuit breaker only added to the volatility. Monday was officially the worst-ever start for Chinese shares, but market participants shouldn’t read too much into the turbulence.

    • 05 Jan 2016
  • Lat Am issuers have nothing to gain by waiting

    Latin American bond bankers are already complaining about a bare January pipeline, and a poor first day’s trading in global markets has even prevented several US issuers from getting their funding for the year going. But this should not make Lat Am borrowers hesitate once they are ready for market: conditions are unlikely to get better.

    • 05 Jan 2016