.png){kind=logo}
GC Asia
Comment - All Articles
-
Floating the idea of Sonia-linked Gilts
During a recent market consultation, Gilt investors called on the UK Debt Management Office to issue floating rate notes linked to Sonia, the Bank of England’s recommended replacement for Libor. There are plenty of reasons why this is a good idea.
-
Toys or weapons? The choice for sustainable loans
Some weird genetic mutations have been appearing in the hothouse of sustainable finance, where new green products are cultivated to beautify the grandees of the capital markets.
-
Barclays eyes victory in Europe’s global IB race
Jes Staley’s strategy has been vindicated, with Barclays’s corporate finance bankers having a banner year. But it has to invest in its European franchise to cement its credentials as the region’s leading investment bank, says David Rothnie.
-
Plunging yields are bad news for covered bonds — make no mistake
Demand for covered bonds has surged higher in recent weeks, even though yields in the asset class have plunged lower. But issuers should not get too excited, as the balance of power is sure to tilt back in the favour of investors if yields carry on falling.
-
Coronavirus fears show Greece as an unlikely safe haven asset
The scale of change in financial markets over the past decade has been crazy. At the beginning of 2010, the eurozone sovereign debt crisis was a gathering storm, with Greece about to become its first and biggest casualty. A decade on, some now consider the Hellenic Republic a safe haven investment as investors try to protect their money from the repercussions of the coronavirus outbreak.
-
Lenders need to find their way on Libor
Loans bankers pride themselves on not succumbing to the knee-jerk reactions of their colleagues on the bonds desk. But the Libor transition is highlighting serious flaws in this approach and it is causing alarm among corporate treasurers.
-
JP Morgan development unit raises questions
Seen with cynical eyes, the launch of JP Morgan’s Development Finance Institution (DFI) is simply an attempt to expand its emerging markets footprint — already the largest in the business — by capitalising on two trends: the wave of cash fleeing low yields for EM, and the unassailable momentum of the socially responsible investment movement.
-
Groupthink: a virus that spreads
Bond markets have been exposed to an epidemic of optimism this January.
-
Credit Suisse rejigs IBCM after ‘tough year’
Credit Suisse has streamlined its investment banking and capital markets operation (IBCM) and is confident that it will return to form after a chastening 2019, writes David Rothnie.
-
A conference call with a difference
Does complaining about technology make me a curmudgeon? Then so be it.
-
As Ant Financial eyes HK, expect Alibaba halo to emerge
Ant Financial’s planned Hong Kong listing is just one of many jumbo deals that could land on the bourse this year. But few issuers will have such a clear path to success. The Alibaba halo should not be underestimated.
-
How would UK capital markets handle a BoE rate hike?
A Bank of England rate hike is in no one's short term thinking. But if it happened, it could be dire for the housing market and therefore, for those parts of the capital markets that exist because of it.
-
SSAs should toughen up on pricing
Bankers are quick to warn issuers of the problems that arise from pushing too hard on pricing. But borrowers such as Rentenbank are showing that those with smaller funding needs don’t necessarily have to take them at their word.
-
Irish securitization could yet survive the 2020 election
With Sinn Féin down in the polls, securitization investors should cheer at the thought of Fianna Fáil winning the Irish election this year.
-
Pulled deals: a warning sign for Asian bonds
The Asian bond market has been red hot since the start of 2020. With nearly every day bringing a number of blowout deals, it would be easy to overlook the three borrowers that have fallen short of completing their proposed transactions. But the failed deals may be a sign of things to come.
-
The power of making a fuss
As head of BlackRock, the largest asset manager, Larry Fink’s pivot to responsible investing in recent years has been influential.
-
Monte is living a charmed afterlife
The stars have aligned for Banca Monte dei Paschi di Siena following its rescue by the Italian state. It is hard to see how other banks could be so fortunate.
-
Palmieri shakes up corp finance at SG
Société Générale has redoubled its commitment to equity capital markets under a new structure designed to ensure it remains a force in investment banking when consolidation comes, writes David Rothnie.
-
Performance art, or how to structure ABS
The securitization market generates a mix of excitement and confusion, offering investors a novel way to boost their returns, diversify risks and — not very bold conjecture here — sometimes lose lots of money without quite understanding why.
-
This euro market is made for Monte
The only thing missing from a stellar start to 2020 is a capital transaction from Italy’s Banca Monte dei Paschi di Siena.
-
Why the Santander saga won’t trigger a run of AT1 extensions
European banks don’t believe they have a free option to extend the lives of their additional tier one (AT1) securities, despite the apparent success of Banco Santander’s call policy.
-
Trade agreement adds to loan market woes
The US and China’s signing of the phase one agreement on trade this week will finally put almost two years of battling and tit-for-tat tariff retaliation behind the countries. However, while the truce may pave the way for more market stability and a boost in investor sentiment, it spells trouble for the Chinese offshore loan market.
-
Sustainability loans need rating agencies
The sustainability-linked loan market is a glorious mess.
-
Brexit is just beginning
While voters who wanted to get Brexit done won a clear path to leave the European Union in December’s general election, the financial industry should be preparing itself for a protracted period of scattered and gruelling negotiations.
-
RBC looks to profit amid European blues
RBC Capital Markets is beefing up financial sponsors, aiming to boost its European business during 2020, writes David Rothnie.
-
Cashing in on a liquid lunch
I love a good story about the days gone by. I remember when liquid lunches were not just accepted but encouraged. My best ideas often came after downing martinis over a long lunch. But a recent story from Australia makes my wild days of boozy work meals look quite tame.
-
Beware the dangers lurking in Asia
Asia’s debt and equity markets made a roaring start to 2020, with dollar bonds flooding the market and companies lining up for IPOs. But the first few days of the new year have also shown that issuers, capital markets bankers and investors should be prepared for some nasty surprises.
-
Investors talk big on corporate responsibility, but act feebly
The noise about how capitalism is changing to a system in which social purpose is restored to the centre of companies' and investors' aims is now deafening. But look below the surface and the actual governance record of many companies and investors is dreadful. Most shareholders are too supine even to defend their own rights.
-
From Iran to Ibor — what to watch for in 2020
Capital markets went into 2020 in positive mood. That lasted for all of two working days until the US assassinated Iranian military commander, Qasem Soleimani, worrying investors that Middle East tensions were on the rise again. Nonetheless, the good feeling was not entirely soured. GlobalCapital highlights where the rest of the action will be in the year ahead.
-
Trump reminds markets that disruption is never far away
Equity market participants were stunned last Friday after the US assassinated Iranian general Qasem Soleimani. It followed what had been a strong end to 2019 in the market with many hopeful the momentum would carry into this year. But banks and investors need to be prepared for shocks, especially as domestic pressure on US president Donald Trump increases in the run up to November's election.
-
Short selling can promote greater corporate responsibility
Short sellers' detractors say they are detrimental to the responsible stewardship of companies. This is unfair; they can play a useful role in highlighting deceptive practices in a world of greenwashing.
