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.

    • 30 Jan 2020
  • 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.

    • 30 Jan 2020
  • 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.

    • 30 Jan 2020
  • 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.

    • 28 Jan 2020
  • 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.

    • 28 Jan 2020
  • 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.

    • 28 Jan 2020
  • 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.

    • 23 Jan 2020
  • Groupthink: a virus that spreads

    Bond markets have been exposed to an epidemic of optimism this January.

    • 23 Jan 2020
  • 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.

    • 23 Jan 2020
  • A conference call with a difference

    Does complaining about technology make me a curmudgeon? Then so be it.

    • 23 Jan 2020
  • 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.

    • 22 Jan 2020
  • 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.

    • 21 Jan 2020
  • 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.

    • 21 Jan 2020
  • 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.

    • 21 Jan 2020
  • 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.

    • 21 Jan 2020
  • 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.

    • 16 Jan 2020
  • 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.

    • 16 Jan 2020
  • 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.

    • 16 Jan 2020
  • 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.

    • 16 Jan 2020
  • 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.

    • 14 Jan 2020
  • 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.

    • 14 Jan 2020
  • 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.

    • 14 Jan 2020
  • Sustainability loans need rating agencies

    The sustainability-linked loan market is a glorious mess.

    • 10 Jan 2020
  • 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.

    • 09 Jan 2020
  • 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.

    • 09 Jan 2020
  • 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.

    • 09 Jan 2020
  • 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.

    • 09 Jan 2020
  • 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.

    • 07 Jan 2020
  • 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.

    • 07 Jan 2020
  • 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.

    • 07 Jan 2020
  • 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.

    • 07 Jan 2020