The View - All Articles

  • MREL is a paradox for small UK banks

    Little lenders are being pushed closer to collapse in the UK by rules that were supposed to make them more resilient. The Bank of England should take note.

    • 24 Nov 2020
  • Now is not the time to rush an ESG securitization framework

    An ESG framework for the European securitization market is a noble aim but the middle of this pandemic is not the time to implement it. The European Parliament needs to take its time and make sure such a regime is built to last, and not throw it in alongside emergency legislation.

    • 24 Nov 2020
  • Alibaba CEO learns lesson in humility

    Alibaba’s chief executive Daniel Zhang has praised a regulatory crackdown on China’s technology titans. That was an abrupt turn from co-founder Jack Ma’s loose-lips policy to discussing China. Investors will be relieved.

    • 24 Nov 2020
  • Croydon’s insolvency could be just the beginning

    Giving cheap loans with few restrictions to local authorities via the Public Works Loan Board is not a suitable replacement for central government funding. This must change, or London Borough of Croydon will only be the first council to fall into insolvency.

    • 17 Nov 2020
  • Russians need to move quick to get ahead of sanctions

    With the inauguration of US president-elect Joe Biden in January will come increased expectations of further sanctions against Russian figures and corporates. Russian issuers should take advantage of the rally initiated by Biden's election performance and follow their sovereign into bond markets to raise cash while the going is good.

    • 17 Nov 2020
  • Investors take big risks in ignoring Brexit struggle

    As the UK and the EU prevaricate over the terms of a future trading relationship, equity investors seem to be ignoring the lack of progress in negotiations and the dangerous possibility of a deal between the pair not being struck before the Brexit transition period ends in just a few weeks.

    • 17 Nov 2020
  • China’s bank capital market comes of age

    Baoshang Bank’s complete write-down of close to $1bn of tier two debt offers an invaluable lesson to investors in China’s domestic bond market.

    • 17 Nov 2020
  • Corporate disclosure shouldn’t be outsourced to stock markets

    UK chancellor Rishi Sunak’s announcement that large UK companies, whether listed or private, would need to make climate-related disclosures, was a step towards an important principle — that corporate transparency is a public good, and should be driven by governments, not listing authorities.

    • 10 Nov 2020
  • ECB could copy Japan's special rates for reforming banks

    The Bank of Japan has said that it will pay extra on reserves deposited by banks that become more cost efficient or that merge. A similar policy could well be introduced in Europe too, although perhaps with different aims.

    • 10 Nov 2020
  • For the good of all society retail payment relief must be a two-way street

    With the UK in its second lockdown, there is growing frustration among commercial landlords that retailer tenants are taking advantage of payment waivers. It is vital for the health of the commercial real estate sector and the pension funds that finance it that this is not allowed to happen.

    • 10 Nov 2020
  • Retained covered bonds exacerbate liquidity risks

    The ease with which banks have been able to deploy retained covered bonds for repo funding with central banks has aggravated liquidity risks and undermined regulations that were designed to shore up liquidity management practices exposed as inadequate during the 2008 financial crisis.

    • 10 Nov 2020
  • Covid-19 will reshape US student debt more than Biden

    US president-elect Joe Biden’s student debt relief plan is a dialled down version of what Democratic candidates were proposing on the campaign trail in the run up to the 2020 election. But rather than focus on the incoming president’s priorities, observers should be thinking about the lasting impact of the Covid-19 pandemic on the $1.6tr of outstanding student debt.

    • 10 Nov 2020
  • Pushing EU loans is no job for the ECB

    Yves Mersch, one of the ECB governing council’s staunchest hawks, has a new argument for why the central bank must abridge its purchase programmes: by keeping down the borrowing costs of the eurozone periphery, the ECB is helping countries to “circumvent EU loans”, which he thinks should not be allowed to happen.

    • 10 Nov 2020
  • Ant’s listing failure should worry HKEX

    Ant Group’s IPO suspension was a big blow to many: the fintech firm itself, the banks that worked on the huge transaction, and the investors that were salivating to get a piece of the stock. It was also a big setback for the Hong Kong Stock Exchange's reputation as an independent and attractive listing destination.

    • 10 Nov 2020
  • China’s move against Ant Group is a gift to its critics

    China’s decision to clamp down on Ant Group has derailed an IPO of at least $34bn, despite execution being finished last week. The move appears to be little more than political muscle-flexing by Beijing. The real winners will be the country’s critics.

    • 05 Nov 2020
  • Deforestation finance: only a total stop will do

    It’s a pity the irreversible damage to our world’s lungs through the wanton destruction of its rainforests does not come with the same stark health warning found on a packet of cigarettes. If it did, the world’s largest banks and asset managers might be shamed into giving up their dirty habit.

    • 03 Nov 2020
  • 'The Chinese bid': don’t count on it

    Ask any debt banker in Asia about 'the Chinese bid' and they will tell you how dramatically demand from the country has transformed the dollar bond market. But a handful of recent deals from the country’s local government financing vehicles should give borrowers pause. This source of demand cannot be taken for granted.

    • 03 Nov 2020