Americas

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

Crédit Agricole

Corporate dollar issuance was thin on the ground this week as earnings blackouts and AB InBev’s blockbuster $46bn trade throttled supply.

If European credit investors had to name two firms damaged by the precipitous fall in commodity prices, it is likely that Glencore and Anglo American would top the poll.

Investor positioning and the composition of market flows this week suggest two things about returns over the near term: a sharp intraday sell-off like that in August is less likely, but so is a healthy rebound if Chinese catalysts fade from view, said analysts this week.

Euro issuance had been subdued this week, with issuers reluctant to clash with AB InBev's $46bn deal, but it picked up hours before the brewer's launch on Wednesday.

The deadline for public comments on a key US swaps regulation is due on January 19 and, unless the Commodity Futures Trading Commission is swayed otherwise, “made up numbers” could drive costs higher for market participants.

After a year when European banks took their lowest ever share of investment banking fees, 2016 is not shaping up to be much better. Credit Suisse’s bank analysts noted continued low fees in the European market, which is set to continue into 2016 and 2017.

JP Morgan’s corporate and investment bank (CIB) reported an 80% increase in profit in the fourth quarter, as the division’s legal fees and compensation dropped 20%.

Additional tier one paper (AT1) from Intesa Sanpaolo and Crédit Agricole was holding firm in secondary on Thursday, despite global equities flashing red again, and bankers feel a lack of fast money is helping the asset class.

There may be a new man in charge at the Mexican debt management office, but bankers were just as effusive as ever over its $2.25bn of 10 year bond, its first issuance of 2016, on Wednesday.

Anheuser-Busch InBev has brought its jumbo acquisition financing to the US corporate bond market on Wednesday, after days of speculation over when it would arrive. But that did not deter Telecom Italia and Mondelez from issuing in the European market.