Issuers: can’t live with 'em, can’t live without 'em
You’ve got to love a good mutiny. As you’ve no doubt seen from this week’s front page story, a bunch of bond bankers have been very vocal in their upset with an issuer because it didn’t listen to their advice. As a result, they say, the transaction did not go as well as expected.
The tale did give me a good chuckle. There’s nowt so queer as issuers, and having to suck up to them while they ruin your perfectly crafted idea was always one of the more frustrating aspects of the job.
After all, what’s the point of appointing a trusted adviser if all you’re going to do is ignore them? At least that’s what I tell Tai Tai, who is currently ignoring the advice of our very expensive doctor that she needs to exist on a diet of more than kale and Bollinger.
Anyway, I’m sure part of the reason bankers have been so quick to distance themselves from this week's KDB trade is so they can save face. Nobody wants to have their name linked with a badly performing deal and banking has never been a place for the chivalrous.
But for all the moaning and grandstanding these syndicate bankers aren’t fooling me. I’d bet my Hublot that the next time the issuer is out with a mandate, they will be lining up with all the others to get their name on the docket. For while we bankers may be masters of the universe, our destiny lies firmly in the hands of our clients.