Top Section/Ad
Top Section/Ad
Most recent
With equity returns under strain, managers would do well to slow the pace of CLO issuance
Issuance has kept going by giving investors just what they want
John Healey resigned because the money was not there for defence. It may not be there for anything
Bifurcation is emerging in how investors treat the hyperscalers
More articles/Ad
More articles/Ad
More articles
-
If the SSA market can withstand a rudderless Italy — the world’s fourth biggest bond market and the eurozone’s third largest economy — it can withstand Cypriot bail-out uncertainty. Whatever schemes European powers dream up for rustling up Cyprus’s bail-out funds, those in government bond markets would be ill-advised to read too much into it.
-
The botched bank job in Cyprus has clearly thrown in a spanner in the works for Asian bond bankers, but they have shown before that they can work around problems from Europe. The biggest hurdles are not fundamental, they are technical. The sheer scale of supply building up now means bankers are in for a rocky ride over the next few months.
-
Alibaba Group’s plan to borrow $8bn in the loan market has caused jitters among senior bankers, who worry that the sheer size of the deal will be too much for Asian lenders to absorb. But they should not fret. The odds are stacked in the company’s favour.
-
BASF has launched its new revolving credit line at what some regard as a scandalously tight 25bp. But BASF and other blue-chip borrowers like it are funding in a completely different market to most corporate issuers. Deals like this do not reflect the financing conditions available in the wider loans sector.
-
The UK’s Funding for Lending Scheme was poorly conceived, but tinkering with it now is not going to make the blindest bit of difference. The problem with SME credit is not the cost — it is getting access to it in the first place. As the FLS stands it is nothing more than a funding subsidy for banks, and they are not going to shoulder undue risk to kick-start the economy.
-
The IMF says Europe’s banks must deleverage by $4.5tr. Even if interest rates are cut or the European Central Bank pumps more liquidity into the system, credit is still going to contract severely. The European Commission needs to help SMEs by standing behind loans to this crucial sector.