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The rollover risks sovereigns are accepting in exchange for cheaper funding
It's not the juniors in capital markets who need protecting from obsolescence. They stand to benefit most from the deployment of AI
Investors and techniques are ready for development banks to scale up securitization rapidly
Risks in exchange-traded funds holding CLOs are real, but there could be scope to relax the rules
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The loan market in Europe, Middle East and Africa has improved in the last six months, but not nearly fast enough. The US and Asian markets are growing much more rapidly. Unfortunately for Europe’s loan bankers, this trend could well continue for the rest of 2010.
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Corporate borrowers, especially debut ones, were accused by syndicate desks earlier this year of having funding ambitions that were far too lofty, leading to some difficult deals. But bankers may now also be guilty of underestimating the limitations of the credit markets after an 18 month bull run.
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Public capital markets remain closed to many borrowers, notwithstanding the Kingdom’s of Spain’s Eu6bn syndicated return on Tuesday. In this environment, many extol the benefits of private and semi-private debt placements, such as the Schuldschein market, for its ability to provide borrowers with funding at even the toughest of times. But the factors that make it appealing could easily contribute to even more instability.
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Throwing money at a problem to make it go away has been a popular tactic among governments through the crisis. Spain, in dealing with its cajas, is no exception. The trouble is that the cajas are going to need a lot more money before their problems go away.
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The IPO of construction business Valemus fell victim to a streak of ten negative trading days on the Sydney stock exchange and deteriorating appetite for new listings globally, bankers on the deal said on Tuesday.
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Country risk is an easy explanation for a successful deal; risk-on or risk-off can ostensibly explain all kinds of market gyrations in the niche currencies. But good old-fashioned credit quality is more important.