GlobalCapital Leader

• Covered bonds to lead FIG tighter

  Although the European Central Bank (ECB) hasn’t said yet how it intends to split buying across the €20bn of net asset purchases that it plans on making each month, it is likely covered bonds will form an integral part. And if covered bonds tighten, that probably means much else will be dragged along for the ride.

  • 19 Sep 2019

• Fed and ECB happy to turn Japanese

  The renewed dovishness of the US Federal Reserve and the European Central Bank (ECB) may consign both Europe and the US to the same fate as Japan when it experienced its lost decades of stagnant growth. Central banks will find the tools they’ve used since the financial crisis have simply worn out when the next one hits.

  • 19 Sep 2019

• Thanks Draghi, now politicians must step up

  It's not clear how long the ECB’s new asset purchase programme will last, or what the new tiered deposit system will look like. However, what certainly is clear, is Mario Draghi’s legacy.

  • 12 Sep 2019

• EM issuers bet against optimism

  In the CEEMEA bond market several early dollar refinancing operations are underway. Investors should beware. This frenzy of activity is not just delight at the super low yields on offer. It also indicates that borrowers believe the only way for their yields is up.

  • 12 Sep 2019

• Learning to live with negative yields

  When E.On raised the curtain on the autumn corporate bond issuing season in euros a fortnight ago, a dramatic tableau was revealed.

  • 05 Sep 2019

• Gambling’s a gamble

  The US private placement market is set to host its first gambling firm from the UK and Ireland this month. Paddy Power's PP could herald a stream of trades from the sector, but investors should beware the risks of herding into any old deal offered to them.

  • 05 Sep 2019

• Where is a company?

  Europe’s patchwork of insolvency laws gives canny corporates and creditors the chance to pick the jurisdiction they want to use. That leads to absurd outcomes — and the sooner it ends, the better.

  • 29 Aug 2019

• Schuldschein entrants: Pareto optimal

  Some traditional arrangers of Schuldscheine, which see themselves as the guardians of the market’s probity, were horrified by the news that Pareto Securities is looking to set up shop on their front lawn. But the sort of companies Pareto is likely to bring will answer the prayers of some investors that the old guard have not. And with it, buyers will have to take greater responsibility for what they stick on their books.

  • 29 Aug 2019

• The bear hiding in plain sight

  At first glance, 2019 has looked a great year for equity markets — perhaps one might even call it a bull market. Almost all major indices have posted double-digit returns after a brutal sell-off at the end of last year. However, things look a lot more bearish upon closer inspection.

  • 22 Aug 2019

• This is the end for new issue premiums

  How can capital markets professionals talk about new issue premiums when it is becoming normal for issuers to price bonds at negative yields?

  • 22 Aug 2019

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