Leader

  • The right time for rights issues

    The right time for rights issues

    Equity capital markets are preparing for a busy autumn, with companies looking to raise cash to survive and thrive through the Covid-19 pandemic. But the window for raking in money may well be small, with a number of factors, of which a rising infection rate is only one, threatening turbulence for some time to come.

  • DoL proposal misses the mark on ESG

    DoL proposal misses the mark on ESG

    The US Department of Labour (DoL) has proposed what it characterises as a reiteration of what has always been required of retirement fiduciaries — that they act in the best interest of their beneficiaries — urging them to disregard ESG considerations in investment decisions. In doing so, it appears not to have noticed the last decade in financial markets, which has shown that ESG investing is very much in investors’ interests.

  • Covered bond spreads are no longer a one-way bet

    Covered bond spreads are no longer a one-way bet

    Surging redemptions and aggressive buying by the ECB — which is also offering issuers a cheaper funding alternative — mean a reduced supply outlook for the covered bond market and, therefore, ever tighter spreads. But higher yielding, safer alternative investments are on the horizon, meaning the asset class may soon lose its allure.

  • The EU is taking back control

    The EU is taking back control

    Agreement in the EU this week on a €750bn recovery fund should remind market participants of the UK’s newfound vulnerability.

  • Regulators need to think like short sellers

    Regulators need to think like short sellers

    The Wirecard scandal — like other recent debacles such as NMC Health — shows that financial reporting, oversight and governance, as they are currently practised, are woefully inadequate.

  • EM restructuring — spare us the posturing

    After striking a remarkably swift restructuring deal with creditors, Ecuador’s government deserves praise. But it is unrealistic to expect such smooth discussions elsewhere, as emerging market sovereign defaults inevitably rise.

  • A green troika for Europe

    Conditionality has become a central area of contention as the EU shapes its coronavirus recovery plan. The bloc should focus on the environment, not on fiscal responsibility.

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