The GlobalCapital View

• US tariff deadline could spoil Christmas for ECM

  Equity markets, particularly European ones, are largely focusing on the UK election as the last opportunity for pre-Christmas volatility. But investors should remember that other shocks remain possible, including the scheduled imposition of US trade tariffs on China on Sunday.

  • 10 Dec 2019

• In defence of Denmark's green idea

  Denmark’s debt officials have a highly original plan to issue green bonds in which the green element can be stripped off and traded separately. It’s going to put many a green nose out of joint. That’s no bad thing: the market needs to re-examine its claims to efficacy and virtue.

  • 10 Dec 2019

• UK listing rules: if it ain't broke, don’t fix it

  The Conservatives may push for further deregulation of the UK’s financial system after Brexit, including allowing dual-class share structures on London's main market, if they emerge victorious from the general election on Thursday. This would be a mistake — they should not put at risk London's high corporate governance reputation in order to seek to compete with New York or Hong Kong.

  • 10 Dec 2019

• Comrade Corbyn capital markets: surprisingly enriching?

  Voters go to the polls on Thursday to pick the next UK government, with the outside possibility of a far left Jeremy Corbyn-led Labour government keeping capital markets bankers awake at night. But the return of Marxism might hold some silver linings for them.

  • 10 Dec 2019

• China needs to get going on TLAC bonds

  Crédit Agricole bagged a total loss-absorbing capacity eligible senior preferred Panda bond in China last week — the first of its kind onshore. But the confusion it created shines a light on a market that is still in dire need of education around these new structures. With Chinese banks set to come under pressure soon to issue their own TLAC-eligible bonds onshore, rapid change is needed before time runs out.

  • 10 Dec 2019

• UniCredit is striving not to be a hostage to fortune

  European banks are waiting for relief from central bankers, politicians and regulators. But UniCredit is positioning itself to offset several of the biggest problems facing the sector, giving it greater room to forge its own destiny.

  • 03 Dec 2019

• The ECB cannot pretend it is a selective investor

  The European Central Bank (ECB) likes to keep up the idea that it dips in and out of markets judiciously with its quantitative easing programme. This is disingenuous. Its driving force is its need to pump money into the system.

  • 03 Dec 2019

• Primary dealerships are rigged systems — that’s the point

  The FICC Market Standards Board has just released guidance on the proper conduct of government bond auctions, cautioning banks — and primary dealers especially — to manage their conflicts of interest carefully. That’s fine as far as it goes, but the whole point of the primary dealer system is to rig the market, with finely tuned incentives on all sides to make sure governments have access to funding whatever the weather.

  • 03 Dec 2019

• Caveat emptor: Indian SOEs attempt covenant changes

  Oil and Natural Gas Corp’s (ONGC) failed attempt to loosen change of control covenants for its dollar bond is a prime example of why investors in Indian state-owned enterprises need to keep their eyes wide open when approaching new deals.

  • 03 Dec 2019

• Alibaba’s IPO success is no panacea for Hong Kong

  Hong Kong hosted Alibaba Group Holding’s jumbo IPO in tough political times this month, yet the deal received overwhelming support in primary and the shares soaring in the aftermarket. While this success gave the city’s stock market a much-needed boost, other issuers would be mistaken in thinking that such liquidity is also available to them.

  • 27 Nov 2019

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