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Covered Bond Opinion

  • This week in Keeping Tabs: a start-up’s plans to change correspondent banking; an argument for dual interest rates; state aid after Brexit; and etiquette in the coronavirus age.
  • HSBC might be in the middle of a big restructuring, but that isn’t stopping plans to develop mid-market M&A efforts in France, Germany and Asia as well as the UK, writes David Rothnie. The bank has also bolstered its teams covering specific sectors.
  • This week in Keeping Tabs: the prospect of financial repression in the UK, an easier passage for emerging market central banks, and Alphabet partnering up with Swiss Re.
  • UBS reckons it has a hit upon a ‘unique formula’ for growth as it expands its investment banking offering to its high net worth clients, writes David Rothnie.
  • The Euro Short Term Rate may be running into the first real problem of its short life. The benchmark was designed to provide a reflection of wholesale euro overnight borrowing costs based on real transaction data. But what if there aren’t enough transactions?
  • The coronavirus crisis has reshaped many aspects of finance, but not the line-up of top investment banks. It does appear to have pressed some firms into sharp decisions, though.
  • Société Générale and Natixis have purged their senior ranks following second-quarter losses and to prepare for strategic revamps, but David Rothnie thinks the future will remain challenging for both.
  • Some argue that innovation has taken a backward step in the pandemic with the loss of people working in close proximity bouncing ideas off each other. But that’s not the case in the capital markets. In fact, working remotely in such a vast but archaic business has brought the use of technology to the centre of discussions.
  • The coronavirus crisis is a further reminder that fundamentals are not the only thing that matters when investing in bank capital.
  • Credit Suisse chief executive Thomas Gottstein has brought its investment bank back together but threatens to leave it with a diminished corporate finance business, David Rothnie reports.