Free content

Bonds are back, baby! Or at least that’s what my banker friend is telling me.

GlobalCapital has made the difficult but hopefully understandable decision to postpone our 2020 Bond Awards, but we are now relaunching them today.

Unlike many banks, NordLB had been actively reducing its balance sheet well before the coronavirus crisis hit, so its need for funding is more modest than most. Though it seems likely Pfandbrief issuance will eventually return, German borrowers are hesitant to come to market, especially when there is cheap, plentiful central bank funding available. And, while Pfandbrief investors are well protected, it seems likely that a slow recovery in the commercial real estate market and a more questionable outlook for SME lending, will take its toll on lenders’ business models.

What is the significance of the agreement between German chancellor Angela Merkel and French President Emmanuel Macron on a European recovery package, funded through EU debt? GlobalCapital discussed it with Shahin Vallée, a senior fellow at the German Council on Foreign Relations (DGAP) and previously an economic adviser to Macron when he was France’s economy minister.

Banks want to position themselves as ahead of the curve on sustainability. They are among the most sophisticated, well resourced, IT-savvy organisations in the world. Why can't they work out the carbon footprints of their portfolios?

Governments across the world are scrambling to conjure up funds to offset the financial devastation of the coronavirus pandemic, including in the UK, which is expected to raise about £250bn between April and August alone. GlobalCapital spoke to Roger Bootle, economist and chairman of Capital Economics and recent author of “The AI Economy”, about the long-term implications of the UK’s higher borrowing.

Chinese investment banks have a clear edge over their global counterparts when it comes to winning more offshore bond mandates from the country in the post Covid-19 environment.

Unédic, the French unemployment insurance agency, is facing an unprecedented strain on its services thanks to the coronavirus pandemic and its funding need has more than tripled as a result. CFO Jun Dumolard told GlobalCapital how the institution has been managing.

Unlike many other banks, ANZ has had no need to draw on central bank emergency liquidity lines during the coronavirus pandemic. Its risk-weighted assets have grown but this has been offset by greater retail deposits. And, as head of funding Mostyn Kau revealed, what subordinated debt issuance it does have to do will be for regulatory reasons rather than to do with Covid-19 crisis funding.

In this round-up, the chairman of China’s top securities regulator says the country will step up on its crackdown of fraudulent behaviour in the financial market, and the governor of the People’s Bank of China (PBoC) talks about policies to overcome the impact of the pandemic.

UPDATED 16 May 3am BST Since March 18, when Europe's coronavirus caseload overtook east Asia's, it has had the most cases. On Tuesday Europe was surpassed by the Americas, which now has 1.86m as of Thursday.

There is a huge amount of information to take in at the best of times in the capital markets. During a crisis, it can be overwhelming. So, each week, Keeping Tabs brings you the very best of what we in the GlobalCapital newsroom have found most useful, interesting and informative from around the web.