Free content

The traditional reasons that issuers pay investment banks are being eroded by regulation. But the staggeringly costly compliance and back office infrastructure is increasingly valuable.

The Greek government wants to return to the bond markets this year as soon as its latest round of bail-out negotiations ends — something that moved a step forward this week after the country agreed a deal with its creditors on a range of fiscal and structural reforms. But one look at where its outstanding debt is trading should make the government think twice before rushing back to the capital markets.

In this round-up of news you may have missed over the long weekend, forex transactions amount to Rmb14.18tr ($2.06tr) in March, China’s manufacturing PMI disappoints analysts, and renminbi deposits in Hong Kong continue to fall in March.

Chinese president Xi Jinping orders authorities to take action to prevent financial risk, Volkswagen Financial Services’ China arm issues its second renminbi-denominated bond, and the UK reaffirms its status as the biggest centre for RMB FX trading.

A new $2bn fund to be launched by the IFC and Amundi is the most important step for green bonds in the emerging markets yet.

I remember the days when deal pitch books were hard work but simple. We spent our time slaving away on the preparation, focusing purely on the substance of our message. But technology has ruined bankers now, making them far too reliant on the appearance of their perfectly crafted presentation slides.

Senior preferred could prove a much more enduring threat to the viability of the covered bond market than the targeted longer-term refinancing operation (TLTRO) or the covered bond purchase programme (CBPP3).

Netflix is issuing its first bond in euros. It's a high yield bond, but not as we know it. It is single-B rated but the covenants are investment grade — though Netflix's leverage is racy. To buy it, you need to be a fan.

French spreads have crunched in tighter after Emmanuel Macron topped the first round of voting in the French presidential election at the weekend — but don’t expect them to rally much further from here. With Macron now a shoo-in for the presidency and the European Central Bank likely following a tightening path, European public sector issuers might find that this is the cheapest level they’ll be able to borrow at for some time.

Politicians and regulators might say they want a safer financial system, but they want their banks globally competitive. There’s no better way to ease regulations than to play on these fears — but they’re not always grounded in fact.

Netmarble Games produced South Korea’s largest IPO in seven years last week, in a deal many are hailing as a shining light for Asian ECM. But the optimists should be realistic about Korea. The success of the game maker’s W2.7tr ($2.4bn) IPO is an isolated case and unlikely to lead to a revival in domestic listings.

The French election looks like it has delivered another reprieve for Europe. But earnings season will surely show the Europeans slipping still further behind, after a storming start from the US firms.