North America

Two Asia-focused special purpose acquisition companies (Spacs) are looking to list on the US stock market.

Citi has created a cross-border and public sector solutions (XPS) team, which will be headed by Valentina Antill globally, with Abhishek Kapur taking charge of Asia Pacific.

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. This week: remote working challenges and opportunities, rethinking discrimination in economics, and how volatility strategies fell apart in the market crash.

The Federal Reserve has come under fire for failing to oblige banks to stop paying dividends at a time of extreme economic uncertainty. The results of its latest stress test showed this week that a quarter of US banks could approach their minimum capital ratios if the coronavirus pandemic leads to a double-dip recession.

Two of Mexico’s best-rated issuers eased through bond markets this week, even as the country faces ever-worsening economic forecasts, while bankers said Latin America’s top names could issue multiple times this year.

A spike in Covid-19 infections brought a darker mood to the US corporate bond market this week and has slammed the brakes on months of record-breaking issuance.

Soaring prices in bond and equity markets have left investors vulnerable to a crash that could be triggered by an array of risks from corporate insolvencies to Brexit, the International Monetary Fund (IMF) warned on Thursday.

As investors search for opportunities in the chaos of the Covid-19 crisis, a gigantic special purpose acquisition company (Spac) from celebrated investor Bill Ackman has captured attention in the US. Spacs enable fund managers to raise capital to take minority investments in private companies. In the wake of the pandemic, equity market participants in Europe are wondering whether similar deals will emerge, writes Sam Kerr.

Bank bond spreads widened further on Thursday amid growing numbers of infections in Europe and the US. Deal arrangers say that issuers will need to be more careful about choosing the right issuance window as markets remain choppy.

Mexican real estate investment trust (Reit) Fibra Uno pulled a proposed dollar Eurobond issue on Wednesday as investors said they believed the issuer may have underestimated the importance of the bid from US Qualified Institutional Buyers (QIBs).

DCM bankers said that Mexican personal care products maker Kimberly Clark de México (KCM) was from the ideal sector for this market after it tightened pricing on a new issue sharply despite a difficult day in global markets.

Popular discontent could well rise in many countries as the coronavirus crisis hits the poorest worst of all. In the past, unrest may have only worried government bond investors to the extent that it damaged creditworthiness. But, as market participants become ever more socially conscious, DBRS Morningstar’s Nichola James says that we can also apply an ESG (environmental, social and governance) lens to it.