North America

Randal Quarles, the head of global regulator the Financial Stability Board, warned on Thursday that cryptocurrencies and increasing fragmentation of financial markets carried the greatest threats to market stability.

The fourth quarter began on a rocky note for global equities but the US high grade bond market has shrugged off concerns about stalling growth and issuance conditions remain strong.

For Canadian pension fund CDPQ, direct investments in private equity have become a crucial part of portfolio management. As the political debate around PE firms heats up globally, the Quebec pensioners are enjoying the fruits of CDPQ’s foray into the risky, demanding asset class that is off-limits for many smaller pension funds.

Three Chinese companies joined the queue to list in the US within the past week. Youdao, an online education platform founded by Chinese technology company NetEase, is planning the largest of the IPOs, seeking up to $300m.

Hong Kong SAR’s equity capital market has come back to life recently with a handful of well-received IPOs. A further boost is also likely if the US goes ahead with its threat of banning Chinese listings on its exchanges, writes Jonathan Breen.

Credit Suisse has found one way to deal with low interest rates in Europe: switch into another currency. The Swiss bank has conjured up an extra Sfr250m ($250m) of net interest income (NII) per year from changing how it hedges the capital to meet its operational risk.

Contrary to growing fears of an impending recession, Fisch Asset Management believes that the global economy is in a “Goldilocks” period and recession is a distant prospect. But as a result, Fisch believes the SSA market is in “one of the biggest bubbles” it has experienced and faces a “quick and strong” correction.

Youdao, an online education platform founded by Chinese technology giant NetEase, is planning an IPO of American Depository Shares (ADS), having filed a draft prospectus with the US regulator.

Delta, the US airline, announced last week that it had struck a deal with LATAM, the largest airline in Latin America, in a deal which it expects to finance in the bond market.

Mexican payroll lender Crédito Real brought Latin American high yield corporate issuance back to the European bond markets for the first time in five years last week, in a deal that fed euro buyers’ hunger for new names.

The risks associated with issuing at negative yields will drive non-European issuers away from the euro covered bond market, according to a report from NordLB.

Chinese health and wellness solutions provider Ecmoho is planning to float on the Nasdaq and is targeting proceeds of up to $150m.