Crisis Talk

  • Crisis Talk — Carson Block, CIO of Muddy Waters: ‘If capitalism breaks, it’s capitalists who broke it’

    Crisis Talk — Carson Block, CIO of Muddy Waters: ‘If capitalism breaks, it’s capitalists who broke it’

    Muddy Waters has fostered a fearsome reputation as a credible, thorough and forceful short seller whose explosive reports are a danger to anyone harbouring a stake in its intended target. Carson Block, its founder and chief investment officer, told GlobalCapital he has never been wrong about a company he’s shorted, though that doesn’t mean he’s made money from every position he has held. According to Block, monetary policies intended to stimulate markets through financial crises actually corrode them, and stifle accountability for serious failures in corporate governance.

  • Crisis Talk — with Mediobanca’s funding heads, Carlo Masini and Paolo Labbozzetta

    Crisis Talk — with Mediobanca’s funding heads, Carlo Masini and Paolo Labbozzetta

    Mediobanca frontloaded regulatory issuance and completed its funding plan before the coronavirus crisis struck. While its corporate loan book has increased, deposit inflows have also improved which means the bank is in no hurry to return to the public market according to head of group treasury, Carlo Masini, and head of funding, Paolo Labbozzetta.

  • Crisis Talk — with Samaila Zubairu, CEO of the AFC

    Crisis Talk — with Samaila Zubairu, CEO of the AFC

    Africa Finance Corporation (AFC), the Nigeria-based multilateral development bank (MDBs), has emerged at the forefront of regional coronavirus rescue efforts, providing financing for emergency hospitals, medical aid and more. As Africa finds itself at the centre of global calls for emergency financing and debt relief, the AFC’s chief executive, Samaila Zubairu, talks to GlobalCapital about the bank’s response to the crisis, how its own fundraising plans have been affected, and the future of Chinese capital in the region.

  • Crisis Talk — with Jingdong Hua of the World Bank

    Crisis Talk — with Jingdong Hua of the World Bank

    Jingdong Hua has seen his fair share of crises. In Africa when the Rwandan genocide happened, in the Philippines when the Asian tsunami hit, in New York City when the twin towers fell on 9/11, he now finds himself in Washington, DC at one of the key institutions the world is desperately looking to to lead it out of the coronavirus crisis.

  • Crisis Talk — with Dan Zwirn of Arena Investors

    Crisis Talk — with Dan Zwirn of Arena Investors

    In the special situations arena there are few situations quite as special as a global pandemic, and few opportunities quite as large for investment firms that manage to navigate the sell-off in corporate credit, bank loans, CLOs and securitizations correctly. GlobalCapital spoke to Dan Zwirn, founder, CEO and CIO of Arena Investors, and a 25 year veteran of distressed debt and special situations investing about buying free volatility, where to play in retail, and why the CLO market has much further to fall.

  • Crisis Talk — with Alessandro Lolli, head of group treasury and finance, Intesa Sanpaolo

    Crisis Talk — with Alessandro Lolli, head of group treasury and finance, Intesa Sanpaolo

    Bank balance sheets are set to expand and Intesa's will be no exception. It will mean an an increased reliance on central bank funding. But apart from this, the Italian bank's mix of funding is likely to remain unchanged from February with the emphasis on regulatory capital. But as Alessandro Lolli, head of group treasury and finance told GlobalCapital, the bank has great flexibility in navigating its capital raising during the pandemic.

  • Crisis Talk — with Carsten Tegtmeier, Nord LB’s head of primary products

    Crisis Talk — with Carsten Tegtmeier, Nord LB’s head of primary products

    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.

  • Crisis Talk — with ex-Macron adviser Shahin Vallée on the Franco-German rescue

    Crisis Talk — with ex-Macron adviser Shahin Vallée on the Franco-German rescue

    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.

  • Crisis Talk — with Roger Bootle of Capital Economics

    Crisis Talk — with Roger Bootle of Capital Economics

    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.

  • Crisis Talk — with ANZ’s head of group funding, Mostyn Kau

    Crisis Talk — with ANZ’s head of group funding, Mostyn Kau

    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.

  • Crisis Talk — with Investec’s Carlton Nelson on funding mid-caps through the pandemic

    Crisis Talk — with Investec’s Carlton Nelson on funding mid-caps through the pandemic

    As UK mid-cap companies face the worst disruption that most of them will have experienced, many are turning to their corporate brokers for advice on how to survive the coronavirus crisis. Carlton Nelson, co-head of Investec's corporate broking business, has worked on a number of Covid-19 capital raising deals for UK companies and shared his experiences of an unprecedented crisis — its effects on the business that needs to be done and how it is executed.

  • Crisis Talk — with Christophe Salmon, CFO of Trafigura, on hedging oil’s biggest crash

    Crisis Talk — with Christophe Salmon, CFO of Trafigura, on hedging oil’s biggest crash

    As a crucial middleman in the oil business, Trafigura has had to cope with concerns about the creditworthiness of some of its counterparts, and unprecedented volatility in the oil price that saw the West Texas Intermediate (WTI) contract turn negative at the end of April. Christophe Salmon, the company’s chief financial officer, explained how the company has coped with the crisis, and how its funding approach, based on deep banking relationships and a secured financing structure, proved resilient to the chaos around it.

  • Crisis Talk — with the EMF-ECBC's Luca Bertalot

    Crisis Talk — with the EMF-ECBC's Luca Bertalot

    Luca Bertalot, secretary-general of the European Mortgage Federation-European Covered Bond Council (EMF-ECBC), speaks to GlobalCapital about the covered bond market living up to its reputation, the ECBC’s Covid-19 task force and monitoring report, transparency enhancements, the scope for a revival of the public sector market, and how green European Secured Notes (ESNs) and covered bonds secured on energy efficient mortgages could be flagships in Europe’s economic recovery.

  • Crisis Talk — with Sairah Burki, managing director, regulatory policy at CREFC

    Crisis Talk — with Sairah Burki, managing director, regulatory policy at CREFC

    The fallout from the Covid-19 crisis has touched nearly every economic and employment sector, from the largest corporations to the smallest businesses. The pain has prompted an unprecedented policy response aimed at rescuing economies and markets, and further measures are likely to come. US commercial real estate has been especially impacted, with commercial mortgage lending slowing dramatically, already struggling retailers going dark across the country and a likely rethinking of the use of space following a nationwide experiment in working from home.

  • Crisis Talk — with virology expert professor Peter Openshaw on why post-Covid offices must adapt

    Crisis Talk — with virology expert professor Peter Openshaw on why post-Covid offices must adapt

    As Western societies begin to contemplate life returning to some semblance of normality, the financial industry is working out how best to balance the understandable desire to get back to how things were before the crisis with the very real threat of a new and more deadly wave of coronavirus brought on by a mass-return to offices. GlobalCapital’s Silas Brown spoke with Peter Openshaw, a specialist in immunology and virology and professor of experimental medicine at Imperial College, about the transmission of Covid-19 and how banks, investors and companies can reduce the risk of infection.

  • Crisis Talk — OCC’s John Davidson on clearing during coronavirus chaos

    Crisis Talk — OCC’s John Davidson on clearing during coronavirus chaos

    John Davidson is CEO of the Options Clearing Corporation, the equity derivatives clearing house. GlobalCapital caught up with him to discuss how clearing has held up in the Covid-19 crisis — during which equity markets endured huge volatility — and how he is planning for the return from lockdown.

  • Crisis Talk — with Santander UK's Martin McKinney

    Crisis Talk — with Santander UK's Martin McKinney

    Martin McKinney, senior manager of medium-term funding at Santander UK, speaks to GlobalCapital about the impact the UK’s lockdown on the bank’s balance sheet, central bank liquidity, and the bank’s changing mix of regulatory and pure funding.

  • Crisis Talk — VDP's Tolckmitt believes in strength of Pfandbrief bank liquidity

    Crisis Talk — VDP's Tolckmitt believes in strength of Pfandbrief bank liquidity

    A strong and growing deposit base, an active private placement market and sizeable proportion of prefunding has put the Pfandbrief banks in a strong liquidity position, the chief executive officer of the Association of German Pfandbrief Banks (VDP), Jens Tolckmitt, told GlobalCapital in an interview on Tuesday covering a wide range of other topics such as real estate values, the mortgage lending value and Basel III’s output floor.

  • Crisis Talk — with Lee Buchheit on EM's coming sovereign debt crisis

    Crisis Talk — with Lee Buchheit on EM's coming sovereign debt crisis

    Lee Buchheit is a veteran of sovereign debt restructuring and is considered by many to be a world expert in the field. He has worked on debt restructuring among many of the emerging markets countries, including Argentina, Greece and Venezuela. GlobalCapital caught up with him this week to discuss the debt crisis gripping the EM universe, and how private sector creditors should approach requests for debt standstills.

  • Crisis Talk — with VW's treasurer: how to cope without revenue

    Crisis Talk — with VW's treasurer: how to cope without revenue

    Volkswagen is one of the world’s biggest car companies and, in many years, Europe’s biggest corporate bond issuer. But being an A3/BBB+ rated credit with a strong following in the market does not guarantee you can refinance a €200bn debt load when a pandemic shuts down nearly all the world’s developed economies.

  • Crisis Talk – with Joseph Lau of Lord Capital

    Crisis Talk – with Joseph Lau of Lord Capital

    The coronavirus crisis looks to be a once in a career event for many who work in capital markets in terms of just how much of the economy is being impacted. It has frozen some markets, heightened illiquidity and the shut off of a primary pipeline that, before the pandemic, was expected to produce another robust year of new issuance across securitized assets.

  • Crisis Talk — with Frank Czichowski of KfW

    Crisis Talk — with Frank Czichowski of KfW

    In the first in a new series of crisis-time interviews with senior capital markets participants, GlobalCapital's Toby Fildes talks to Frank Czichowski, treasurer of Germany's KfW.