Bank Strategy - All articles

  • TABB Forum: All eyes on MAC swaps

    Volumes in market adjusted coupon swap trading are increasing due to margin efficiencies, increased liquidity and the ease of trading, according to speakers at the TABB Forum Fixed Income 2015 conference in New York on Thursday.

    • 30 Jan 2015
  • Growing asset managers need to reduce their delta

    As buyside firms transact in ever larger volumes, asset managers need to reduce the delta risk, known as DV01, the change in the value of their trades caused by a basis point change in rates. However, this is very difficult as capital requirements for investment banks mean that a dealer’s ability to warehouse risk for its buyside clients is diminished.

    • 30 Jan 2015
  • UBS plans to rebuild European levfin after senior exodus

    After a brutal year in 2014, in which several senior staff were cut or left the bank, UBS’s European levfin business has a fixer in the shape of Jim Boland.

    • 29 Jan 2015
  • Mizuho’s ‘One Bank’ spreads its wings

    Having established itself as a player in European DCM, the bank has bigger ambitions in fixed income and beyond, writes David Rothnie.

    • 29 Jan 2015
  • Deutsche loses FX trading bigwig

    Benoy Raveendran, head of options, exotics and cross-currency swaps trading at Deutsche Bank in London, has left the firm.

    • 28 Jan 2015
  • RMBS and ABS head takes over CLOs after Deutsche trading exodus

    Deutsche Bank’s head of non-agency RMBS and consumer ABS trading has taken over CLO trading after the departure of Richard Rizzo last week. People familiar with the situation at the bank, which just priced its first US CLO of the year, say it is still fully committed to the business, but some investors are sceptical.

    • 28 Jan 2015
  • FX volume in the US hits record high of $1 trillion

    The average daily volume total for over-the-counter FX instruments in the US was up by 35% in October 2014 versus April 2013 surpassing $1tr, the highest volume recorded since the survey began in 2004.

    • 28 Jan 2015
  • BNP Paribas puts senior syndicate and DCM bankers at risk

    BNP Paribas has placed several senior syndicate and DCM bankers — all involved in the firm's SSA business — at risk, GlobalCapital understands.

    • 28 Jan 2015
  • SocGen takes 11 from RBS for new CMBS platform

    Société Générale is taking advantage of Royal Bank of Scotland’s retreat from US securitization to launch a new CMBS platform, its first in the US since the financial crisis.

    • 27 Jan 2015
  • HSBC positions for rise in Asian distressed debt

    HSBC is preparing for a rise in distressed debt situations in Asia, hiring Sergio Morita as its first head of sourcing in the region. The bank expects more opportunities in special situations and distressed debt will arise from the increased stress on Asian companies following the downturn in commodity prices and defaults in China’s property sector.

    • 27 Jan 2015
  • Fed hints at bonus regulation

    Jerome Powell, a member of the Federal Reserve’s board of governors, said US financial regulators were preparing a new rule on compensation at financial institutions, which could include more deferral, delayed vesting and “the possibility of more robust forfeiture”.

    • 22 Jan 2015
  • BNP Paribas inches toward levfin-high yield merger

    BNP Paribas is preparing a reorganisation of its leveraged finance and high yield teams, as part of the reordering of its corporate and institutional bank that has taken place since Yann Gérardin took over as its head in October. Market participants believe some job cuts are possible.

    • 22 Jan 2015
  • Storm clouds gather as Jain plots new strategy

    The Deutsche Bank boss needs a new strategy as fixed income and capital concerns strengthen the hand of universal banking naysayers, writes David Rothnie.

    • 22 Jan 2015
  • CLS, TriOptima to deliver FX compression tool

    CLS Group and TriOptima have teamed up to offer an FX forward compression service in order to address the regulatory requirement for financial counterparties to have procedures in place to analyse the possibility of portfolio compression for non-centrally cleared over-the-counter derivatives.

    • 20 Jan 2015
  • Credit Suisse moves fixed income bosses as Corson takes “blue sky” role

    Credit Suisse has reshuffled senior members of its fixed income department, freeing up Chris Corson, the former global head of emerging markets, for a role understood to be about “blue sky thinking across the business”.

    • 19 Jan 2015
  • Litigation and trading still skewering US banks

    The first full year results for the major US investment banks show that little changed in Q4 — litigation costs and poor trading revenues, particularly in fixed income, are still causing most of the pain.

    • 15 Jan 2015
  • Panic erupts as SNB abandons floor causing euro/Swiss to tank

    The Swiss National Bank shocked markets on Thursday when it abandoned its Sfr1.20 floor on the euro and cut the interest rate on sight deposit balances to minus 0.75%. The SNB and some investor portfolios will suffer big losses.

    • 15 Jan 2015
  • Professional services join corporate finance fray

    Professional services firms will continue to beef up their corporate finance offerings in 2015, but that doesn’t mean they are looking to compete with investment banks, writes David Rothnie.

    • 15 Jan 2015
  • ANZ steps up in acquisition fin as Asian M&A into Oz revs up

    Australia and New Zealand Bank is making a concerted push into acquisition finance in the region as it looks to capitalise on the trend of Asian companies acquiring Australian targets. Underlining the importance of this business, the firm has promoted Damien Ng to head of loan syndications — specialised and acquisition finance.

    • 15 Jan 2015
  • Making equity derivatives pay at BNP Paribas: Gérardin’s first project

    New BNP Paribas investment bank boss Yann Gérardin is an equity derivatives man through and through, having built the business from scratch since he joined in 1987.

    • 14 Jan 2015
  • Authoritarian bond issuers: not just Belarus

    Belarus's request for proposals this week for a $1bn bond issue has once again highlighted the ethical dilemmas investment banks face when working in and for countries with tarnished human rights records.

    • 14 Jan 2015
  • Weak Norwegian krone sparks vanilla buying in low liquidity environment

    Market participants have been buying vanilla options on the Norwegian krone as the currency continues to weaken as a consequence of the oil price rout. Low liquidity is in turn widening bid-ask spreads.

    • 14 Jan 2015
  • Banco Santander's record €7.5bn block not too big for Goldman Sachs to underwrite

    Santander raised €7.5bn of equity capital in a block trade on Thursday January 8, the biggest ever outside the US, to put its core equity tier one ratio up to 10%. The deal was priced at the low end of the discount range and led to a very steep fall in Santander's share price the day after – yet won some admiration from rival banks.

    • 09 Jan 2015
  • BayernLB and Berenberg join forces to win more corporate finance business

    Bayerische Landesbank and Berenberg, the Hamburg-based private investment bank, have announced an unusual deal to cooperate in corporate finance, designed to help both firms fill gaps in their product armouries, especially around mergers and acquisitions.

    • 08 Jan 2015
  • Barclays faces crunch year for IB changes

    After Barclays overhauled its investment bank last year, it must prove it can deliver its strategy in 2015, writes David Rothnie.

    • 08 Jan 2015
  • StanChart culls global equities business with 200 job cuts

    Standard Chartered has taken a knife to its global equities division as it seeks to cull some of its loss-making businesses. The move is expected to affect around 200 jobs, the majority of which are in Asia.

    • 08 Jan 2015
  • VXX downside options set to take off in 2015

    Downside trades, such as puts and put spreads, on the iPath S&P 500 VIX short-term futures exchange-traded note (VXX) are expected to increase in popularity as a way to mitigate the risk of volatility spikes in 2015.

    • 06 Jan 2015
  • CDS notional kicks off the new year with upward surge

    Overall credit default swap notional that was reported to swap data repositories last week increased by 44% from the previous week, according to data from the International Swaps and Derivatives Association.

    • 05 Jan 2015
  • Q&A: Scott O’Malia, CEO, ISDA

    Harmonisation and crossborder issues are key concerns for the International Swaps and Derivatives Association as markets enter 2015. As Scott O’Malia, CEO of ISDA and former commissioner at the Commodity Futures Trading Commission, tells Beth Shah, regulators need to ensure that crossborder oversight is based on risk and not location.

    • 05 Jan 2015
  • DCM heads pinpoint Russia for staffing reductions

    In a GlobalCapital survey at the end of 2014, six DCM heads said they planned to cut back staffing in Russia this year, while one said they planned cuts in Africa and two in the Middle East.

    • 05 Jan 2015