Financing Corporates Adapting to New Constraints on Capital

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  • Want renminbi? Pay the price

    The offshore renminbi market has rapidly become more welcoming to foreign companies, which are now taking over from Chinese issuers as a key source of volumes. But those who do not desperately need the currency are unlikely to find the market attractive, writes Matthew Thomas.

  • US-style finance: this year, next year, sometime, never?

    Basel III and banks’ funding strains are squeezing lending, in theory — though many companies still get nice loans. But corporate treasurers’ mindset has changed. As Jon Hay discovers, getting the cheapest debt is no longer the game. Variety of funding sources is paramount — and borrowers will need plenty of cash to ride out shocks.

  • Trust and cost: new masters of bank-borrower relations

    As bank capital becomes ever more constrained by regulation and tough financing conditions, Nina Flitman finds that both lenders and borrowers are placing their relationships under closer scrutiny than ever before.

  • Top corporates: belles of the capital markets ball

    European investment grade companies are still getting used to their new status as the darlings of the capital markets, but they are making the most of the opportunities it has brought them. The shift from a reliance on bank financing to public capital markets (for drawn funding at least) is well under way but Europe’s investment grade corporates are also exploring new financing opportunities in different currencies, markets and products.

  • The detail of retail: borrowers see the benefits

    Retail bonds have become a genuine alternative for corporate borrowers. Stefania Palma takes a tour round Europe and identifies the leading markets.

  • Sterling back in fashion with global issuers

    Big international companies have flocked to sterling this year, taking advantage of the long maturities available and as investors have sought an alternative to the troubled euro. David Rothnie examines whether the UK currency can maintain its popularity.

  • Stable, flexible and not just for Germans

    With the crisis in the eurozone likely to prompt more volatility in the public markets over the next few months, more and more European corporates are finding a stable source of funding in the increasingly international Schuldschein market. Nina Flitman reports.

  • Quiet, flexible finance for companies, large and small

    The US private placement market is thriving. Issuance hit a record last year of about $50bn, of which 20% was for UK issuers and 20% for continental Europeans. That makes it a big capital market, worthy of attention by any company.

  • Quest for diversity takes corporates to new markets

    Currency diversification is now a top priority for bigger corporate bond issuers. But rising swaps prices may complicate issuers’ plans, writes David Rothnie.

  • Private placements come to the fore

    Far from being a monolithic colossus, the debt markets offer a great variety of funding niches and techniques for companies with diverse needs. Many of these are profiled in the following pages. As Jon Hay reports, private placements are one of the hottest growth areas.

  • New generation issuers keep arriving, despite volatility

    A steady stream of corporate borrowers have tested themselves in the bond markets for the first time this year, driven by a wish to diversify from bank funding. As Tessa Wilkie reports, if they arrive well-prepared, they can find an investor base eager for new names.

  • Managing debt in volatile times

    With new issues frequently a tough sell in the primary market, mandates for exchange offers are backing up. Yet when it works, liability management is a win/win game for issuers and investors, writes Katie Llanos-Small.

  • Levfin may be slow but inherent strengths offer hope

    A less flamboyant, more conservative return to the basics of private equity, alongside more adequately priced risk for lenders, is the best chance leveraged finance has of returning to health. OIiver West reports.

  • HY market determined to advance, despite risk-aversion

    The agonies of Europe’s sovereigns have taken their toll on the European high yield market. Issuance is down on 2011 and is expected to remain thin in the coming months.

  • Getting the balance right on hybrid debt

    Asian dollar investors have become an important buyer base for European borrowers to sell hybrids to since the onset of the crisis. But regardless of the currency and region where they are marketed, a back to basics approach is needed when it comes to preparing deals, writes Katie Llanos-Small.

  • EuroWeek Corporates Report 2012 FULL PDF download

  • EuroWeek Corporates Data Section 2012 PDF download

  • Europe’s macro risks keep HY in stop-start mode

    Much is expected of Europe’s high yield market. A huge pile of boom-years leveraged loans need refinancing – and then there are all the medium-sized companies that will need to join the bond market as banks delever. Stefanie Linhardt asks why the high yield market remains so cyclical.

  • EM corporates stand in glorious isolation

    There have been few winners from the eurozone crisis. But one of its legacies is the increasing ease with which Western investors view emerging market borrowers. The main attractions of EM corporates are growth, diversification and spread, all of which are becoming harder to find in developed markets. Francesca Young reports.

  • Dollars: no longer a luxury but a must-have

    While other markets have been buffeted by turmoil, the dollar market continues to go from strength to strength. David Rothnie reports on a market that is becoming more important than ever for European borrowers.

  • Disintermediation pushes corporate stars to ratings

    Two of the last great unrated corporate names, Heineken and Luxottica, made the jump to the rated world this year, as companies start to rely ever more on the bond market. Oliver West looks at the benefits of a rating, and asks how issuers can get by without.

  • Demand is fine, it’s supply that’s the big problem

    Corporations remain highly sought after by private placement and commercial paper investors, with the hunt for yield and negative ratings actions in other sectors driving much of the appetite. But the age-old problem of supply remains — although there are indications of positive news. Craig McGlashan reports.

  • CBs dance to a different beat

    Equity-linked products can play an important part in helping issuers diversify their funding. But, as this year has proved, conditions aren’t always right for issuance. Nick Jacob reports.

  • Bond market on a rescue mission for infrastructure

    Everyone loves infrastructure. Politicians love opening shiny new projects. Businesses love getting their goods to market. Drivers love roads, commuters love trains and consumers are fond of the electricity that powers their TVs. But, with the banking industry on its knees, just who, and how, is it all going to be financed? Nick Jacob reports.

Publisher: Oliver Hawkins

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Commercial director of events: Daniel Elton

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Publisher, special projects: Ashley Hofmann

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