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New CFPB leader may have 'deleterious' impact on ABS market
Rohit Chopra has been named the director of the Consumer Financial Protection Bureau, putting an end to three years of deregulation and kicking off an era of aggressive consumer protection. The ABS market is keeping a close eye on Chopra’s key plans, which include restoring the bureau’s ability to start its own investigations and establishing a new credit reporting agency.
25 Jan 2021 -
US banks face impossible questions on China
The relationship between the US and China, which has faced immense strain during Donald Trump’s presidency, is unlikely to get too much relief under the Biden administration. The biggest losers will be US banks and their capital markets business in Asia.
20 Jan 2021 -
Institutional investors look set to suffocate bitcoin’s radical past
The emergence of institutional money into bitcoin is the death knell for its revolutionary dreams of a decentralised economic system.
12 Jan 2021 -
Chinese IPOs in US still on despite NYSE flip-flops
The New York Stock Exchange’s flip-flop on whether to delist three Chinese telecommunications giants caused plenty of confusion in the market this week, but mainland companies are still keen to sell shares in the US. Jonathan Breen reports.
07 Jan 2021 -
China moves ahead with delisting reform
The stock exchanges in Shanghai and Shenzhen have introduced new regulations to forcibly delist companies, fast-tracking the process and giving more clarity about the various scenarios that can push firms to exit the bourses. There are loopholes, however, and the true impact of the regime on China’s equities market will probably be limited, writes Addison Gong.
07 Jan 2021 -
NYSE reverses China telcos delisting plan
The New York Stock Exchange has dropped plans to delist the stocks of China Mobile, China Telecom Corp and China Unicom (Hong Kong).
05 Jan 2021 -
The week in review: China, EU reach investment deal, NYSE to delist Chinese telecom trio, regulators curb real estate loans
In this round-up, China and the European Union wrap up negotiations on a bilateral investment agreement, the bourse in New York moves to delist three Chinese telecommunication giants, and the Mainland regulators have increased oversight on loans in the real estate sector.
04 Jan 2021 -
UK should embrace LSE evolution with listing review
The UK government is in the midst of a review that is seeking to make London a more attractive listing venue for high growth international technology companies. While change is undoubtedly concerning for some who do not want the UK to lose its reputation for high standards, the UK should not ignore a chance for the London Stock Exchange to evolve.
15 Dec 2020 -
Bonus questions loom following calls for caution
Investment bankers have piled up heaps of revenue for their firms this year, but their employers may feel the need not to be too generous with bonuses in the first few months of next year.
09 Dec 2020 -
Boss swap: FCA's Hoggett to lead London Stock Exchange
Julia Hoggett is moving from the UK's Financial Conduct Authority to become chief executive of London Stock Exchange, a subsidiary of the wider London Stock Exchange Group forming part of its capital markets business. It operates debt and equity securities. Her predecessor at the stock exchange, Nikhil Rathi, moved the other way to become head of the FCA earlier this year.
07 Dec 2020 -
Investor group slams Ancestry voting cap term
The European Leveraged Finance Association, a trade body of investors, has slammed terms in the $1bn buyout bond for Ancestry.com which cap investor voting rights, hoping to stop the new feature in its tracks and prevent sponsors including it in European transactions.
03 Dec 2020 -
EU contemplates ‘nuclear option’ for recovery fund
The European Commission is considering a way to proceed with its €750bn coronavirus recovery fund that will exclude Hungary and Poland. The two countries have stood firm in their opposition over the idea that receipt of EU funds will depend on states adhering to the rule of law.
03 Dec 2020 -
‘The auditors have been asleep at the wheel,’ says forensic accountant Steve Clapham
Veteran equity analyst and forensic accountant Steve Clapham believes it is stories that drive investment decisions and seldom cold analysis of financial accounts. But he believes it is hard to find a company which isn’t engaged in some level of financial wrongdoing and argues that auditors are blind to it, wilfully or otherwise.
30 Nov 2020 -
Guatemala pays US court award to dodge default
Guatemala has settled a long-running legal dispute with Florida-based Teco Energy, allowing it to pay bondholders and avoid defaulting on an international bond.
26 Nov 2020 -
Alibaba CEO learns lesson in humility
Alibaba’s chief executive Daniel Zhang has praised a regulatory crackdown on China’s technology titans. That was an abrupt turn from co-founder Jack Ma’s loose-lips policy to discussing China. Investors will be relieved.
24 Nov 2020 -
Indian regulator plans cut to minimum float for chunky IPOs
India’s securities regulator has proposed slashing the minimum required share offering of large IPOs, helping the country’s biggest companies comply with listing rules.
23 Nov 2020 -
China default fears rise after SOEs allowed to miss payments
China’s onshore bond market has been hit with a number of high-profile defaults from state-owned issuers, undermining primary supply and leading to a spike in secondary yields. Addison Gong reports.
19 Nov 2020 -
Croydon’s insolvency could be just the beginning
Giving cheap loans with few restrictions to local authorities via the Public Works Loan Board is not a suitable replacement for central government funding. This must change, or London Borough of Croydon will only be the first council to fall into insolvency.
17 Nov 2020 -
Russians need to move quick to get ahead of sanctions
With the inauguration of US president-elect Joe Biden in January will come increased expectations of further sanctions against Russian figures and corporates. Russian issuers should take advantage of the rally initiated by Biden's election performance and follow their sovereign into bond markets to raise cash while the going is good.
17 Nov 2020 -
Poland and Hungary block EU recovery fund over rule of law
The EU recovery fund has hit a major obstacle in its journey to capital markets. Hungary and Poland have vetoed the "own resources decision", which would allow the EU to access the bond market on its own account.
17 Nov 2020 -
Banker who took UBS to court is hired by litigation funder
Ben Smyth, the whistleblower and former debt capital markets banker who took UBS to court, has been hired as an investment officer by the litigation funder Therium Capital.
17 Nov 2020 -
Old Lady could lean in for post-Brexit regulatory KISS
KISS: the new acronym touted by Sam Woods, chief executive of the Prudential Regulation Authority, in a speech given at Mansion House on Thursday, proposes that regulatory requirements should “keep it strong and simple” after Brexit.
13 Nov 2020 -
Investors on election watch as Peru sells off after impeachment
Though the bond market reaction to the impeachment of Peru’s popular president was not as severe as it would have been in most Latin American countries, investors said that political volatility would continue to challenge the sovereign’s credit profile and that the situation presented risks for next year’s elections.
11 Nov 2020 -
Unibail rights issue cancelled as activists victorious
Shopping centre group Unibail-Rodamco-Westfield's planned €3.5bn rights issue has been cancelled after a group of activist shareholders convinced investors to reject it ahead of an extraordinary general meeting.
10 Nov 2020 -
Ant’s listing failure should worry HKEX
Ant Group’s IPO suspension was a big blow to many: the fintech firm itself, the banks that worked on the huge transaction, and the investors that were salivating to get a piece of the stock. It was also a big setback for the Hong Kong Stock Exchange's reputation as an independent and attractive listing destination.
10 Nov 2020 -
Meet the (probable) next US president
Many have heard of Frost/Nixon, a great play — and later a film — based on the real interviews David Frost did with US president Richard Nixon after his impeachment and resignation. But here's a 1987 BBC interview by David Frost with Joe Biden, before his first tilt at the presidency.
06 Nov 2020 -
China stuns market by halting Ant IPO at the eleventh hour
The Shanghai Stock Exchange stunned the market on Tuesday by halting Ant Group’s $34bn IPO, set to be the largest listing in history, just two days before the company’s planned stock market debut. The extraordinary move is expected to delay the listing by at least six months. It will also force investors to revalue the company, write Jonathan Breen and Addison Gong.
05 Nov 2020 -
China’s move against Ant Group is a gift to its critics
China’s decision to clamp down on Ant Group has derailed an IPO of at least $34bn, despite execution being finished last week. The move appears to be little more than political muscle-flexing by Beijing. The real winners will be the country’s critics.
05 Nov 2020 -
Trump win could be 'good news for Russia' as EM braces for result
The eventual result of Tuesday's US presidential election could have a monumental impact on the position of key emerging markets states like Russia and Turkey in the international arena.
04 Nov 2020 -
White House race doubts hamper FIG supply hopes
Uncertainty over the outcome of the US presidential election is threatening to delay deal plans in the bank bond market, with issuers having lined up new transactions in the aftermath of a successful results season.
04 Nov 2020 -
Poll stalemate 'worst of all worlds', but IG corporate issuance expected soon
European high grade corporate bankers have dubbed the immediate aftermath of Tuesday's US elections the “worst of all worlds”, but are confident that the euro primary market will resume next week.
04 Nov 2020 -
China pulls plug on Ant Group IPO
The Shanghai bourse stunned the market on Tuesday after halting Ant Group’s $34bn IPO, a deal which was set to be the largest listing in history. The extraordinary move, likely spurred by comments from Ant’s co-founder Jack Ma that criticised authorities for stifling innovation in China, is expected to delay the listing by at least six months. It will also force investors to revalue the company.
04 Nov 2020 -
Capital markets pray for decisive US election victory
The US presidential election is next week but, unlike the rest of the world, capital markets professionals are not rooting for Joe Biden or the incumbent, Donald Trump, to win. Instead, they just want a clear result that will spur issuance for the rest of the year. Sam Kerr, Mike Turner, Lewis McLellan, Mariam Meskin, Frank Jackman and Aidan Gregory report.
29 Oct 2020 -
Scepticism clouds Ukraine’s hopes of securing IMF disbursement
Analysts believe optimism over the IMF disbursing funds to Ukraine this year is unfounded, as the country is struggling to fulfil the conditions it has to meet to be granted the money.
26 Oct 2020 -
Updated: HK regulator fines Goldman $350m for 1MDB failures
Hong Kong’s securities watchdog has fined Goldman Sachs $350m for regulatory failures in its work on bonds issued by the scandal-hit Malaysian state investment fund 1MDB, part of a multi-billion-dollar settlement with global regulators.
22 Oct 2020 -
Ukraine hopeful of unblocking $5bn IMF loan amid legal rows
A legal ruling that appears to cast doubt on the independence of Ukraine’s anti-corruption unit has delayed a loan from the IMF and comes in the wake of a row over a decision to ‘reprimand’ two independent members of the country’s central bank
15 Oct 2020 -
Regulator details Luckin fine for false advertising
China’s State Administration for Market Regulation (Samr) has imposed a Rmb2m ($298,000) fine on each of Luckin Coffee’s two main operating entities in China and three other companies, the highest possible penalty under the country’s competition law.
13 Oct 2020 -
Rubio is wrong to want to block Ant IPO
US senator Marco Rubio wants his government to find a way to delay the listing of Ant Group, even though it is happening outside of the US. The move would undoubtedly be bad news for US banks but it also appears to offer little upside to politicians.
13 Oct 2020 -
FCA warns on insider information
Julia Hoggett, director of market oversight at the Financial Conduct Authority, said that market participants need to be careful about insider information, and that companies should be overseeing staff use of private devices at a time when many are working from home.
12 Oct 2020 -
'China is a paper tiger,' says Kyle Bass, Hayman Capital Management
Kyle Bass, made famous by shorting the US housing market in the run up to the financial crisis, has told GlobalCapital that the Chinese state is a paper tiger on the road to collapse. The Texan, who has been on a fierce campaign against the Chinese Communist Party for years now, says that US politicians are finally catching up with his position.
09 Oct 2020 -
China policy and markets round-up: Beijing joins WHO-led vaccine initiative, September forex reserves drop, Trump resumes China Covid blame
In this round-up, China joins an initiative backed by the World Health Organization for fair global access to Covid-19 vaccines, the country’s foreign exchange reserves slide, and US president Donald Trump continues blaming Beijing for causing the pandemic.
09 Oct 2020 -
LendingClub shutters retail investor platform in pivot to banking
LendingClub is retiring its retail notes platform at the end of 2020 as the company continues to walk the path of becoming the first fintech-turned-bank. This marks the end of an era for the online lender, which pioneered the peer to peer model in the earliest days of marketplace lending, sources say.
08 Oct 2020 -
Germany nears revamped restructuring rules
Germany is set to implement a total revamp of its corporate restructuring rules from next year, with a draft bill overhauling a court-led regime more than 25 years old and replacing it with rules law firm Kirkland & Ellis called ‘best practice’.
08 Oct 2020 -
Bankers balk at London bans for suspect foreign firms
Suggestions that the UK government is considering a consultation process to give it the power to ban foreign firms from listing on the London Stock Exchange have horrified equity capital markets bankers.
07 Oct 2020 -
Puma Energy pulls bond, investors say credit story 'uncredible'
Singapore-incorporated global energy business Puma Energy has pulled a planned dollar bond that was set to refinance an existing loan. The company attributed it to a lack of conducive market conditions, though investors say the issuer's credit story was unconvincing.
07 Oct 2020 -
China seeks way into CEE with closer co-operation but investment remains low
Though China has increased co-operation with Central and Eastern European nations in recent years, provoking some concern in the EU, investment volumes remain muted. Non-EU nations in the Balkans, however, offer a chance to progress on the Belt & Road initiative
06 Oct 2020 -
Insider trading risk delayed ABS deals in early 2020
Concerns around disclosure of mortgage forbearance figures and payment holidays led to deals scheduled for issuance earlier in 2020 being delayed to later in the year, as issuers feared securitization investors having access to information not widely disseminated to other investors.
05 Oct 2020 -
Securitization issuers ready rush to market ahead of election uncertainty
The upcoming presidential election is driving a rush by securitization issuers to get deals through the pipeline before November, when sources say election uncertainty and a potential second wave of Covid-19 infections could make for a highly volatile end to 2020.
24 Sep 2020 -
Yangtze Power launches Stock Connect listing in London
China Yangtze Power, a Chinese utility company, has launched its listing on the London Stock Exchange, becoming the third company to list in London through the London-Shanghai Stock Connect scheme. The deal is expected to be worth up to $3.4bn.
23 Sep 2020 -
Iosco warns of regulatory action over DCM mandate pressure
Banks may be using their lending relationships with companies to press them into granting bond mandates, the International Organisation of Securities Commissions has warned. This follows the UK Financial Conduct Authority's remarks about similar pressure for equity mandates in April.
23 Sep 2020