United States

HSBC’s new global banking boss has quietly redesigned the division and fleshed out a cohesive corporate finance strategy that plays to its strengths, writes David Rothnie.

US Democrat senator, and presidential hopeful, Elizabeth Warren wants to upend private equity. She has proposed a bill which would stop PE money flowing to some sectors altogether and would send deal numbers and valuations plunging. But it could also lower borrowing costs, reports Karoliina Liimatainen.

JP Morgan became the first US bank to issue a preferred bond linked at the back-end to the secured overnight financing rate (Sofr), amid a torrent of bank supply in dollars this week.

As the market prepares for Libors to end their run as the world’s most prevalent reference rates, there is growing support for the benchmarks to be reprieved.

Wanda Sports Group has cut 38% off the size of its live US IPO, having reduced the stock on offer and trimmed price guidance as it confronts investors nervous over their unfamiliarity with the company.

In this round-up, the Shanghai Star market officially opened on Monday morning, the People’s Bank of China, the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission formally announced 11 market reform measures, and the Mainland made the largest sorghum purchase from the US since last April.

In this round-up, China lowered its holdings of US Treasuries yet again in May, new issuance of local government bonds has skyrocketed and regulators are wooing state-owned enterprises (SOEs) to list on the new Shanghai Star market.

In this round-up, China and the US talked on Thursday after unhelpful comments from US president Donald Trump, China’s state council released policies on using social credits to regulate the market and the National Development and Reform Commission (NDRC) published guidelines to help financial institutions exit from the market.

The US high grade corporate bond new issue market went dark for two days this week, as corporate America skulked in earnings blackouts. Next week could be big, but it is likely to be a long, dry summer.

Bank of America and Morgan Stanley provided much-needed cheer for supply-starved investors on Thursday, after they became the first US banks to tap the dollar market after reporting earnings.

Leaders of the big US investment banks were cautiously optimistic about upcoming investment banking activity, despite a poor second quarter across their capital markets divisions.

The S&P 500 last week broke through the 3,000 level and set a new record high to cap seven months of global equity indices gains. But active equity fund managers remain sceptical of the rally and are continuing to exercise caution particularly in IPO investing.