United States

Equity capital markets are bracing for the US presidential election on Tuesday. Participants believe Hillary Clinton is narrowly more likely to win, but that stockmarkets around the world would fall if Donald Trump won.

FIG borrowers’ last clear window for issuance hangs in the balance ahead of Tuesday’s US elections, as bankers fear a victory for Donald Trump would limit November supply and raise new issue premiums considerably.

The US Department of Financial Services has fined the New York branch of Agricultural Bank of China $215m for violating local anti-money laundering (AML) laws. The regulator also said that the bank obscured dollar clearing transactions of Chinese and Russian companies, apparently by issuing counterfeit and falsified invoices.

Renaissance Capital has hired a new head of international equity capital markets, and its US subsidiary RenCap Securities has added two senior bankers to its fixed income, currencies and commodities team.

Who will win the US presidential election on November 8 was far from clear this week. But it looks increasingly likely that a Donald Trump win could bring 2016's primary capital markets activity to an abrupt halt.

The US stock market and the dollar have been falling since last week, as fears have grown that Donald Trump might win the US presidency in Tuesday's election.

Long-languished plans to centrally clear foreign exchange derivatives have been jump-started back to life, claimed dealers who are optimistic that a cleared FX options contract could be available to trade within the coming months and pave the way for further progress in the asset class.

High grade dollar issuance got off to a slow start in November as event risk dominated the minds of borrowers and investors ahead of the US elections.

A shift of momentum in the US presidential race has sent tremors through derivatives markets this week, with equity implied volatility ramping up, credit index spreads widening and the Mexican peso slumping against the dollar.

The FIG primary market has largely remained quiet ahead of the US election on November 8, and some borrowers desiring funding have even sought ways around having to get caught up in its aftermath.

The EMEA loans market has been so far unruffled by next week’s US presidential elections — even if in the US itself deal flow has paused and the consequences of the vote could be far reaching, according to several loans bankers.

Banks and corporates in the US are increasingly interested in understanding the opportunities in renminbi, but they need to lose their addiction to the US dollar. The catalyst is likely to come from market trailblazers and improved infrastructure.