Top stories
Fosse leads the way
Santander UK issued its fourth RMBS deal of the year last week to an enthusiastic response, illustrating the sector’s ability to provide significant funding capacity. The success of this latest exercise has set the market up for what many say will be a busy autumn issuance period. William Thornhill reports.
Rates go electronic
The interest rate swap market is taking a lead from its FX counterpart with long-awaited plans to embrace electronic trading in the inter-dealer market. With some of the most active dealers backing a new platform, the latest push by ICAP could be a defining moment for OTC derivatives reform. Helen Bartholomew reports.
Not there yet
A major study of the compensation practices of international banks has found that significant progress has been made since the crisis. But the scale of the challenges that remain was shown last week by the decision by Credit Suisse – frequently cited as a leader in pay reform – to bow to competitive pressures in its UK operation. Mark Baker reports.
Japan reopens
Convertible issuance has gradually dried up globally, but last week saw the market that closed first revived with a brace of deals. Japanese companies are once again able to find demand for negative-yielding, zero-coupon paper and after Sawai tested the water with a ¥30bn bond, Nidec was quick to follow with its hefty ¥100bn issue. Mia Tahara-Stubbs reports.
September to remember
The mixture of low interest rates and a rather dour economic outlook has bankers and issuers preparing for one of the busiest Septembers on record in the corporate bond market. In the investment-grade and high-yield sectors combined there is expected to be more than US$100bn in volume. In the midst of a slowing recovery investors want to complete deals while they can. Joy Ferguson and Timothy Sifert report.
Government shrinks Petrobras jumbo
Petrobras has finally unveiled its massive follow-on transaction. At a total of R$110.8bn (US$64bn) the figures of the offering made headlines on Friday. But as investors sifted through the 620-page preliminary prospectus it became clear that what will actually reach the market is a far smaller amount. More importantly, while the number of shares held in the market will increase, the percentage of the company that is owned by the public is being reduced.
France: Health, wealth and maybe happiness
Sanofi-aventis has at least three banks at the top of its multi-billion acquisition loan which backs its US$18.5bn all-cash “bear-hug” bid for Genzyme Corp of the US that could prompt a hostile transatlantic bid battle. The company said last week that BNP Paribas, JP Morgan and SG were leading the loan financing, which joins BHP Billiton’s jumbo US$45bn loan in the market.
IFR on Reuters Insider
Aug 24: Basel Committee backs burden-sharing for bank bond investors
New proposals from the Basel Committee could mean bond investors bear a greater burden when banks fail. IFR’s Matt Attwood tells us what the proposals could mean for debt markets.
Aug 17: Russia's planned debut Eurorouble bond seen worth US$2bn
Russia is expected to launch a debut benchmark Eurorouble bond issue in the third quarter to raise about US$2bn at a healthy premium over the country’s dollar bonds, says IFR’s John Weavers.
Aug 10: Life seen stirring in dormant RMBS market
The stabilisation of delinquency rates is breathing some life into the UK’s dormant residential mortgage-backed securitisation market, with deals now in the pipeline, says IFR’s Bill Thornhill.
Up Front
Not the right way
Brazilians often refer to their ability to tweak the rules in their favour as the “jeitinho brasileiro” – or the Brazilian way. And it seems like the federal government is doing just that with the massive follow-on offering of Petrobras.
Anyone for tennis?
UBS has done little wrong since Ossie Gruebel became its chief executive 18 months ago, with Europe’s biggest casualty of the financial crisis returning to profitability and its commitment to repairing its reputation is underscored in its new slogan – “We Will Not Rest”.
Not there yet
A major study of the compensation practices of international banks has found that significant progress has been made since the crisis. But the scale of the challenges that remain was shown last week by the decision by Credit Suisse – frequently cited as a leader in pay reform – to bow to competitive pressures in its UK operation. Mark Baker reports.
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