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Sunday, 23 April 2017

Loan time coming

IFR 2180 22 April to 28 April 2017

Rules are made to be broken, but some US Republicans want to throw them out entirely - at least when it comes to leveraged lending.

Top News

Deutsche Bank

Deutsche looks to lighten load of 'panic' deal

IFR 2180 22 April to 28 April 2017 By

Deutsche Bank has launched a bid to lessen the burden of an expensive US$4.5bn bond it issued last October at the height of investor concerns about the bank’s future.

Senator Pat Toomey

Ruling could undo US lending curbs

IFR 2180 22 April to 28 April 2017 By ,

The investigative arm of Congress has been asked to review guidelines on US lending released in 2013 that critics say have put a crimp in bank loans to businesses.

Russia

Russia struggles to entice foreign banks

IFR 2180 22 April to 28 April 2017 By

Russia’s attempts to woo international banks to underwrite a forthcoming sovereign bond deal appear to have failed, with the country’s finance minister saying it will be led by domestic banks only.

Ecuador

Ecuador tests appetite after election

IFR 2180 22 April to 28 April 2017 By

Ecuador is back for more.

An employee walks in a shipping container area at a port near Yangtze River in Wuhan

Esoteric ABS gains favour with investors

IFR 2180 22 April to 28 April 2017 By

Investors looking for a break from auto ABS have been steaming into esoteric issues in recent weeks, looking for the pick-up that has become hard to find in the crowded auto space.

An employee walks past the logo of Netmarble Games at its headquarters in Seoul, South Korea.

Netmarble runs up South Korea's score

IFR 2180 22 April to 28 April 2017 By Robert Hartley

The W2.65trn (US$2.3bn) listing of Netmarble Games last week confirmed South Korea’s appeal among equity investors, despite ongoing political turmoil and rising tensions with North Korea.

Goldman misses the FICC, underwriting revival

Goldman loses mojo after Cohn's departure

IFR 2180 22 April to 28 April 2017 By Philip Scipio

While most banks saw a rebound in fixed-income trading in the first quarter from the abysmal levels of a year ago, Goldman Sachs surprised to the downside with a poor performance.

Intel

Intel takes a hit in Cloudera IPO

IFR 2180 22 April to 28 April 2017 By

Chipmaker Intel plans to buy 10% of the shares in data management software firm Cloudera’s US$210m IPO to support the deal at a far lower valuation than the price paid when it took a strategic stake three years ago.

British Pound Sterling banknotes

Issuers test the limits of high-yield

IFR 2180 22 April to 28 April 2017 By Yoruk Bahceli

Issuers pushed the boundaries of the European high-yield market last week as investors paid above the norm to buy paper despite weak credit profiles, aggressive call options or loose covenant packages.

Theresa May

ECM shrugs off UK election concerns

IFR 2180 22 April to 28 April 2017 By

UK Prime Minister Theresa May’s decision to call a snap election stunned markets and pundits alike, but is not expected to make much of a dent in the equity pipeline. Despite coming to power in 2015 for a term of five years, the Conservative government has called for a general election on June 8.

IFR Magazine Top News in Full (subscription required)

People & Markets

Corporate debt binge buoys DCM revenues

IFR 2180 22 April to 28 April 2017

Investment banking revenue came roaring back in the first quarter, powered by a surge in fees for debt and equity underwriting.

Morgan Stanley treasurer moves to Fannie Mae

IFR 2180 22 April to 28 April 2017

Morgan Stanley’s global treasurer Celeste Brown is leaving the bank to move to Fannie Mae.

Goldman woes show maybe balanced isn't best

IFR 2180 22 April to 28 April 2017

Goldman Sachs’ position as the most evenly balanced investment bank across fixed income, equities, and advisory and underwriting did it little good last quarter, as it underperformed its US peers across all areas.

Ex-Barclays distressed trading head starts US investment firm

IFR 2180 22 April to 28 April 2017

Peter Benoist, the former head of US distressed trading at Barclays, has set up Oakland Capital Partners to provide growth capital and management support to small businesses, according to sources.

Fed slaps Deutsche Bank with Volcker Rule fine

IFR 2180 22 April to 28 April 2017

The US Federal Reserve has fined Deutsche Bank US$157m for “unsafe practices” in its foreign exchange markets business and sloppy record-keeping related to Volcker Rule compliance.

    More from People & Markets

    Bonds

    JICA extends Japanese US dollar offer

    IFR 2180 22 April to 28 April 2017

    Japan International Cooperation Agency returned to the syndicated market last week with a Japan-guaranteed 10-year SEC-registered US dollar bond, its longest deal in the currency.

    International investors show up for safe KfW

    IFR 2180 22 April to 28 April 2017

    KfW took advantage of a thin pipeline and the recent safe-haven rally ahead of the French presidential election to launch its lowest yielding five-year syndicated euro benchmark.

    Ireland sells debut inflation-linked issue

    IFR 2180 22 April to 28 April 2017

    Ireland’s National Treasury Management Agency has raised its debut inflation-linked bond through a €609.5m private placement under its EMTN programme.

    Santander Totta reopens Portuguese covered market

    IFR 2180 22 April to 28 April 2017

    Banco Santander Totta launched the first Portuguese covered bond issue in more than 18 months last Thursday, a further sign that market access is easing for the country’s lenders.

    Wiener Staedtische Versicherung eyes retail bond issue

    IFR 2180 22 April to 28 April 2017

    Wiener Staedtische Versicherung, one of the largest insurance companies in Austria, has mandated Erste Group to arrange an investor call on Tuesday, April 25.

      More from Bonds

      Loans

      Senator Pat Toomey

      Ruling could undo US lending curbs

      IFR 2180 22 April to 28 April 2017 By ,

      The investigative arm of Congress has been asked to review guidelines on US lending released in 2013 that critics say have put a crimp in bank loans to businesses.

      Yingde in covenant breach talks

      IFR 2180 22 April to 28 April 2017 By Yan Jiang

      Yingde Gases Group , which is China’s largest producer of industrial gases, is in talks with lenders after breaching a covenant on its debut offshore loan completed in 2015.

      Stepping up for project financings

      IFR 2180 22 April to 28 April 2017 By Wakako Sato

      Japanese insurance companies are beginning to play bigger roles in the loans market, including building up their lending teams. This is seen as a move that gives project financings a particularly significant boost with the addition of a new liquidity pool.

      CIMB deal into general

      IFR 2180 22 April to 28 April 2017

      A US$400m five-year term loan for CIMB Bank has been launched into general syndication at three ticket levels. 

      Sawai to raise US buy funds

      IFR 2180 22 April to 28 April 2017

      Sawai Pharmaceutical will raise bank loans and use cash to finance its US$1.05bn purchase of US generic drugmaker Upsher-Smith Laboratories.

      Minsheng upped to US$335m

      IFR 2180 22 April to 28 April 2017

      Minsheng Financial Leasing has increased a three-year bullet loan to US$335m from US$200m following an overwhelming response in general syndication. 

      Huiyuan aims for more

      IFR 2180 22 April to 28 April 2017

      China Huiyuan Juice Group is casting its net wider to attract more banks and raise a larger amount of around €280m through a three-year loan after luring three lenders in general syndication.

      Trio provide Spotless funds

      IFR 2180 22 April to 28 April 2017

      Three banks are providing loans to Downer EDI, which is raising debt and equity to finance its A$1.27bn (US$982m) offer for cleaner-caterer Spotless Group. 

      More from Loans

      Equities

      Xinyi Solar eyes rights issue

      IFR 2180 22 April to 28 April 2017

      Photovoltaic glass manufacturer Xinyi Solar plans to raise HK$1.51bn (US$194m) from a rights issue, according to a company filing.

      Bright Scholar readies US float

      IFR 2180 22 April to 28 April 2017

      Bright Scholar Education has filed for a US$200m NYSE IPO with Morgan Stanley and Deutsche Bank as joint bookrunners. China Merchants Securities (HK) is also on the float.

      Rapid Finance launches NYSE IPO

      IFR 2180 22 April to 28 April 2017

      China Rapid Finance has opened books for a NYSE IPO of up to US$115m through joint bookrunners Credit Suisse, Morgan Stanley and Jefferies.

      Greentech secures cornerstones

      IFR 2180 22 April to 28 April 2017

      China Everbright Greentech, which started bookbuilding for a Hong Kong IPO of up to HK$3.3bn (US$424m) last Tuesday, has secured cornerstone investments of about US$137m.

      BoCom IB arm pre-markets IPO

      IFR 2180 22 April to 28 April 2017

      BoCom International, the Hong Kong investment banking arm of Bank of Communications, started pre-marketing last Thursday for a Hong Kong IPO of about US$300m.

      Zhongyuan Bank files in HK

      IFR 2180 22 April to 28 April 2017

      Zhongyuan Bank has filed an application for a proposed Hong Kong IPO this year to raise up to US$1bn, with CCB International, Citic CLSA, CMB International and JP Morgan as joint sponsors.

      Gansu lender hires for IPO

      IFR 2180 22 April to 28 April 2017

      Bank of Gansu has mandated five banks as sponsors for its proposed Hong Kong IPO of US$600m-$700m, according to people close to the plans.

      TPG completes institutional offer

      IFR 2180 22 April to 28 April 2017

      TPG Telecom has completed the institutional portion of its A$400m (US$301m) rights issue, according to a statement from the company.

      More from Equities

      Derivatives

      Equity loses listed derivatives market share

      IFR 2180 22 April to 28 April 2017 By

      Equity derivatives accounted for less than half of the exchange-traded derivatives market last year for the first time on record, data from the World Federation of Exchanges show.

      CME to relist energy futures after London closure

      IFR 2180 22 April to 28 April 2017 By

      CME Group is set to re-list its entire range of European energy contracts on the US-based Nymex after saying it will close its London-based derivatives exchange and clearinghouse later this year.

      NEX SEF gets CFTC nod

      IFR 2180 22 April to 28 April 2017 By

      NEX Group has received CFTC approval for a new swap execution facility, NEX SEF, which will offer trading in non-deliverable FX forwards from late May.

      CDS trigger concerns return for Novo Banco

      IFR 2179 15 April to 21 April 2017 By

      Portugal’s highly contentious proposal to sell Novo Banco, the nationalised part of Banco Espirito Santo, to private equity investor Lone Star looks likely to reignite controversy over whether such actions will trigger Novo Banco CDS.

      Swaps clearing hits record as margin rules bite

      IFR 2178 8 April to 14 April 2017 By

      Record volumes of interest rate swaps were cleared through central counterparties in March, as new rules forcing derivatives users to exchange daily margin on their uncleared swaps exposures raised the cost and operational burden associated with bilateral trades.

      More from IFR Derivatives

      Deutsche looks to lighten load of 'panic' bond deal

      21 April 2017 By

      Deutsche Bank has launched a bid to lessen the burden of an expensive US$4.5bn bond it issued last October at the height of investor concerns about the bank’s future.

      Venezuela shows high conviction to avoid default: Nomura

      21 April 2017 By

      PDVSA’s ability to cover a bulky US$2.1bn amortization this month suggests a willingness to make debt payments for the rest of the year and reveals how Venezuela may be sourcing funds, according to a report from Siobhan Morden, Nomura’s head of Latin American fixed-income strategy.

      DERIVATIVES-Equity narrows its share of listed derivatives

      21 April 2017 By

      Equity derivatives saw their share of the exchange-traded derivatives market fall below 50% for the first time on record during 2016, data from the World Federation of Exchanges show.

      DERIVATIVES-NEX SEF gains CFTC approval

      21 April 2017 By

      NEX Group has received CFTC approval for a new swap execution facility, NEX SEF, which will offer trading in non-deliverable FX forwards from late May.

      CORRECTED-UPDATE 1-Bank of America, Morgan Stanley follow results with bonds

      21 April 2017 By

      Bank of America Corporation sold a US$6.75bn senior bond on Wednesday, taking advantage of strong investor demand as the bank works to fund TLAC funding requirements.

      European Central Bank (ECB) headquarters

      ECB - PMIs strengthen case for June communication tweak

      21 April 2017 By

      The latest set of eurozone PMI data show resilience in the growth/inflation momentum over the last few months. This in turn helps strengthen the case for a shift in rate forward guidance likely to be communicated at the June ECB meeting.

      Anthony Peters columnist format

      Testing times

      21 April 2017 By

      I wonder whether we will be returning on Monday morning and re-writing the wise words of John Maynard Keynes who, having blown most the family fortune in the Crash of ’29, concluded that “Markets can remain irrational for longer than you can remain liquid”. 

      MOVES-UK & Ireland ECM head leaves Deutsche Bank

      21 April 2017

      Lorcan O’Shea has left Deutsche Bank and, for the time being, the banking industry. O’Shea left Deutsche Bank in March and is expected to take time out after 23 years in banking, but could return later this year or early next year, but not necessarily in an ECM role.

      Netmarble IPO prices at top of range

      21 April 2017

      The KRX listing of South Korean mobile gaming company Netmarble Games has raised W2.65trn (US$2.3bn), with the deal pricing at the top end of the range, according to a source close to the process.

      Ground staff work around a Qantas Boeing 737-800 aircraft parked with others at Melbourne airport's domestic terminal.

      Qantas increases refi to A$900m

      21 April 2017

      Australian national carrier Qantas Airways has increased its three-year and four-year refinancing loan to A$900m (US$678m) from an initial target of A$850m.

      GlobalWafers logo

      GlobalWafers raises US$469m from upsized GDS offer

      21 April 2017 By

      Taiwan’s GlobalWafers has raised US$469m from an upsized global depositary shares offering, the largest such sale from a Taiwanese issuer in almost four years.

      Deutsche Bank headquarters

      Fed slaps Deutsche Bank with Volcker Rule fine

      21 April 2017 By Philip Scipio

      The Federal Reserve slapped Deutsche Bank with US$156.6m in fines for what it said were “unsafe practices” in its foreign exchange markets business and sloppy record keeping related to Volcker Rule compliance.

      Ocwen Financial office

      Ocwen bonds plunge after CFPB lawsuit

      21 April 2017 By

      Bonds of mortgage loan servicer Ocwen fell sharply on Thursday, after the Consumer Financial Protection Bureau sued the company over alleged misconduct in handling loans.

      Morgan Stanley treasurer moving to Fannie Mae

      20 April 2017 By

      Morgan Stanley’s global treasurer Celeste Brown is leaving the bank to move to Fannie Mae.

      Drax sets talk on bond amid investor concerns

      20 April 2017 By Yoruk Bahceli

      Drax is on course to complete the refinancing of its Opus Energy acquisition despite investors’ concerns over the complexity and sustainability of the company’s business model.

      Awaiting the IMF green light

      QBE carves out new path in Green bond market

      20 April 2017 By

      QBE Insurance Group has priced the first major currency public Green bond from an insurer, the proceeds of which will be used to invest in other Green bonds.

      All Latest news

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      Special Reports

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      Markets are more agnostic about elections than the public at large. Even as half (or more) of America was gnashing its teeth over the election of the country’s first non-politician president since Eisenhower, the “Trump Rally” was in full flight.

      IFR German Corporate Funding Roundtable 2016
      IFR convened its fifth annual German Corporate Funding Roundtable in Frankfurt in mid-November just as bond markets, led by US Treasuries, were starting their sharp re-pricing off the back of higher inflation expectations and tighter US money.

      IFR India's Path to Sustainable Growth Roundtable 2016
      IFR recently convened a highly insightful roundtable discussion in Washington DC, entitled “India’s Path to Sustainable Growth: Challenges and Opportunities”. State Bank of India chair Arundhati Bhattacharya delivered some affirmative opening comments that eloquently framed the discussion that followed./p>

      From the practice of placing a bell around the neck of a castrated ram to lead the flock

      Getting the chop

      IFR 2180 22 April to 28 April 2017

      THERE’S SOMETHING GRIMLY literal about the identity of the man replacing Patrick Johnson as CEO of Panmure Gordon, less than a month after the broker was acquired by Bob Diamond-backed vehicle Atlas Merchant Capital.