Rates volatility and a shrinking investor base are disrupting a public sector debt market that was once a byword for its dependability and strength in the face of adversity.
Deutsche Bank will post the biggest loss in its history when it releases third-quarter earnings later this month after booking €7.6bn of impairments linked to its 1999 purchase of Bankers Trust, the later Postbank acquisition and ongoing litigation costs linked to past misdemeanours.
The rarity value of non-sanctioned Russian issuers was made clear last week after two of the country’s leading companies reopened the market with remarkable results.
Two Chinese financial institutions are banking on support from Chinese investors to press ahead with Hong Kong IPOs to raise a combined US$5bn.
The institutional components of the three IPOs of Japan Post Group have been covered – but the message is less significant than normal considering that the vast majority of the ¥1.44trn (US$12bn) privatisation is reserved for retail buyers.
Caribbean and South Pacific-focused mobile phone network Digicel last week became the biggest casualty of investor indifference towards new US equity issues, forcing it to abandon plans for a US$2bn NYSE IPO a day before the deal was set to be priced.
The age of so-called “Unicorns”, or start-up companies that have achieved US$1bn-plus valuations in private funding markets, has arrived in Silicon Valley. Yet as last week’s eagerly awaited US$425m IPO of fast-growing flash data storage provider Pure Storage showed, public markets are showing less enthusiasm for the concept.
A tightening in global liquidity conditions is heaping pressure on credit and equity markets as the effects of central banks’ quantitative easing wane.
Goldman Sachs will make a second attempt at selling a new form of collateralised debt to investors, in a deal that bears strong similarities to last summer’s FIGSCO trade that never surfaced after failing to win over buyers.
A pricing correction in the US leveraged loan market prompted by institutional buyers demanding to be paid more in exchange for taking on increased risk has led to a quartet of borrowers withdrawing opportunistic loans in the face of inadequate appetite and forced others to pay steeper borrowing costs for acquisition and buyout-related loans.
A group of industry players has floated two new rate products that aim to solve problems with existing Treasury futures and reduce reliance on over-the-counter liquidity.
Investors planning to hold Ukraine to ransom by rejecting its exchange offer may have a tougher time than those who followed a similar strategy against Argentina and Greece, the other two countries to carry out major debt restructurings in the last decade.
JP Morgan, Citigroup and Credit Suisse have set up new online portals that allow their clients to trade mortgage bonds without having to tie up any of the banks’ capital.
Rates desks that are relying on a turn in the cycle as a catalyst for revenue improvement could be left disappointed, as some believe the link between absolute rates and client activity may have been over-hyped.