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Tuesday, 04 August 2015

Capital City Capital City logo    

IFR German SME Funding Roundtable 2015 Cover image

IFR German SME Funding Roundtable 2015

IFR’s 2015 Roundtable on German SME Funding, held on June 16 in Frankfurt, took place in the wake of violent swings in the bond market. Not long before the discussion, volatility in 10-year Bund futures had hit levels it hadn’t seen for three years as the broad market lost its sang-froid.

IFR ECM Roundtable 2015

IFR European ECM Roundtable 2015

IFR’s Europe, Middle East and Africa ECM Roundtable was held on June 25 just as Greece had caused European debt issuance to slump. Yet this was an upbeat discussion held amid a flurry of issuance.

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Upfront

A graffiti mocks the Brazilian real

Hard (currency) truths

IFR 2094 1 August to 7 August 2015

Emerging markets foreign exchange is at it again. Commodity woes have combined with uncertainty about a US rates hike to hammer currencies such as the rouble and Brazilian Real. And still the faithful are urging investors to buy into local currency bonds.

Top News

Globe

Returns evaporate from EM local currency bonds

IFR 2094 1 August to 7 August 2015 By , ,

A combination of looming US interest rate hikes, sliding commodity prices and jaded growth prospects are heaping pressure on emerging market local currency bonds.

 Dilma Rousseff

S&P leaves Brazil on the brink of junk

IFR 2094 1 August to 7 August 2015 By Paul Kilby

Struggling Brazil took another blow to the chin last week when S&P put the country’s BBB– credit rating on negative outlook, setting the stage for a potential downgrade to junk.

ESMA logo

ESMA backtracks on MiFID liquidity

IFR 2094 1 August to 7 August 2015 By

European regulators are set to offer some exemptions from the second Markets in Financial Instruments Directive for the least liquid securities, according to a confidential draft document seen by IFR.

Royal Bank of Scotland (RBS) logo

RBS speeds towards full Citizens exit

IFR 2094 1 August to 7 August 2015 By

Royal Bank of Scotland slashed its stake in US regional bank Citizens Financial from 40.8% to below 21% through an upsized US$2.5bn secondary stock sale that puts the bailed-out UK lender well ahead of schedule to completely divest the holding. 

Patrick Soon-Shiong, CEO of NantKwest

NantKwest sets new record for biotech

IFR 2094 1 August to 7 August 2015 By Robert Sherwood

NantKwest, a clinical-stage biotech working on a novel cancer treatment, achieved a record valuation for the sector at its IPO and on debut chief executive Patrick Soon-Shiong’s US$47.5m investment seven months ago returned a US$1.74bn paper profit.

Driven Brands logo

Investors welcome back boom-style ABS

IFR 2094 1 August to 7 August 2015 By

Two types of riskier securitisations thought to have died off with the financial crash were revived in July, but came to market on a more solid footing under new post-crisis regulation.

Gold

Gold tanks as catastrophe fears recede

IFR 2094 1 August to 7 August 2015 By

Money managers have become net sellers of gold derivatives for the first time on record, as the precious metal reached five-year lows last week.

Alejandro Garcia Padilla

Puerto Rico skips payment

IFR 2094 1 August to 7 August 2015 By Philip Scipio

Cash-strapped Puerto Rico fired a warning shot across the bows of its many creditors last week when it opted not to pay a bond due on August 1.

DBS

DBS makes covered debut

IFR 2094 1 August to 7 August 2015 By Frances Yoon

DBS Bank has brought Singapore’s first covered bond benchmark with a US$1bn three-year offering, setting a foundation for Asian banks to access a market that has proved resilient in times of crisis.

Reuters

India gains from China's slump

IFR 2094 1 August to 7 August 2015 By S Anuradha

Shaken by a month of wild swings and heavy losses in China, equity investors are warming to India, helping to drive a biotech IPO and a government share sale.

IFR Magazine Top News in Full (subscription required)

People & Markets

Fees

Fees jump in busy July but Goldman and JP Morgan lose share

IFR 2094 1 August to 7 August 2015

July was the busiest month so far this year for investment banking fees, with the industry earning US$9.42bn from bond issues, equity deals, loans and M&A advisory, according to Thomson Reuters figures.

PM Feature chart 2094

UBS recovery boosted by equity upswing

IFR 2094 1 August to 7 August 2015

UBS has posted the best first half to the year since 2011 at its investment bank, with a surge in equity trading and strong advisory fees in the second quarter building on solid momentum in the first three months of the year.

Deutsche Bank headquarters in Frankfurt

Bumper trading and origination boost Deutsche

IFR 2094 1 August to 7 August 2015

Deutsche Bank showed signs of recovery at its investment bank in the three months to the end of June, with an upswing in trading and bumper origination fees propelling the much-shrunken business to its best second quarter in four years.

 John McFarlane

​Barclays narrows investment banking ambitions

IFR 2094 1 August to 7 August 2015

Barclays’ new executive chairman John McFarlane has admitted that the firm is no longer able to compete globally with the five largest US investment banks, in comments that are likely to precede deep cuts to the division.

Chinese investors react

Battered China investors turn to bonds

IFR 2094 1 August to 7 August 2015

Persistent volatility and an IPO freeze are driving Chinese money managers away from equities and into the country’s burgeoning bond market.

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    Bonds

    US dollar bills

    Dollar funding provides challenges for European SSAs

    IFR 2094 1 August to 7 August 2015

    European supranationals and agencies could run into hurdles if they continue to depend on the US dollar market for funding, as benchmark bonds in the currency are set to be volatile in months to come.

    Entrance of a UBS branch office in Basel

    UBS foreshadows more dollar AT1

    IFR 2094 1 August to 7 August 2015

    UBS shook the dormant European Additional Tier 1 market back to life last Friday with a deal that could herald a heightened period of dollar supply in the coming months. 

    Bankia eyes AT1 in 2016

    IFR 2094 1 August to 7 August 2015

    Bankia will seek to fortify its balance sheet in 2016 through the issuance of subordinated debt instruments including Additional Tier 1, signalling another step forward for the bailed-out Spanish lender.

    A barman pulls a pint of beer

    SABMiller sparkles in Australian debut

    IFR 2094 1 August to 7 August 2015

    SABMiller showed there is plenty of depth in the Australian corporate bond market for the right name at the right price.

    RBS plans inaugural CoCo bond

    IFR 2094 1 August to 7 August 2015

    RBS capitalised on positive quarterly results last Thursday and announced firm plans to raise an inaugural Additional Tier 1 bond, putting an end to one of the market’s longest awaited capital raises.

      More from Bonds

      Loans

      Logo of Teva Pharmaceutical Industries

      Surging M&A boosts bridge deals

      IFR 2094 1 August to 7 August 2015 By Karen Schwartz

      Massive acquisition financings are multiplying. Israel’s Teva Pharmaceutical Industries is lining up US$27bn of debt to finance its US$40.5bn acquisition of Allergan’s generics business, following hot on the heels of a similar US$26.5bn 364-day facility backing US health insurer Anthem’s US$54.2bn acquisition of health services company

      Stahl logo

      Stahl shows aggressive recaps off the menu

      IFR 2094 1 August to 7 August 2015 By

      Dutch leather chemicals company Stahl pulled an opportunistic €585m-equivalent dividend recapitalisation, which shows increasing investor selectivity and wariness of riskier credits as macroeconomic concerns mount over Greece, Chinese stock market volatility and sliding commodity and oil prices. 

      Antares Capital logo

      Antares’ US$13.9bn deal includes jumbo asset-backed loan

      IFR 2094 1 August to 7 August 2015 By Leela Parker, Kristen Haunss

      Antares Capital is in the market with US$13.9bn of senior secured credit facilities backing its sale to Canada Pension Plan Investment Board (CPPIB) from General Electric Capital Corp, which include a jumbo US$10.7bn asset-backed loan.

      Fortescue Solomon iron ore mine

      Commodity slump hits secondary loan prices

      IFR 2094 1 August to 7 August 2015 By Sharon Klyne,

      Slumping commodity prices hit secondary loan prices of iron ore, oil services and coal companies last week as China’s stock market volatility raises fears that demand in the world’s most commodity-hungry economy is cooling and global markets brace for an imminent US interest rate rise.

      Minsheng Financial Leasing logo

      Minsheng Leasing pays up for offshore deal

      IFR 2094 1 August to 7 August 2015 By Carol Zhong, Eric Zhao

      Minsheng Financial Leasing is back in the market with another US$200m offshore loan as it wraps up syndication of a three-year onshore facility, which was increased to US$250m from an original target of US$200m.

      Solvay logo

      Belgium: Solvay takes US$5.8bn bridge

      IFR 2094 1 August to 7 August 2015

      Chemicals group Solvay is backing its acquisition of US-based advance materials company Cytec Industries with a committed US$5.8bn bridge loan.

      Italy: €660m forward start for Cerved

      IFR 2094 1 August to 7 August 2015

      Credit data provider Cerved Group has agreed a €660m forward start facility that will be used to repay existing high-yield bonds in January 2016, when call protection on the bonds expires. 

      Zegona’s funds Telecable de Asturias buy

      IFR 2094 1 August to 7 August 2015

      A €294m leveraged loan backing European telecoms investor Zegona Communications’ €640m acquisition of Spanish telecoms operator Telecable de Asturias has been pre-placed with no syndication expected. 

      More from Loans

      Equities

      TerraForm Global logo

      SunEdison stumbles on global growth

      IFR 2094 1 August to 7 August 2015

      SunEdison pushed ahead with the carve-out IPO of its international yieldco, TerraForm Global, despite a dramatic revaluation that necessitated a recirculation of the offering process and a delayed opening last Friday. The one-time alternative energy power producer was forced to lend support, and may need to do so in the future as well, such was the extent of negotiations.

      Martin Lewis

      Shareholder donates shares to charity

      IFR 2094 1 August to 7 August 2015

      Martin Lewis, the personal finance journalist who founded Money Saving Expert, has donated 4.27m shares in Moneysupermarket to the Charities Aid Foundation. The shares were bundled with another 9m shares owned by Lewis and sold on Thursday in an accelerated bookbuild managed by Credit Suisse, most likely the last ABB this side of the summer holidays.

      Philadelphia Energy Solutions storage tank

      Carlyle-backed refiner seeks to crack IPO market

      IFR 2094 1 August to 7 August 2015

      Oil refiners continue to thrive whether oil is at US$100 or sub-US$50. Large refiners with diversified operations are more likely to use excess cashflows generated to buy back stock than sell, as evidenced by Valero Energy’s recent share repurchase authorisation of US$2.5bn.

      CONSOL Energy office building

      CONSOL Energy targets free-cash positive

      IFR 2094 1 August to 7 August 2015

      Stress points are beginning to surface across the commodities complex.

      Planet Fitness

      Planet Fitness starts IPO treadmill

      IFR 2094 1 August to 7 August 2015

      Gym franchisor and operator Planet Fitness sees an opportunity to more than quadruple its locations in the US over time as it presses ahead with plans to raise up to US$216m in an IPO set to price later this week.

      RiverBanc seeks bridge to public markets

      IFR 2094 1 August to 7 August 2015

      RiverBanc Multifamily Investors was another casualty of investors’ more discerning approach towards the IPO market last week. The REIT, which holds structured investments backed with apartment blocks, opted to defer its IPO targeting up to US$76m on Thursday night.

      NEP Group gets Crestview

      IFR 2094 1 August to 7 August 2015

      The US$221m IPO of live-events production roll-up NEP Group was one of three IPOs that failed to price as scheduled last week, even after an eleventh hour disclosure that sponsor Crestview Partners would stump up US$20.8m, or about 10% of the deal.

      vTv Therapeutics' forgettable debut

      IFR 2094 1 August to 7 August 2015

      vTv Therapeutics will go down in infamy for the wrong reason: the worst-performing IPO of 2015. Shares of the Alzheimer’s drug developer plunged 28% from offer on debut Thursday, despite sufficient demand to allow for pricing at the low-end of the marketed range.

      More from Equities

      Derivatives

      Deutsche Asset and Wealth Management logo

      Smart beta makes bond leap

      IFR 2094 1 August to 7 August 2015 By

      Systematic strategies that aim to enhance benchmark returns and bridge the gap between passive and active management are making the leap into the fixed income world.

      Algorithmic trading firms target swap execution facilities

      Algo firms target SEFs

      IFR 2094 1 August to 7 August 2015 By

      Algorithmic trading firms are expanding to target swap execution facilities after rivals arbitraged away the most obvious opportunities in exchange-traded markets, analysts say.

      More from IFR Derivatives

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      IFR on Abengoa

      Abengoa

      Abengoa coverage

      IFR’s Rob Smith has closely followed the financial twists and turns of the troubled Spanish energy company.  Here is a rundown of all the coverage…

      Hanke

      Story of a failure

      By Steve Hanke, Johns Hopkins University

      The danger signals from the Greek money supply…

      Desai

      Wrangling over Rajan’s remit

      By Meghnad Desai, Chairman OMFIF Advisory Board

      The Reserve Bank of India fights off its detractors…

      All Guest Columnists: OMFIF

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

      A change instead of a rest

      IFR 2094 1 August to 7 August 2015

      JOHN CRYAN AND Deutsche Bank are turning out to be a perfect fit. The new chief executive, just a month into the job, is a proficient German speaker – so much so that he’s even started to sound Teutonic when he writes in English.

      Fees

      Fees jump in busy July but Goldman and JP Morgan lose share

      July was the busiest month so far this year for investment banking fees, with the industry earning US$9.42bn from bond issues, equity deals, loans and M&A advisory, according to Thomson Reuters figures.

      Russia

      Emerging EMEA: IMF forecasts big Russian contraction

      Russia’s economy is expected to shrink by 3.4% this year, according to the IMF, as the decline in the oil price and geopolitical tensions with Ukraine continue to weigh on growth.

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      HSBC profits boom on the back of Asian growthVideo

      HSBC reports second-quarter earnings, reporting a 10% rise year-on-year. Ryan Brooks reports.

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      Chelsea

      IFR Fantasy Football League 2015-16 - Join Now

      By IFR Fantasy Football League Secretary General

      The fiercest financial industry competition is back, but can anyone break the Dutch grip on the IFR Fantasy Football League?

      All IFR FFL