Barclays and Credit Suisse laid to rest any doubts about the strength of global investor appetite for Additional Tier 1 capital from European banks when they attracted the US dollar equivalent of more than US$35bn of demand for their deals in the past week.
Bank of Ireland took a giant leap forward in its plans to return to mainstream banking last week when it successfully repaid €1.8bn of state aid, breaking free from the clutches of a government that supported it through the financial crisis.
China’s stalled IPO market could be back in business as early as January, but the reopening is unlikely to reverse the flow of Chinese companies planning to list in Hong Kong.
Microsoft tapped the euro and US dollar markets for US$8bn-equivalent of bonds last Tuesday and turned conventional wisdom on its head by showing that it could get better pricing and bigger size in Europe than it could at home. The dual-currency approach meant it achieved much better pricing and greater investor diversification than if it had issued entirely in dollars, according to the bankers involved.
True Corp is poised to complete Thailand’s second infrastructure trust IPO, even though anti-government protests on the streets in Bangkok have forced one equity deal out of the market.
JP Morgan, HSBC and Credit Agricole have denied being part of a cartel with Barclays, Deutsche Bank, RBS and Societe Generale to fix Euribor. The European Commission said it was continuing to investigate the three banks despite the latter four admitting to collusion last week.
The Islamic Republic of Pakistan launched its first syndicated loan in nearly 15 years, giving Asian lenders their first taste of a sovereign borrowing in over five years.
Hilton Worldwide impresses on multiple fronts. As one of the few pre-crisis mega buyouts remaining, the world’s largest hotels operator remains highly leveraged but squarely focused on rapidly ratcheting down leverage. A US$2.4bn IPO due to price this week and a debt overhaul completed in October are merely the latest steps in an ongoing rehabilitation.
Investment banks are finding it increasingly difficult to secure regulatory sign-off to reduce the vast sums of capital they are forced to hold against derivatives exposures under Basel III.
BNY Mellon has decided to shut its swaps clearing service just three years after the firm launched the business in an attempt to profit from the Dodd-Frank mandate for clearing OTC swaps.