Bank of China braved a torrid market last week to sell a landmark US$6.5bn offering of Basel III-compliant Additional Tier 1 preference shares and, with it, open the door to a new asset class for China.
The year might already be over for ECM bankers – in mid-October. Last week’s broad-based and dramatic corrections in asset prices saw IPOs postponed or cut in size across the world and if markets don’t quickly find stability, the considerable pipeline of deals scheduled for the rest of the year may prove impossible to bring to market.
Latin American borrowers are eyeing a broad set of alternative funding options in non-dollar markets that are becoming increasingly receptive to the region’s credits.
Tumbling oil prices caused Venezuela’s international bonds to slide to five-year lows last week, re-igniting fears of a potential default for the dollar-strapped sovereign.
Deeply subordinated debt issued by German Landesbanken lost as much as 10 price points last week as investors factored in the possibility that debt issued by banks that fail Europe’s coming stress tests will suffer painful haircuts.
The United Kingdom last week became the first foreign country to issue offshore renminbi bonds, with a smoothly executed offering that reflected the Chinese currency’s growing global appeal and London’s efforts to become a trading hub for the currency.
Investment banks face the difficult choice of cutting the overall pay packages of their most senior bankers or swallowing a big increase in their fixed costs after the European Banking Authority ruled that discretionary allowance payments breached bonus rules in the region.
Goldman Sachs believes part of the antitrust investigation by the European Commission into the credit default swaps market has been “suspended indefinitely”, according to its latest quarterly SEC filing.