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.