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Tuesday, 28 April 2015

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Upfront

SEC Commissioner Michael Piwowar

Bickering shop

IFR 2080 25 April 2015 to 1 May 2015

When the G20 struck a historic agreement in 2009 to overhaul the over-the-counter derivatives market after the financial crisis, few envisaged that policymakers and regulators would still be bickering about the changes almost six years later.

Top News

AT&T

AT&T's deal leads renewed surge

IFR 2080 25 April 2015 to 1 May 2015 By

The US investment-grade bond market shifted back into overdrive last week, with a surprise burst of new deals led by a US$17.75bn jumbo acquisition financing by AT&T.

Fortescue Metals Group

Fortescue pays heavy price for delay

IFR 2080 25 April 2015 to 1 May 2015 By Mariana Santibanez

Australian miner Fortescue Metals Group sealed a crucial US$2.3bn refinancing last week, but was forced to pay investors a lot more than they had demanded on last month’s aborted first attempt.

Europe

CCP capital rules delayed

IFR 2080 25 April 2015 to 1 May 2015 By David Wigan, Mike Kentz

The European Banking Committee voted on Friday to postpone new capital rules for clearing houses, amid speculation that negotiators will fail to resolve an impasse over US-based operators before a June 15 deadline.

HFT

New MiFID draft sheds light on HFT

IFR 2080 25 April 2015 to 1 May 2015 By David Wigan

European regulators have conditionally settled on a final definition of high frequency trading, increasing momentum for tighter regulation of the controversial market.

ecb

QE could curb Europe's desire for reform

IFR 2080 25 April 2015 to 1 May 2015 By

The European Central Bank’s quantitative easing programme has pushed yields to such low levels that ratings agencies and market players have warned that eurozone countries have less incentive to put in place reforms that are key to future growth.

Ukraine

Agreement secured at Ukreximbank

IFR 2080 25 April 2015 to 1 May 2015 By ,

Ukraine took a significant step forward in its debt restructuring plans last week, after reaching agreement with an ad hoc committee of creditors to the State Export-Import Bank of Ukraine – or Ukreximbank – about the broad outlines of restructuring a US$750m bond that comes due this Monday.

Argentina flag

Argentina reopens access to dollars

IFR 2080 25 April 2015 to 1 May 2015 By Paul Kilby

Argentina won a small victory in its long legal war against holdout bondholders last week when it overrode litigant investors’ objections to raise US$1.416bn through a local tap of its Bonar 8.75% 2024s.

People enter and leave the headquarters building of Brazilian state oil company Petrobras in Rio de Janeiro

Petrobras rallies as acceleration threat fades

IFR 2080 25 April 2015 to 1 May 2015 By Paul Kilby

Brazilian corporate bonds in the secondary market were on a tear on Thursday after oil company Petrobras avoided a covenant breach with the publication late on Wednesday of its long-awaited audited results for 2014.

Uralkali

Uralkali resuscitates Russian lending

IFR 2080 25 April 2015 to 1 May 2015 By Sandrine Bradley

Russian potash producer Uralkali became the first Russian corporate to complete an internationally syndicated loan in 2015 when it signed a US$530m four-year secured pre-export financing.

Cars are seen parked at a Sinopec gas station in Shanghai,

Sinopec reignites China binge

IFR 2080 25 April 2015 to 1 May 2015 By Frances Yoon

A US$6.4bn bond from China’s biggest oil refiner has paved the way for more jumbo debt sales from the country as global monetary easing continues to drive offshore borrowing.

A man stands in front of "SUPERFLEX, Euro 2012"

EFSF prices deal as Europe bickers

IFR 2080 25 April 2015 to 1 May 2015 By

The European Financial Stability Facility last week successfully accessed bond markets at a time when its largest debtor, Greece, is at a key stage of bailout negotiations that could decide whether or not it defaults.

IFR Magazine Top News in Full (subscription required)

People & Markets

Paul Volcker

Volcker proposes overhaul of US regulators

IFR 2080 25 April 2015 to 1 May 2015

Former US Federal Reserve Chairman Paul Volcker believes legislators missed a golden opportunity to revamp the entire US financial regulatory system following the 2008 crisis – and his Volcker Alliance is offering up a proposal to do just that.

Barclays bank logo

ECM duo to run Barclays' main banking franchise

IFR 2080 25 April 2015 to 1 May 2015

Barclays has named Sam Dean and Crispin Osborne as co-heads of banking for the Europe, Middle East and Africa region, with the two taking charge of one of the firm’s key franchises at a moment of intense pressure and change.

The company logo of the Bank of America and Merrill Lynch

Hume-Kendall bows out after 17 years at Merrill

IFR 2080 25 April 2015 to 1 May 2015

European equity capital markets will be a more boring place when veteran dealmaker Rupert Hume-Kendall retires from Bank of America Merrill Lynch in September. The colourful Brit ends his 17 years with the firm as chairman of global corporate and investment banking for the Europe, Middle East and Africa region, but is most closely associated with the ECM business he once led and where he has spent most of his career.

Morgan Stanley’s Trading Rebound

Morgan Stanley makes smaller balance sheet work

IFR 2080 25 April 2015 to 1 May 2015

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The headquarters of Deutsche Bank are pictured in Frankfurt

Deutsche fined record US$2.5bn over rate rigging

IFR 2080 25 April 2015 to 1 May 2015

Deutsche Bank has agreed with US and British authorities to pay a record US$2.5bn to bring to an end investigations that it manipulated benchmark interest rates used to price loans and contracts around the world.

    More from People & Markets

    Bonds

    Greece's Finance Minister Yanis Varoufakis

    Greek jitters take toll

    IFR 2080 25 April 2015 to 1 May 2015

    Renewed fears that Greece could exit the eurozone in the coming weeks took a toll on European bond markets last week as investors that had previously been happy to add risk in the primary sector turned their backs on riskier trades.

    The Time Warner Cable headquarters in New York

    TWC bonds gap out on collapse of Comcast merger

    IFR 2080 25 April 2015 to 1 May 2015

    The level of event risk in the investment-grade bond market was demonstrated by Time Warner Cable late last week, when its long-dated bonds blew out as much as 80bp in 24 hours, on news that Comcast had abandoned its US$45bn takeover of the company.

    Gas Natural logo

    Weak market dims GasNat's second hybrid

    IFR 2080 25 April 2015 to 1 May 2015

    Investors’ response to Gas Natural’s second hybrid was in sharp contrast to its first foray printed in November 2014, as a trickier market backdrop made investors more cautious.

    Issuers go shorter as volatility takes toll

    IFR 2080 25 April 2015 to 1 May 2015

    Covered bond issuers that had been able to extend the maturity of their debt over recent weeks were forced to go shorter last week after broader volatility curtailed investor appetite for longer-dated bonds.

    Aduno brings radically differing zeros

    IFR 2080 25 April 2015 to 1 May 2015

    Swiss tech firm Aduno Holding sold a pair of swiftly executed short-end deals via separate leads on Thursday, taking advantage of stricter rules from the SNB to price two zero coupon transactions with radically differing underlying structures.

      More from Bonds

      Loans

      Iglo frozen food

      Competition time

      IFR 2080 25 April 2015 to 1 May 2015 By

      Private equity firms are facing competition from a growing number of entrepreneurs and high-net-worth individuals, as illustrated by Nomad Holdings’ agreement to buy Europe’s biggest frozen foods business, Iglo Foods.

      Logo of glass bottles maker Verallia

      Leveraged lenders face bleak second quarter

      IFR 2080 25 April 2015 to 1 May 2015 By

      Europe’s leveraged loan market is suffering from a lack of deals and with little in the way of M&A, bankers are predicting a slow second quarter.

      Informatica logo

      Private equity firms writing bigger buyout cheques

      IFR 2080 25 April 2015 to 1 May 2015 By Jonathan Schwarzberg

      Private equity firms are writing bigger equity cheques to finance new buyouts as leveraged lending guidelines issued by US regulators curb the amount of debt that banks are willing or able to lend.

      Logo of Taiwan's Financial Supervisory Commission

      Taiwan curbs China exposure

      IFR 2080 25 April 2015 to 1 May 2015 By , Carol Zhong

      Taiwan is clamping down on lending to Chinese entities amid growing fears of defaults in the mainland’s slowing economy.

      Sound Global logo

      Sound Global bids to dampen default fears

      IFR 2080 25 April 2015 to 1 May 2015 By Carol Zhong

      Waste-water treatment company Sound Global is seeking a second waiver on a US$110m syndicated loan in an attempt to avoid a wider debt default.

      GE Capital logo

      Into the breach

      IFR 2079 18 April 2015 to 24 April 2015 By Lynn Adler, Leela Parker Deo

      General Electric Co’s plans to sell the bulk of its finance unit, GE Capital, will create opportunities for lenders in the competitive world of US middle-market leveraged loans as a dominant player in commercial lending and sponsor finance leaves the field.

      US one-hundred dollar bills

      Market competition checks return of dollar premiums

      IFR 2079 18 April 2015 to 24 April 2015 By

      Fierce competition between banks in the European loan market is helping to nullify the rising costs for eurozone banks to fund deals in US dollars and postponing the possible return of dollar premiums on European loans.

      Stemcor logo

      Stemcor prepares US$2bn restructuring

      IFR 2079 18 April 2015 to 24 April 2015 By Sandrine Bradley, Maytaal Angel

      Steel trading firm Stemcor, one of the UK’s largest private companies, could be taken over by US distressed investment fund Apollo as part of a US$2bn debt restructuring.

      More from Loans

      Equities

      Baozun logo

      Chinese IPOs plunge in US

      IFR 2080 25 April 2015 to 1 May 2015

      US listings from China have slumped 95% year-on-year as rich valuations in the private placement market encourage fast-growing companies to delay their public offerings. Bucking the trend, Alibaba-backed e-commerce company Baozun filed for a Nasdaq IPO on April 17. At a proposed fundraising size of US$200m, it is set to be the largest Chinese listing in the US this year.

      Focus Media logo

      Focus set for local return

      IFR 2080 25 April 2015 to 1 May 2015

      Chinese display advertising company Focus Media, once a target of short-seller Muddy Waters, is working on a backdoor listing in Shanghai as it prepares to return to the public equity markets two years after delisting its US stock.

      Apigee logo

      Apigee jumps on debut but fails to excite

      IFR 2080 25 April 2015 to 1 May 2015

      Application technology and big data company Apigee made a solid debut on Friday after raising US$87m in equity but wasn’t able to repeat the huge gains that investors have enjoyed on many high-growth software IPOs in recent years.

      Storage spaces are seen in North Las Vegas

      National Storage incentivised to grow

      IFR 2080 25 April 2015 to 1 May 2015

      National Storage Affiliates got off to a tepid start as shares of the start-up self-storage REIT traded flat on their debut last Thursday, both opening and closing NYSE trading at the US$13.00 offer price.

      Logo of Integrated Diagnostics Holdings

      No change for returning IDH

      IFR 2080 25 April 2015 to 1 May 2015

      Medical testing business Integrated Diagnostics Holdings revived its US$290m attempt at a London listing last Monday, with books opening in short order on Friday.

      Oil & gas royalty trusts provide lift to E&P sector

      IFR 2080 25 April 2015 to 1 May 2015

      Historically depressed prices for oil and natural gas would seem to make for a strange time to float a royalty income trust. Then again, stressed financing structures across the industry could make fertile ground to acquire mineral interests at attractive prices.

      US ECM slows but biotech flourishes

      IFR 2080 25 April 2015 to 1 May 2015

      Earnings distractions should make for another slow week for US ECM issues, but the IPO window remains open, particularly for the gravity-defying biotech sector.

      Belgium: Early pricing for ongoing Biocartis IPO

      IFR 2080 25 April 2015 to 1 May 2015

      Molecular diagnostics company Biocartis closed its €100m Euronext Brussels IPO early last week, having announced top of the range pricing just a few days into the bookbuild.

      More from Equities

      Derivatives

      Logo of the International Swaps and Derivatives Association

      ISDA urges action on global harmony

      IFR 2080 25 April 2015 to 1 May 2015 By

      Derivatives professionals gathered in Montreal, Canada last week for ISDA’s 30th Annual General Meeting, where cross-border harmonisation topped the agenda amid myriad issues still weighing on the US$691trn over-the-counter swaps market.

      IntercontinentalExchange logo

      Swaptions clearing raises CCP risk fears

      IFR 2080 25 April 2015 to 1 May 2015 By

      Clearing houses may be increasing risk for their members by adding products that some market participants believe are best suited to the bilateral environment.

      Intercontinental Exchange logo

      ICE clock ticks amid margin row

      IFR 2079 18 April 2015 to 24 April 2015 By David Wigan

      Just over a month before the window shuts on ICE Clear Europe’s application for authorisation under the European Markets Infrastructure Regulation, the clearing house has come under attack by dealers concerned that its proposed margin models will lead to a surge in collateral costs.

      CDS spread performance

      VW and Airbus CDS hit by swap hedging

      IFR 2079 18 April 2015 to 24 April 2015 By David Wigan

      The cost of shorter-dated credit protection on European exporters including Volkswagen and Airbus has risen sharply, after the companies’ currency hedges left banks with large counterparty credit exposures.

      ETFs

      Fixed income ETFs attract institutions

      IFR 2079 18 April 2015 to 24 April 2015 By Mike Kentz

      Institutions may finally be embracing fixed income exchange-traded funds, if evidence provided by block trading volumes is anything to go by. The number of large trades appears to be increasing in a select set of ETFs, signalling to providers that larger institutions, which typically dominate the sizeable flows, are beginning to trade more frequently in the funds.

      More from IFR Derivatives

      IFR Latin America Special Report 2015

      IFR Latin America Special Report 2015

      Rather like the best Spaghetti Westerns, the usual suspects are present in Latin American finance – along with a familiar plot line on the tussle between order and chaos along an unruly frontier.   

      All Special Reports

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

      The Scottish chainsaw massacre

      IFR 2080 25 April 2015 to 1 May 2015

      BARCLAYS’ INCOMING CHAIRMAN John McFarlane wasted no time in making his feelings known about the task facing Antony Jenkins – via a brisk letter to shareholders.

      Artus

      Is expansionary monetary policy the bête noire of Europe’s economy?

      Patrick Artus of Natixis sees central banks trapped by the markets.

      Paul Volcker

      Volcker proposes overhaul of US regulators

      Former US Federal Reserve Chairman Paul Volcker believes legislators missed a golden opportunity to revamp the entire US financial regulatory system following the 2008 crisis – and his Volcker Alliance is offering up a proposal to do just that.

      The company logo of the Bank of America and Merrill Lynch

      Hume-Kendall bows out after 17 years at Merrill

      European equity capital markets will be a more boring place when veteran dealmaker Rupert Hume-Kendall retires from Bank of America Merrill Lynch in September. The colourful Brit ends his 17 years with the firm as chairman of global corporate and investment banking for the Europe, Middle East and Africa region, but is most closely associated with the ECM business he once led and where he has spent most of his career.

      Morgan Stanley’s Trading Rebound

      Morgan Stanley makes smaller balance sheet work

      Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

      The headquarters of Deutsche Bank are pictured in Frankfurt

      Deutsche fined record US$2.5bn over rate rigging

      Deutsche Bank has agreed with US and British authorities to pay a record US$2.5bn to bring to an end investigations that it manipulated benchmark interest rates used to price loans and contracts around the world.

      Keith Mullin 475px June 2014

      Volcker sets cats among regulatory pigeons

      Mullin: The US banking system would benefit from a trimmer set of regulators.

      Deutsche Bank

      "Smaller and simpler" mantra rings through banking boardrooms

      (Reuters) - Deutsche Bank’s expected move to sell much of its retail banking business will see it join a growing list of banks choosing to shrink and simplify to survive.

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      HSBC mulls move back homeVideo

      Amid rising UK taxes, HSBC Holdings announced a review into the future of its headquarters, and a return to Hong Kong where the bank was founded is seen as a likely outcome. Sarah Charlton reports.

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      Credit Suisse hit despite profit riseVideo

      The Swiss bank’s generally positive results are thought to be the start of trend in the European banking sector.

      All Spotlight