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Sunday, 25 September 2016

IFR Awards 2016

IFR Awards 2016 logo

Open for entries

12 September 2016

We invite banks to pitch now for the IFR Awards and IFR Americas Awards 2016.

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Bond traders

Top of the swaps

IFR 2152 24 September to 30 September 2016

When the G20 threw the over-the-counter derivatives market on the naughty step for its role in the financial crisis, sweeping reforms that threatened to hike swaps costs had derivatives exchanges rubbing their hands with glee.

Top News

Euro bills

Argentina returns to euros

IFR 2152 24 September to 30 September 2016 By

Argentina is poised to issue its first euro-denominated bonds in 15 years as the sovereign continues its rehabilitation in the capital markets. The country is expected to come with a relatively small dual-tranche trade that could reach around €1.5bn.

Shire's manufacturing facility in Lexington, Massachusetts

Shire raises eyebrows with stunning debut

IFR 2152 24 September to 30 September 2016 By Hillary Flynn

Investors piled into the debut bond from Shire last week, ignoring some clear warning signals that the drugmaker’s deal might have offered a little bit less than meets the eye.

Moscow International Business Center

Russia tap fails to convince doubters

IFR 2152 24 September to 30 September 2016 By Robert Hogg

Russia took advantage of a benign backdrop last week to tap its May 2026s for US$1.25bn but, as on the original transaction, debate raged about who bought the bonds.

Memory chips

Analog survives choppy syndication

IFR 2152 24 September to 30 September 2016 By Tessa Walsh

The slower than expected syndication of a US$7.5bn senior acquisition loan, which is part of a US$11.6bn financing backing Analog Devices’ US$14.8bn acquisition of chipmaker Linear Technology, shows that banks are finding it harder to make returns work on drawn acquisition term loans.

A JR Kyushu operated train

JR Kyushu IPO banks on non-railway growth

IFR 2152 24 September to 30 September 2016 By Robert Hartley

The ¥392bn (US$3.9bn) listing of Japanese state-owned rail operator JR Kyushu, the second largest IPO in Asia this year, is banking on the growth of its non-railway operations to lure investors.

Woori Bank headquarters

Tight Asian AT1s find takers

IFR 2152 24 September to 30 September 2016 By

Global investors are warming to Asian bank capital securities in search of high nominal returns and low loss-absorption risks, despite tighter pricing relative to European alternatives.

Currency signs

Widening cross-currency basis threatens US bond returns

IFR 2152 24 September to 30 September 2016 By ,

US bond yields could rise in coming weeks, amid signs that currency hedging costs near five-year highs may be undermining overseas demand for US fixed income securities.

Bank for International Settlements

OTC swaps users resist move to exchanges

IFR 2152 24 September to 30 September 2016 By

Derivatives exchanges have failed to lure business away from the over-the-counter swaps market despite sweeping reforms that have hiked the cost of bilateral exposures.

Swiss National Bank headquarters

Government debts eased by QE policies

IFR 2152 24 September to 30 September 2016 By

Of all the beneficiaries of the world’s unprecedented experiment with monetary easing, the backdoor benefit to government finances has perhaps been least noted.

SEC headquarters in Washington

Money-market reforms to make borrowing more costly

IFR 2152 24 September to 30 September 2016 By

Money-market fund reforms that come into effect next month will further hike short-term bank borrowing costs, which have already risen sharply in recent months.

IFR Magazine Top News in Full (subscription required)

People & Markets

Jefferies booth on the floor of the New York Stock Exchange

Jefferies signals trading upturn

IFR 2152 24 September to 30 September 2016

Jefferies Group has offered a glimpse into the third-quarter trading environment and signalled that banks are set for a decent rebound from year-ago levels, although the figures are not strong enough to reverse a negative long-term trend.  

Deutsche Bank headquarters

Deutsche Bank changes US top ranks

IFR 2152 24 September to 30 September 2016

Deutsche Bank has promoted Mark Fedorcik to head corporate and investment banking in the Americas, the latest in a series of overhauls at the struggling German bank as it tries to improve profitability and revive its fortunes.

US Federal Reserve building

​Banks need US$4bn extra capital as Fed turns screw on commodities

IFR 2152 24 September to 30 September 2016

The US Federal Reserve has proposed new rules aimed at limiting bank involvement in owning physical commodities, which could force major firms to hold an extra US$4bn in additional capital.

Goldman Sachs sign

Goldman seen cutting 30% of Asia IB jobs

IFR 2152 24 September to 30 September 2016

Goldman Sachs is cutting almost 30% of its 300 investment banking jobs in Asia outside Japan in response to a slowdown in activity in the region, two sources familiar with the matter said.

Wells Fargo sign

Wells Fargo scandal chills regulatory environment

IFR 2152 24 September to 30 September 2016

The thaw in the regulatory environment that many bank executives were feeling in the waning days of summer is over, thanks in large part to the scandal gripping Wells Fargo.

    More from People & Markets

    Bonds

    Goldman Sachs sign

    Investors flock to tight Goldman callable TLAC

    IFR 2152 24 September to 30 September 2016

    Goldman Sachs on Thursday became the third US bank to sell a callable senior unsecured bond issue that is intended to tackle Total Loss Absorbing Capacity rules.

    Bank of Japan (BOJ) building

    US market grapples with BoJ overhaul

    IFR 2152 24 September to 30 September 2016

    The US dollar SSA market could lose its all-important Japanese bid after the Bank of Japan’s monetary policy overhaul, although some bankers remain optimistic that the primary market will be able to shake off the potential capital flight.

    US election in focus at leveraged finance meet

    IFR 2152 24 September to 30 September 2016

    Hundreds of executives and investors will converge on an Arizona resort on Monday for a closely watched leveraged finance conference coming just weeks before the US elections.

    Deutsche Telekom logo

    Floating-rate notes back in vogue in high-grade market

    IFR 2152 24 September to 30 September 2016

    Floating-rate notes are making a comeback in the US investment-grade bond market amid renewed interest from investors expecting tighter monetary conditions in the US.

    Sweden removes financial sub debt's favourable tax treatment

    IFR 2152 24 September to 30 September 2016

    Sweden looks set to terminate the favourable tax treatment of subordinated bank bonds, setting the country apart from other European jurisdictions and increasing the cost of this type of debt at a time when lenders are loading up on capital.

      More from Bonds

      Loans

      A poll worker places a mail-in ballot

      Issuers accelerate borrowing plans

      IFR 2152 24 September to 30 September 2016 By Tessa Walsh

      The transatlantic loan markets are facing a busy few weeks as companies accelerate borrowing plans to take advantage of strong and liquid loan market conditions before running into any potential volatility around the looming US elections on November 8.

      Bayer logo

      Lenders hope for rapid take-out of Bayer bridge loan

      IFR 2152 24 September to 30 September 2016 By

      German drug and crop chemicals group Bayer’s US$57bn bridge loan backing its US$66bn acquisition of US seed company Monsanto launched last week. Banks looking to commit to the financing will be hoping that the company moves quickly to reduce the size of the loan.

      Kuwait National Petroleum Company's headquarters

      KNPC leads Gulf charge for funds

      IFR 2152 24 September to 30 September 2016 By Sandrine Bradley

      Kuwait National Petroleum Company (KNPC) is heading a list of cash-hungry Middle Eastern sovereign-related entities looking to raise substantial financings in the loan market, as low oil prices continue to deplete their balance sheets.

      SIG Combibloc logo

      SIG Combibloc opens door for more repricings

      IFR 2152 24 September to 30 September 2016 By Hannah Brenton

      Swiss packaging company SIG Combibloc’s aggressive repricing of its cross-border term loans could open the door for even more repricings in the European leveraged loan market.

      Memory chips

      Analog survives choppy syndication

      IFR 2152 24 September to 30 September 2016 By Tessa Walsh

      The slower than expected syndication of a US$7.5bn senior acquisition loan, which is part of a US$11.6bn financing backing Analog Devices’ US$14.8bn acquisition of chipmaker Linear Technology, shows that banks are finding it harder to make returns work on drawn acquisition term loans.

      ChemChina headquarters

      ChemChina closes Syngenta bridge

      IFR 2152 24 September to 30 September 2016 By Carol Zhong

      China National Chemical Corp has closed syndication of a US$12.7bn short-term bridge loan to back its record acquisition of Swiss seeds and pesticides company Syngenta, concluding a challenging process lasting several months.

      Verizon logo

      Verizon wraps US$9bn RCF

      IFR 2152 24 September to 30 September 2016

      Verizon Communications completed a US$9bn four-year revolving credit facility that was led by JP Morgan, Bank of America Merrill Lynch, Citigroup, Barclays and Wells Fargo.

      Melbourne port lifts Aussie loans

      IFR 2152 24 September to 30 September 2016 By Sharon Klyne

      Global lenders have flocked to a A$4bn (US$3bn) loan supporting the Port of Melbourne privatisation, underlining the competition for high-quality assets in a sluggish bank market.

      More from Loans

      Equities

      Nets logo

      Solid start for European issues

      IFR 2152 24 September to 30 September 2016

      Fears that the rest of the year’s IPO plans would be disrupted by the UK’s Brexit vote have been well and truly put to bed. Hollywood Bowl is the first UK company to complete an IPO since June 23 and its debut last week was a textbook example, making a high single-digit gain – and holding it.

      Innogy logo

      Innogy set to be Europe's largest IPO this year

      IFR 2152 24 September to 30 September 2016

      Innogy, the retail, infrastructure and renewables carve-out from German utility RWE, is set to be Europe’s largest IPO of the year.

      The Trade Desk logo

      Trade Desk leads tech IPO rebound

      IFR 2152 24 September to 30 September 2016

      The Trade Desk, a fast-growing ad-buying platform, soared 60% at its debut on Wednesday, the latest in a run of stellar gains from tech IPOs and a departure from the disappointing string of “ad tech” new issues in recent years.

      Azure Power Global logo

      Solar utility looks to New York

      IFR 2152 24 September to 30 September 2016

      Azure Power Global, a solar power producer, began marketing an up-to-US$156.4m New York IPO last Thursday, becoming the first Indian company to offer shares in the US in four years. 

      Checkered flag

      Ashland takes chequered flag on Valvoline spin

      IFR 2152 24 September to 30 September 2016

      Valvoline, the iconic US motor oil brand, raised US$660m from its IPO, the first step in its full separation from parent Ashland.

      Saigon beer

      Bankers circle stake sales

      IFR 2152 24 September to 30 September 2016

      Vietnam has started work on the divestment of key state-owned companies and bankers hope some of them will end up as capital market transactions.

      Encana's offices Parachute, Colorado

      Encana raises US$1bn to grow Permian production

      IFR 2152 24 September to 30 September 2016

      Canadian oil explorer and producer Encana has amassed a prolific set of hydrocarbon properties, but there are some concerns about the high costs of acquiring those assets, as well as the growing debt required to fund their development.

      IPO market stirs into life, more to come

      IFR 2152 24 September to 30 September 2016

      The US IPO market has roared back to life as reasonable valuations and stellar returns on the latest deals have prompted an investor chase for alpha.

      More from Equities

      Derivatives

      Currency signs

      Widening cross-currency basis threatens US bond returns

      IFR 2152 24 September to 30 September 2016 By ,

      US bond yields could rise in coming weeks, amid signs that currency hedging costs near five-year highs may be undermining overseas demand for US fixed income securities.

      China revamps CDS as defaults rise

      IFR 2152 24 September to 30 September 2016 By ,

      China has introduced new credit derivatives tools, which are closer to the global standard for credit-default swaps, as demand for credit protection has grown amid rising onshore defaults rates.

      CurveGlobal plans fee blitz land grab

      IFR 2152 24 September to 30 September 2016 By

      CurveGlobal, London’s newest derivatives platform, will offer cut-price fees for trading and clearing of interest futures when it launches on Monday, in a move it hopes will help break the stranglehold of Eurex and Ice Futures Europe (ICE).

      Bank for International Settlements

      OTC swaps users resist move to exchanges

      IFR 2152 24 September to 30 September 2016 By

      Derivatives exchanges have failed to lure business away from the over-the-counter swaps market despite sweeping reforms that have hiked the cost of bilateral exposures.

      ICE Clear Europe secures EMIR greeen light

      IFR 2152 24 September to 30 September 2016 By

      ICE Clear Europe was been recognised by the Bank of England in the past week as being authorised under the European Markets Infrastructure Regulation, bringing to an end a long-running dispute over the competitive impact of different rules in the US and Europe.

      More from IFR Derivatives

      Digital Edition

      Access a digital edition of the latest print magazine here.

      To read the IFR Magazine Digital Edition you will need to enter your details in the login section.

      If you have forgotten your password, or would like to find out more about IF subscriptions, please email rm.clientsupport@thomsonreuters.com.

      Capital CityCapital City logo    

      MOVES-Credit Suisse loses Europe FIG DCM boss

      23 September 2016 By

      Marcus Schulte, Credit Suisse’s head of financial institutions debt capital markets business in EMEA, has resigned from the bank and is heading to Deutsche Pfandbriefbank (PBB).

      MOVES-StanChart head of financial markets Paul quits

      23 September 2016

      Standard Chartered’s head of its financial markets unit Jonathan Paul has quit after less than 18 months in the role.

      Valvoline IPO priced at US$22, toward high-end of range

      22 September 2016

      Valvoline, the iconic US motor oil brand, raised US$660m from its IPO, the first step in its full separation from parent Ashland.

      Goldman Sachs sign

      Investors flock to tightly-priced Goldman callable TLAC deal

      22 September 2016 By

      Goldman Sachs on Thursday became the third US bank to sell a callable senior unsecured bond that is intended to tackle Total Loss Absorbing Capacity (TLAC) rules.

      UBS building in New York

      MOVES-UBS hires new EM syndicate head

      22 September 2016 By

      UBS has brought in Douglas Chen as head of EM syndicate Americas, adding to a growing list of senior bankers covering the asset class.

      John Cryan

      US election in focus at leveraged finance meet

      22 September 2016 By

      Hundreds of executives and investors will converge on an Arizona resort next week for a closely watched leveraged finance conference coming just weeks before the US elections.

      Mercedes Benz emblem

      Car companies brace for money-market rules

      22 September 2016 By

      Some auto companies have scrapped money-market tranches on new asset-backed bond deals, and more could follow as demand dwindles for the ultra-short tranches ahead of key reforms.

      Photovoltaic panels

      Indian solar utility launches global IPO roadshow

      22 September 2016 By

      Azure Power Global, a solar power utility focused on India, launched marketing Thursday of an up to US$156.4m IPO as the company looks to accelerate growth. The company will conduct a global roadshow to drum up investor support, an extensive effort ahead of scheduled pricing October 11.

      Italy's largest bank UniCredit is pictured in downtown Milan

      MOVES-Bockenfeld joins UniCredit board

      22 September 2016 By

      UniCredit has appointed Martha Bockenfeld as an independent non-executive director of the Italian bank.

      Commerzbank headquarters

      Commerzbank eyes thousands of job cuts in strategy revamp – sources

      22 September 2016

      (Reuters) - Commerzbank is planning to cut thousands of jobs as it revamps its strategy to contend with the drag on earnings from ultra low interest rates and lacklustre demand for loans, sources familiar with the bank’s thinking said.

      Sarens logo

      High-yield primary set to continue after favourable Fed

      22 September 2016 By Robert Smith

      The busy pace in high-yield primary shows no signs of slowing, particularly after the US Federal Reserve’s decision to keep rates unchanged gave the market an extra shot in the arm.

      Tarang Amin (C), Chairman and CEO of e.l.f. Beauty

      e.l.f. Beauty extends IPO winning streak

      22 September 2016 By Robert Sherwood

      e.l.f. Beauty, a maker of low-cost cosmetics, surged nearly 60% on its debut today, continuing a resurgence in the US IPO market.

      Opel headquarters

      Opel jumps on above-par bandwagon as red-hot demand continues

      22 September 2016 By Mariana Ionova

      Opel Bank is on the cusp of bringing the market’s third auto ABS deal sold at a premium in as many weeks, as investors continue to pile into the asset class even as yields grind tighter and tighter.

      Madrid skyline

      Madrid triumph lifts hopes for sovereign deals

      22 September 2016 By

      Madrid slipped a new deal into the belly of its curve this week, sparking fresh hope that the successful trade will encourage some of the heavily-rumoured peripheral sovereigns to finally pull the trigger on their own transactions.

      Rothschild & Co logo

      MOVES-Rothschild hires Hirschfield from Goldman

      22 September 2016

      Rothschild & Co hired Goldman Sachs banker Eric Hirschfield to head up its new Chicago office.

      Nets logo

      Nets sets pricing for US$2.4bn IPO

      22 September 2016 By

      Investors were told this morning that orders below DKr150 per share risk missing out on the Nasdaq Copenhagen IPO of digital payments business Nets, valuing the float at around US$2.4bn.

      All Latest news

      Special Reports

      IMF/World Bank
      With 189 member states encompassing virtually the entire globe, the IMF is uniquely positioned to monitor the health of the economic environment throughout the world. Each region presents its own set of circumstances – some positive, some negative – and the ingenuity of the capital markets to navigate a way through this varied landscape should never be underestimated.

      Asian Debt Capital Markets
      There is a clear driver behind the deals in Asia’s primary markets today, and that is the search for yield. From perpetual bonds in Singapore to subordinated Samurais in Japan and high-yield sovereign debt in Sri Lanka, investors are jumping at the chance to boost returns.

      Asian Bank Capital
      Bank capital has long been a hot topic in Asia, but the asset class has so far failed to ignite the kind of excitement that the Basel reforms once promised – at least outside of Australia. That is all about to change.

      Top 250 Borrowers
      Few would claim that the conditions in the capital markets could currently be described as normal. Even so, the underlying environment is both strong and deep. Includes IFR's Top 250 Borrowers ranking.

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

      Shark attack

      IFR 2152 24 September to 30 September 2016

      WITH MANY BANKS’ businesses holed below the water, it was perhaps only fitting that they took to the River Thames earlier this month to compete against one another in an annual charity dragon boat race.

      Opinion

      James Saft - June 2014

      Savers’ fault is in R-star

      The neutral interest rate to keep the economy in balance, R-star, is in hot debate among economists and central bankers as secular stagnation seems to have driven it lower.

      Anthony Peters columnist format

      Guts for garters

      So what was the surprise package yesterday? It was, I would suggest, the sharp rally in US stock markets after the FOMC announced that it would be leaving monetary policy unchanged. Why so? One must be led to believe that the Street wasn’t quite as long as had been assumed and that more players than might have been expected were positioned for the tightening move. 

      James Saft - June 2014

      Central banks arrive, as usual bearing gifts

      Wednesday brought a double gift for risk investors: the usual, as the Federal Reserve declined yet again to raise rates, and the exotic, as the Bank of Japan declined to carry on undercutting its financial sector.

      Anthony Peters columnist format

      The Fed's Catch-22

      I was quietly amused yesterday morning when I read the opening lines penned by my fellow scribbler at Mint Partners, Billy Blain, who wrote: “Here we are… poised on the edge of the two most important central bank meetings ever…”

      Anthony Peters columnist format

      Down, down, deeper and down

      “Bitch, bitch, bitch, bitch…. your problem is bigger than mine!” So stressed Italy’s Prime Minister Matteo Renzi when pointing out that the non-performing loans on his country’s banks’ balance sheets might be a problem but that it’s still nothing like as serious as the derivative risk held by German banks…. Yippee, Europe’s fourth largest economy is being run by a man acting like a teenage schoolgirl! 

      James Saft - June 2014

      Pity the owners of M&A bidding companies

      Shareholders in acquiring companies should be thankful: mergers and acquisitions are down sharply this year.

      Anthony Peters columnist format

      Be afraid; be very afraid...

      Should we be scared in the aftermath of the New York bomb? What about the FOMC meeting on Tuesday and Wednesday? What if they were to decide to tighten?

      keith mullin

      A TLAC approach to Green bonds

      THE GREEN BOND inner-circle are a testy lot. Some of the negative reactions to the supportive piece I wrote about the market back in May were, let’s just say, rather indecorous and I was harassed and hounded. Bemusing, since I’d merely postulated the idea that if voluntary standards weren’t tightened, definitions should be prescribed by regulatory diktat to give the market the robust underpinning it needs in order to scale. I stand by my position.

      Anthony Peters columnist format

      A fourteen billion dollar question

      Does anybody remember the scene from the utterly charming comedy “Twins” when Danny De Vito exclaims “Five million dollars!” several times with a variety of expressions while trying to get his head around the number? I wonder how many shareholders of Deutsche Bank were doing the same yesterday while practising saying “Fourteen billion dollars!”? If they weren’t they should have been, not least of all their Teflon-coated chairman Paul Achleitner. 

      James Saft - June 2014

      Eight years on from Lehman, finance remains a tax on us all

      Eight years to the day after the fall of Lehman Brothers and one thing has not changed: finance remains a private tax levied on the rest of us.