Friday, 09 October 2015


John Cryan

When bad news is bad news

IFR 2104 10 October to 16 October 2015

It might have seemed counter-intuitive that Deutsche Bank’s shares rallied in early trading after the bank announced that it would make its worst quarterly loss on record – the worst in a whopping 145 years. But on one reading the announcement is indeed good for the stock.

Top News


Cracks appear in usually solid SSA market

IFR 2104 10 October to 16 October 2015 By

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

Deutsche set for worst-ever loss

IFR 2104 10 October to 16 October 2015 By

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.


Russian duo stun with market openers

IFR 2104 10 October to 16 October 2015 By

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.


Jumbo test for Hong Kong IPOs

IFR 2104 10 October to 16 October 2015 By

Two Chinese financial institutions are banking on support from Chinese investors to press ahead with Hong Kong IPOs to raise a combined US$5bn.

Japan Post

Japan Post IPOs build early momentum

IFR 2104 10 October to 16 October 2015 By

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.

A Digicel phone

Debt drags down Digicel's US$2bn IPO

IFR 2104 10 October to 16 October 2015 By

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.

Pure Storage goes public

Pure Storage stumbles on debut

IFR 2104 10 October to 16 October 2015 By

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.


Failing QE raises red flag warning

IFR 2104 10 October to 16 October 2015 By

A tightening in global liquidity conditions is heaping pressure on credit and equity markets as the effects of central banks’ quantitative easing wane.

A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in the Manhattan borough of New York.

Goldman tries again after FIGSCO fiasco

IFR 2104 10 October to 16 October 2015 By

Goldman Sachs will make a second attempt at selling a new form of collateralised debt to investors, in a deal that bears strong similarities to last summer’s FIGSCO trade that never surfaced after failing to win over buyers.

South Korean women sit on a bench in the shape of the 100 dollar U.S. bank note in front of Korea Exchange Bank in Seoul.

Loan buyers demand higher prices

IFR 2104 10 October to 16 October 2015 By Leela Parker Deo, Jonathan Schwarzberg

A pricing correction in the US leveraged loan market prompted by institutional buyers demanding to be paid more in exchange for taking on increased risk has led to a quartet of borrowers withdrawing opportunistic loans in the face of inadequate appetite and forced others to pay steeper borrowing costs for acquisition and buyout-related loans.

A Wall Street sign is pictured outside the New York Stock Exchange

Treasury and swap futures combo floated

IFR 2104 10 October to 16 October 2015 By Mike Kentz

A group of industry players has floated two new rate products that aim to solve problems with existing Treasury futures and reduce reliance on over-the-counter liquidity.

EM ukraine

Ukraine exchange unattractive for holdouts

IFR 2104 10 October to 16 October 2015 By

Investors planning to hold Ukraine to ransom by rejecting its exchange offer may have a tougher time than those who followed a similar strategy against Argentina and Greece, the other two countries to carry out major debt restructurings in the last decade.

Citibank Corporate headquarters

Three banks try portals for mortgage bond trading

IFR 2104 10 October to 16 October 2015 By

JP Morgan, Citigroup and Credit Suisse have set up new online portals that allow their clients to trade mortgage bonds without having to tie up any of the banks’ capital.

NYSE trader

Rates desks warn on hike-related expectations

IFR 2104 10 October to 16 October 2015 By

Rates desks that are relying on a turn in the cycle as a catalyst for revenue improvement could be left disappointed, as some believe the link between absolute rates and client activity may have been over-hyped.

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

Kitchen sink drama

IFR 2104 10 October to 16 October 2015

WHEN JOHN CRYAN took over as chief executive of Deutsche Bank, some thought that this cerebral, private man might shy away from the more demanding areas of the role. Not so. Last week he showed he’s a natural by passing the first rule of being a new CEO with flying colours – by pre-announcing a third-quarter loss ahead of unveiling how he will ride to the rescue of an institution that in less than a year has gone from the “last bank standing” to “troubled German lender”.

IFR Awards lined up on table

IFR Awards 2015: Call for entries

We invite banks to pitch now for the IFR Awards and IFR Americas Awards 2015.

Moody's headquarters in New York

Moody's warns on legacy assets

An US$866bn overhang of legacy assets at Barclays, Credit Suisse, Deutsche Bank, RBS and

Passersby walk in front of the main branch of Standard Chartered in Hong Kong.

StanChart takes axe to debt financing group

Standard Chartered is taking the knife to its debt-financing business in a move to streamline its management structure and improve risk pricing.

Mizuho headquarters in Tokyo

​Asian investors eye European FIG assets

Asian financial institutions have become active acquirers of European financial assets and this trend looks set to continue – if not accelerate – in the final quarter, according to analysis by Macquarie.

The Reserve Bank of India (RBI) headquarters in Mumbai

India tweaks debt rules to promote rupee

India’s central bank has tabled long-awaited plans to relax restrictions on overseas borrowing, in a move to encourage foreign investment in long-term debt and widen the use of its currency.

Bill Gross

Bill Gross sues Pimco for US$200m over forced ouster

(Reuters) - Famed bond investor Bill Gross sued his former employer Pacific Investment Management Co and its parent Allianz SE for US$200m, saying he was driven out of the bond fund giant he helped found by a greedy “cabal” of executives who wanted his huge bonus for themselves.

ICE - IntercontinentalExchange

ICE wins tender for swap margin utility

Isda has selected the financial benchmarks arm of the InterContinental Exchange to build and operate a crowd-sourcing utility for the industry-developed Standard Initial Margin Model for managing the exchange of collateral backing uncleared swaps transactions.

Deutsche Bahn logo

Deutsche Bahn goes it alone with eight-year FRN

Deutsche Bahn was the only corporate prepared to bite the bullet on Wednesday, as nervy sentiment around new issue premiums continues to haunt the investment grade market.


China comes in from the cold

By David Marsh, managing director and co-founder of OMFIF

Beijing indicates a leaning to sterling.


UK referendum will be Europe’s biggest test

By Mojmir Hampl, Deputy Governor, Czech National Bank

Overshadowing Greece and refugees.

All Guest Columnists: OMFIF

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Top staff to be cut at StanChart Video

Standard Chartered’s new Chief Executive Bill Winters plans to cut up to a quarter of the bank’s most senior staff to reduce costs, according to a memo sent to staff. David Pollard reports.

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TPP trade deal reachedVideo

The Trans-Pacific Partnership, or TPP, sets up a free-trade zone for forty percent of the world’s economy, and is considered the most ambitious trade pact in a generation. Bobbi Rebell reports.

All Spotlight

IMF/World Bank 2015

IMF/World Bank 2015

Mean Streets: If the IMF were a cop, it would be the righteous Commissioner Gordon, desperately trying to maintain order in Gotham City while waiting for Batman to turn up.

IFR Securitisation Roundtable 2015 Cover image

IFR Securitisation Roundtable 2015Video

IFR’s Securitisation Roundtable – entitled “The Great European Securitisation Debate” – took place on May 28. Even though the general market at that point had turned volatile and Bund yields had been whipsawing, it was long before Greece went into arrears with the IMF and Greeks had voted against the latest austerity package. So the following discussion needs to be read with this in mind.

IFR German SME Funding Roundtable 2015 Cover image

IFR German SME Funding Roundtable 2015

IFR’s 2015 Roundtable on German SME Funding, held on June 16 in Frankfurt, took place in the wake of violent swings in the bond market. Not long before the discussion, volatility in 10-year Bund futures had hit levels it hadn’t seen for three years as the broad market lost its sang-froid.

IFR ECM Roundtable 2015

IFR European ECM Roundtable 2015

IFR’s Europe, Middle East and Africa ECM Roundtable was held on June 25 just as Greece had caused European debt issuance to slump. Yet this was an upbeat discussion held amid a flurry of issuance.

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