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Tuesday, 21 April 2015

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Upfront

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IFR 2079 18 April 2015 to 24 April 2015

ECM deals have long been a source of payback for services already rendered, with mandates frequently awarded to repay corporate broking, advice or lending. Especially lending.

Top News

najib razak malaysia

Malaysia sells sukuk landmark

IFR 2079 18 April 2015 to 24 April 2015 By Kit Yin Boey

The Government of Malaysia sold the world’s first 30-year sovereign sukuk issue last Wednesday and in the process shrugged off domestic woes to establish a long-dated benchmark Islamic curve for other sovereigns to follow.

Kiev

Ukraine wobbles on first test

IFR 2079 18 April 2015 to 24 April 2015 By

The foundations of Ukraine’s restructuring plans trembled last week after State Export-Import Bank of Ukraine failed to agree a three-month maturity extension with noteholders on a bond issue due later this month.

dollar yen pound sterling yes hong kong

HK rally brings out blocks

IFR 2079 18 April 2015 to 24 April 2015 By Timothy Sifert,

A sudden surge in Hong Kong’s equity market unleashed a frenzy of block trades, with US$3.4bn of such deals getting done in just over a week since the Easter break.

shanghai stock exchange

Shanghai tops world IPO rankings

17 April 2015 By ,

The Shanghai Stock Exchange has, for the first time in years, surpassed the Stock Exchange of Hong Kong and longstanding leader New York Stock Exchange to become the world’s most active bourse for initial public offerings in the first quarter of the year.

A Permanent TSB branch

PTSB sale starts small

IFR 2079 18 April 2015 to 24 April 2015 By Graham Fahy

The Irish government will not sell a substantial part of its stake in Permanent TSB in the upcoming public offering, preferring instead to wait before trying to recoup taxpayers’ money invested in the bank’s 2011 bailout.

hutchison whampoa li ka-shing

Record response as Hutch raises US$18bn

IFR 2079 18 April 2015 to 24 April 2015 By

Hong Kong bellwether Hutchison Whampoa’s three-year bullet refinancing for a newly created property unit has raised a record HK$140bn (US$18.06bn), highlighting the borrower’s relationship pull and the liquidity available for the right name even at tight pricing.

etsy ipo

Etsy enriches community with stunning debut

IFR 2079 18 April 2015 to 24 April 2015 By

Online handmade goods marketplace Etsy injected some renewed exuberance into the soft US IPO market last week, as its stock surged nearly 90% on its debut thanks partly to its “handcrafted” strategy of carefully distributing the shares to a higher than normal concentration of supportive institutional buyers, and a wide spread of small investors.

anxious trader

Bloomberg outage hits markets

IFR 2079 18 April 2015 to 24 April 2015 By John Geddie

An outage at news and market data provider Bloomberg hit financial markets around the world on Friday, prompting debt sales to be postponed and exacerbating a spike in volatility in European stocks.

pakistan habib bank karachi

Pakistan seals largest share sale

IFR 2079 18 April 2015 to 24 April 2015 By S Anuradha

Pakistan attracted hordes of foreign investors to a Rs102bn (US$1bn) share sale in Habib Bank, as expectations of further economic reforms drove demand for the country’s largest ECM transaction.

greece shadow

Greece casts shadow over Portugal plans

IFR 2079 18 April 2015 to 24 April 2015 By

The stalemate between Greece and its creditors is affecting the plans of other sovereign issuers such as Portugal, bankers said last week, despite the ECB’s progress in ring-fencing the Greek debt crisis.

mark carney boe fsb

G20 mulls slow progress on trade reporting

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

G20 finance ministers and central bank governors meeting in Washington DC last week discussed the slow progress in global implementation of derivatives trade reporting, amid concern that the initiative is failing to achieve its key aim of increasing transparency in the over-the-counter derivatives market.

IFR Magazine Top News in Full (subscription required)

People & Markets

The JP Morgan Chase & Co headquarters in New York

JP Morgan and Goldman buck trend

IFR 2079 18 April 2015 to 24 April 2015

Goldman Sachs and JP Morgan were perfectly able to take full advantage of a rebound in fixed income trading in the first quarter as client activity surged on the back of “good volatility”, especially in currency markets. The turn helped both banks reverse the trend of the past three years, during which each first quarter was successively worse than the last.

Who's moving where...

IFR 2079 18 April 2015 to 24 April 2015

Citigroup has named Francisco Aristeguieta as CEO for Asia-Pacific, succeeding Stephen Bird, who will move to New York to head the global consumer bank. Bird, a 17-year Citigroup veteran, is replacing Manuel Medina-Mora, who will retire, according to a memo.

The Citigroup building in New York

M&A wave breeds record advisory fees

IFR 2079 18 April 2015 to 24 April 2015

US banks saw advisory revenues surge in the first quarter, led by strong merger and acquisition deal flow. JP Morgan reported its best quarter ever for advisory fees, Bank of America Merrill Lynch its best quarter as a merged entity, and Goldman Sachs its best quarter since 2007.

Canary Wharf financial district

New UK regime threatens EU passporting

IFR 2079 18 April 2015 to 24 April 2015

The UK’s reluctance to sign up to a new third-country regime under the European Union’s revised Markets in Financial Instruments Directive could hamper the country’s competitiveness as a European hub for US investment banks, industry participants warn.

BNP Paribas logo

BNP Paribas outlines corporate debt platform

IFR 2079 18 April 2015 to 24 April 2015

BNP Paribas has outlined further details around how its new corporate debt platform will work, four months after it was unveiled as part of sweeping changes to the French firm’s investment bank brought in by new boss Yann Gerardin.

    More from People & Markets

    Bonds

    Fortescue cost cuts reassure

    IFR 2079 18 April 2015 to 24 April 2015

    Iron-ore giant Fortescue Metals Group lifted confidence in Australia’s struggling mining sector last Thursday, when it revealed a stronger cash position and lower operating costs than analysts had expected. 

    A man leaves the Commonwealth Bank of Australia building in central Sydney

    CBA pays for size with euro T2

    IFR 2079 18 April 2015 to 24 April 2015

    Commonwealth Bank of Australia has underlined the appeal of the euro market for the country’s offshore Tier 2 requirements, but Australia’s biggest bank in terms of market value certainly had to pay up for last Wednesday’s €1.25bn issue.

    Logo of the European Investment Bank

    EIB and KfW switch currencies

    IFR 2079 18 April 2015 to 24 April 2015

    In mid-March, the EIB struggled to find demand for a €2bn 10-year trade, while KfW chose the US dollar market later the same month and got a comfortable US$5bn five-year deal away.  

    A Qualcomm sign

    Activists unlikely to upset Qualcomm

    IFR 2079 18 April 2015 to 24 April 2015

    Hedge fund pressure to break up Qualcomm is not likely to be an obstacle when the world’s largest phone chip-maker comes to market as expected with a jumbo bond issue to finance a share buyback.

    Analysts see little recovery in Walter Energy bonds

    IFR 2079 18 April 2015 to 24 April 2015

    Coal firm Walter Energy skipped coupons on two of its high-yield bond issues on Wednesday, reinforcing expectations that the company will soon file for bankruptcy as it burns through cash.

      More from Bonds

      Loans

      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.

      Logo of glass bottles maker Verallia

      Bankers prep €4.75bn of buyout loans

      IFR 2079 18 April 2015 to 24 April 2015 By

      Bankers are working on debt financings totalling up to €4.75bn to back a number of potential sale processes.

      Alliance Boots logo

      Technicals push prices to eight-year high

      IFR 2079 18 April 2015 to 24 April 2015 By

      European secondary loan prices rocketed over par during the first quarter and reached an eight-year high, driven by highly technical conditions as the search for paper intensified amid a lack of primary supply and some hefty repayments.

      A Sibur LPG tanker

      Sibur finds alternative to Western bank loans

      IFR 2079 18 April 2015 to 24 April 2015 By Sandrine Bradley

      Russia’s largest petrochemicals and gas processing company Sibur has met all its financing needs for the next 18 months, despite being effectively shut out of the Western international loan market for over a year, CFO Pavel Malyi said in an interview in London last week.

      Fresh Del Monte Produce logo

      Fresh Del Monte inks refi

      IFR 2079 18 April 2015 to 24 April 2015

      Fresh fruit and vegetable company Fresh Del Monte Produce has agreed a five-year US$800m unsecured revolving credit facility to replace a US$500m revolver that was due to mature in October 2017.

      Launch event

      IFR 2079 18 April 2015 to 24 April 2015

      Plastics and rubber manufacturer Trinseo launched a US$775m deal to refinance senior notes. Citigroup leads the facility, with Deutsche Bank, Barclays, Goldman Sachs, HSBC, Mizuho, Sumitomo Mitsubishi and Scotia as joint lead arrangers.

      More from Loans

      Equities

      Party City store sign

      Hot debuts excite US IPO market

      IFR 2079 18 April 2015 to 24 April 2015

      The US IPO market sprang back to life last week with a string of successful debuts, but doubts linger as to whether there will be a significant pick-up in activity in the near term.

      The headquarters of Deutsche Bank are pictured in Frankfurt

      Big stick leaves Deutsche in hospital

      IFR 2079 18 April 2015 to 24 April 2015

      Deutsche Bank was left with a sizeable stick last week after failing to clear a selldown in London-listed UAE healthcare provider Al Noor Hospitals by Dubai-based private equity firm Ithmar.

      Virgin Money logo

      UK: Selldown boosts Virgin free-float

      IFR 2079 18 April 2015 to 24 April 2015

      A wall-crossed investor doubled up on its interest in last week’s selldown in UK challenger bank Virgin Money, with overall demand driving the need for an upsizing.

      Storage spaces are seen in North Las Vegas

      Storage REIT speaks MLP on IPO

      IFR 2079 18 April 2015 to 24 April 2015

      National Storage Affiliates, a fledgling REIT comprising a roll-up of independently owned self-storage facilities, has incorporated a novel corporate structure as it transitions to the public markets. Individual operator owners have subordinated performance units that are convertible into units of the publicly-traded operating partnership, but only after a two-year lock-up and only if the conversion is accretive.

      Virtu Financial booth on the floor of the New York Stock Exchange

      Virtu puts HFT row behind it on IPO

      IFR 2079 18 April 2015 to 24 April 2015

      High-frequency market-making firm Virtu Financial put the extended controversy over the role of high-speed trading in financial markets behind it to secure top-end of the range pricing for its US$314m IPO and deliver a strong Nasdaq debut last week.

      A Smart & Final store

      Smart & Final remodels registry

      IFR 2079 18 April 2015 to 24 April 2015

      In what was its first stock sale since its IPO in September 2014, Smart & Final Stores generated significant interest from new investors on its 10m-share, all-secondary sale. That interest was evident in a 7.4% run-up to US$19.08 in the food retailer’s shares since the initial filing and a 1% gain over the two-day marketing period.

      Mortgage REITs expand holdings

      IFR 2079 18 April 2015 to 24 April 2015

      Amid continued recycling of commercial lending and intensifying competition, Starwood Property Trust seized on its premium valuation to raise US$286.2m in an overnight stock sale last Tuesday. The company is using proceeds from the funding to help fund the purchase of a commercial office portfolio in Dublin, continuing to diversify geographically.

      Horizon Pharma builds for future

      IFR 2079 18 April 2015 to 24 April 2015

      Horizon Pharma is clearing room on its balance sheet with a two-part, US$1.235bn raising from the sale of equity and debt.

      More from Equities

      Derivatives

      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.

      A Monte Dei Paschi Di Siena bank branch in Rome

      Monte dei Paschi breaches limits on Nomura swap

      IFR 2079 18 April 2015 to 24 April 2015 By

      Monte dei Paschi di Siena is under intense pressure from the European Central Bank to reduce its counterparty exposure to Nomura after exceeding regulatory limits on swap contracts taken out with the Japanese lender as part of a structured derivatives trade.

      iBoxx senior financials index

      Banks switch reporting for FVA

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

      US bank first-quarter results published last week reveal a new consensus on reporting of the controversial measure known as funding valuation adjustment (FVA), but the moves fail to resolve an intense debate over the future of the charge, analysts say.

      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

      The IFR Awards 2014

      IFR Global 2014 Cover - Awards Page

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

      Hanging on the telephone

      IFR 2079 18 April 2015 to 24 April 2015

      WITH RBS DISMEMBERING its investment bank, it’s a hard sell to attract people to the platform. So hard, in fact, that its press office appears to be begging willing PRs to get in touch. On the bank’s website detailing media relations contacts it simply says: “Vacancy – +44 207 672 1913”.

      The JP Morgan Chase & Co headquarters in New York

      JP Morgan and Goldman buck trend

      Goldman Sachs and JP Morgan were perfectly able to take full advantage of a rebound in fixed income trading in the first quarter as client activity surged on the back of “good volatility”, especially in currency markets. The turn helped both banks reverse the trend of the past three years, during which each first quarter was successively worse than the last.

      The Citigroup building in New York

      M&A wave breeds record advisory fees

      US banks saw advisory revenues surge in the first quarter, led by strong merger and acquisition deal flow. JP Morgan reported its best quarter ever for advisory fees, Bank of America Merrill Lynch its best quarter as a merged entity, and Goldman Sachs its best quarter since 2007.

      Canary Wharf financial district

      New UK regime threatens EU passporting

      The UK’s reluctance to sign up to a new third-country regime under the European Union’s revised Markets in Financial Instruments Directive could hamper the country’s competitiveness as a European hub for US investment banks, industry participants warn.

      BNP Paribas logo

      BNP Paribas outlines corporate debt platform

      BNP Paribas has outlined further details around how its new corporate debt platform will work, four months after it was unveiled as part of sweeping changes to the French firm’s investment bank brought in by new boss Yann Gerardin.

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      China reserve ratio cut sends investors mixed messagesVideo

      China’s central bank cut the reserve requirement ratio by one percentage point, as investors are encouraged by the country’s booming stock market despite a regulatory clamp down. Meg Teckman reports. Video:

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      Turkey says G20 sees moderate but uneven economic recoveryVideo

      Turkish Deputy Prime Minister Ali Babacan says the Group of 20 leading economies are seeing a moderate but uneven recovery. Rough Cut (no reporter narration). Video:

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