International Financing Review

22 November 2016 By Francesco Guarascio

Companies would be given more breathing space to restructure their debts in times of crisis under a European Union draft law unveiled on Tuesday, inspired by US insolvency rules and aimed at avoiding bankruptcies and saving jobs.

DERIVATIVES-Uncleared swaps to make trueEX trading debut

22 November 2016 By Helen Bartholomew

Uncleared swaps are set to move step closer to their more efficient, centrally-cleared counterparts following the launch by swap exchange operator trueEX of the first venue for real-time execution of the products.

BAML prices US$2bn callable sub deal flat to curve

21 November 2016 By Will Caiger-Smith

Bank of America Merrill Lynch sold a US$2bn 11-year non call 10 subordinated bond on Monday, pricing the deal flat to its secondary curve.

Bank of America leads four deals in US high-grade bond market

21 November 2016 By Will Caiger-Smith

Bank of America Merrill Lynch led four issuers in the US investment-grade new issue market on Monday, as borrowers grabbed an open issuance window ahead of the Thanksgiving holiday.

MOVES-Sherwood quits as Goldman Sachs Europe co-head

21 November 2016 By Steve Slater

Michael Sherwood, Goldman Sachs’s co-head of Europe, is quitting the US investment bank at the end of the year.

DERIVATIVES-EU swaps margin rules get final nod

21 November 2016 By Helen Bartholomew

The European Council has approved new rules that force swaps counterparties to post collateral against over the counter derivatives trades that are not cleared through central counterparties.

MOVES-Market veteran Marks joins MUFG as head of EM, EMEA

21 November 2016 By Sudip Roy

Christopher Marks has joined Mitsubishi UFJ Financial Group (MUFG) as head of emerging markets, Europe, Middle East and Africa, within its banking arm.

EQUITY-LINKED: United Lab launches US$100m CB

21 November 2016

Hong Kong-listed pharmaceutical company United Laboratories has launched a five-year put three US$100m convertible bond, with an upsize option of US$30m.

Citi, BAML, Wells, ICBC told to hold extra capital

21 November 2016 By Steve Slater

Citigroup, Bank of America Merrill Lynch, Wells Fargo and ICBC will all have to hold extra capital from 2018 as a result of changes to the list of the world’s most important banks.

Investors turn picky as CMBS supply increases

18 November 2016 By Joy Wiltermuth

Investors are picking favorites and prying a premium price from sellers of some US$5bn of new CMBS paper as banks scamper to find a home for deals ahead of Thanksgiving.

HIGHYIELD CLOSE-HY winds up US$5.195bn issuance week

18 November 2016

One deal priced in the US high-yield bond market on Friday.

Two junk credits struggle in tougher market

18 November 2016 By Davide Scigliuzzo

Two junk credits were struggling to gain traction in the US debt markets on Friday after initial pricing levels failed to generate much interest among buyside accounts.

MOVES-Barclays names Hartzell head of banking capital management

18 November 2016 By Philip Scipio

Barclays said that it named Tim Hartzell to the position of global head of its banking capital management group.

Bankers see up to US$15bn in IG deals before Thanksgiving

18 November 2016 By Will Caiger-Smith

Bankers are expecting up to US$15bn in US high-grade primary volumes next week, as borrowers seek to tap markets ahead of the Thanksgiving holiday in the US.

MOVES-Barclays hires six in emerging markets push

18 November 2016 By Steve Slater

Barclays said it has made six senior hires in its emerging markets business and moved more than 10 people internally as part of a push to build up its EM rates and foreign exchange businesses.

Banks told to be more transparent on debt allocations

18 November 2016 By Steve Slater

Banks need to be more transparent about their allocation policies for debt issuance and investors should ensure their orders reflect their true demand, the new board aiming to improve standards in fixed income markets said.

All Latest news

Upfront

Time to act

IFR 2160 19 November to 25 November 2016

It’s been a painful few days in bond markets, whatever side you might be on. The buyside has been caught out badly by a spike in sovereign yields – investors who bought Italy’s 50-year bond only a month ago are now sitting on huge losses, with the issue some 15 points underwater.

Sell-off leaves borrowers with a dilemma

IFR 2160 19 November to 25 November 2016 By Gareth Gore

Bond markets are on edge after a sharp sell-off in government debt pushed up financing costs for borrowers around the globe and left many investors wary about buying into fixed income having suffered brutal losses over recent days.

Covered market comes undone

IFR 2160 19 November to 25 November 2016 By Alice Gledhill

The covered bond market was knocked sideways by rates volatility last week, catching bankers off-guard and leaving them grappling with tricky executions in what had been a bullet-proof sector in 2016.

Fighting them on the breaches

IFR 2160 19 November to 25 November 2016 By Davide Scigliuzzo

Junk-bond issuers are using aggressive new terms that make it easier for them to breach bond covenants voluntarily, a trend that has some in the market up in arms.

Trump triggers great equity rotation

IFR 2160 19 November to 25 November 2016 By Helen Bartholomew

Stock markets are undergoing their biggest rotation in years as Donald Trump’s fiscal expansion plan sees investors dump defensive stocks in favour of cyclical sectors that stand to reap the benefit of a new reflationary environment.

SFO seeks to gag Boath's case vs Barclays

IFR 2160 19 November to 25 November 2016 By Alex Chambers, Steve Slater

Britain’s Serious Fraud Office is pressing for a civil lawsuit against Barclays by former investment banker Richard Boath to be heard in private to avoid prejudicing its investigation into the bank’s 2008 emergency fundraising.

Bayer brings Europe's largest ever mandatory

IFR 2160 19 November to 25 November 2016 By Robert Venes

After several months of preparatory work, bankers pushed the button on Tuesday night for the first leg of equity financing for Bayer’s US$66bn acquisition of agrochemicals company Monsanto, raising €4bn via what is Europe’s largest ever mandatory convertible bond. The deal was also the largest equity-linked trade in EMEA since KfW’s €5bn exchangeable into Deutsche Telekom in 2003.

Verizon continues to blaze trail with second phone ABS

IFR 2160 19 November to 25 November 2016 By Joy Wiltermuth

Verizon Wireless continued to break new ground last week with its second US bond deal that packaged customer cellphone payments into big tradable blocks.

D-day for IMF under Trump

IFR 2160 19 November to 25 November 2016 By Christopher Spink

Donald Trump’s inauguration on Capitol Hill next January will be keenly watched in Washington DC, not least over at the headquarters of the World Bank and International Monetary Fund.

Corporates stay strong despite market rout

IFR 2160 19 November to 25 November 2016 By Laura Benitez, Hillary Flynn

Corporate borrowers on both sides of the Atlantic shrugged off concerns about global volatility last week with pharmaceutical companies leading the charge, although they had to pay significantly higher premiums.

Jio hits Vodafone India IPO

IFR 2160 19 November to 25 November 2016 By S Anuradha

One year after officially beginning preparations for the IPO of its Indian unit, Vodafone last week delayed the high-profile Rs133bn–Rs200bn (US$2bn–$3bn) float after taking a huge impairment charge.

IFR Magazine Top News in Full (subscription required)

People & Markets

FICC revival lifts revenue hopes

IFR 2160 19 November to 25 November 2016

Investment bank revenues are on course to end 2016 near flat from 2015, as a sharp revival in fixed income since an awful first quarter has been countered by a drop in equity and advisory business.

US banks face bumper capital increase under Kashkari plan

IFR 2160 19 November to 25 November 2016

Minneapolis Federal Reserve Bank president Neel Kashkari has unveiled a plan to end systemic risk posed by US banks – by forcing them to hold a massive amount of capital: as much as 38%.

JP Morgan pays US$264m for Princeling scandal

IFR 2160 19 November to 25 November 2016

JP Morgan Chase is to pay around US$264m to several US government bodies to settle claims it hired friends and relatives of influential Chinese businessmen and government officials in order to win business in violation of anti-bribery laws.

Trump appointees could offer immediate regulatory relief

IFR 2160 19 November to 25 November 2016

Donald Trump may not have to sign a single piece of legislation to roll back financial regulation during the next four years.

Don’t hold your breath on European bank consolidation

IFR 2160 19 November to 25 November 2016

WERE SOCIETE GENERALE boss Frédéric Oudéa and his UniCredit counterpart Jean-Pierre Mustier taking Mario Draghi at his word about Europe being overbanked and talking turkey on a merger that had a lot of people going in the past few days?

Bonds

Covered market readies for harmonisation showdown

IFR 2160 19 November to 25 November 2016

The European Banking Authority gave a glimpse into the possible direction of harmonisation within the covered bond market ahead of its public hearing last Friday afternoon.

Amex takes shot at euros with benchmark

IFR 2160 19 November to 25 November 2016

American Express Credit Corporation stepped off its traditional US dollar stomping ground last Tuesday, selling its first euro senior unsecured deal in over a decade.

The show goes on

IFR 2160 19 November to 25 November 2016

Corporate borrowers last week continued to capitalise on limited issuance windows before year-end despite volatile conditions that sent funding costs soaring.

Louis Dreyfus shelves bond issuance plans

IFR 2160 19 November to 25 November 2016

Commodity trader Louis Dreyfus decided not to proceed with a proposed five-year euro-denominated bond on Thursday, blaming a sharp increase in funding costs on volatile market conditions.

Dollars trump euros for ANZ

IFR 2160 19 November to 25 November 2016

Having struggled to clear seven-year euro-denominated covered bonds on Tuesday (see Top News: ”ANZ returns with RMBS”), ANZ had a much easier time the following day, when the Aa2/AA–/AA– rated lender priced a US$3bn senior unsecured four-trancher via Goldman Sachs, JP Morgan and Wells Fargo and its own syndication team.

Loans

Investors await Trump policies

IFR 2160 19 November to 25 November 2016 By Lynn Adler, Leela Parker Deo

US leveraged loan investors are waiting to see whether President-elect Donald Trump will follow through on campaign pledges for sweeping policy changes before significantly changing their strategies or portfolios.

China debt pile poses threat, ex-UK top regulator warns

IFR 2160 19 November to 25 November 2016 By Christopher Spink

China’s US$26trn debt mountain poses a threat to financial stability similar to that of securitised subprime mortgages and other perilous off-balance-sheet lending in 2007, according to former UK financial regulatory boss Adair Turner.

Leverage levels hit post-crisis high

IFR 2160 19 November to 25 November 2016 By Claire Ruckin

Leverage levels are hitting post-crisis highs in Europe’s leveraged loan market as borrowers tap into a wave of liquidity from lenders competing to get on a limited number of deals.

Banks step up presence in TLBs

IFR 2160 19 November to 25 November 2016 By Claire Ruckin

A growing number of banks are increasing their presence in Europe’s leveraged loan market, competing with institutional investors for term loan B paper in a hunt for yield.

PNG makes offshore loan debut

IFR 2160 19 November to 25 November 2016 By Prakash Chakravarti

Papua New Guinea is following in the footsteps of other Asian frontier sovereigns in tapping the syndicated loan market for a US$200m five-year borrowing.

CNOOC returns for more

IFR 2160 19 November to 25 November 2016 By Carol Zhong

CNOOC, China’s largest offshore oil and gas producer, is testing market appetite with a US$1.5bn loan, only two weeks after signing a US$1bn refinancing.

VWR to reprice €460m TL

IFR 2160 19 November to 25 November 2016

US listed-laboratory supplies and services provider VWR is repricing a €460m term loan.

Japan: Mitsubishi preps ¥100bn hybrid

IFR 2160 19 November to 25 November 2016

Trading house Mitsubishi Corp’s plans to take a hybrid loan are taking shape with the borrower eyeing a ¥100bn (US$926m) 60-year financing.

Equities

Broker seals OTC jumbo

IFR 2160 19 November to 25 November 2016

China Dragon Securities added to a revival of interest in China’s over-the-counter equity market last week with a Rmb9.92bn (US$1.45bn) fundraising, the biggest so far this year.

Thailand: Beauty block fetches US$92.7m

IFR 2160 19 November to 25 November 2016

A 300m-share block in cosmetic retailing chain Beauty Community has raised Bt3.3bn (US$92.7m) after pricing at the top of the Bt10–Bt11 indicative range.

South Korea: Netmarble awaits IPO approval

IFR 2160 19 November to 25 November 2016

Netmarble Games expects to receive preliminary approval from the Korea Exchange for its expected W2trn (US$1.76bn) IPO in the first half of December, according to a person close to the plan.

Malaysia: Reach Energy adjourns EGM

IFR 2160 19 November to 25 November 2016

Reach Energy has adjourned an EGM seeking approval to acquire a stake in Palaeontol for US$155m, after shareholders sought more time to examine the proposal.

India: Hindalco to seek approval

IFR 2160 19 November to 25 November 2016

Aluminium maker Hindalco will seek shareholder approval on December 9 to raise Rs50bn (US$735m) through a sale of shares, convertible bonds or depositary receipts to institutions.

China: Xinjiang kicks off Shanghai float

IFR 2160 19 November to 25 November 2016

Xinjiang Beiken Energy Engineering has started pre-marketing a Shanghai IPO to raise up to Rmb352m (US$51m), with Citi Orient Securities as sponsor.

China: CSRC quickens IPO pace

IFR 2160 19 November to 25 November 2016

The China Securities Regulatory Commission has quickened the pace of A-share IPOs, having given 15 companies approval to raise a combined Rmb11.2bn (US$1.64bn).

China: BeiGene completes follow-on

IFR 2160 19 November to 25 November 2016

A follow-on offering in Nasdaq-listed cancer drug developer BeiGene has fetched US$200m.

Derivatives

DERIVATIVES-Uncleared swaps to make trueEX trading debut

22 November 2016 By Helen Bartholomew

DERIVATIVES-EU swaps margin rules get final nod

21 November 2016 By Helen Bartholomew

The European Council has approved new rules that force swaps counterparties to post collateral against over the counter derivatives trades that are not cleared through central counterparties.

Trump triggers great equity rotation

IFR 2160 19 November to 25 November 2016 By Helen Bartholomew

Low vol rout drives hedging demand

IFR 2160 19 November to 25 November 2016 By Helen Bartholomew

The minimum volatility theme that has dominated equity investment strategies in recent years faces an uncertain future as the long period of secular stagnation appears to be drawing to an end.

DERIVATIVES-AcadiaSoft adds Quantile swaps optimisation tool

14 November 2016 By Helen Bartholomew

Derivatives risk optimisation firm Quantile Technologies has partnered with industry margin hub AcadiaSoft to launch a counterparty risk-reduction service that aims to lower costs for participants across the US$544trn over-the-counter derivatives market.

Digital Edition

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Special Reports

IFR German SME Funding Roundtable
IFR’s 4th annual German SME Funding Roundtable, held at the end of September in Frankfurt, was another absorbing encounter.

IFR US ECM Roundtable
IFR’s US ECM Roundtable was held on September 12, just ahead of the Fed’s decision to hold the line on interest rates and the US presidential election. The Fed only postponed a cycle of rate-tightening and the end of the accommodative environment that has sustained the current bull market.

IFR India Special report
It has taken some deep surgery, but India’s capital markets are at last on a much stronger footing. Now that regulators have done their part, it is up to investors and business leaders to take the economy to the next level.

IFR India Offshore Financing Roundtable
IFR was back in Mumbai in September to host another excellent roundtable, on this occasion focusing on offshore activity in the country’s equity capital markets and likely provenance of international deal flow and issuance.

Bellwether

Common ground

IFR 2160 19 November to 25 November 2016

IT IS HARDLY a secret President-elect Donald Trump has expressed some fears about China. But the inquiry by the US SEC into JP Morgan’s dodgy hiring practices with regard to so-called Princelings - family members of Chinese political officials - suggests he may be able to find some common ground with Chinese officialdom.

Opinion

Woody calls time – and this time it’s probably for real

Something is afoot at Goldman Sachs. That much is obvious. You just get a distinct sense the succession race that has been one of the most captivating talking points around the market for years, and a constant of Wall Street dinner parties the world over, is accelerating.

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