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Thursday, 29 September 2016

IFR Awards 2016

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

Total headquarters

Total dual-trancher extends hybrid revival

29 September 2016 By

After spending much of 2016 in the doldrums, corporate hybrid issuance is staging a revival on the back of investors’ search for yield, with Total announcing on Thursday that it was aiming to raise up to €2.5bn in the format.

Hellenic Petroleum refineries

Hellenic Petroleum brings more Greek supply

29 September 2016 By Robert Smith

Hellenic Petroleum is joining the swathe of issuers in the primary market and will begin marketing a five-year deal on Friday.

Entrance of the German Commerzbank headquarters is pictured in Frankfurt

Commerzbank to cull trading roles

29 September 2016 By

Commerzbank is to scale back trading activities, cut 9,600 jobs across the group and merge its corporate and markets activities with its Mittelstandsbank into a wider unit serving all corporate clients in a bid to strengthen its operations and reduce earnings volatility.

A trader from BGC reacts to the EU BREXIT referendum news

London corporate bankers to have phone calls recorded

29 September 2016 By Steve Slater

Bankers working in corporate finance and oil and energy markets are to have their telephone calls recorded under stricter rules set out by Britain’s financial regulator to deter wrongdoing.

,Peruvian soldiers marching

Peru tests waters with jumbo LM trade

28 September 2016 By

Peru announced a 12-year bond on Wednesday as part of an exchange and tender for US$13bn equivalent of securities, as it looks to reduce its dollar debt and please the rating agencies.

Citi sign

Investors see big future for callable bank debt – survey

28 September 2016 By

Investors expect call options in senior bank debt to become more common as US banks seek cheaper ways of meeting capital shortfalls, according to a Wells Fargo survey out Wednesday.

Wells Fargo sign

California suspends banking ties with Wells Fargo

28 September 2016 By Philip Scipio

The State of California is dropping Wells Fargo as its bond underwriter and broker-dealer after the bank’s admission that it opened more than two million fraudulent customer accounts.

London Stock Exchange sign

LSE Group mulls French clearing sale

28 September 2016 By

London Stock Exchange Group is exploring the potential sale of LCH SA, the French-regulated operating subsidiary of LCH Group, in a bid to win approval for its planned merger with Deutsche Boerse.

Wells Fargo CEO John Stumpf

Wells Fargo CEO returns US$41m in wake of scandal

28 September 2016 By Philip Scipio

Wells Fargo Chief Executive John Stumpf will forfeit roughly US$41m in stock, as the bank investigates how employees were able to create as many as two million fraudulent bank and credit card accounts under a highly touted cross selling program.

Mary Jo White

US to expand rules for 'too-big-to-fail' clearing houses

28 September 2016

(Reuters) - The US Securities and Exchange Commission on Wednesday said it would adopt rules to strengthen the regulatory framework for clearing agencies deemed systematically important or that are involved in complex transactions, such as security-based swaps.

Together logo

Together, Cabot and Schoeller Allibert set talk

28 September 2016 By Robert Smith

Three high-yield issuers set price talk on their deals on Wednesday afternoon, as the market appears set to digest a slug of new supply from more esoteric issuers.

Mizuho Financial Group logo

MOVES-Pavan quits Deutsche for Mizuho

28 September 2016 By

Subhathra Pavan, who has worked in fixed income for 25 years, has left her position as managing director in cross rate sales at Deutsche Bank in New York, to join Mizuho.

Nutanix logo

Nutanix lifts IPO range, headed for strong outcome

28 September 2016 By

Enterprise data storage provider Nutanix upped the price range for its IPO ahead of pricing Thursday night, another sign of resurgent tech valuations and swelling investor support for the sector after a string of spectacular debuts out of the sector in recent months.

Societe Generale logo

SG sells Positive Impact bond as negative sentiment recedes

28 September 2016 By

Societe Generale emerged with its second Positive Impact Bond on Wednesday as the market took NordLB’s pulled deal in its stride, although there are signs that investor caution is growing.

Danske Bank branch

MOVES-Danske Bank bond syndicate loses Engstrom

28 September 2016 By

Laurits Engstrom, chief dealer for Danske Bank’s debt capital markets syndicate, has left the bank, according to a company spokesman.

EnBW logo

EnBW concludes 'dragged out' hybrid

28 September 2016 By

EnBW finally brought the euro portion of its hotly anticipated dual-currency hybrid to the market on Wednesday, but some investors complained about its ‘dragged out’ approach.

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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

      London Stock Exchange sign

      LSE Group mulls French clearing sale

      28 September 2016 By

      London Stock Exchange Group is exploring the potential sale of LCH SA, the French-regulated operating subsidiary of LCH Group, in a bid to win approval for its planned merger with Deutsche Boerse.

      CBOE trading floor

      CBOE to acquire rival exchange Bats Global for US$3.2bn

      26 September 2016 By

      CBOE Holdings has entered into an agreement to acquire rival exchange operator Bats Global for US$3.2bn.

      Forbidden City

      China rules on default swaps get sceptical response

      26 September 2016 By Umesh Desai, Nathaniel Taplin

      New rules published in China on Friday on credit default swaps were met with scepticism about how effective the hedging tool would be in addressing the country’s growing debt risks.

      China revamps CDS as defaults rise

      IFR Asia 961 - September 24, 2016 By Ina Zhou

      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.

      China revamps CDS as defaults rise

      IFR 2152 24 September to 30 September 2016 By Ina Zhou

      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.

      More from IFR Derivatives

      Digital Edition

      Access a digital edition of the latest IFR Magazine here.

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      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

      Against Elon Musk and investment heroism

      When I first heard Elon Musk had asked his audience if they were willing to die in a great endeavor, I assumed he was speaking to shareholders.

      Anthony Peters columnist format

      Sod the bloody rules

      British, or more accurately, English news channels, in as much as they have done with dealing with the death of Israel’s towering political leader, Shimon Perez, are today taken over by the news of the resignation of England football manager Sam Allardyce after 67 days in the job. 

      Keith Mullin

      Forget bail-in: this is the real world

      Is anyone in any real doubt that Deutsche Bank would be bailed out by the German government? Seriously, I mean really? 

      James Saft - June 2014

      German fiscal expansion could be a sustainable bank rescue

      Perhaps Germany should rescue Deutsche Bank and its eurozone peers, not by direct aid but via a fiscal expansion that might revive growth and free the European central bank to hike interest rates.

      Anthony Peters columnist format

      They’re under starter’s orders… and they’re off!

      I’m afraid I have to humbly admit that I did not sit up half the night in order to listen to and watch Hillary and Donald trade blows on the telly and yet I shall have the audacity to pass comment, most of which is not based on the selective sound bites we have been treated to by the news channels. Let’s face it, the mass media are largely under the control – no value judgment here, just an observation – of people who are politically more sympathetic to the former first Lady. 

      Anthony Peters columnist format

      When the answer is diddly-squat

      The calendar says September 26th which tells me that we’re at the beginning of the last week of the third quarter. We’re also, just for the record, at the beginning of the period where Fed-watching is replaced by election fever, which in turn kicks off with the first of the Trump/Clinton TV debates which is scheduled for tomorrow, UK time. With the candidates running neck-and-neck, markets as yet have no idea how to position themselves and have, as far as I can tell, so far gone neither way.

      Top 250 2016

      Top 250 Borrowers 2016

      Strength and depth: Few would claim that conditions in the capital markets could currently be described as normal. Nor that they have they been so for a while now, given the various stimulus programmes that have been enacted around the world in an effort encourage growth in the face of economies flirting with stagnation.

      IFR Financing Sustainable Infrastructure Report 2016

      IFR Financing Sustainable Infrastructure Report 2016

      Sustainable infrastructure agenda moves centre-stage

      IFR Turkey Special Report 2016

      Turkey 2016

      Star turn: In the fluid world of emerging markets, Turkey has this year presented more opportunities than its CEEMEA peers for investors to indulge their views.

      All Latest Special Reports