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Sunday, 02 August 2015

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A graffiti mocks the Brazilian real

Hard (currency) truths

IFR 2094 1 August to 7 August 2015

Emerging markets foreign exchange is at it again. Commodity woes have combined with uncertainty about a US rates hike to hammer currencies such as the rouble and Brazilian Real. And still the faithful are urging investors to buy into local currency bonds.

Top News

Globe

Returns evaporate from EM local currency bonds

IFR 2094 1 August to 7 August 2015 By , ,

A combination of looming US interest rate hikes, sliding commodity prices and jaded growth prospects are heaping pressure on emerging market local currency bonds.

 Dilma Rousseff

S&P leaves Brazil on the brink of junk

IFR 2094 1 August to 7 August 2015 By Paul Kilby

Struggling Brazil took another blow to the chin last week when S&P put the country’s BBB– credit rating on negative outlook, setting the stage for a potential downgrade to junk.

ESMA logo

ESMA backtracks on MiFID liquidity

IFR 2094 1 August to 7 August 2015 By

European regulators are set to offer some exemptions from the second Markets in Financial Instruments Directive for the least liquid securities, according to a confidential draft document seen by IFR.

Royal Bank of Scotland (RBS) logo

RBS speeds towards full Citizens exit

IFR 2094 1 August to 7 August 2015 By

Royal Bank of Scotland slashed its stake in US regional bank Citizens Financial from 40.8% to below 21% through an upsized US$2.5bn secondary stock sale that puts the bailed-out UK lender well ahead of schedule to completely divest the holding. 

Alejandro Garcia Padilla

Puerto Rico skips payment

IFR 2094 1 August to 7 August 2015 By Philip Scipio

Cash-strapped Puerto Rico fired a warning shot across the bows of its many creditors last week when it opted not to pay a bond due on August 1.

Gold

Gold tanks as catastrophe fears recede

IFR 2094 1 August to 7 August 2015 By

Money managers have become net sellers of gold derivatives for the first time on record, as the precious metal reached five-year lows last week.

Patrick Soon-Shiong, CEO of NantKwest

NantKwest sets new record for biotech

IFR 2094 1 August to 7 August 2015 By Robert Sherwood

NantKwest, a clinical-stage biotech working on a novel cancer treatment, achieved a record valuation for the sector at its IPO and on debut chief executive Patrick Soon-Shiong’s US$47.5m investment seven months ago returned a US$1.74bn paper profit.

Driven Brands logo

Investors welcome back boom-style ABS

IFR 2094 1 August to 7 August 2015 By

Two types of riskier securitisations thought to have died off with the financial crash were revived in July, but came to market on a more solid footing under new post-crisis regulation.

DBS

DBS makes covered debut

IFR 2094 1 August to 7 August 2015 By Frances Yoon

DBS Bank has brought Singapore’s first covered bond benchmark with a US$1bn three-year offering, setting a foundation for Asian banks to access a market that has proved resilient in times of crisis.

Reuters

India gains from China's slump

IFR 2094 1 August to 7 August 2015 By S Anuradha

Shaken by a month of wild swings and heavy losses in China, equity investors are warming to India, helping to drive a biotech IPO and a government share sale.

IFR Magazine Top News in Full (subscription required)

Capital CityCapital City logo    

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

A change instead of a rest

IFR 2094 1 August to 7 August 2015

JOHN CRYAN AND Deutsche Bank are turning out to be a perfect fit. The new chief executive, just a month into the job, is a proficient German speaker – so much so that he’s even started to sound Teutonic when he writes in English.

Fees

Fees jump in busy July but Goldman and JP Morgan lose share

July was the busiest month so far this year for investment banking fees, with the industry earning US$9.42bn from bond issues, equity deals, loans and M&A advisory, according to Thomson Reuters figures.

PM Feature chart 2094

UBS recovery boosted by equity upswing

UBS has posted the best first half to the year since 2011 at its investment bank, with a surge in equity trading and strong advisory fees in the second quarter building on solid momentum in the first three months of the year.

Deutsche Bank headquarters in Frankfurt

Bumper trading and origination boost Deutsche

Deutsche Bank showed signs of recovery at its investment bank in the three months to the end of June, with an upswing in trading and bumper origination fees propelling the much-shrunken business to its best second quarter in four years.

 John McFarlane

​Barclays narrows investment banking ambitions

Barclays’ new executive chairman John McFarlane has admitted that the firm is no longer able to compete globally with the five largest US investment banks, in comments that are likely to precede deep cuts to the division.

Chinese investors react

Battered China investors turn to bonds

Persistent volatility and an IPO freeze are driving Chinese money managers away from equities and into the country’s burgeoning bond market.

​RBS to accelerate CIB asset sales

RBS is aiming to complete as much of its programme of asset sales as possible at its corporate and institutional banking arm in the second half of the year, even if it means taking bigger losses on the divestments.

OHL

OHL's bonds jump on proposed capital raise

Obrascon Huarte Lain’s bonds traded up strongly on Friday after the Spanish builder announced it would raise fresh capital to pay down debt.

Nomura sees equities overtake fixed income

Nomura managed to triple first-quarter profits at its wholesale division on the back of a surge in investment banking fees and equity trading, which, for the first time in four years, brought in more than the brokerage’s fixed-income business.

OMFIF

Three times unlucky for hapless IMF

By David Marsh, Managing Director and Co-founder of OMFIF

Fissures undermine Greek debt deal.

All Guest Columnists: OMFIF

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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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