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Friday, 14 December 2018

Bank of the Year: JP Morgan

Bank of the Year: JP Morgan

IFR Awards 2018 By

JP Morgan dominates investment banking in a way no other institution has in the modern era. Whatever the measure – wallet share, market share, revenue, profits, share price performance, or sheer presence – JP Morgan is the answer. For the second year running, it is IFR’s Bank of the Year.

Read the write-ups on each award winner

MOVES-Barclays promotes 85 to managing director

14 December 2018 By

Barclays has promoted 85 staff from its investment bank and the rest of its international business to managing director, up from 74 in last year’s round of promotions and 60 in 2016.

UnitedHealth Group sign

UnitedHealth draws strong order books in quiet market

14 December 2018 By

UnitedHealth Group landed in a deafeningly silent IG market Thursday with a US$3bn four-part bond for what could be the last investment-grade deal of the year.

Venezuela, Hugo Chavez, election,

Venezuela bondholders hire Cleary as strategic advisor

13 December 2018 By

A group of Venezuela bondholders have hired law firm Cleary Gottlieb Steen & Hamilton LLP to advise it on strategic alternatives.

GE logo

GE bonds rally on JPM analyst report

13 December 2018 By

General Electric bonds moved materially tighter Thursday morning following a positive note from long-time bearish analyst Stephen Tusa of JP Morgan, who says the company has nearly bottomed out.

Ecuador

Markets see an IMF programme in Ecuador's future

13 December 2018

Market players are betting that Ecuador will have little choice but to resort to the International Monetary Fund as it seeks funding next year, a move that may support bond prices.

The company logo of the Bank of America and Merrill Lynch is displayed at its office in Hong Kong.

Hedging costs hinder high-grade bond demand

13 December 2018 By

High hedging costs dramatically dented demand for US corporate bonds among foreign investors in 2018 and could further change buying habits among such accounts next year as well.

bonds Fed

Slower rate hikes ‘double-edged sword’ for US HY

13 December 2018 By

A possible slowing in the pace of interest rate hikes might encourage US high-yield bond issuance next year, but that could also prompt more defensive investing as buyers eye the end of the credit cycle, said market participants this week.

IFR SNAPSHOT: UnitedHealth takes bite out of donut

13 December 2018 By

UnitedHealth is making a surprise visit to the US high-grade primary markets on Thursday, breaking the streak of donut issuance this week with a four-part bond deal.

MOVES-MUFG's Kravitz joins risk adviser JCRA

13 December 2018 By

Financial risk advisory firm JCRA has appointed Dawn Kravitz as a director in its project finance and infrastructure team.

Mexico

Mexcat bondholders push back on tender amendments

13 December 2018 By

Bonds issued by Mexico Airport Trust (Mexcat) look set to give back some gains on Thursday after a bondholder group expressed dissatisfaction with the amended terms of a tender and consent solicitation.

European Union and Italian flags are seen in downtown Rome

Italy deficit breakthrough a fillip for banks' market access

13 December 2018 By

Italian bank senior spreads have gained some relief on the country’s budget breakthrough, and while the impact may be exaggerated in illiquid December conditions, the developments are seen as a positive for top-tier banks’ market access.

Logo of the European Investment Bank

EIB shrinks funding target for 2019

13 December 2018 By

The European Investment Bank will raise €50bn in 2019, nearly 17% lower than the amount it printed this year, the supranational said in a statement on Thursday.

Logo of the European Banking Authority

EBA releases STS guidelines for securitisations

13 December 2018 By

The European Banking Authority has published its guidelines for interpreting the new STS securitisation criteria coming into force next year.

MOVES-Macquarie names new EMEA chief as Fass moves to US

13 December 2018

Macquarie Group is moving its European chief executive David Fass to co-head its infrastructure business in the Americas and will replace him in London with Paul Plewman.

Hungarian national flag

Hungary sets Panda guidance

13 December 2018 By

The Republic of Hungary has set an indicative price range of 3.9%-4.5% for its second Panda bond offering, according to a filing on the Shanghai Clearing House.

Tencent Music Entertainment company is seen officially listed on the floor of the New York Stock Exchange

Tencent Music Entertainment rises 7.7% on debut

13 December 2018 By

Shares of Tencent Music Entertainment closed 7.7% higher at US$14 on their trading debut on Wednesday, after rising as much as 13.5% at one point.

All Latest news

Top News

Tencent Music to file for up to US$1.2bn US IPO today

Tencent Music builds early momentum

IFR 2263 8 December to 14 December 2018 By ,

The US$1.2bn NYSE IPO of Tencent Music Entertainment, China’s largest music-streaming company, has built early momentum despite challenging market conditions and a price range that puts it at a premium to global peer Spotify Technology.

An Uber and Lyft car

Lyft books in early 2019 IPO

IFR 2263 8 December to 14 December 2018 By

Ride-sharing service Lyft could beat its arch-rival Uber Technologies to a listing, having revealed it has filed confidentially with the US Securities and Exchange Commission for what will be one of the first large “unicorn” IPOs of 2019.

Indonesia seizes brief window

Indonesia seizes brief window

IFR 2263 8 December to 14 December 2018 By

The Republic of Indonesia moved quickly last week to sell a US$3bn three-tranche bond issue in a brief market window, underlining its access to long-term capital after a year of emerging market jitters.

Surprise setback for London Connect

Surprise setback for London Connect

IFR 2263 8 December to 14 December 2018 By ,

The launch of the long-awaited Shanghai-London Stock Connect scheme has been delayed by unspecified technical issues, dealing a setback to China’s ambitions to connect to the world’s financial markets.

Graduates

Mixed pricing for student loan ABS

IFR 2263 8 December to 14 December 2018 By

The UK government shrugged off criticism that its student loan sales do not provide value for money to taxpayers when it last week priced the second deal from a securitisation programme designed to raise £15bn by 2023.

Vue Cinemas

Vue loans flop as investors strike back

IFR 2263 8 December to 14 December 2018 By ,

UK cinema chain Vue scrapped a £833m-equivalent loan last Thursday as Brexit jitters impacted on the European leveraged finance market just days before UK parliamentarians are set to vote on Theresa May’s Brexit deal.

General Electric

As junk threat weighs, GE looks to asset sales

IFR 2263 8 December to 14 December 2018 By ,

Industrial giant General Electric faces a challenging 2019 as it looks to sell assets to reduce its massive debt load and salvage its investment-grade ratings.

Huawei arrest spooks markets

Huawei arrest spooks markets

IFR 2263 8 December to 14 December 2018 By

Huawei Technologies’ US dollar bonds slumped to record lows last week on news that the company’s chief financial officer was arrested in Canada and is facing extradition to the United States on suspicion of violating US sanctions.

Huawei sours Samurai outlook

Huawei sours Samurai loan outlook

IFR 2263 8 December to 14 December 2018 By

The arrest in Canada of Huawei Technologies‘ CFO at the request of US authorities has curbed Japanese lenders’ appetite for the company’s debut Samurai loan, potentially hurting future deals from Chinese borrowers.

US dollar and euro banknotes

Europe pushes for euro energy market

IFR 2263 8 December to 14 December 2018 By

The European Commission has urged banks and businesses to reduce their use of the US dollar as a means of payments, as it seeks to boost the role of the euro amid an ongoing confrontation with the US over its unilateral imposition of sanctions against Iran.

IFR Magazine Top News in Full (subscription required)

People & Markets

Banks step up no-deal Brexit plans

IFR 2263 8 December to 14 December 2018

Banks are expecting to be granted a 20-month Brexit transition period – even if the UK crashes out of the European Union without any broad agreement about the terms of its withdrawal or its future relationship with the bloc.

Citi sees markets revenue down in Q4

IFR 2263 8 December to 14 December 2018

Citigroup expects markets revenues in the current quarter to be slightly lower from the fourth quarter of last year. Its rivals were more upbeat, however, and predicted stable or slightly higher trading revenues.

Equities winners emerge from MiFID II changes

IFR 2263 8 December to 14 December 2018

Nearly a year after the European Union’s flagship market reforms came in, the equities trading landscape in London has changed considerably.

UBS

UBS's majority stake spurs Chinese JV activity

IFR 2263 8 December to 14 December 2018

International banks are vying to grab a bigger share of China’s domestic capital markets after UBS became the first foreign bank to take a majority stake in a securities joint venture under new rules introduced earlier this year.

Who's moving where

IFR 2263 8 December to 14 December 2018

Mizuho has hired Jonathan Murray from Deutsche Bank to head its equity syndicate and equity-linked origination in EMEA at its investment bank arm. Mizuho International said Murray will expand its equity-linked franchise in Europe. The role will include convertibles and equity syndication businesses in EMEA and Japan. Murray spent 13 years at Deutsche Bank, originating and executing equity-linked transactions and analysing and structuring convertible bonds.

    More from People & Markets

    Bonds

    Latitude broadens Kiwi ABS patch

    Latitude broadens Kiwi ABS patch

    IFR 2263 8 December to 14 December 2018

    New Zealand’s shallow but expanding structured finance market welcomed a new visitor last Thursday when Latitude Financial Services debuted with a NZ$200m (US$138m) credit card securitisation.

    Russia: Gazprom taps into Tokyo

    IFR 2263 8 December to 14 December 2018

    Russia’s Gazprom expanded its funding network to a major new market last week with its first bond issue in Japan for more than 10 years.

    ING adds to Pro-bond credentials

    ING adds to Pro-bond credentials

    IFR 2263 8 December to 14 December 2018

    ING raised an impressive ¥135.4bn (US$1.2bn) from a three-tranche senior bond offering despite difficult market conditions, boosted by its name recognition in Japan and decent participation from regional investors.

    Italy adds short-end liquidity with tap, tender

    IFR 2263 8 December to 14 December 2018

    The Republic of Italy has added liquidity to the short end of its curve with a €3.2bn tap of the 2.3% October 2021 BTP alongside an accelerated tender offer that saw the sovereign buy back an equivalent amount of five other bonds.

    Fitch drives Fiat Chrysler to investment-grade

    IFR 2263 8 December to 14 December 2018

    A two-notch Fitch upgrade to BBB- has given Fiat Chrysler a leg-up back to the investment-grade ladder, handing bond investors a rare piece of good news in the auto sector.

      More from Bonds

      Loans

      Vue Cinemas

      Vue loans flop as investors strike back

      IFR 2263 8 December to 14 December 2018 By ,

      UK cinema chain Vue scrapped a £833m-equivalent loan last Thursday as Brexit jitters impacted on the European leveraged finance market just days before UK parliamentarians are set to vote on Theresa May’s Brexit deal.

      General Electric

      As junk threat weighs, GE looks to asset sales

      IFR 2263 8 December to 14 December 2018 By ,

      Industrial giant General Electric faces a challenging 2019 as it looks to sell assets to reduce its massive debt load and salvage its investment-grade ratings.

      Spain: Almirall to refi bridge

      IFR 2263 8 December to 14 December 2018

      Pharmaceuticals company Almirall is refinancing the €400m bridge loan it took out in September to back its acquisition of a portfolio of five dermatology products from Allergan, through a €150m loan and a €250m bond.

      Indonesia: BRI mandates 12 for US$700m loan

      IFR 2263 8 December to 14 December 2018

      Bank Rakyat Indonesia has mandated 12 banks for a financing of up to US$700m.

      Hong Kong: PrimeCredit increases refi

      IFR 2263 8 December to 14 December 2018

      PrimeCredit has closed a 3.5-year club loan at HK$2.2bn with five banks, slightly above the original target of HK$2bn.

      Hong Kong: China Overseas Land seeks club

      IFR 2263 8 December to 14 December 2018

      China Overseas Land & Investment is seeking an unsecured HK$20bn five-year bullet term loan.

      Hong Kong: Haitong returns for refi

      IFR 2263 8 December to 14 December 2018

      Haitong International Securities Group is tapping relationship banks to refinance a HK$12.8bn (US$1.65bn then) three-year facility signed in 2016.

      China: Ciro’s Plaza closes offshore tranche

      IFR 2263 8 December to 14 December 2018

      Ciro’s Plaza, a commercial complex in Shanghai’s Huangpu district, has closed the US$250m offshore tranche of a US$325m-equivalent three-year term loan.

      More from Loans

      Equities

      Khazanah raises hopes for Malaysia ECM

      Khazanah raises hopes for country's ECM

      IFR 2263 8 December to 14 December 2018

      Sovereign wealth fund Khazanah Nasional signalled its return to the Malaysian capital markets last week through a small M$364m (US$87m) block in bank CIMB Group.

      Norway: Ultimovacs plans IPO to develop cancer drug

      IFR 2263 8 December to 14 December 2018

      Ultimovacs plans to raise around NKr700m (US$82m) in an IPO in early 2019 to help fund the development of its immunotherapy cancer drug.

      Turkey: Akbank announces TL3bn rights issue

      IFR 2263 8 December to 14 December 2018

      Akbank plans to carry out a TL3bn (US$562m) rights issue by early February 2019, with one shareholder already promising to cover the full amount.

      Italy: BIM begins €91m capital increase

      IFR 2263 8 December to 14 December 2018

      Subscription began on December 3 for a €91m capital increase for Banca Intermobiliare which is intended to strengthen the bank’s capital position alongside the recent sale of a portfolio of impaired loans and a real estate portfolio.

      RH abandons expedition for US$300m CB

      IFR 2263 8 December to 14 December 2018

      High-end furniture retailer RH elected not to proceed with an opportunistic, US$300m five-year convertible bond offering last week.

      Denmark: Adform cancels despite restructuring

      IFR 2263 8 December to 14 December 2018

      Advertising technology business Adform cancelled its DKr750m (US$114m) Copenhagen IPO last Tuesday despite previously restructuring and extending the planned float.

      US: Siris jumps quickly out of SS&C

      IFR 2263 8 December to 14 December 2018

      Barclays struck while the iron was hot by pricing a US$428.2m block of shares in acquisitive financial software company SS&C Technologies in Monday morning’s pre-open.

      Spain: Solarpack secures €266m valuation at IPO

      IFR 2263 8 December to 14 December 2018

      Shares in solar power station business Solarpack Corporacion Tecnologica held up well on its first few days of trading against the backdrop of a global market selloff.

      More from Equities

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      Special Reports and Roundtables

      IFR Awards 2018 IFR+Awards+2018+Homepage+Cover
      So here’s a funny thing. The one asset class that the great and good of the global economy seems to be worried about – leveraged loans – is just about the only one that has made money for investors in 2018.

      IFR IMF/World Bank Roundtable 2018 IFR+IMF+World+Bank+RT+2018+Cover+Homepage
      Delegates at the IMF’s annual meetings in Bali got an uncomfortable reminder of Asia’s vulnerability to unforeseen shocks with an earthquake in the small hours of October 11. The financial markets have been doing their part, too.

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

      ​Still got it

      IFR 2263 8 December to 14 December 2018

      FIGHTING TALK FROM a senior fund manager at JO Hambro Capital Management, who has sounded a warning on unsustainable debt levels at UK companies and lays the blame firmly at the door of the irresistible charms of investment bankers.