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Friday, 26 August 2016

MOVES-Fisch adds two to convertible bonds team

25 August 2016 By Maud Davies

Swiss boutique firm Fisch Asset Management has promoted Stephanie Zwick to head its convertible bonds team and hired Filip Adamec as portfolio manager for the business.

EQUITIES: PSBC wins Hong Kong listing approval

25 August 2016 By

Postal Savings Bank of China has won listing approval from the Stock Exchange of Hong Kong for its proposed IPO, according to sources familiar with the situation.

MOVES-Morgan Stanley's Kay leaves

25 August 2016 By

Valerie Kay, a managing director in senior relationship management at Morgan Stanley, has left the firm, according to two people close to the situation.

Carlyle takes reverse inquiry on CommScope sale

24 August 2016 By

In this week’s only US follow-on stock sale so far, Carlyle Group offloaded 10m shares of CommScope in a block trade overnight Tuesday struck at no discount to market prices.

MOVES-Barclays' GFRS head Langley to retire from industry

24 August 2016 By

John Langley, Barclays’ head of global finance and risk solutions (GFRS), is retiring from the industry to pursue other opportunities, according to an internal memo seen by IFR.

UBS hedge fund whistleblower claims unfair dismissal

24 August 2016 By Steve Slater

A former investment manager at UBS’s hedge fund business O’Connor is claiming unfair dismissal and saying he was unfairly treated by the Swiss bank for whistleblowing.

EQUITIES: Japan's Recruit in US$2.7bn secondary follow-on

24 August 2016

Shareholders of Japanese temporary staffing business Recruit Holdings are planning to raise ¥267bn (US$2.7bn) through a follow-on offering of secondary shares, according to a term-sheet.

MOVES: Gramercy makes Tackney co-head of trading

23 August 2016 By Philip Scipio

Gramercy Funds Management named Chris Tackney a managing director and co-head of its trading desk.

EQUITIES: CSRC approves PSBC’s Hong Kong listing plan

23 August 2016 By

The China Securities Regulatory Commission has approved Postal Savings Bank of China’s application to seek a Hong Kong listing, according to sources familiar with the situation.

MOVES-Deutsche Bank hires Bloom to extend oil and gas coverage

23 August 2016 By Philip Scipio

Deutsche Bank has hired Lackland Bloom, former co-head of oil & gas investment banking at JP Morgan, to run its Houston office as a managing director in the natural resources group.

MOVES-Danske adds Norum for SSA and FIG coverage

23 August 2016 By

Danske Bank has hired Susanna Norum as a senior originator in the debt capital markets team. Norum will cover financial institutions and sovereigns, supranationals and agencies.

Trade Desk opens drawer on US$86.3m IPO

22 August 2016

Amid an expected pick-up in IPO filings this week, The Trade Desk publicly disclosed its intent to go public by filing to raise up to US$86.3m from its IPO.

Sanchez affiliate seeks to defuse dividend hike

22 August 2016

Sanchez Production Partners (SPP), the MLP affiliate of Sanchez Energy, is seeking to raise as much as US$250m in a follow-on stock sale. The all-primary offering would be used to de-lever following recent acquisitions and would also satisfy terms of private round financing the company completed last October.

Lazard builds defence with Deignan

22 August 2016

Craig Coben has been named global head of ECM at Bank of America Merrill Lynch following the departure of his co-head Mary Ann Deignan to join Lazard.

Filings point to September rebound in US IPOs

20 August 2016 By

US IPO filing activity picked up pace Friday, breaking through a protracted lull this year and adding at least three new names to a growing list of potential launches after the Labor Day holiday.

Negative interest rates place banks under strain

19 August 2016 By Maud Davies

Europe’s controversial negative interest rates policy is not having the desired effect of stimulating growth, according to a report released this week by Standard & Poor’s.

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Money in the bank

IFR 2147 20 August to 26 August 2016

ECM bankers are talking up the prospects for European IPOs only weeks after the UK’s decision to leave the EU was meant to have put the kibosh on issuance in a year when activity was already down 40%.

Top News

Euro bills

Optimism for European ECM as IPOs return 10%

IFR 2147 20 August to 26 August 2016 By ,

European ECM bankers are increasingly optimistic about the prospects for issuance in the rest of 2016 thanks to the double-digit percentage returns from IPOs in the region this year. Volume-weighted returns from EMEA listings this year are a handsome 10%, a level only two major EMEA indices can top – those in the niche markets of Russia and Egypt.

A vendor selling watermelons naps as he waits for customers at a market in Taiyuan, Shanxi province

Slim pickings on China's SDR debut

IFR 2147 20 August to 26 August 2016 By Ina Zhou

The World Bank is facing scant investor interest for its landmark offering of Special Drawing Rights bonds in China’s domestic market due to an expected record low yield.

CarVal logo

Cargill arm turns bad mortgages into hot bonds

IFR 2147 20 August to 26 August 2016 By

Global commodity giant Cargill’s distressed debt arm has turned fixed-up mortgages into a hot-ticket item with the largest deal yet from its Mill City bond issuance programme.

A Wall St. sign is seen in New York's financial district

Foreign banks storm US dollar market

IFR 2147 20 August to 26 August 2016 By ,

Yankee bank issuance has soared this month as tighter spreads, favourable currency moves and huge demand for higher-yielding US assets has lowered the cost of borrowing in US dollars.

An oil rig is seen in Midland, Texas

Permian land grab drives issuance

IFR 2147 20 August to 26 August 2016 By

Investment bankers are setting up shop in Midland, Texas as the oil industry drives equity issuance, despite the commodity struggling to break back above US$50 per barrel.

Currency signs of Japanese Yen, Euro and the U.S. dollar are seen on a board outside a currency exchange offi

Japanese banks face US squeeze

IFR 2147 20 August to 26 August 2016 By Frances Yoon

Japan’s mega-banks are emerging as the biggest victims of a worsening squeeze in the US$1trn US commercial paper market, as rising short-term rates and high swap costs threaten their access to cheap dollar funding.

EU flags flutter outside the European Commission headquarters in Brussels

EC paper adds further balm to bank capital

IFR 2147 20 August to 26 August 2016 By

The European Commission could give another fillip to the rapidly rebounding Additional Tier 1 market, if it adopts proposals laid out in a recent policy document that would make it easier for banks to meet coupon payments.

Lower Manhattan including the financial district

Investor resistance to Triple C risk crumbles

IFR 2147 20 August to 26 August 2016 By

Resistance is futile for some investors eyeing risky Triple C bonds as spreads and absolute returns continue to tighten across the board.

Traders work on the floor of the New York Stock Exchange

August follow-on rush breaks US ECM lull

IFR 2147 20 August to 26 August 2016 By ,

Faced with anaemic returns available in fixed income, investors are flocking to the US equity market in the hope of closing performance gaps. And with stock market valuations near historic highs, shareholders are rushing to cash in on a rare opportunity.

The Westpac bank building is pictured in central Sydney

Aussie majors binge on US debt

IFR 2147 20 August to 26 August 2016 By

A worsening dislocation in the US money markets is helping to drive a run of jumbo dollar bond sales from Australia’s major banks, as the likes of Westpac take advantage of attractive hedging costs to lock in low rates.

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People & Markets

Workers cross the Millenium Bridge with the City of London seen behind

City lobbies for UK special status

IFR 2147 20 August to 26 August 2016

Financial institutions in the City of London are starting to form positions on their preferred relationship between banking in the UK and the European Union after Brexit, with many concluding that the UK will have to adopt a special status different from the models used by Norway and Switzerland.

MP presses for UKFI investigation

IFR 2147 20 August to 26 August 2016

British Conservative MP Andrew Tyrie has pressed the National Audit Office to investigate the government sale of Royal Bank of Scotland shares last August in order to assess the quality of advice provided by UK Financial Investments, the Treasury body that manages the government’s bank shareholdings.

​Heroes and Villans

IFR 2147 20 August to 26 August 2016

NICK LEESON, THE Watford-born rogue trader who brought down Barings, is back, and this time he’s offering an online course in trading.

Deutsche whistleblower rebuffs US$8.25m SEC award

IFR 2147 20 August to 26 August 2016

A whistleblower who helped reveal false accounting at Deutsche Bank has refused an US$8.25m award from a US securities regulator because of the agency’s failure to punish bank executives, the Financial Times reported last Thursday.

Credit Suisse banker dispute shows challenge of CEO's new strategy

IFR 2147 20 August to 26 August 2016

Credit Suisse is accusing a group of five investment bankers who left for Jefferies in May of stealing confidential information and trying to coax former colleagues to join them.

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    Bonds

    A man walks into the JP Morgan headquarters at Canary Wharf in London

    Investors request more callable TLAC

    IFR 2147 20 August to 26 August 2016

    A sell-out bond issue by JP Morgan this month, which some see as a game-changer for the way US banks approach their capital shortfalls, has stirred up demand from the buyside.

    A man walks past a branch of the Australia and New Zealand Banking Group in Sydney

    ANZ continues AT1 spread compression

    IFR 2147 20 August to 26 August 2016

    Australia and New Zealand Banking Group set price guidance on its latest Additional Tier 1 capital raising last week, continuing the trend towards tighter margins in the bank capital market.

    Francs open for business but not much yield on offer

    IFR 2147 20 August to 26 August 2016

    Kanton Basel-Stadt followed hot on the heels of a quadruple-tranche PSHypo offering to reopen the Swiss market after a three-week hiatus, bringing its own triple-trancher, notably all negative-yielding zero coupon bonds, despite the longest tranche being 13 years.

    Berlin extends with upsized 20-year

    IFR 2147 20 August to 26 August 2016

    Showing the appetite of investors for high-grade Level 1 paper with any sort of yield, the State of Berlin hit the market on Thursday with an upsized transaction.

    MS back on Formosa front

    IFR 2147 20 August to 26 August 2016

    Morgan Stanley returned to the offshore renminbi Formosa market to sell Rmb350m (US$52m) of five-year bonds at 4.10% through leads Yuanta Securities, KGI Securities and E.Sun Commercial Bank.

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      Loans

      A damaged traffic signal

      Mixed signals drag down mid-market

      IFR 2147 20 August to 26 August 2016 By Dave Puchowski

      The US economy is fundamentally sound, but middle-market borrowers are struggling to find clarity through the fog of mixed economic signals, which is creating an ongoing drag on investment and deal flow, economists and lenders said.

      Two deer clash antlers during an early, autumn, misty morning in Richmond Park

      Bankers prepare for September surge

      IFR 2147 20 August to 26 August 2016 By Hannah Brenton

      The European leveraged loan market is preparing for a surge of opportunistic financings in September as favourable market conditions benefit private equity sponsors and borrowers.

      The logo of a Petronas fuel station is seen with the Petronas Twin Towers in the background in Kuala Lumpur

      Petronas drags down loan pricing

      IFR 2147 20 August to 26 August 2016 By , Chien Mi Wong

      Malaysian oil and gas giant Petroliam Nasional is taking advantage of huge lender demand for assets to secure tight pricing on a US$7.2bn bridge loan.

      XPO Logistics tweaks repricing

      IFR 2147 20 August to 26 August 2016

      Transportation provider XPO Logistics expects to close a repricing of its US$1.59bn term loan on Thursday, as opposed to the original target of November 1.

      Saudi Arabia: Zain makes quick refinancing

      IFR 2147 20 August to 26 August 2016

      Telecommunications operator Zain Saudi Arabia said it would save SR175m (US$46.7m) by using a Chinese bank to refinance a SR2.25bn loan that it had secured just two months ago.

      PerkinElmer bags US$1bn RCF

      IFR 2147 20 August to 26 August 2016

      Scientific instruments maker PerkinElmer signed a US$1bn five-year unsecured revolving credit facility.

      UK: Two funds finance Pinewood buy

      IFR 2147 20 August to 26 August 2016

      Two real estate debt funds have provided the financing for the £323m acquisition of UK film and television studios Pinewood Group by Aermont Capital, law firm Paul Hastings said.

      Diamond wraps reworked deal

      IFR 2147 20 August to 26 August 2016

      Timeshare operator Diamond Resorts wrapped a US$700m term loan backing its US$2.2bn buyout by Apollo Global Management after making changes to the deal.

      More from Loans

      Equities

      A woman sews the national flag of India at a state-run workshop in Guwahati

      Indian insurers resist IPO push

      IFR 2147 20 August to 26 August 2016

      India’s insurance regulator is pushing companies in the fast-growing sector to the capital markets to diversify funding and increase transparency, setting the scene for a surge in major financings.

      Australia braces for IPO rush

      Australia braces for IPO rush

      IFR 2147 20 August to 26 August 2016

      Australia is set for a host of large IPOs, totalling as much as A$7.2bn (US$5.5bn), over the next half-year, providing a welcome boost for equity capital markets bankers after a sluggish start to 2016.

      Univar

      CVC takes opportunity to sell Univar stake

      IFR 2147 20 August to 26 August 2016

      Market acceptance of block trades as the preferred ECM format (or so it seems) has led ECM bankers to unhappily concede that the days of juicy fees and minimal risk are over. It has also removed well populated syndicates.

      Southern Company

      Southern Co funds acquisition with US$1.6bn stock sale

      IFR 2147 20 August to 26 August 2016

      Southern Company delivered on its promised equity raising, sealing a US$1.61bn overnight stock sale last Tuesday.

      Canada's Shopify returns for more cash

      IFR 2147 20 August to 26 August 2016

      One of 2015’s best IPOs (the sixth best performer), Shopify submitted a shelf filing in late July, flagging that it probably would undertake a secondary stock sale in the near term.

      OncoMed funds cancer drug development

      IFR 2147 20 August to 26 August 2016

      Cancer drug developer OncoMed Pharmaceuticals raised US$55m in a stock offering last week in support of its experimental immuno-oncology drug platform. The deal was the clinical stage biotech’s first public stock sale since its IPO three years ago. 

      INC Research slashes sponsor overhang

      IFR 2147 20 August to 26 August 2016

      Avista Capital Partners and Ontario Teachers’ Pension Plan returned last week with a US$195m block of INC Research in their second monetisation of the contract research organisation this month.

      HPT cleans house

      IFR 2147 20 August to 26 August 2016

      Hospitality Properties Trust, an owner of hotels and travel centres, has honoured a recent pledge to pare back its elevated leverage through an offering of its common stock. 

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      Derivatives

      Japanese banks face US squeeze

      Japanese banks face US squeeze

      IFR Asia 956 - August 20, 2016 By Frances Yoon

      Japan’s megabanks are emerging as the biggest victims of a worsening squeeze in the US$1trn US commercial paper market, as rising short-term rates and high swap costs threaten their access to cheap dollar funding.

      Traffic flows in front of the Bank for International Settlements (BIS) in Basel

      CCP recovery plans don’t work, says BIS

      IFR 2147 20 August to 26 August 2016 By

      Many of the world’s biggest clearing houses have failed to implement regulators’ requirements for risk management and clearing member defaults, while some have no plans at all, according to a Bank for International Settlements report.

      Currency signs of Japanese Yen, Euro and the U.S. dollar are seen on a board outside a currency exchange offi

      Japanese banks face US squeeze

      IFR 2147 20 August to 26 August 2016 By Frances Yoon

      Japan’s mega-banks are emerging as the biggest victims of a worsening squeeze in the US$1trn US commercial paper market, as rising short-term rates and high swap costs threaten their access to cheap dollar funding.

      Bats deal highlights exchange derivative plays

      IFR 2147 20 August to 26 August 2016 By

      Bats Global Markets’ recent purchase of swap execution facility Javelin Capital Markets is the latest sign of derivative market ambition among exchange operators, but the deal is unlikely to herald a wave of consolidation any-time soon.

      Negative rates create swaption conundrum

      IFR 2147 20 August to 26 August 2016 By

      Negative interest rates in Europe and Japan are undermining pricing models for options on interest rates swaps, but competing efforts to resolve the issue have so far failed to convince.

      More from IFR Derivatives

      Digital Edition

      Access a digital edition of the latest IFR Magazine here.

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      Special Reports

      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.

      Financing Sustainable Infrastructure
      Climate change has risen towards the top of the global policy agenda as the impact of rising temperatures is felt around the world. This is providing a strong impetus towards transitioning the world towards a low-carbon economy.

      ​Heroes and Villans

      IFR 2147 20 August to 26 August 2016

      NICK LEESON, THE Watford-born rogue trader who brought down Barings, is back, and this time he’s offering an online course in trading.

      Opinion

      Keith Mullin Commentary image

      More action needed on gender diversity

      Are G-SIBs doing enough to promote and support gender diversity in their senior executive ranks? On the evidence of the EBA’s recent survey and my own analysis of the most senior management bodies of US and European G-SIBs, clearly not.

      ​Not waving but drowning? More DCM tweaks

      INVESTMENT BANKS CONTINUE to tweak their debt org structures to gird themselves better to benefit from – or should that be survive? – opportunities in today’s abnormal debt market conditions driven by unorthodox monetary policy, the complex regulatory environment and uncertain economic growth.

      Anthony Peters columnist format

      Bring on September 21

      Another day, another Fed official on the tapes, another turn-around in sentiment with respect to the timing of the next US rate increase.

      keith mullin

      Are the Chinese eyeing Lloyds Bank?

      How about this for a great summer sizzler? The UK government sells its 9.1% in Lloyds Banking Group within the stated schedule of 2016–17, coinciding with the departure of Antonio Horta Osorio for pastures new. There’s already been some chatter about how long the group CEO will hang on and I gather some institutional shareholders are keen for the board to accelerate succession planning.

      Anthony Peters columnist format

      The not-so-sweet smell of perplexity

      Everybody into the pond, everybody out of the pond! The minutes of the FOMC’s last meeting on July 27 were released yesterday and some reading they made. The bit which had noses twitching was the observation that the labour market was developing “somewhat slower” and – in the beautifully opaque way in which these minutes tend to be worded – “several voters” found the case a further and early tightening of monetary policy “less compelling”.

      Anthony Peters columnist format

      Gold coins and holiday reading

      It would appear that the concerns I have been expressing for quite some time now with respect to the efficacy of ongoing monetary policy are more widely shared than I had previously appreciated.

      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