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Saturday, 15 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

Taking a ride

IFR 2264 15 December 2018 to 4 January 2019

A couple of ride-sharing unicorns butting heads could make a fascinating spectacle in the US IPO market next year.

Top News

An Uber and Lyft car

Uber and Lyft on collision course for early 2019 debuts

IFR 2264 15 December 2018 to 4 January 2019 By

Arch-rivals Uber Technologies and Lyft are racing to beat each other to public markets next year, and the winner could gain a significant strategic advantage in their pitched battle to dominate the US$200bn ride-hailing industry, bankers and analysts say.

Cerberus Capital Management logo

Cerberus eyes Northern Rock RMBS refi

IFR 2264 15 December 2018 to 4 January 2019 By

Cerberus has hired advisers for a potential refinancing of its £6.2bn securitisation of legacy Northern Rock mortgages, but may find the 2019 marketplace looks remarkably similar to 2016.

Nicolas Maduro

Venezuela creditors consider next move

IFR 2264 15 December 2018 to 4 January 2019 By

Venezuela bondholders have taken further steps to position themselves for a possible debt restructuring should the ailing Latin American country’s president Nicolas Maduro step down.

A security personnel member stands guard at the entrance of the Reserve Bank of India (RBI) headquarters in Mumbai, India.

Pro-growth RBI lifts markets

IFR 2264 15 December 2018 to 4 January 2019 By , ,

Indian markets recovered last week after a brief wobble following the resignation of the central bank governor, on hopes that the new head will ease financial conditions and bolster growth ahead of general elections next year.

Low-key debut for Tencent Music

Low-key debut for Tencent Music

IFR 2264 15 December 2018 to 4 January 2019 By ,

Tencent Music Entertainment’s somewhat muted debut last week left investors with a positive mark heading into year-end, continuing a run of major Chinese listings that have struck a chord with US buyers.

Catherine McGuinness, Chairman of the Policy and Resources Committee of the City of London Corporation

Britain’s financial sector faces 'slow puncture'

IFR 2264 15 December 2018 to 4 January 2019 By , ,

Life in London’s financial district will appear little changed when Britain leaves the European Union on March 29, defying predictions of an exodus of high-flyers to rival centres such as Paris, Frankfurt and Dublin.

A young Chinese athlete exercises in front of a Chinese flag at a gymnastics hall at the Shichahai sports school in Beijing.

Investors wary of China lifer risk

IFR 2264 15 December 2018 to 4 January 2019 By

Fixed-income investors are reviewing their exposure to the Chinese life insurance sector after some offshore bonds dropped sharply in recent weeks.

Hits keep on coming

Credit markets end year bruised

IFR 2264 15 December 2018 to 4 January 2019 By

Fear is dominating sentiment in credit markets on both sides of the Atlantic with only one meaningful deal priced in US dollars or euros since December 3.

Mortgage

Bankers see return of second-lien RMBS

IFR 2264 15 December 2018 to 4 January 2019 By

Lenders are looking at 2019 as the year that home equity securitisations stage a comeback after years of rock-bottom interest rates and depressed home prices kept exotic types of RMBS on ice.

Silhouettes through a Canadian flag

Canada gets radical with debt reform

IFR 2264 15 December 2018 to 4 January 2019 By

Canada’s government could save tens of millions of dollars by changing the way it manages or issues bonds, and staff at its central bank have put forward four radical ideas to do so.

Slovenia - Ljubljana

Another tough IPO year ahead

IFR 2264 15 December 2018 to 4 January 2019 By

If 2018 was not a stellar year for IPOs, with total issuance in EMEA of US$44.2bn across 176 deals versus US$49bn and 218 in 2017, the drop in IPO issuance was small compared with the fall in total ECM activity across the region.

IFR Magazine Top News in Full (subscription required)

People & Markets

Banks face January crunch on Brexit

IFR 2264 15 December 2018 to 4 January 2019

Societe Generale, JP Morgan and Bank of America Merrill Lynch are shifting more bankers to Paris as banks step up plans to be ready for a hard Brexit or no deal, bankers said.

Fees soaring for complex debt workouts

IFR 2264 15 December 2018 to 4 January 2019

Corporate debt restructurings are set to become much more expensive as the market turns and the end of easy money heralds the start of increasingly complex and costly workouts.

Barclays promotes 85 to MD

IFR 2264 15 December 2018 to 4 January 2019

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.

Time is ticking on China TLAC

Time is ticking on China TLAC

IFR 2264 15 December 2018 to 4 January 2019

A wave of Chinese loss-absorbing bonds could hit Asian offshore credit markets next year as PRC banks prepare to fill a regulatory capital shortfall of at least US$400bn in the years to come.

Who's moving where

IFR 2264 15 December 2018 to 4 January 2019

BNP Paribas has hired Thorsten Gommel to head its securities services business in Germany and Austria. Gommel will join from PwC, where he was in charge of asset and wealth management consulting across Europe, the Middle East and Africa. He will start at the French bank in April and report to Alessandro Gioffreda, head of continental Europe for securities services, and Lutz Diederichs, chairman of BNP Paribas in Germany. BNP Paribas’ securities services has US$11trn in assets under custody globally.

    More from People & Markets

    Bonds

    Outlook improves for China high-yield

    IFR 2264 15 December 2018 to 4 January 2019

    China’s property sector added to a record year for offshore bond issuance again last week, with six developers tapping the market even as many investors closed their books towards the year-end.

    Aussie majors stay close to home

    Aussie majors stay close to home

    IFR 2264 15 December 2018 to 4 January 2019

    National Australia Bank likely wrapped up major bank issuance for the year last Friday with a A$1.63bn (US$1.17bn) RMBS sale, although it is Australia’s senior unsecured market that has increasingly dominated wholesale funding through 2018.

    Yen bonds post busiest year since 2009

    IFR 2264 15 December 2018 to 4 January 2019

    International yen bond issuance exceeded ¥3.3trn (US$29bn) in 2018, the largest volume since 2009, according to Refinitiv data, boosted by strong Japanese demand for bail-in-able bonds and improving dollar/yen basis swaps.

    India: Downgrade risks for PFC, REC

    IFR 2264 15 December 2018 to 4 January 2019

    Moody’s has placed the Baa3 issuer ratings of state-owned Power Finance Corp and REC on review for downgrade, after the Indian government on December 6 granted approval in principle for PFC to acquire the 52.6% stake the state holds in REC.

    Hong Kong: CK Hutch lands euro hybrid

    IFR 2264 15 December 2018 to 4 January 2019

    CK Hutchison Holdings (A2/A/A–) sold a €500m hybrid via a private placement last Monday, according to sources familiar with the transaction.

      More from Bonds

      Loans

      Fees soaring for complex debt workouts

      IFR 2264 15 December 2018 to 4 January 2019 By ,

      Corporate debt restructurings are set to become much more expensive as the market turns and the end of easy money heralds the start of increasingly complex and costly workouts.

      Chinese schools on funding spree

      Chinese schools on funding spree

      IFR 2264 15 December 2018 to 4 January 2019 By , Apple Lam

      Three US-listed Chinese educational firms are tapping the offshore loan market, testing appetite among lenders at a time when mainland regulators are clamping down on the sector.

      Hopewell woos with buyout deal

      Hopewell woos with buyout deal

      IFR 2264 15 December 2018 to 4 January 2019 By , Apple Lam

      Hong Kong-listed developer Hopewell Holdings is set to go private, backed by a HK$25.2bn (US$3.23bn) loan that is already proving popular with lenders.

      Hong Kong: Man Wah's HK$780m loan attracts four

      IFR 2264 15 December 2018 to 4 January 2019

      Hong Kong-listed sofa maker Man Wah Holdings has signed a HK$780m three-year term loan, with four banks joining in general syndication.

      Hong Kong: AIS completes US$120m loan

      IFR 2264 15 December 2018 to 4 January 2019

      Asia International School has closed a US$120m-equivalent three-year term loan.

      China: Wanda closes club at eight

      IFR 2264 15 December 2018 to 4 January 2019

      Conglomerate Dalian Wanda Group has closed its US$800m three-year club loan with eight lenders.

      China: Dianchi Water seeks US$150m TL

      IFR 2264 15 December 2018 to 4 January 2019

      Kunming Dianchi Water Treatment held a bank presentation on December 10 in Hong Kong for a US$150m-equivalent three-year amortising term loan.

      Natixis ends up with half of US$210m Minera Chinalco loan

      China: Trio lends US$210m to Minera

      IFR 2264 15 December 2018 to 4 January 2019

      Natixis Hong Kong branch, the original mandated lead arranger and bookrunner on a US$210m one-year bullet term loan for Minera Chinalco Peru, has ended up with slightly less than half of the deal.

      More from Loans

      Equities

      Chinese wall bars India pitch

      Chinese wall bars India pitch

      IFR 2264 15 December 2018 to 4 January 2019

      Foreign banks have shunned India’s latest sell-down of stakes in two state-owned companies after the government asked underwriters to commit to research coverage on the stocks for at least two years.

      China: Beststudy Education launches IPO

      IFR 2264 15 December 2018 to 4 January 2019

      China Beststudy Education Group, a K-12 after-school education services provider, started bookbuilding last Wednesday for a Hong Kong IPO of up to HK$439m (US$56.2m).

      China: Ever Sunshine wraps up IPO

      IFR 2264 15 December 2018 to 4 January 2019

      Ever Sunshine Lifestyle Services has raised HK$790m (US$101.1m) from a Hong Kong IPO after pricing it in the lower half of the indicative price range.

      China: Luzhou City Commercial Bank completes IPO

      IFR 2264 15 December 2018 to 4 January 2019

      Luzhou City Commercial Bank has raised HK$1.74bn from a Hong Kong IPO after pricing it at the low end of the indicative price range.

      China: AsiaInfo IPO raises HK$900m

      IFR 2264 15 December 2018 to 4 January 2019

      AsiaInfo Technologies, a Chinese provider of telecoms software services, has priced a Hong Kong IPO at the bottom of the range to raise HK$900m (US$115.2m).

      China: Junshi Biosciences IPO books covered

      IFR 2264 15 December 2018 to 4 January 2019

      The books for the up to HK$3.24bn (US$415m) Hong Kong IPO of Shanghai Junshi Biosciences are multiple times covered, people close to the deal said.

      China: Xinyi Energy HK IPO runs out of steam

      IFR 2264 15 December 2018 to 4 January 2019

      Xinyi Energy, a spin-off of Hong Kong-listed Xinyi Solar, has pulled a Hong Kong IPO of up to HK$4.55bn (US$582m) because of difficult market conditions, according to people close to the deal.

      Australia: Sonic Healthcare completes placement

      IFR 2264 15 December 2018 to 4 January 2019

      Sonic Healthcare has completed an underwritten institutional placement to raise A$600m (US$434m).

      More from Equities

      Moody's cuts Xerox's unsecured debt to junk

      14 December 2018 By

      Xerox Corporation’s senior unsecured debt was cut to junk level by Moody’s on Friday, with the rating agency questioning the ability of the company to grow its revenue base amid declining demand for print and copy services.

      Bankers see return of second-lien RMBS

      14 December 2018 By

      Lenders are looking at 2019 as the year that home equity securitizations stage a comeback after years of rock-bottom interest rates and depressed home prices kept exotic types of RMBS on ice.

      Johnson & Johnson bonds move wider on asbestos report

      14 December 2018 By

      Bonds for one of the few remaining AAA credits, Johnson & Johnson, are widening following a Reuters report detailing how the company may have exposed consumers to asbestos.

      MOVES-Greenhill hires Dann from RBC for telecom banking

      14 December 2018 By

      Greenhill hired Jonathan Dann as managing director focused on the telecom and communication infrastructure sector working out of London.

      Handshake

      Another M&A year for European high-yield

      14 December 2018 By

      European high-yield will look to LBO activity for sustenance in 2019 given the continued appeal of takeovers for private equity firms, but the prospect of a refinancing wave is unlikely given market conditions.

      IFR SNAPSHOT-It's all about the flows

      14 December 2018 By

      Money poured out of US bond and stock funds and most of it appears to have moved into money market funds, data shows.

      Sri Lankans cheer during the March 2010 presidential elections in Colombo.

      An end to the high life for high-grade in 2019

      14 December 2018 By

      European investment-grade borrowers could see pricing power shift further to the buyside in 2019 as the era of ultra-easy money comes to an end, which may also leave the weaker vulnerable as idiosyncratic risk rises.

      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.

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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.

      Bullseye

      IFR 2264 15 December 2018 to 4 January 2019

      Courtesy of some generous banks, a select group of financial journalists gets to enjoy the run-in to Christmas by attending the William Hill World Darts Championship at London’s Alexandra Palace. It’s great fun, not least because bankers get to remember what it’s like to hit a target.