Russian credit prices were volatile at the end of a week that saw a further round of sanctions from the US and EU, as well as a court ruling on Yukos Oil that said Moscow had to stump up US$50bn to its former shareholders as compensation for appropriating the company’s assets.
Fresh EU and US sanctions have frozen Russian companies out of the international syndicated loan market.
A rush to contain the fallout from Argentina’s default last Wednesday is under way as markets continue to bet that the beleaguered sovereign will ultimately be able to repay exchange bondholders in full.
China’s plans to reform the shareholding structures of several large state-owned enterprises may lead to some huge Hong Kong IPOs as early as next year. The government’s plan to reform SOEs gained momentum when Bank of Communications said in a statement last Monday it was studying plans to diversify its ownership structure and improve its corporate governance.
As financial lawyers scramble to assess the impact on financial markets of the latest round of international sanctions against Russia, two unlikely bedfellows have been earmarked by the US Treasury as safe for the time being.
US ECM bankers last week priced the most IPOs in a week since 2007, but mixed aftermarket performances, rising volatility, macro concerns and general investor fatigue look set to bring activity to a crawl, right in time for the traditional late summer break.
The dramatic saga surrounding BES reached crisis point on Friday as the lender’s massive €3.6bn loss sparked talk of a government bail-out and fuelled fears that senior bondholders might be at risk – alongside those holding the bank’s subordinated paper.
High-yield bankers will unleash a barrage of deals over the next two weeks, even though big outflows from high-yield funds and rate rise fears have put the asset class in its most volatile state in months.