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Friday, 28 August 2015

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IFR Securitisation Roundtable 2015 Cover image

IFR Securitisation Roundtable 2015Video

IFR’s Securitisation Roundtable – entitled “The Great European Securitisation Debate” – took place on May 28. Even though the general market at that point had turned volatile and Bund yields had been whipsawing, it was long before Greece went into arrears with the IMF and Greeks had voted against the latest austerity package. So the following discussion needs to be read with this in mind.

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.

All IFR Special Reports

In this week's IFR Magazine

Upfront

Apple logo

Bearing fruit

IFR 2097 22 August to 28 August 2015

Apple’s arrival in Australia’s bond market was always going to cause a stir, but there’s a long way to go before the world’s corporate giants include the currency in their core funding plans.

Top News

Piggybank

Greek debt feels the heat as bail-ins loom

IFR 2097 22 August to 28 August 2015 By

Greek bank bonds dropped like a stone last week as the prospect of painful haircuts came to the fore, potentially heralding a new era for senior debt investors who have previously been protected throughout Europe’s various financial crises.

apple bonds record

Apple smashes Aussie records

21 August 2015 By

Australia’s underused corporate bond market received a major shot in the arm last week when Apple, the world’s biggest company by market value, made its Kangaroo debut.

KIK Custom Products logo

KIK buyout bond comes at steep discount

IFR 2097 22 August to 28 August 2015 By

Investor push-back on a bond deal backing the buyout of KIK Custom Products by private equity firm Centerbridge Partners forced underwriters to sell the deal at one of the steepest discounts seen in the US high-yield market in the past few years.

EM burgan bank

Burgan redemption risk rattles market

IFR 2097 22 August to 28 August 2015 By

Investors were caught completely off-guard last week when Burgan Bank announced that it might redeem subordinated bonds ahead of time, raising concerns that bondholders have grown complacent about regulatory risk across the Middle East.

equity china

Chinese issuers turn to exchangeables to dodge ban on stake sales

IFR 2097 22 August to 28 August 2015 By ,

With share sales heavily restricted and margin loans hard to come by, major shareholders in Chinese listed companies are turning to the little-known exchangeable bond market to raise funds.

loans china weetabix

Chinese muscle in on leveraged loans

IFR 2097 22 August to 28 August 2015 By

A number of western banks have dropped out of bidding to lead a leveraged loan for British cereal maker Weetabix after refusing to keep up with the aggressive terms offered by Chinese banks.

SunEdison solar park

SunEdison plugs funding hole with CB

IFR 2097 22 August to 28 August 2015 By Robert Sherwood

SunEdison raised US$1.65bn last week in order to ensure that its hefty capital expenditure plan can remain on track. Funding concerns surrounding the solar power project developer have led in the past month to a collapse in its share price. 

An airport security guard walks past a sign at the departure hall of Hong Kong Airport.

Hong Kong loses dual-currency IPO

IFR 2097 22 August to 28 August 2015 By , S Anuradha

Hong Kong Airlines International has dropped a renminbi tranche from its proposed US$600m IPO in an effort to push forward the delayed SAR listing.

IFR Magazine Top News in Full (subscription required)

People & Markets

Morgan Stanley logo

​Banks await more forex pain

IFR 2097 22 August to 28 August 2015

Investment banks face billions more in costs linked to past manipulation of foreign exchange rates, analysts have warned, despite most now having settled with global regulators and paid fines for their part in the industry-wide scandal.

Jean-Claude Trichet

​Bank culture changes skin-deep, says G30

IFR 2097 22 August to 28 August 2015

The Group of Thirty has called for banks to make deeper cultural changes to their businesses beyond the board-level statements most have already made.

Promontory Financial Group logo

Promontory retreats from battle with DFS

IFR 2097 22 August to 28 August 2015

Promontory Financial Group has accepted a six-month suspension and agreed to pay a US$15m fine to the New York Department of Financial Services related to work it did on behalf of Standard Chartered in 2010 and 2011. It was an about-face from the firm’s previous vow to fight the New York regulator in court.

Deutsche Bank headquarters in Frankfurt

Deutsche sets up new fixed income committee

IFR 2097 22 August to 28 August 2015

Deutsche Bank has created a new executive committee to run its flagship fixed income and currencies business following the departure of Rich Herman, who announced his decision to leave the firm in May after only six months as sole head.

Goldman Sachs sign

Goldman Sachs sees deposit base swell

IFR 2097 22 August to 28 August 2015

Goldman Sachs has grown its deposit base to US$89bn in the seven years since the investment bank gained a licence at its Goldman Sachs USA Bank subsidiary in the mayhem immediately after the Lehman Brothers collapse.

    More from People & Markets

    Bonds

    Helaba headquarters

    Attractive pricing lures Helaba to public market

    IFR 2097 22 August to 28 August 2015

    Competitive funding levels lured Landesbank Hessen-Thueringen to print its first senior public benchmark in years, a €1bn two-year FRN that attracted €1.1bn of demand.

    US dollar bills

    US dollar SSA market springs into life

    IFR 2097 22 August to 28 August 2015

    The summer break ended early for SSA bankers, with several issuers pricing US dollar deals in order to get them done ahead of a potentially eventful September.

    Shell logo

    Shell goes big

    IFR 2097 22 August to 28 August 2015

    Anglo-Dutch oil and gas major Shell cast its net wide once again on Monday in a bid to lock in attractive funding rates for its latest debt financing exercise.

    Market participants prepare for busy second half

    IFR 2097 22 August to 28 August 2015

    FIG bankers are getting ready for a busy second half of the year, with this week earmarked as a potentially good week for a restart of the primary market in Europe. 

    BNG reopens euros, but at a cost

    IFR 2097 22 August to 28 August 2015

    Dutch agency Bank Nederlandse Gemeenten caused a stir last week by reopening the market for euro benchmark trades, and received an encouragingly strong reception even if it came at a cost.

      More from Bonds

      Loans

      The US Federal Reserve building in Washington

      ​Lev loans safe haven after rate hike

      IFR 2097 22 August to 28 August 2015 By Lynn Adler

      US leveraged loans could be an island of relative safety when the Federal Reserve shifts gears and starts hiking interest rates for the first time in nearly a decade.

      Atlas Resource Partners logo

      Energy companies face anxiety over revolvers

      IFR 2097 22 August to 28 August 2015 By Jonathan Schwarzberg

      Exploration and production companies are about a month away from redetermining the borrowing bases on their revolvers, but industry insiders said the process would not be as easy this time as it was in the spring.

      American Seafoods Group logo

      American Seafoods taps for US$800m recap loan

      IFR 2097 22 August to 28 August 2015 By Leela Parker Deo

      American Seafoods Group has tapped finance company Ares Capital for a US$800m first and second-lien credit facility that backs a recapitalisation of the Seattle-based fish harvesting company, in a deal that is notable for both its size and syndication strategy focused on alternative lenders.

      The Royal Bank of Scotland (RBS) branch in central London

      Final curtain for RBS loans in the region

      IFR 2097 22 August to 28 August 2015 By

      Royal Bank of Scotland has sold almost all of its Asian loan portfolio in an unprecedented series of block sales, winding down nearly a decade-old operation in the region.

      WuXi PharmaTech logo

      Duo underwrite US$1.1bn loan for WuXi Pharma buyout

      IFR 2097 22 August to 28 August 2015 By , Carol Zhong

      Two Chinese banks are underwriting a US$1.1bn loan for the US$3.3bn buyout of New York-listed WuXi PharmaTech in the latest sign that foreign lenders are being squeezed out of China’s growing leveraged loan market.

      Pentair logo

      M&A momentum continues with Pentair, Fidelity deals

      IFR 2097 22 August to 28 August 2015 By Karen Schwartz

      Acquisition loans for pump and valve maker Pentair and financial industry software maker Fidelity National Information Services are the latest to hit the investment-grade market in an August that has been anything but sleepy.

      Fillip for Aussie M&A market

      IFR 2097 22 August to 28 August 2015 By Sharon Klyne, Karen Schwartz

      A Brookfield Infrastructure-led consortium is raising a A$1.9bn (US$1.4bn) financing to back its A$12bn acquisition of Australia rail freight firm Asciano.

      Dicks Sporting Goods ups revolver

      IFR 2097 22 August to 28 August 2015

      Dicks Sporting Goods has amended its revolving credit facility, increasing the size to US$1bn from US$500m. Wells Fargo is administrative agent, and a joint lead arranger and joint book manager along with Bank of America Merrill Lynch and PNC.

      More from Loans

      Equities

      A Petco store

      Petco sponsors unleash IPO filing

      IFR 2097 22 August to 28 August 2015

      Pet products retailer Petco Holdings has joined a packed slate of sponsor-backed IPOs hoping to be priced later this year by filing for an offering that would mark a return to public markets after nine years in the hands of private equity.

      Agricultural Development Bank logo

      Way clear for ADB to relaunch IPO

      IFR 2097 22 August to 28 August 2015

      The IPO of Agricultural Development Bank is in limbo following the end of proceedings to block the float in the Supreme Court but with no decision on relaunching last week. A revival of the privatisation is imminent and should simply involve a new closing date, with no terms of the deal required to change.

      Virgin Money logo

      UK: Good results give opportunity to sell

      IFR 2097 22 August to 28 August 2015

      Analysts believe the financial sponsors behind Aldermore and OneSavings Bank could make substantial share sales once the reporting season for first-half numbers comes to an end this week. The UK challenger banks are expected to publish strong first-half numbers, adding to a market view that the sector is an oasis of superior returns.

      A Japan Post employee

      Japan Post grows

      IFR 2097 22 August to 28 August 2015

      The first tranche of the triple IPO by Japan Post Holdings and its two financial units is expected to raise up to ¥1.66trn (US$13.53bn), which would make it Japan’s biggest privatisation through equity markets in almost three decades, Thomson Reuters’ DealWatch reported.

      Aramark logo

      US ECM slows to a crawl as stocks slide

      IFR 2097 22 August to 28 August 2015

      If there is any doubt US equity capital markets are going to be very quiet through to Labor Day (September 7), a global market rout last week made it a virtual certainty.

      Australia: Link Group plans A$1bn IPO

      IFR 2097 22 August to 28 August 2015

      Link Group, one of Australia’s largest fund administration providers, plans to raise about A$1bn (US$730m) from an ASX IPO in the fourth quarter.

      Australia: Santos says no need for fundraising

      IFR 2097 22 August to 28 August 2015

      Shares of Australian oil and gas company Santos edged lower last Monday despite the company denying media reports of a potential equity raising.

      Japan: GLP J-REIT completes share sale

      IFR 2097 22 August to 28 August 2015

      GLP J-REIT has raised ¥23.5bn (US$190m) from a share sale.

      More from Equities

      Derivatives

      Intercontinental Exchange logo

      ICE plans single-name CDS platform

      28 August 2015 By Mike Kentz

      Recent efforts to revive the once robust market for single-name credit default swaps are set to be augmented by the launch of a buyside-centric anonymous trading platform by the Intercontinental Exchange – possibly in the next few months, according to traders.

      Five percent club dives into credit

      28 August 2015 By

      A sell-off in credit markets pushed index spreads wider in recent days, but a diverse range of investors saw the move as a chance to increase exposure to corporate debt.

      More from IFR Derivatives

      Digital Edition

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      Desai

      Why the Fed should tighten in September

      By Meghnad Desai, chairman OMFIF Advisory Board, David Marsh, managing director and co-founder of OMFIF

      Ten reasons for Yellen to forge ahead.

      All Guest Columnists: OMFIF

      In Depth

      Precision Castparts sign

      M&A rebound reaps smaller fees

      Berkshire Hathaway has added to the pipeline of merger and acquisition activity with its US$37bn purchase of aerospace supplier Precision Castparts, showering further fees on to the investment banking advisory business.

      Liquidnet logo

      Bond e-trading shake-out gathers pace

      Scrutiny over the raft of bond trading platforms has ramped up following the failure of one high-profile new entrant and the slow take-up of quote-driven click-to-trade protocols on established platforms.

      Logo of the Institute for International Finance

      IIF and GFMA warn on market illiquidity

      Two of the industry’s biggest lobby groups have warned that regulators may need to revisit some of the regulatory changes brought in since the crisis in order to tackle market illiquidity that could bring about deep financial shocks.

      A man looks around Tesla Motors' Model S P85 at its showroom in Beijing

      Tesla fills funding hole with US$750m raise

      The long-short tug-of-war that is Tesla Motors took a leg up with the company responding to calls for capital with a US$750m equity raise Thursday. That the electric carmaker might need a liquidity bump was no small secret, though the small sizing seemed intentionally designed to catch a growing list of detractors’ off-guard.

      A general view of Shenyang, Liaoning province

      Reality check for China's muni bond market

      Creating a thriving municipal debt market is a major Chinese policy goal, but a recent undersubscribed offering of 10-year bonds from the Liaoning provincial government has underlined the challenges ahead.

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

      Sick as a parrot

      IFR 2095 8 August to 14 August 2015

      SINCE THE FINANCIAL crisis, RBS has discovered to its cost that one of the downsides of being bailed out by British taxpayers is that everyone is entitled to have an opinion about its troubles.

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      Turkey's lira hits record lowVideo

      The Turkish lira has hit a record low and stocks tumbled, after coalition talks between the ruling party and main opposition fail. As Sara Hemrajani reports, it’s setting the stage for more investor uncertainty.

      All Spotlight

      Chelsea

      IFR Fantasy Football League 2015-16 - Join Now

      By IFR Fantasy Football League Secretary General

      The fiercest financial industry competition is back, but can anyone break the Dutch grip on the IFR Fantasy Football League?

      All IFR FFL