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Tuesday, 27 September 2016

IFR Awards 2016

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We invite banks to pitch now for the IFR Awards and IFR Americas Awards 2016.

US Federal Reserve building

Fed seeks more capital from big banks, relief for regional lenders

26 September 2016

(Reuters) - The Federal Reserve will seek significantly more capital from the largest US banks and give some relief to smaller lenders as it updates its annual stress test, Fed Governor Daniel Tarullo said on Monday.

Deutsche Bank headquarters

Deutsche Bank AT1 fall despite capital raise denial

26 September 2016 By

Deutsche Bank’s riskiest bonds took another battering on Monday despite the bank’s insistence that it could weather a US$14bn US demand to settle claims it missold mortgage securities.

Kroger brand products

Seven high-grade deals out as bond market eyes debate

26 September 2016 By Hillary Flynn

Seven investment-grade borrowers hit the US bond market on Monday, jumping into a shaky market watching for clues to the future in tonight’s first presidential debate.

Camping World logo

EQUITIES: Camping World embarks on IPO

26 September 2016 By Robert Sherwood

Camping World Holdings is following standard procedure for private equity-backed new issues.

An Advanced Disposal Services truck

IPOs keep coming in late-year rush

26 September 2016 By

Four more IPOs joined an expanding US new issue calendar Monday, led by the revived US$400m IPO of sponsor-backed waste management company Advanced Disposal Services.

Acacia Communications logo

Acacia readies for first follow-on

26 September 2016 By

This year’s best performing IPO, Acacia Communications, is planning a quick return to the equity capital markets.

Virgin Media

Sterling surge dominates high-yield primary

26 September 2016 By Robert Smith

The last week of September is set to continue European high-yield’s recent busy spell, particularly in the sterling market where four issuers are marketing more than £1bn of fresh sterling high-yield bonds as the European market’s busy spell continues.

US one-hundred dollar bills

Dollars take centre stage, again in SSA market

26 September 2016 By

The lure of the US dollar market is once again too much to resist for public sector issuers, with three borrowers out with trades that will allow them to lock in attractive funding levels.

Rio Tinto's Shanghai Representative Office

Rio Tinto launches debt reduction programme

26 September 2016

(Reuters) - Major minor Rio Tinto on Monday announced a bond buyback plan for up to US$3bn, saying it was taking advantage of its healthy cash situation to further reduce debt.

Viacom Inc. headquarters

EXCLUSIVE: Viacom readies US$1bn bond offering – sources

26 September 2016

Media conglomerate Viacom (Baa3/BBB-/BBB) is preparing to price a US dollar bond as soon as this week, market sources told IFR on Monday.

Nord/LB logo

NordLB sails into senior market after Moody’s downgrade

26 September 2016 By

NordLB is marketing its first senior unsecured bond since a rating downgrade and initiating an up to €14bn reduction in its shipping portfolio.

 Lufthansa aircraft

Lufthansa shelves bond as investors say "no" to tight price

26 September 2016 By

Lufthansa mothballed a proposed €500m no-grow seven-year bond deal on Monday after refusing to compromise on pricing, in the clearest sign yet that the ECB’s corporate purchase programme has not removed all discipline from the market.

Bank of America

Bank of America to cut Asia investment banking jobs – sources

26 September 2016

(Reuters) - Bank of America is set to cut about two dozen investment banking jobs in Asia, including some top dealmakers, sources told Reuters, as a slowdown forces western banks to cut costs.

Forbidden City

China rules on default swaps get sceptical response

26 September 2016 By Umesh Desai, Nathaniel Taplin

New rules published in China on Friday on credit default swaps were met with scepticism about how effective the hedging tool would be in addressing the country’s growing debt risks.

CBOE trading floor

CBOE to acquire rival exchange Bats Global for US$3.2bn

26 September 2016 By

CBOE Holdings has entered into an agreement to acquire rival exchange operator Bats Global for US$3.2bn.

P&M: BoC hires Ng as corporate finance manager

26 September 2016

Bank of China (Hong Kong) has hired Christine Ng as a corporate finance manager in Hong Kong. 

All Latest news

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Bond traders

Top of the swaps

IFR 2152 24 September to 30 September 2016

When the G20 threw the over-the-counter derivatives market on the naughty step for its role in the financial crisis, sweeping reforms that threatened to hike swaps costs had derivatives exchanges rubbing their hands with glee.

Top News

Euro bills

Argentina returns to euros

IFR 2152 24 September to 30 September 2016 By

Argentina is poised to issue its first euro-denominated bonds in 15 years as the sovereign continues its rehabilitation in the capital markets. The country is expected to come with a relatively small dual-tranche trade that could reach around €1.5bn.

Shire's manufacturing facility in Lexington, Massachusetts

Shire raises eyebrows with stunning debut

IFR 2152 24 September to 30 September 2016 By Hillary Flynn

Investors piled into the debut bond from Shire last week, ignoring some clear warning signals that the drugmaker’s deal might have offered a little bit less than meets the eye.

Moscow International Business Center

Russia tap fails to convince doubters

IFR 2152 24 September to 30 September 2016 By Robert Hogg

Russia took advantage of a benign backdrop last week to tap its May 2026s for US$1.25bn but, as on the original transaction, debate raged about who bought the bonds.

Memory chips

Analog survives choppy syndication

IFR 2152 24 September to 30 September 2016 By Tessa Walsh

The slower than expected syndication of a US$7.5bn senior acquisition loan, which is part of a US$11.6bn financing backing Analog Devices’ US$14.8bn acquisition of chipmaker Linear Technology, shows that banks are finding it harder to make returns work on drawn acquisition term loans.

A JR Kyushu operated train

JR Kyushu IPO banks on non-railway growth

IFR 2152 24 September to 30 September 2016 By Robert Hartley

The ¥392bn (US$3.9bn) listing of Japanese state-owned rail operator JR Kyushu, the second largest IPO in Asia this year, is banking on the growth of its non-railway operations to lure investors.

Woori Bank headquarters

Tight Asian AT1s find takers

IFR 2152 24 September to 30 September 2016 By

Global investors are warming to Asian bank capital securities in search of high nominal returns and low loss-absorption risks, despite tighter pricing relative to European alternatives.

Currency signs

Widening cross-currency basis threatens US bond returns

IFR 2152 24 September to 30 September 2016 By ,

US bond yields could rise in coming weeks, amid signs that currency hedging costs near five-year highs may be undermining overseas demand for US fixed income securities.

Bank for International Settlements

OTC swaps users resist move to exchanges

IFR 2152 24 September to 30 September 2016 By

Derivatives exchanges have failed to lure business away from the over-the-counter swaps market despite sweeping reforms that have hiked the cost of bilateral exposures.

Swiss National Bank headquarters

Government debts eased by QE policies

IFR 2152 24 September to 30 September 2016 By

Of all the beneficiaries of the world’s unprecedented experiment with monetary easing, the backdoor benefit to government finances has perhaps been least noted.

SEC headquarters in Washington

Money-market reforms to make borrowing more costly

IFR 2152 24 September to 30 September 2016 By

Money-market fund reforms that come into effect next month will further hike short-term bank borrowing costs, which have already risen sharply in recent months.

IFR Magazine Top News in Full (subscription required)

People & Markets

Jefferies booth on the floor of the New York Stock Exchange

Jefferies signals trading upturn

IFR 2152 24 September to 30 September 2016

Jefferies Group has offered a glimpse into the third-quarter trading environment and signalled that banks are set for a decent rebound from year-ago levels, although the figures are not strong enough to reverse a negative long-term trend.  

Deutsche Bank headquarters

Deutsche Bank changes US top ranks

IFR 2152 24 September to 30 September 2016

Deutsche Bank has promoted Mark Fedorcik to head corporate and investment banking in the Americas, the latest in a series of overhauls at the struggling German bank as it tries to improve profitability and revive its fortunes.

US Federal Reserve building

​Banks need US$4bn extra capital as Fed turns screw on commodities

IFR 2152 24 September to 30 September 2016

The US Federal Reserve has proposed new rules aimed at limiting bank involvement in owning physical commodities, which could force major firms to hold an extra US$4bn in additional capital.

Goldman Sachs sign

Goldman seen cutting 30% of Asia IB jobs

IFR 2152 24 September to 30 September 2016

Goldman Sachs is cutting almost 30% of its 300 investment banking jobs in Asia outside Japan in response to a slowdown in activity in the region, two sources familiar with the matter said.

Wells Fargo sign

Wells Fargo scandal chills regulatory environment

IFR 2152 24 September to 30 September 2016

The thaw in the regulatory environment that many bank executives were feeling in the waning days of summer is over, thanks in large part to the scandal gripping Wells Fargo.

    More from People & Markets

    Bonds

    Goldman Sachs sign

    Investors flock to tight Goldman callable TLAC

    IFR 2152 24 September to 30 September 2016

    Goldman Sachs on Thursday became the third US bank to sell a callable senior unsecured bond issue that is intended to tackle Total Loss Absorbing Capacity rules.

    Bank of Japan (BOJ) building

    US market grapples with BoJ overhaul

    IFR 2152 24 September to 30 September 2016

    The US dollar SSA market could lose its all-important Japanese bid after the Bank of Japan’s monetary policy overhaul, although some bankers remain optimistic that the primary market will be able to shake off the potential capital flight.

    US election in focus at leveraged finance meet

    IFR 2152 24 September to 30 September 2016

    Hundreds of executives and investors will converge on an Arizona resort on Monday for a closely watched leveraged finance conference coming just weeks before the US elections.

    Deutsche Telekom logo

    Floating-rate notes back in vogue in high-grade market

    IFR 2152 24 September to 30 September 2016

    Floating-rate notes are making a comeback in the US investment-grade bond market amid renewed interest from investors expecting tighter monetary conditions in the US.

    Sweden removes financial sub debt's favourable tax treatment

    IFR 2152 24 September to 30 September 2016

    Sweden looks set to terminate the favourable tax treatment of subordinated bank bonds, setting the country apart from other European jurisdictions and increasing the cost of this type of debt at a time when lenders are loading up on capital.

      More from Bonds

      Loans

      A poll worker places a mail-in ballot

      Issuers accelerate borrowing plans

      IFR 2152 24 September to 30 September 2016 By Tessa Walsh

      The transatlantic loan markets are facing a busy few weeks as companies accelerate borrowing plans to take advantage of strong and liquid loan market conditions before running into any potential volatility around the looming US elections on November 8.

      Bayer logo

      Lenders hope for rapid take-out of Bayer bridge loan

      IFR 2152 24 September to 30 September 2016 By

      German drug and crop chemicals group Bayer’s US$57bn bridge loan backing its US$66bn acquisition of US seed company Monsanto launched last week. Banks looking to commit to the financing will be hoping that the company moves quickly to reduce the size of the loan.

      Kuwait National Petroleum Company's headquarters

      KNPC leads Gulf charge for funds

      IFR 2152 24 September to 30 September 2016 By Sandrine Bradley

      Kuwait National Petroleum Company (KNPC) is heading a list of cash-hungry Middle Eastern sovereign-related entities looking to raise substantial financings in the loan market, as low oil prices continue to deplete their balance sheets.

      SIG Combibloc logo

      SIG Combibloc opens door for more repricings

      IFR 2152 24 September to 30 September 2016 By Hannah Brenton

      Swiss packaging company SIG Combibloc’s aggressive repricing of its cross-border term loans could open the door for even more repricings in the European leveraged loan market.

      Memory chips

      Analog survives choppy syndication

      IFR 2152 24 September to 30 September 2016 By Tessa Walsh

      The slower than expected syndication of a US$7.5bn senior acquisition loan, which is part of a US$11.6bn financing backing Analog Devices’ US$14.8bn acquisition of chipmaker Linear Technology, shows that banks are finding it harder to make returns work on drawn acquisition term loans.

      ChemChina headquarters

      ChemChina closes Syngenta bridge

      IFR 2152 24 September to 30 September 2016 By Carol Zhong

      China National Chemical Corp has closed syndication of a US$12.7bn short-term bridge loan to back its record acquisition of Swiss seeds and pesticides company Syngenta, concluding a challenging process lasting several months.

      Verizon logo

      Verizon wraps US$9bn RCF

      IFR 2152 24 September to 30 September 2016

      Verizon Communications completed a US$9bn four-year revolving credit facility that was led by JP Morgan, Bank of America Merrill Lynch, Citigroup, Barclays and Wells Fargo.

      Melbourne port lifts Aussie loans

      IFR 2152 24 September to 30 September 2016 By Sharon Klyne

      Global lenders have flocked to a A$4bn (US$3bn) loan supporting the Port of Melbourne privatisation, underlining the competition for high-quality assets in a sluggish bank market.

      More from Loans

      Equities

      Nets logo

      Solid start for European issues

      IFR 2152 24 September to 30 September 2016

      Fears that the rest of the year’s IPO plans would be disrupted by the UK’s Brexit vote have been well and truly put to bed. Hollywood Bowl is the first UK company to complete an IPO since June 23 and its debut last week was a textbook example, making a high single-digit gain – and holding it.

      Innogy logo

      Innogy set to be Europe's largest IPO this year

      IFR 2152 24 September to 30 September 2016

      Innogy, the retail, infrastructure and renewables carve-out from German utility RWE, is set to be Europe’s largest IPO of the year.

      The Trade Desk logo

      Trade Desk leads tech IPO rebound

      IFR 2152 24 September to 30 September 2016

      The Trade Desk, a fast-growing ad-buying platform, soared 60% at its debut on Wednesday, the latest in a run of stellar gains from tech IPOs and a departure from the disappointing string of “ad tech” new issues in recent years.

      Azure Power Global logo

      Solar utility looks to New York

      IFR 2152 24 September to 30 September 2016

      Azure Power Global, a solar power producer, began marketing an up-to-US$156.4m New York IPO last Thursday, becoming the first Indian company to offer shares in the US in four years. 

      Checkered flag

      Ashland takes chequered flag on Valvoline spin

      IFR 2152 24 September to 30 September 2016

      Valvoline, the iconic US motor oil brand, raised US$660m from its IPO, the first step in its full separation from parent Ashland.

      Saigon beer

      Bankers circle stake sales

      IFR 2152 24 September to 30 September 2016

      Vietnam has started work on the divestment of key state-owned companies and bankers hope some of them will end up as capital market transactions.

      Encana's offices Parachute, Colorado

      Encana raises US$1bn to grow Permian production

      IFR 2152 24 September to 30 September 2016

      Canadian oil explorer and producer Encana has amassed a prolific set of hydrocarbon properties, but there are some concerns about the high costs of acquiring those assets, as well as the growing debt required to fund their development.

      IPO market stirs into life, more to come

      IFR 2152 24 September to 30 September 2016

      The US IPO market has roared back to life as reasonable valuations and stellar returns on the latest deals have prompted an investor chase for alpha.

      More from Equities

      Derivatives

      CBOE trading floor

      CBOE to acquire rival exchange Bats Global for US$3.2bn

      26 September 2016 By

      CBOE Holdings has entered into an agreement to acquire rival exchange operator Bats Global for US$3.2bn.

      Forbidden City

      China rules on default swaps get sceptical response

      26 September 2016 By Umesh Desai, Nathaniel Taplin

      New rules published in China on Friday on credit default swaps were met with scepticism about how effective the hedging tool would be in addressing the country’s growing debt risks.

      China revamps CDS as defaults rise

      IFR Asia 961 - September 24, 2016 By Ina Zhou

      China has introduced new credit derivatives tools, which are closer to the global standard for credit-default swaps as demand for credit protection has grown amid rising onshore defaults rates.

      China revamps CDS as defaults rise

      IFR 2152 24 September to 30 September 2016 By ,

      China has introduced new credit derivatives tools, which are closer to the global standard for credit-default swaps, as demand for credit protection has grown amid rising onshore defaults rates.

      CurveGlobal plans fee blitz land grab

      IFR 2152 24 September to 30 September 2016 By

      CurveGlobal, London’s newest derivatives platform, will offer cut-price fees for trading and clearing of interest futures when it launches on Monday, in a move it hopes will help break the stranglehold of Eurex and Ice Futures Europe (ICE).

      More from IFR Derivatives

      Digital Edition

      Access a digital edition of the latest IFR Magazine here.

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      Special Reports

      IMF/World Bank
      With 189 member states encompassing virtually the entire globe, the IMF is uniquely positioned to monitor the health of the economic environment throughout the world. Each region presents its own set of circumstances – some positive, some negative – and the ingenuity of the capital markets to navigate a way through this varied landscape should never be underestimated.

      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.

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

      Shark attack

      IFR 2152 24 September to 30 September 2016

      WITH MANY BANKS’ businesses holed below the water, it was perhaps only fitting that they took to the River Thames earlier this month to compete against one another in an annual charity dragon boat race.

      Opinion

      Anthony Peters columnist format

      When the answer is diddly-squat

      The calendar says September 26th which tells me that we’re at the beginning of the last week of the third quarter. We’re also, just for the record, at the beginning of the period where Fed-watching is replaced by election fever, which in turn kicks off with the first of the Trump/Clinton TV debates which is scheduled for tomorrow, UK time. With the candidates running neck-and-neck, markets as yet have no idea how to position themselves and have, as far as I can tell, so far gone neither way.

      James Saft - June 2014

      Savers’ fault is in R-star

      The neutral interest rate to keep the economy in balance, R-star, is in hot debate among economists and central bankers as secular stagnation seems to have driven it lower.

      Anthony Peters columnist format

      Guts for garters

      So what was the surprise package yesterday? It was, I would suggest, the sharp rally in US stock markets after the FOMC announced that it would be leaving monetary policy unchanged. Why so? One must be led to believe that the Street wasn’t quite as long as had been assumed and that more players than might have been expected were positioned for the tightening move. 

      James Saft - June 2014

      Central banks arrive, as usual bearing gifts

      Wednesday brought a double gift for risk investors: the usual, as the Federal Reserve declined yet again to raise rates, and the exotic, as the Bank of Japan declined to carry on undercutting its financial sector.

      Anthony Peters columnist format

      The Fed's Catch-22

      I was quietly amused yesterday morning when I read the opening lines penned by my fellow scribbler at Mint Partners, Billy Blain, who wrote: “Here we are… poised on the edge of the two most important central bank meetings ever…”

      Anthony Peters columnist format

      Down, down, deeper and down

      “Bitch, bitch, bitch, bitch…. your problem is bigger than mine!” So stressed Italy’s Prime Minister Matteo Renzi when pointing out that the non-performing loans on his country’s banks’ balance sheets might be a problem but that it’s still nothing like as serious as the derivative risk held by German banks…. Yippee, Europe’s fourth largest economy is being run by a man acting like a teenage schoolgirl! 

      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