Friday, 09 October 2015

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IMF/World Bank 2015

IMF/World Bank 2015

Mean Streets: If the IMF were a cop, it would be the righteous Commissioner Gordon, desperately trying to maintain order in Gotham City while waiting for Batman to turn up.

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.

All IFR Special Reports

In this week's IFR Magazine



Missing the point

IFR 2103 3 October to 9 October 2015

When it comes to the capital markets, a policy bank has a duty to set the standards for others to follow. Unfortunately, that message doesn’t seem to have reached China Development Bank.

Top News


Glencore plunge sparks market scrutiny

IFR 2103 3 October to 9 October 2015 By ,

Glencore’s debt and equity plunged on Monday on the back of a damning analyst note. The 30% one-day stock fall and 400bp spike in credit default swaps were largely clawed back by the end of the week as the company worked all-out to calm nervous investors. But the magnitude of the moves compared with those of peers facing similar headwinds left market participants scrambling for alternative explanations for the extreme volatility. 

BHP Billiton

BHP Billiton to test sub appetite

IFR 2103 3 October to 9 October 2015 By

BHP Billiton was trying to distance itself from last week’s Glencore sell-off as it attempted to issue US$4bn–$5bn of hybrid debt. The Anglo-Australian mining, metals and petroleum company is planning a multi-currency debut hybrid to shore up its balance sheet and fund potential M&A.

Glencore Xstrata CEO Ivan Glasenberg (C) leaves the first annual shareholders meeting next to a staff in the Swiss town of Zug

Lenders remain supportive of Glencore

IFR 2103 3 October to 9 October 2015 By , Tessa Walsh

Lenders remain supportive of embattled commodities trader and mining company Glencore, which has about US$13bn of liquidity available and can finance its debt maturities for two years.


US high-grade surges past US$1trn

IFR 2103 3 October to 9 October 2015 By

The US investment-grade bond market completed the first nine months of 2015 on a high – at least in terms of issuance levels – with volumes surpassing the US$1trn mark, according to IFR data.

Hewlett-Packard Belgian headquarters in Diegem

US corporate bonds left battered

IFR 2103 3 October to 9 October 2015 By

The US corporate bond market has gone from bad to worse, and if bears are right that a repricing of risk is at hand, there could be even more trouble ahead.

The Great Wall of China

CDB snub dents China debt pipeline

IFR 2103 3 October to 9 October 2015 By

China’s top policy bank narrowly avoided disaster on a two-tranche bond issue last week, but the weak response from investors raised new questions over Beijing’s ability to push more of the country’s funding requirements to the international markets.


Bumi plans rapid restructuring

IFR 2103 3 October to 9 October 2015 By

Bumi Resources looks set to become the first Asian company to complete a bond restructuring this year, after a Singapore court pushed the Indonesian coal miner into action.


German IPOs return to tough market

IFR 2103 3 October to 9 October 2015 By , Graham Fahy

German IPOs have roared back into life after a relatively fallow period at just the wrong moment. Deals that looked to be robust and easy a few weeks ago are stuttering against a difficult backdrop.

IFR Magazine Top News in Full (subscription required)

People & Markets

Goldman brings trio of US issuers to Europe

Goldman Sachs teetering at the top

IFR 2103 3 October to 9 October 2015

JP Morgan has pulled within striking distance of taking the top spot in the global investment banking fee league table from rival Goldman Sachs. But for at least another month, Goldman has been able to hold off JP Morgan based on the continued strength of its mergers and acquisitions advisory practice.

The Canary Wharf financial district

Banks collaborate to cut costs

IFR 2103 3 October to 9 October 2015

“Costs will be the strategic battleground for our industry over the next decade,” said Barclays former chief executive Antony Jenkins, when summing up the context of his plan for the bank two and a half years ago.

EU, Commission

​EU to ease capital rules for banks

IFR 2103 3 October to 9 October 2015

The European Union will ease capital rules it has imposed on banks and insurers since the financial crisis to help markets raise more funds for reviving sluggish economic growth.

Morgan Stanley logo

Pick selected to head Morgan Stanley trading

IFR 2103 3 October to 9 October 2015

Morgan Stanley has unified equity with fixed income currency and commodity trading under the leadership of Ted Pick, the new global head of sales and trading. He will report to Colm Kelleher, president of institutional securities and CEO of Morgan Stanley International.


BAML expected to slim FICC group

IFR 2103 3 October to 9 October 2015

Bank of America Merrill Lynch is to cut employees from its global banking and markets group in an effort to show expense discipline. The reductions, estimated at a couple of hundred, are expected to be announced this week, just before the bank reports its third-quarter earnings.

    More from People & Markets


    EC tackles fragmentation

    IFR 2103 3 October to 9 October 2015

    The European Commission has launched a consultation on a potential pan-European framework that would seek to reduce fragmentation in the covered bond market.

    Small Kangaroo taps

    IFR 2103 3 October to 9 October 2015

    Kangaroo issuance was sparse last week, with just three issuers tapping transactions in small size, all around the 10-year part of the curve.

    Aussie majors extend local dominance

    IFR 2103 3 October to 9 October 2015

    Australia’s four major banks tightened their already firm grip on the domestic currency bond market during the first three quarters of 2015, according to the latest Thomson Reuters league tables.

    ADB plans more Green bonds

    IFR 2103 3 October to 9 October 2015

    The Asian Development Bank will issue more Green bonds to help finance a doubling of its spending on projects to address climate change.

    Deutsche Boerse blazes trail

    IFR 2103 3 October to 9 October 2015

    Deutsche Boerse provided the first test of appetite for corporate issuance on Thursday since the Glencore-inspired sell-off spooked the market earlier in the week.

      More from Bonds


      ​EMEA lending plummets in Q3

      IFR 2103 3 October to 9 October 2015 By ,

      Syndicated lending in Europe, the Middle East and Africa in the first nine months of 2015 totalled only US$683bn, down 24% from the same period last year, as European merger and acquisition activity remained muted and demand for refinancing continued to tail off.

      ​VW puts pressure on auto loan prices

      IFR 2103 3 October to 9 October 2015 By

      The scandal over German automaker Volkswagen’s rigged US diesel emission tests is putting pressure on the secondary prices of term loans for auto suppliers as loan investors assess the fallout in the sector.

      Moody's says SEC proposals could hurt retail asset managers

      IFR 2103 3 October to 9 October 2015 By Kristen Haunss

      New liquidity management proposals from the US Securities and Exchange Commission may be “credit negative” for some firms that oversee mutual funds and exchange-traded funds, according to Moody’s.

      Leveraged lending slumps in volatile Q3

      IFR 2103 3 October to 9 October 2015 By Lynn Adler

      Market volatility drove US syndicated lending down 29% in the third quarter from the prior quarter, and year-to-date funding is down 12% at a three-year low, Thomson Reuters LPC data shows.

      Australia: Pricing out for S&G facility

      IFR 2103 3 October to 9 October 2015

      Law firm Slater & Gordon’s £416m (US$630m) M&A loan paid an all-in of around 165bp for the three-year tranches and about 185bp for the five-year pieces.

      Australia: Solid backing for Energy refi

      IFR 2103 3 October to 9 October 2015

      Syndication of the A$530m-equivalent (US$373m) refinancing for takeover target Energy Developments closed oversubscribed ahead of a shareholder vote on October 8 to approve an offer from Duet Group.

      China: Minsheng Leasing cuts refi size

      IFR 2103 3 October to 9 October 2015

      Minsheng Financial Leasing has signed a reduced US$150m onshore refinancing loan, on which the tenor and pricing were also cut.

      Hong Kong: NewOcean nets two for refi

      IFR 2103 3 October to 9 October 2015

      Hong Kong-listed NewOcean Energy Holdings has attracted Banca Monte dei Paschi di Siena and Industrial Bank of Taiwan in limited syndication for a US$170m three-year term loan.

      More from Loans


      Australia: Link eyes country's largest IPO of the year

      IFR 2103 3 October to 9 October 2015

      Link Group, one of Australia’s largest fund administration providers, aims to raise up to A$946.5m (US$659m) through what will be the country’s biggest IPO of the year.

      China: HengtouSec launches HK IPO

      IFR 2103 3 October to 9 October 2015

      Hengtou Securities has launched a Hong Kong IPO of 392m shares (90.9% primary/9.1% secondary) to raise up to HK$1.69bn (US$218m) at an indicative price range of HK$3.92–$4.30 each. The price range represents a 2015 P/B of 0.98–1.06 or a 2015 P/E of 5.72–6.28.

      China: Hua Yuan plans rights issue

      IFR 2103 3 October to 9 October 2015

      Hua Yuan Property has applied to the China Securities Regulatory Commission for a proposed rights issue of 545m shares on a 3-for-10 basis to raise up to Rmb3bn (US$471m). Citic Securities is the sole bookrunner.

      China: Weigao refiles for Hong Kong IPO

      IFR 2103 3 October to 9 October 2015

      Shandong Weigao Orthopaedic Device, a spin-off of Hong Kong-listed Shandong Weigao Group Medical Polymer, has refiled for its Hong Kong IPO of US$300m–$400m, having postponed an attempt in June after one of the sponsors quit.

      China Re readies pre-marketing

      IFR 2103 3 October to 9 October 2015

      China Reinsurance, the PRC’s biggest reinsurer, plans to start pre-marketing on Monday for its Hong Kong IPO of about US$2bn, according to people close to the deal.

      China: Yichang HEC files for HK float

      IFR 2103 3 October to 9 October 2015

      Yichang HEC Changjiang Pharmaceutical has filed for a Hong Kong IPO with the goal of raising about US$200m–$300m, according to a person close to the transaction. CICC is the sole sponsor.

      China: Two complete HK IPOs

      IFR 2103 3 October to 9 October 2015

      Cinema chain IMAX China raised HK$1.9bn (US$248m) from its IPO after pricing the shares at HK$31.00, the bottom half of the HK$29.80–$34.50 price range. Final guidance was HK$31.00–$32.50.

      India: IRB plans infrastructure trust

      IFR 2103 3 October to 9 October 2015

      The board of IRB Infrastructure Development last week approved plans to form an infrastructure investment trust and list it.

      More from Equities


      ISDA to make licensing process public

      IFR 2103 3 October to 9 October 2015 By Mike Kentz

      Isda is set to overhaul its process for determining whether firms applying to use its intellectual property in credit derivatives markets will be allowed to have access, including making meetings of a new committee open to the public.

      Swap spreads break new negative ground

      IFR 2103 3 October to 9 October 2015 By Mike Kentz

      Ten-year swap spreads moved to their most negative level since 2010 early last week, while five-year spreads broke into negative territory for the first time ever.

      More from IFR Derivatives

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      IFR Awards lined up on table

      IFR Awards 2015: Call for entries

      We invite banks to pitch now for the IFR Awards and IFR Americas Awards 2015.

      Bill Gross

      Bill Gross sues Pimco for US$200m over forced ouster

      (Reuters) - Famed bond investor Bill Gross sued his former employer Pacific Investment Management Co and its parent Allianz SE for US$200m, saying he was driven out of the bond fund giant he helped found by a greedy “cabal” of executives who wanted his huge bonus for themselves.

      ICE - IntercontinentalExchange

      ICE wins tender for swap margin utility

      Isda has selected the financial benchmarks arm of the InterContinental Exchange to build and operate a crowd-sourcing utility for the industry-developed Standard Initial Margin Model for managing the exchange of collateral backing uncleared swaps transactions.

      Deutsche Bahn logo

      Deutsche Bahn goes it alone with eight-year FRN

      Deutsche Bahn was the only corporate prepared to bite the bullet on Wednesday, as nervy sentiment around new issue premiums continues to haunt the investment grade market.


      China comes in from the cold

      By David Marsh, managing director and co-founder of OMFIF

      Beijing indicates a leaning to sterling.


      UK referendum will be Europe’s biggest test

      By Mojmir Hampl, Deputy Governor, Czech National Bank

      Overshadowing Greece and refugees.

      All Guest Columnists: OMFIF

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

      On the buses

      IFR 2103 3 October to 9 October 2015

      WHEN A DELIGHTED Bellwether found itself travelling on a bus from Twickenham to Richmond – in search of more booze – in the aftermath of Wales’ unexpected victory over England in the Rugby World Cup, it was shocked to happen across a very senior Citigroup executive. It was the first time Bellwether had ever seen a banker on a bus. And a very incongruous sight it was too.

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      TPP trade deal reachedVideo

      The Trans-Pacific Partnership, or TPP, sets up a free-trade zone for forty percent of the world’s economy, and is considered the most ambitious trade pact in a generation. Bobbi Rebell reports.

      All Spotlight