Too quick to PIK?

Too quick to PIK?

The deals set to haunt European high yield

Latin America

Latin America

Sovereigns shape up for differentiation

Borrowers must improve bond liquidity

Borrowers must improve bond liquidity

November 2014

Last month’s volatility provided a worrying reminder of how illiquid the bond markets have become, how piecemeal has been the response of traders, investors and issuers and how concerned regulators now are


  • China: Stock Connect through train steams ahead

    The eagerly awaited Stock Connect system connecting Hong Kong to the mainland is up and running to relief all round. While traditional long-only funds and southbound flows have lagged, market players foresee a new dawn in Chinese equity trading.


  • Project Neptune rising amid renewed liquidity concerns

    With volatility returning to bond markets, investors are fretting once more about illiquidity. Policymakers too worry that it might turn a bond market meltdown systemic. A new project for a shared messaging language to improve the flow of information connecting holders of inventory sounds unglamorous next to all-to-all trading platforms and central limit order books. But the rush of support from both buy-side and sell-side suggests Project Neptune could make a vital contribution.


  • Dark clouds still loom over India IPOs

    The feelgood factor from the election of Narendra Modi as prime minister does not seem to be translating into better fees for IPO bankers – yet.


  • CEE exchange consolidation: Fair exchange

    Stock exchange consolidation is back in focus in emerging Europe after the appointment of a new head for the Warsaw bourse. Further tie-ups across the region could yet prove politically problematic.


  • Equity markets: Zain Bahrain gets disconnected

    Bahrain stuck in trading trough; Gulf markets are polarizing.


  • Lack of secondary market liquidity exacerbates sell-off

    As equity markets have sold off and investors rushed into risk-free bonds, even supposedly liquid US treasuries have seen prices gapping. As volatility rises and investors focus on grim fundamentals, they see a broken bond-market structure.


  • Nordics show local authorities how to borrow

    Agencies such as Kommuninvest, Munifin and KommuneKredit might not be the best known in the capital markets. But a growing global community of investors can’t get enough of their paper. Is it an example that others want to follow?


  • Mexico: Bimbo warms up large equity follow-on

    $600 million Canada Bread financing; ‘only Mexican by zip code’.


  • CLO managers welcome loan mutual fund exodus

    Outflows improve collateralized loan obligation (CLO) deal economics and could drive the market to a record high.


  • Ukraine bonds: Keep calm and carry on paying

    When Ukrainian state energy company Naftogaz paid $1.6 billion to redeem a bond maturing on October 1, one Twitter commentator accused the country’s policymakers of “defaulting on its citizens”.


  • South Korea battling for RMB spoils

    Backed by its robust trading relationship with China, the east Asian nation is the latest fledgling offshore renminbi hub. Market participants shed light on South Korea’s renminbi bid as internationalization of the Chinese currency gathers pace.


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