Euromoney November 1999
Suddenly, euroland, or rather Germany, is full of the
urge to rate companies great and small. Partly, this is a swipe at giants Moody's and S&P, but it's also recognition that medium-size companies will pay more for capital if they aren't transparently rated. The regions back their own Mittelstand, while Frankfurt roots for the Finanzplatz. David Shirreff reports.
Euromoney November 1999
It's been a rollercoaster ride. First investors were
desperate to buy any stock available, now they are withdrawing funds. But how much is the grey market to blame? Laura Covill reports.
Euromoney November 1999
Mannesmann has pitched into some speedy, expensive
takeovers, but is still a takeover target. That's a symptom of the rush for change affecting nearly all German companies. For years investors complained that German managers were too slow and cautious; now many have become dangerously impulsive. By Laura
Covill.
Euromoney November 1999
Deutsche Bank wanted to buy it because it wanted a bigger presence in investment banking in the US. Merrill Lynch considered putting in an offer because it wanted to improve its coverage of the technology sector. But Chase Manhattan is the bank that finally secured the 30-year-old California-based investment-banking boutique Hambrecht & Quist. And this time, the rumour mill has it, it's because Chase needs it as a way into equities. Antony Currie reckons that's not the case
Euromoney November 1999
Even after a wave of mergers and takeovers there are still 7,000 banks in the US. No-one doubts that consolidation is the way to go but the fate of recently merged banks suggests that it has to be based on something more substantial than cost-cutting. The emergence of e-commerce hammers home the point that revenue growth is still crucial. Antony Currie reports.
Euromoney November 1999
They may be a decade late, but Japan's banks are
finally restructuring. The headline deals will create the world's two largest banks. An exclusive interview with Masao Nishimura, president of IBJ and a prime mover in the recent combination of IBJ with Fuji Bank and DKB, gives an insight into the thinking of Japan's financial elite. But, as Simon Brady reports, bad debts, low profitability and economic malaise will prevent even these new giants from becoming world leaders.
Euromoney November 1999
Want to buy a bank stacked full of bad loans and
losing money? The Czech Republic may be able to oblige. While the second-largest, Ceska Sporitelna, looks like going to Austria's Erste Bank, the biggest, Komercni Banka, is still up for grabs.
Finally, after years of dithering and excuses, bank privatization is now happening. But the assets are worth much less since the banks ran into serious trouble. Czech government problems don't stop there. Many companies the banks lent to are floundering, capital markets are still in their infancy and the legal framework falls short. The Czech Republic is a case study of how not to handle transition. Brian Caplen reports.
Euromoney November 1999
Traditional active equity asset managers are alienating their institutional clients through underperfomance and high fees. Many pension funds and insurance companies in the US, UK and Europe are embracing passive index tracking, while others are devoting more attention to the rewards - and the risks - of hedge fund investing. The search is on for performance, or alpha, wherever it may be found. The whole asset management business may soon be transformed. Peter Lee reports.
Euromoney November 1999
It has been a banner year for new issues of
convertible bonds, with many forces working together, especially in Europe, to support the primary market. Low interest rates and hopes for equity market growth have prompted more and more investors to buy convertibles and the pressure on companies to enhance
shareholder returns and to unwind cross-holdings has prompted the issuers. High stock market volatility, following last year's financial meltdown, has also helped the market. This is the full text version of a roundtable discussion, exclusive to Euromoney On-Line.
Euromoney November 1999
From the mid-1990s enabling legislation and corporate issuance guaranteed a rapid take-off for Japan's securitization market. But economic recovery, recapitalization of the Japanese banks and their renewed enthusiasm for holding corporate assets may leave the market dependent on consumer finance and residential mortgage deals. This might not be enough to sustain the sector. Luciano Mondellini reports.
Euromoney November 1999
It's been going on for seven years, and has taken up more of the US Federal Accounting Standard Board's (FASB's) time than any other rule. US bankers and issuers hate it, claiming it will force an unwanted change in borrower strategies and will even hit earnings. They've lobbied Congress to get it nullified, and the board has responded with a year's postponement and by changing some of the strictures. Yet still the complaints roll in from those few who claim to understand it. Systems still aren't ready, and there is less than a year to go before it comes into effect. Who'd have thought that an accounting rule-change could cause such a furore? Antony Currie reports on the dilemmas and debates around rule FAS133
Euromoney November 1999
Turkey is supposed to be privatizing; it's also ostensibly following policies that will bring down inflation. But vested interests that benefit from the unwieldy structure of state corporations and a banking industry dependent on earnings from high-interest treasury paper are thwarting these processes. The privatization of Turk Telekom is a tangled tale of delay and indecision, and a banking industry that can cope with a low-inflation environment is something to hope for rather than an immediately practicable reality. Metin Munir reports.
Euromoney November 1999
Before the internet was heard of, Instinet, the 31-year old agency broker owned by Reuters, used new technology to challenge the world's mainstream stock exchanges. Now suddenly, it is being cast as the dinosaur. New electronic commission networks springing up in the US equity market threaten to eat its lunch. Instinet chief executive Doug Atkin tells Antony Currie how Instinet intends to thrive amid the electronic trading revolution
