Euromoney May 1998
The fans love them both. Weill, the deal maker, is adored by Travelers' employees who hold big stakes in the company. Meanwhile Reed has kept his iron grip on Citibank by juggling his managers and mastering detail. The culture of the two companies is as different as the style of their CEOs. But the combination could be spectacular - if they can make it work. Peter Lee takes in the show.
Euromoney May 1998
BankAmerica and NationsBank had both bought into hi-tech investment banking, so when they merged there was bound to be surplus capacity. It was worse than that, though. BA's Robertson Stephens and Nations' Montgomery Securities had a bitter mutual history and could hardly have worked together. Michelle Celarier reports.
Euromoney May 1998
When there's not much left to merge in an industry the stakes rise and the government gets edgy. That's what Bear Stearns has found since it cornered the market in US defence M&A. Now, as Michelle Celarier reports, contractors and investment bankers are looking abroad for opportunities.
Euromoney May 1998
After months of confusion, denial and fantasy economics, reality finally dawns in Indonesia. The banking sector is being reformed and corporate debts are being rescheduled. Local borrowers are quickly finding out which foreign banks plan to stick it out in Indonesia and which can't wait to shut up shop after calling in all their loans in full. Maggie Ford reports.
Euromoney May 1998
Who's to blame for Asia's crisis? And what happens now? Nine of the region's movers and shakers give their views on the pace of change across the region, the part played by the Japanese banks, the future of Hong Kong's currency peg and the role of China.
Euromoney May 1998
Banks everywhere are muscling in on foreign exchange - just as the costs of building a forex business are rising and spreads are tightening. Europe's commercial banks are trying to replace business lost with the onset of Emu. US investment banks are bolting forex on to their core activities. They can't all be winners. But, as Antony Currie reports, they can make life harder for those already at the top. Euromoney's 20th annual foreign-exchange poll follows. Research by Rebecca Dobson.
Euromoney May 1998
No more panic waiting for that dollar payment to come in: the solution is at hand. Within three years the world's leading banks expect to have a mutual bank in place that will accept and digest the bulk of their foreign exchange deals, reducing settlement risk to zero. So where's the catch? By David Shirreff.
Euromoney May 1998
This has been the year of the euro-denominated bond. Investors are happy to buy them for the yield pick-up; issuers are keen to establish their profile as borrowers in the new single currency. Meanwhile, bond arrangers are jockeying for position as the participants in monetary union are confirmed and the world's second largest capital market takes firm shape. But as Rebecca Bream reports, the banks are divided about the best way to prove that they have the expertise to arrange bonds in euros.
Euromoney May 1998
Are today's issuers in Ecu paying over the odds? Borrowers and their bankers argue that it pays to establish a benchmark this year, before the latecomers crowd into the market next January. No, say the contrarians: borrowing in other currencies is cheaper. Mooyaart Consult, an independent bond consultancy, examines recent issues in Ecu and major currencies, comparing the levels they would have achieved by swapping the proceeds into US dollar Libor. Brian Mooyaart weighs the evidence.
Euromoney May 1998
The Grand Duchy's bankers don't seem too worried, but Luxembourg's point of difference as a financial centre is fast disappearing. James Rutter finds out how its bankers intend to fill their time after the introduction of the euro.
Euromoney May 1998
A single European currency should mean a single market
for capital. That may create an opening for a borderless stock exchange such as Easdaq. But Europe's national exchanges don't plan to fade away. Their survival strategies are based on cross-border alliances and new technology. Their secret weapon, though, may be sheer momentum. James Rutter reports.
Euromoney May 1998
They wear well-cut suits, shun bodyguards and are
fluent in the language of the IMF. As Africa regains its capacity for growth, we profile five of the men who are leading the renaissance. Ex-guerrillas or veterans of industry, the reformers share a pragmatism born of a desire to see their countries succeed.
Euromoney May 1998
Euromoney's latest poll of Eurobond and government bond trading comes at a time of change, with the advent of the single European currency set to affect both the size and structure of the market. James Rutter reports. Research by Rebecca Dobson.
Euromoney May 1998
The grass, they say, is always greener. In a rapidly consolidating industry a handful of global custodians control the clearing, settlement and reporting of the bulk of the world's trading. They're no longer satisfied with that. They want to execute the trades too. Andrew Capon reports.
Euromoney May 1998
Difficulties at one Middle East bank have focused attention on a fast-growing sector of the finance market. Islamic banks used to be simply places for those with strong religious convictions to deposit their money. Now, as Nigel Dudley reports, these institutions want to grow internationally, get into new business areas and compete for non-Moslem customers. International firms such as Citibank think the sector is attractive enough to set up their own specialist operations.
Euromoney May 1998
Banks are building up their European credit research in the run up to Emu. Teams are being bolstered and specialists hired. But who is getting it right? The first ever poll of European credit research gives investors the chance to decide. SBC Warburg, Merrill Lynch and JP Morgan all did well, writes Brian Caplen. The poll was conducted by Rebecca Dobson.
Euromoney May 1998
Most commercial bankers acknowledge the illiquid loan problem. But not many of them are freeing their loan book with loan sales, credit derivatives, and collateralized loan obligations - yet. It's a new game. But a handful of banks have sipped from the holy grail, and are pressing the regulators to change the Basle capital requirements. Antony Currie reports.