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July 1997

July 1997

Masters of credit or hype?

Euromoney July 1997

Credit is this year's buzzword in investment banking. Credit analysts, credit trading, credit products and credit spreads are the talk of managers around the world. The excitement is driven by solid economic factors such as European monetary union, improving credit fundamentals, low interest rates and the search for yield. But markets are also being talked up by some traders looking for the upside in bonds almost as if they were equities. Investors are mistaken if they believe that credit derivatives provide a hedge in the same way as interest rate swaps. Will it all end in tears? Peter Lee investigates.

Awards for Excellence

Awards for Excellence 1997

Euromoney July 1997

Euromoney's Awards for Excellence continue to generate enormous interest and to be regarded as the industry leader in independent recognition. Each year as the vetting process gets under way, our editorial offices are besieged by bankers and their public relations teams lobbying for their institutions. The excitement continues long after the results are decided as banks rejoice over the awards they have won and fret over the ones they missed.

Features

South China Sea Bubble?

Euromoney July 1997

Red chips have dominated headlines and share trading in Hong Kong in 1997. But who controls these new mainland-owned hongs? And how can analysts and investors value their fast-growing assets. Steven Irvine visits the new taipans.

Cents & sensibility

Euromoney July 1997

Should Deutschmark and French franc bonds be converted to the nearest euro, or to two decimal places - to the nearest euro cent? Arcane as this discussion may seem it has come close to fisticuffs among the Perrier and sandwiches as government officials and trade bodies try to ensure a liquid euro securities market in 1999. David Shirreff reports.

With friends like these...

Euromoney July 1997

Goldman Sachs promotes itself as the company's friend, saying it prefers to advise clients on friendly acquisitions. So why has it pitched into three hostile takeovers this year? Not just because times and markets have changed. Michelle Celarier reports.

SEC rules not OK

Euromoney July 1997

The globalization of the securities markets can put issuers and underwriters in breach of us law without their realizing it. And journalists can be the unwitting bearers of illicit news. Peter Lee asks if the SEC is about to make some long overdue changes.

Towards the plug 'n' play bank

Euromoney July 1997

Financial web sites are no longer little more than electronic advertisements. Investment banks want to offer their clients meaty services - pricing models, account-management tools, databases of trades, perhaps even real-time trading. Security is a declining problem but there are still bandwidth limitations to contend with. However, at least one bank reckons it can reduce its own costs if clients can get straight to data rather than deal with customer services. Andy Webb reports.

The banks learn how to say no

Euromoney July 1997

Three years of declining margins have lenders scrambling for yield. They are turning to higher risk areas such as project finance and emerging markets. But the curse of high liquidity soon tracks them down and ruins the rates. Only by aggressive portfolio management and offering additional services can banks make money. Nigel Pavey reports.

Bolsa hits the big time

Euromoney July 1997

Foreign funds are reducing their holdings in the relatively expensive Spanish equity market but domestic demand is mopping this up - and more. Falling interest rates, tax concessions on equity holdings and corporate-friendly labour-market reforms have attracted the Spanish away from fixed interest. And some foreigners are finding Madrid a useful proxy for Latin America. Jules Stewart reports.

Still waiting for the tide to turn

Euromoney July 1997

The banking system is taking steps to shape up for European competition. But so far the changes are hardly sufficient in an industry plagued by overcapacity. Analysts argue that only mega-mergers will turn the tide. Philip Moore reports.

Never mind the politics, feel the quality

Euromoney July 1997

Defying acute political uncertainty and a high-risk macroeconomic environment, some of Turkey's largest companies are preparing to make international offerings. Metin Munir reports.

Editorial

Zigzag path to the euro

Euromoney July 1997

Front end

Honkers' interbank games

Euromoney July 1997

Belgium's diplomatic bag

Euromoney July 1997

Herbal alternative

Euromoney July 1997

Risqué management

Euromoney July 1997

Faustian pact

Euromoney July 1997

Chinese sorcery

Euromoney July 1997

Deal insider

Emerging markets

Against the tide

The road to riches

Euromoney July 1997

Financial lawyer

Safety netting for futures dealers

Euromoney July 1997

Exchange-traded derivatives now have their own standard-form agreement. But that's no excuse for leaving your brain at home. Christopher Stoakes reports.

People

The Moorgate Saga

Greeks bearing options

Euromoney July 1997


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