February 2006
| Euromoney February 2006 Japan has suffered 15 years of stagnation; a period in which an entire generation of financial innovation passed it by. Suddenly, investment bankers are licking their lips at the prospect of helping its financial markets play catch up. Some consider Japan a $500 trillion emerging market. - A new generation embraces M&A
Japan’s recent M&A boom is set to accelerate, driven by aggressive upstart companies, foreign and domestic private equity buyers and hungry overseas corporations. Now they have restructured, healthy Japanese corporations have plenty of domestic consolidation to do. M&A is becoming an increasingly accepted management tool. A handful of leading Japanese companies will use it to cement global leadership. Peter Lee reports. - Nikkei heads for 24,000 by 2010… or sooner
Even after the stock market’s dramatic climb in 2005 and sudden sell-off in mid-January, a wall of money is heading into Japanese equities, reports Peter Lee. Securing greater retail investment is seen as crucial to the reconstruction of Japan’s entire financial system. Privatization, new-economy IPOs, J-Reits and private equity exits will keep the investment bankers busy until the big blue chips are ready to issue once more. In the meantime, can someone please fix the TSE’s problems? - Debt is not a dirty word
Japanese companies are now creditworthy and the banks are recapitalized but neither side seems keen to enter into loan transactions. But companies can see the long-term value of establishing access to capital markets. And lenders are keen to repackage and redistribute credit risk in new ways and define a new relationship with corporate customers. Peter Lee reports - Funds get activist in Japan
Behind Japan’s headline economic restructuring, a gradual but fundamental shift in Japan’s corporate ownership is taking place. A growing band of fund managers is encouraging companies to change; in some cases forcing them to do so. In the process the managers are making a tidy sum. Chris Leahy reports. - Living in the past; paying with the future
Like so many other aspects of Japan’s financial system, its pensions schemes are paying for the sins of the past and struggling to pay for the future. Existing reforms do not go far enough, says Chris Leahy, and flirt dangerously with the country’s future prosperity.
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Euromoney February 2006
Behind Japan’s headline economic restructuring, a gradual but fundamental shift in Japan’s corporate ownership is taking place. A growing band of fund managers is encouraging companies to change; in some cases forcing them to do so. In the process the managers are making a tidy sum. Chris Leahy reports.
Euromoney February 2006
Like so many other aspects of Japan’s financial system, its pensions schemes are paying for the sins of the past and struggling to pay for the future. Existing reforms do not go far enough, says Chris Leahy, and flirt dangerously with the country’s future prosperity.
Euromoney February 2006
Euromoney’s annual poll of polls shows that universal banks still dominate overall because of the breadth of their business. But firms such as Barclays Capital, Merrill Lynch and Société Générale are scoring notable successes in their chosen areas. Clive Horwood spoke to their heads of investment banking.
Euromoney February 2006
Several emerging market countries have discovered that oil is a bane not a blessing, destroying domestic development. The current crop of oil champions may have stabilization funds, but Theodore Kim explains how things can still go wrong.
Euromoney February 2006
Raising money in global financial markets in 2005 was not always easy. But equity returns were strong and global credit survived a volatile year; it was also a notably profitable year for investment banks as M&A boomed again and the fees came rolling in.
Euromoney February 2006
Citigroup wants to pioneer a new type of private banking for active wealth creators. Helen Avery speaks to the man who aims to drive the firm forward.
Euromoney February 2006
Vanilla deals fell out of favour in equity-linked issuance in 2005, with highly complex, structured transactions building unprecedented dominance. Despite higher volatility levels than in 2005 and a very promising M&A outlook, this trend is likely to continue in 2006. Peter Koh reports.
Euromoney February 2006
With negotiations for Turkey’s entry to the EU under way – albeit with a long lead-in time – completed privatizations, foreign direct investment and domestic deal-making are growing apace despite continuing bureaucratic hold-ups. David Judson reports.
Euromoney February 2006
Just a few years ago, mezzanine finance was very much an alien concept in central Europe. That changed in 2003 with the arrival of the region’s first dedicated mezzanine fund. Today, mezzanine provision is booming, and its proponents hope it can play a significant part in the leveraged buyout boom predicted for the region. Kathryn Wells reports.
Euromoney February 2006
The Russian real estate market is one of the best performing in the world. Foreign capital is lining up billions of dollars to invest in it. But there’s a problem – it has to compete with the billions in local capital generated by oil sales. Julian Evans reports.
Euromoney February 2006
Emerging market companies still lag behind in corporate governance but, says Karina Litvack, their success in developing businesses outside their home countries and their need to tap global capital markets is forcing them to devote more attention to the rules
Euromoney February 2006
Euromoney February 2006
A repricing of capital is coming soon. But advances in risk management suggest it will be a prolonged process, not a quick flip into deflation.
Euromoney February 2006
Risk is pervasive but arguably no more so in emerging markets than elsewhere. And returns there at least take account of it and add a bit extra, says Euromoney’s new fund management columnist.
Euromoney February 2006
In the first of a regular series of columns, John Arrowsmith casts light on what at first sight appears to have been a sudden volte-face on interest rates by the European Central Bank.
Euromoney February 2006
If anything symbolizes how far emerging markets have come over the past five years, it’s the growth of their domestic capital markets. Few would dispute that emerging markets local-currency debt is now an established asset class, despite its relative youth. Local-currency debt is the way of the future, but further reforms are necessary.
Euromoney February 2006
Rumours of electronic broker EBS’s imminent takeover are rife, but a £1 billion price tag seems wide of the mark. Getting these to agree on whether tea or coffee is served at board meetings is probably difficult. Getting consensus on whether or not to sell EBS’s business, and then who to sell it to, must be a near impossibility.
Euromoney February 2006
The country’s stock indices are rising as the prospect of a coherent market looms into view.
Euromoney February 2006
With hedge funds collapsing at record rates, funds of hedge funds will need to reassess their strategies. If you can’t beat them, join them.
Euromoney February 2006
High oil prices pushed Latin America’s equity markets to dangerous levels. In a new era where emotions about oil scarcity run high, Latin America is perceived as a big, endless supply of commodity wealth. But keep an eye on the volatility.
Euromoney February 2006
Emerging market sovereigns that issue heavily in debt markets should prepare for higher borrowing costs.
Euromoney February 2006
The borrower makes disappointing start to wave of telco financing.
Euromoney February 2006
Second-tier triple-A issuers have an opportunity to close the funding gap on KfW and EIB.
Euromoney February 2006
CMS growth is not expected to continue at its previous pace, but the momentum generated by the high first coupons, and the continuing leverage effort of MTN houses has kept demand for structured MTNs flowing.
Euromoney February 2006
René Karsenti has left the European Investment Bank, where he was director-general for just under 10 years, to become the CEO of the International Capital Markets Association, the product of the recently merged International Primary Markets Association and International Securities Market Association.
Euromoney February 2006
The corporate hybrid sector shifted to retail with Porsche's 7.2% $1 billion perpetual non-call five (no coupon step-up). The transaction has several unusual aspects linked to the rating and structure, marketing and pricing.
Euromoney February 2006
In the first of a regular new column featuring heads of funding at leading financial institutions, Barclays’ new treasurer talks to Alex Chambers about the early days of his new role and how its demands differs from his experience as an investment banker.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
New cash and synthetic ABS indices will give European market participants the tools to express subtle directional views that have been the preserve of total-return funds and synthetic credit specialists.
Euromoney February 2006
The US commercial real estate CDO market is the one to watch in 2006 for volumes and new opportunities.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Exchange looking to build on the success of its established dollar index.
Euromoney February 2006
As gold has traded up to 25-year highs, the Canadian dollar has weakened, despite the products’ strong long-term correlation. Does this mean that the relationship has broken down?
Euromoney February 2006
The growing number of FX transactions being settled through CLS Bank is strong evidence that the market is still expanding.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
It might make sense for hedge funds to buy traditional asset managers. When Citigroup sold off its asset management arm to Legg Mason last year, leaving the focus on its separate alternatives business, it supported the belief of many in the market that traditional asset management was becoming something of a dinosaur.
Euromoney February 2006
EU pension funds begin to flex muscles over scandals. Twenty-six Dutch pension funds are suing Royal Dutch Shell for overstating its oil reserves between 1999 and 2003.
Euromoney February 2006
Bank of America is expanding its private banking business by targeting US families worth $50 mln+.
Euromoney February 2006
Foreign hedge fund managers registering with the SEC might be caught out by a NASD ruling on IPOs, say lawyers. Foreign managers investing in US or non-US IPOs are subject to the US securities regulator’s ‘new issue’ ruling if those managers use a US broker/dealer.
Euromoney February 2006
According to data from research company HFR, the number of hedge funds going bust is rising rapidly. In 2005 to the end of the third quarter an estimated 484 funds went into liquidation, 81.8% more than in the whole of 2004.
Euromoney February 2006
Equine expectations
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
First-of-a-kind deal exploits strong interest in regional IPOs.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Funding from Abbott Laboratories for Boston Scientific’s bid for Guidant could set an important precedent.
Euromoney February 2006
The biggest LBO club deals of 2005 will soon be surpassed.
Euromoney February 2006
Euromoney February 2006
The only court-sanctioned committee representing shareholders in the Winn-Dixie Chapter 11 restructuring has been disbanded by a US Justice Department official at the request of a group of unsecured creditors. This leaves shareholders without any official representation in the reorganization plans of the chain-store group.
Euromoney February 2006
Moody’s says that it intends to keep GMAC’s senior unsecured Ba1 rating under review for the time being, breaking its rule of resolving ratings within three months of announcing a review.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Few financial issues in Asia are debated as hotly as the state of China’s banking system and the billions continually poured into mainland lenders by foreign financial institutions and lenders as the banking market is slowly opened up.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
CNOOC finally closed a significant Nigerian oil deal in January.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Bankers and investors question the slew of Latin American perp issues.
Euromoney February 2006
Year-long talks to create leading investment bank in Brazil break down.
Euromoney February 2006
Debt exchange plans hobbled by bad timing, repeat performance and a fully tapped shelf.
Euromoney February 2006
Peru’s retail banking market is almost unrecognizable from a decade ago. In the mid-1990s, when less than 15% of economically active Peruvians had a bank account, 26 banks were jockeying for business in a depressed local market, some with highly inadvisable lending policies.
Euromoney February 2006
The country’s president-elect knows little of economics, but is set to appoint a market-friendly finance minister.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Iraq has completed a ground-breaking debt exchange that will involve Iraqi risk being actively traded for the first time in emerging market indices. It's a $2.7 billion Eurobond to join emerging market indices, boosting liquidity.
Euromoney February 2006
An IPO is one way to head off fallout from the region’s gas dispute.
Euromoney February 2006
Building company Waco International has been sold to a private equity consortium for R5.4 billion, the largest ever such deal in South Africa.
Euromoney February 2006
Euromoney February 2006
Despite much hype and enthusiasm, the DIFX, Dubai’s new international stock exchange, has got off to rather a slow start.
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Euromoney February 2006
Mixed message in mix-up?
Euromoney February 2006
IPOs in the Gulf are so popular that one investment bank has found a novel way to avoid crushes as investors scramble to register for shares. Qatar National Bank, which is arranging the $1.1 billion IPO for Al Rayyan Bank, hired a stadium in Doha for a two-week period in January.
Euromoney February 2006
Larry Trotter and the Bonus of Doom
Euromoney February 2006
Euromoney February 2006