April 2006
| Euromoney April 2006 Abu Dhabi Investment Authority is one of the world’s biggest institutional investors. It is also one of the most guarded. It publishes no numbers. It seldom makes any public statements. In a rare interview, two of its most senior officials lift the lid on the organization, revealing the reasons for its success. Sudip Roy reports from Abu Dhabi. |
Euromoney April 2006
Every market participant has had something to gain from corporate hybrid securities. Bond fund managers have delighted in high yields; issuers have enjoyed cheap equity. Ratings agencies have been paid for their trouble, investment banks have pocketed juicy fees and traders have revelled in the volatility. But what seems a perfect fit might well fall apart at the seams in an unfolding credit downturn. This will either expose the defects in the market and destroy it or validate hybrids as an asset class.
Euromoney April 2006
Domestic criticisms of Deutsche Bank’s international focus have not passed it by, prompting plans to develop its business at home. But as Jürgen Fitschen, who leads the initiative, tells Philip Moore, his bank does not intend to imitate rivals’ indiscriminate wooing of medium-size companies.
Euromoney April 2006
The introduction of a covered bond law in the UK is meant to sound the death-knell of RMBS. But the traditional financing vehicle of UK mortgages still offers greater leverage, diversification and liquidity. That’s why banks such as HSBC are considering setting up both covered bond programmes and new RMBS master trusts. Louise Bowman reports.
Euromoney April 2006
The covered bond market is developing in a way that few could have hoped for a few years back. Everywhere there is evidence of vitality. In addition to established relatively new sectors such as Ireland and the UK, issuers from Portugal, Italy, the Netherlands, Norway, Sweden and even Turkey are expected to join in. Alex Chambers reports.
Euromoney April 2006
The first wave of easy returns on commodities has passed, while allocations continue to grow. Traditional players are having adapt to a much more liquid market, swimming with a new breed of investors and their active hedging strategies. Peter Koh examines the changes.
Euromoney April 2006
The EU’s emissions trading scheme and Kyoto’s clean development mechanism are succeeding in promoting renewable energy. But electricity utilities are turning out to be surprise beneficiaries. Peter Koh reports.
Euromoney April 2006
Dealers say the backlog of unconfirmed credit default swap trades has been reduced by 54% since September 2005. The New York Fed is asking for a further reduction by the end of June this year. How near is the market to having an infrastructure able to cope with massive growth and a broadening of the uses of CDS? Helen Avery reports.
Euromoney April 2006
Banks’ credit research departments are readying themselves for a turn in the credit cycle towards a higher level of defaults and volatility. Florian Neuhof reports on the state of play.
Euromoney April 2006
Although the oil-rich emirate does not need other people’s money to finance big-ticket projects, it has shown an increasing appetite for project finance, reports Mark Ford in Abu Dhabi.
Euromoney April 2006
Sheikh Mohammed Al-Thani has many roles. As Qatar’s economy and commerce minister he presides over the world’s fastest-growing economy. He is also chairman of the Qatar Financial Centre and the Doha Securities Market. Al-Thani is considered one of Qatar’s most forward-looking policy-makers, a man who has great ambitions for the Gulf state. Talking to Sudip Roy in Doha, he outlines the economic progress of Qatar and argues that it will become the financial services hub for the Middle East.
Euromoney April 2006
Economic pressures and government policies are driving investment inland, but many of the so-called second cities already boast powerful economies. Banks see a new frontier of opportunity. Chris Leahy reports from the cities of Chengdu, Wuhan and Qingdao.
Euromoney April 2006
HSBC is in the vanguard of foreign banks’ invasion of China and its partnership with Bank of Communications means that it is well positioned to expand. Chris Leahy speaks to HSBC’s China chief and his counterpart at Bocom about their businesses and the way they are working together.
Euromoney April 2006
Vietnam’s stock market is roaring as speculative money chases the few listed stocks. Reform is on the way and the potential for growth is clear. Meanwhile, the market remains over-hyped, poorly regulated and lethal for the uninitiated. Chris Leahy reports.
Euromoney April 2006
Investor demand for US commercial property-backed debt is rapidly increasing, with strong bids coming from Europe and Asia. An exciting new range of structured finance and derivatives products is on offer, but issuers and investors might be biting off more than they can chew. Kathryn Tully reports.
Euromoney April 2006
Freddie Mac’s new treasurer, Tim Bitsberger, marks a break with agency tradition in being an outsider. But he reckons his US Treasury experience can only enhance Freddie’s transparent approach to raising money and its stringent risk management standards. Bitsberger’s hope is that these will serve it well as it builds out its retained portfolio again. Kathryn Tully reports.
Euromoney April 2006
Icelandic bank spreads, which had been drifting wider late last year, moved out sharply in early March.
Euromoney April 2006
Excellent market conditions, M&A, special situations and heightened insurance activity drove record subordinated supply in the first quarter; more deals are in the pipeline.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Plans by International Index Company (IIC) and Eurex to launch a CDS future have yet to resolve the question of how cash settlement will be achieved on reference entities that have defaulted. But once this problem has been solved, the initiative should open up the CDS market to investors that have so far been blocked from trading the OTC market.
Euromoney April 2006
More opco/propco deals are likely given rising real estate values and investor interest in secured debt.
Euromoney April 2006
Rising personal bankruptcy levels and an uncertain economic outlook in the UK might suggest that non-conforming and sub-prime mortgage lending is not the smartest business line to jump into at the moment. Try telling that to the succession of new entrants now preparing to try their luck in this sector – one in which veterans might suggest that they are already 10 years too late.
Euromoney April 2006
Euromoney April 2006
But standard documentation and eight dealers’ involvement might not be sufficient to spark investor interest.
Euromoney April 2006
Euromoney April 2006
For some FX traders the prospect of an extended holiday seems to be the deal clincher for switching jobs.
Euromoney April 2006
Chief executive of the Chicago Mercantile Exchange thinks pressure is building for exchange-traded model.
Euromoney April 2006
There has been a lot of talk about the use of computerized trading in foreign exchange. Discussions at a recent seminar in London suggest that there is real substance, not just hot air, behind the chat.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Ultra-rich investors are seeking out higher-volatility hedge funds. But they will be hard to find until strategies catch up with demand.
Euromoney April 2006
Hedge funds returns are rising; does this mean volatility is back?
Euromoney April 2006
Unbundling of commission regulation will increase independent data provision.
Euromoney April 2006
Spanish bank forms a joint venture with alternatives specialist Vega to cater for institutional investors.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
The London Stock Exchange’s shareholders clearly have a lot to gain from Nasdaq’s bid for the market, especially if, as is widely expected, the New York Stock Exchange joins in the fray and pushes up the price even further. But what, if anything, users stand to gain is far from clear.
Euromoney April 2006
US growth companies faced with the increased cost of listing at home are among foreign issuers seeking a home on London’s junior market.
Euromoney April 2006
The volume of European equity capital market deals from the real estate sector has been growing strongly over the past two years and is expected to increase again this year.
Euromoney April 2006
There is a consensus view that European equities are cheap and that M&A will continue to drive the market up and keep the liquidity flowing.
This rosy vision is built on the assumption that earnings will remain strong, that global growth is re-accelerating, that the risk from inflation is minimal and that interest rates are therefore likely to remain low.
Euromoney April 2006
French bank increases staffing and product offering.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Bank telecom advisory fees are on the up, but that won’t last for long.
Euromoney April 2006
Corporate restructuring dominance makes GE personnel rich quarry for banks boosting leveraged finance teams.
Euromoney April 2006
Euromoney April 2006
Research shows an increase in abnormal stock trading in the UK despite recent FSA clampdown. Some of the irregular share price movements may be indicators of insider trading.
Euromoney April 2006
The $67 billion AT&T/BellSouth merger catapults Evercore and Rohatyn up the league tables.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
CLSA rebrands and beefs up its private equity operation.
Euromoney April 2006
Bank is making use of its wide geographical experience to build cross-border expertise.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Joaquim Levy, Brazil’s treasury secretary, tells Lawrence White how the sovereign is restructuring its debt management profile.
Euromoney April 2006
Record liquidity stymies growth of securitization.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Tough regulations hold back trade volumes.
Euromoney April 2006
Online trading platform MarketAxess plans to launch a client to multi-dealer emerging markets CDS index trading system in the second quarter. The system will be the first of its kind and Latin America-related business is likely to be prominent.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Argentina's default $800 million more than commonly assumed.
Euromoney April 2006
CLO facilitates the provision of loans to the world’s poorest citizens.
Euromoney April 2006
An intimate knowledge of the market, a good track record and a favourable cost basis – what more could a credit rating agency ask for?
Euromoney April 2006
The future for UniCredit and HVB’s merged operations in central and eastern Europe has been determined, with HVB’s subsidiary, Bank Austria Creditanstalt, set to become the sub-holding company for CEE operations within the UniCredit group.
Euromoney April 2006
Euromoney April 2006
The UAE capital markets received a boost last month when National Bank of Abu Dhabi (NBAD) issued a Dh2.5 billion ($680 million) tier 2 convertible bond through a private placement. It is the first time this type of hybrid security has been issued in the UAE.
Euromoney April 2006
In a sign that Kazakhstan is set to become increasingly visible on investors’ radar screens, a new investment bank has been set up there to offer a full range of corporate finance and brokerage services.
Euromoney April 2006
Private-sector company prepares businesses for IPOs.
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
The US hybrid market has suffered a setback following a recent NAIC ruling.
Euromoney April 2006
Treat your back-office staff well lest they take umbrage and run away to a hedge fund.
Euromoney April 2006
Finance minister’s resignation leaves investors feeling cautious.
Euromoney April 2006
It’s a good job that many US investment banks have had such a strong first quarter. They need the cash to keep the regulators at bay.
Euromoney April 2006
Further reformis essential if the region’s stock exchanges are to come under the steadying influence of institutional investors.
Euromoney April 2006
While rivals’ share prices roar ahead, Citigroup’s languishes. Investors love stocks that are easy to understand. So is it time for Citi to develop a clearer strategy?
Euromoney April 2006
Euromoney April 2006
Introducing a light-hearted look at the financial markets players as well as the issues that keep bankers up at night. In this piece Abigail brings us commentary on Deutsche Bank, HSBC, M&S tomatoes, and Sandy Weill's sweater.
Euromoney April 2006
The ECB’s March 2 rate rise is contra-indicated by the prevailing data, which are apparently distrusted by the central bankers. In their view, recovery is well established in eurozone countries.
Euromoney April 2006
The US housing boom is set to collapse, with adverse effects on domestic consumption. This, unlike the slowdowns in Australia and the UK, will have a marked effect on global growth.
Euromoney April 2006
What does Merrill Lynch’s $9.8 billion BlackRock deal mean for the European asset management industry?
Euromoney April 2006
Urban Vietnamese are leaping on the capitalist bandwagon, driving it as fast as they can in an effort to build a lead on the foreign companies that will inevitably tap a burgeoning market.
Euromoney April 2006
Gulf of credibility baulks Aussie banker: Australian banker attempts to avoid jail time and earn enough to repay embezzled funds by taking a position at the National Bank of Kuwait.
Euromoney April 2006
Euromoney April 2006
Worth only the paper it’s printed on
Euromoney April 2006
HK euphoria hit by rapid short circuit
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Euromoney April 2006
Raising capital adequacy requirements from N2 billion to N25 billion has freed Nigerian banks from reliance on public sector funds and better equipped them to finance bigger projects within the oil, gas and telecommunication sectors.