January 2007
| Euromoney January 2007 Another record year for financial institutions suggests no end to the boom in financial markets. But a correction in the global imbalances that have so far sustained the boom threatens economic growth and could have painful consequences for global capital markets. Are we on the cusp of a downturn? |
Euromoney January 2007
Private banks have never had it so good. Every region in the world offers a growth opportunity. Clients want an ever-increasing array of products and services. This leads to intense competition, evident in Euromoney’s latest annual private banking survey. But is further consolidation inevitable? Helen Avery reports.
Euromoney January 2007
Traditionally seen as great for service, but second best in investment performance, private banks have been polishing up their act, investing in research and third-party products to diversify portfolios and win back market share in asset management from other financial service providers. FTSE PriBIL’s Private Banking Indices show that high-net-worth individuals should be taking private banks’ portfolio management more seriously. Plus we profile three of the banks that outperformed it. Helen Avery reports.
Euromoney January 2007
"We’ve reduced equity market exposure by 10% – from Asia, Europe and the UK – but still view equities as the best asset class."
Euromoney January 2007
Lombard Odier Darier Hentsch’s US dollar, low-risk portfolio caters to high-net-worth clients who want to preserve their money over the long term but are also looking for performance.
Euromoney January 2007
Dresdner Bank’s EUR medium-risk portfolio is one of six risk profiles the bank runs for high-net-worth investors looking for a balanced portfolio and accepting exposure to global markets.
Euromoney January 2007
The US private banking market is becoming increasingly competitive as domestic and foreign players battle it out for the country’s wealthiest clients, who are making increasingly complex demands that require more holistic approaches from banks. Private bankers’ salaries are at all-time highs and there seems little chance of them coming down in the near future. Helen Avery reports.
Euromoney January 2007
The UK private banking market is in rude health. However, although London still dominates, banks are throwing resources into regional growth. The biggest obstacle to organic growth is the lack of suitable talent to drive this expansion. Banks have to decide on the best business development strategy – acquisition, organic growth or servicing from the City? Julian Marshall reports.
Euromoney January 2007
The expulsion of Citigroup Private Bank from Japan in 2004 was merely the most dramatic of a string of failures among foreign firms that have too often misread the attitudes of investors and regulators. Now, as Japan’s economic recovery creates new millionaires and wealthy baby boomers prepare to retire, several foreign firms are trying again to crack this difficult but lucrative market. Lawrence White went to Tokyo to ask their CEOs what it takes to succeed in private banking in Japan.
Euromoney January 2007
The influence of investors in credit default swaps has conspicuously failed to match the growth of the market itself. But a recent restructuring could be the watershed moment that changes the credit markets for ever. Has the ground shifted beneath corporate issuers’ feet without them even noticing? Louise Bowman reports.
Euromoney January 2007
Southeastern Europe is experiencing a retail lending boom. Although this credit expansion is helping the region’s economies to grow, there is concern that it is putting pressure on banking systems. Sudip Roy explores the dimensions of that risk and weighs up what the authorities are doing to mitigate it.
Euromoney January 2007
Rising intra-regional trade and investment are helping to underpin the economic fortunes of the states that formerly constituted Yugoslavia. Guy Norton takes a look at three examples of a stock exchange, a fund manager and private equity.
Euromoney January 2007
In spite of all the takeover talk among major global exchanges, and the heavy consolidation in eastern Europe’s banking sector, not everyone believes that acquisitions are the only way to expand business in the region. Florian Neuhof talks to Heinrich Schaller, joint CEO of the Wiener Börse, who outlines his vision of cooperation with the developing regional exchanges.
Euromoney January 2007
Car parks that rival Monaco for the quality of the marques, apartment prices that rival those in New York, but a stock exchange capitalization of only $50 billion. That’s Almaty. Kazakhstan’s government hopes to develop its capital markets and create a financial centre there for all central Asia. The buildings are going up. Will there be enough tenants to fill them? Chloe Hayward reports from Almaty.
Euromoney January 2007
What’s bad news for the hard-pressed bean counters at financial institutions across Europe trying to curb the exorbitant expenses claims of their equity capital market teams promises to be good news for AirAstana, the leading Kazakh airline that’s one of the candidates for a stock market listing in 2007.
Euromoney January 2007
One market segment – banks – has been noticeably absent from the glut of Russian companies rushing to undertake IPOs in recent years. Is there now a danger that, after the long wait for exposure to Russia’s banking sector, investors will be overburdened with supply? Kathryn Wells reports.
Euromoney January 2007
Western investment banks are competing to acquire Russian investment houses, while the chief executive of VTB, the country’s second-largest bank, is prioritizing either the acquisition of a local investment bank or the establishment of a partnership with an international player. But can domestic banks successfully compete with their international rivals in the longer term? Kathryn Wells reports.
Euromoney January 2007
Banks have been profiting from a rising tide of consumer borrowing. As increasing bank intermediation offers plenty of loan growth, a mismatch in assets and liabilities puts pressure on banks to come to the international capital markets and make use of more sophisticated funding. Florian Neuhof reports from Kiev.
Euromoney January 2007
Volume and profits in the FX market have grown more consistently than in any other part of the financial markets. New entrants and existing users still cannot resist the promise of diversification and excess return.
Euromoney January 2007
Corporate treasury bears the brunt of regulatory and technological change, and those changes are accelerating. At the same time, demands for performance increase, and it’s the banks who have to deliver.
Euromoney January 2007
Chesapeake is first US energy issuer to target euro investors this decade.
Euromoney January 2007
UK-based bond dealers breath sigh of relief as regulator turns back from proposals set out eight months ago.
Euromoney January 2007
Hundreds pushed out at Dresdner just ahead of bonus round.
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Surprise suggestion to take Stansted out of the regulated asset base.
Euromoney January 2007
We can work it out.
Euromoney January 2007
Mizuho Securities is building its structured credit and debt capital markets business.
Euromoney January 2007
The first of several credit derivative product company (CDPC) launches widely rumoured to be in the works emerged just before the year-end.
Euromoney January 2007
Euromoney January 2007
Vincenzo Pelosi explains why pension funds are catching the swaps bug.
Euromoney January 2007
Roger James reports on why the market might finally be ready for takeoff.
Euromoney January 2007
Activity remained high into mid-December after the majors finally broke free of their narrow ranges.
Euromoney January 2007
Uncertainty and opportunity as the central Asian republic prepares a currency float.
Euromoney January 2007
Euromoney January 2007
Better guide to risk than VaR. According to some hedge fund industry participants, stress testing is becoming a more widely used measure of risk among prime brokers and managers.
Euromoney January 2007
The launch of Goldman Sachs’s Absolute Return Tracker Index in Italy in December has revived the argument about the value of passive hedge fund investing through indices compared with direct hedge fund investments or investment through funds of hedge funds.
Euromoney January 2007
Is manager or strategy selection the key for fund of hedge funds managers?
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
The best agency players make attractive acquisition targets.
Euromoney January 2007
ATS operators sunk by Icebergs in Europe turn to America and Asia. ITG, which launched its crossing centre in Canada as recently as the fourth quarter of 2005, has already seen its market share rise to 4.1% of the volume of the dominant Toronto Exchange, TSX.
Euromoney January 2007
Investor doubt evaporates.
Euromoney January 2007
London-based exchange launches derivatives on LSE-listed Russian stocks.
Euromoney January 2007
Euromoney January 2007
“Hedge funds have trailed equities on a relative basis in 2006 because of the unusually consistent strength in the equity markets”
Euromoney January 2007
Asia’s nascent market in structured growth capital is hard to define and even harder to resist. Fat margins and tied clients are bringing more entrants and might engender greater risks.
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
In October the Province of Buenos Aires issued its first international bond since the sovereign’s default in December 2001. The placement’s success demonstrates how far Argentina has since come. Hernan Lorenzino, the province’s under-secretary of finance, tells Chloe Hayward about this bond issue and its impact for Argentina.
Euromoney January 2007
Two major state companies will be partly privatized and up to 10 private companies are expected to undertake initial public offerings in Colombia next year.
Euromoney January 2007
Bespoke structures expected in 2007 to fund acquisitions.
Euromoney January 2007
“Retail demand in Brazil is getting used to the idea that the very high level of real interest rates will not be available in the near future.”
Euromoney January 2007
The securities prove to be among the hottest assets of 2006 – some of the best trades across the globe.
Euromoney January 2007
The gathering momentum in the hybrid securities market has been given another boost by the first issuance of such a structure by an Argentine bank under the country’s tier 1 capital regulations.
Euromoney January 2007
“The most important project ever contemplated for the continent”
Euromoney January 2007
Euromoney January 2007
Just over one-third of people in the region believe that their economic situation has improved.
Euromoney January 2007
The Saudi banking sector is set for sustained growth on the back of GCC-wide economic development. Foreign banks are keen to join the bonanza.
Euromoney January 2007
M&A and capital expenditure needs likely to drive more deals.
Euromoney January 2007
As a result of the overwhelming demand, the stock soared 40% when it debuted on the ZSE in early December, hitting K2,400 within minutes of starting trading.
Euromoney January 2007
Sterling market opened in the Middle East and CIS.
Euromoney January 2007
Western investment banks are competing to acquire Russian investment houses, while the chief executive of VTB, the country’s second-largest bank, is prioritizing either the acquisition of a local investment bank or the establishment of a partnership with an international player. But can domestic banks successfully compete with their international rivals in the longer term? Kathryn Wells reports.
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
Euromoney January 2007
It could be that the bank is simply too large, and only disposals can change the culture. But the recent changes are, to date at least, a missed opportunity.
Euromoney January 2007
Wealth managers are muscling in on the fund of hedge funds business.
Euromoney January 2007
Big strategic acquisitions might be an exciting diversion for banks’ senior managers. But it is shareholders that pay for them.
Euromoney January 2007
Abuse of information prompts worries about integrity in credit markets.
Euromoney January 2007
Five years after the economic crisis, concerns emerge about overheating.
Euromoney January 2007
Is it really likely that DK will now be able to persuade better-quality individuals to join the firm? It might be struggling to retain the ones that are left.
Euromoney January 2007
The southeast of the region could be the star performer in 2007.
Euromoney January 2007
Corporates need to recognize that they need to care about their CDS investors and that the old attitude of concentrating on the requirements of bondholders alone will no longer wash.
Euromoney January 2007
Strong business confidence, healthy demand for German products and an increasing share of income going to capital belie fears that Germany’s growth rate is under threat.
Euromoney January 2007
January is the month to purge the excesses of Christmas and New Year from the system. Detoxing won’t be so easy for the markets.
Euromoney January 2007
Alongside the announcement that it was raising its key interest rates by 25 basis points last month, the European Central Bank released the latest set of growth and inflation forecasts prepared jointly by the staff of the ECB and the euro area national central banks. ECB president Jean-Claude Trichet is always at pains to emphasize that these “projections” – which are shown as ranges, rather than point estimates, to reflect the uncertainties associated with past forecasting errors – are published on the responsibility of the staff and are not formally endorsed by the ECB’s executive board or its governing council.
Euromoney January 2007
Euromoney January 2007
Has anyone seen this man?
Euromoney January 2007
It is traditional around year-end for awards to be received for deeds performed during the previous 12 months. We hereby announce Euromoney magazine’s inaugural awards for high-quality press relations. We did not ask for submissions as we are constantly bombarded with incidents from which to choose.
Euromoney January 2007
Euromoney January 2007
Marina Bay Residences: Singapore’s “first Über Penthouse”
Euromoney January 2007