Change font size:   

 
Bank deleveraging has barely started

Bank deleveraging has barely started

Banks lending money to governments to help fund bank bailouts looks horribly circular

Liquid Real Estate Awards

Liquid Real Estate Awards

2008 results released

April 2007

April 2007

Why the China rainmaker just won’t go away

Euromoney April 2007

China’s rainmakers just won’t go away, even though most investment banks now hate the term and stress that it is the bank, and not the individual, that wins mandates. But the superstar bankers are still vital to doing deals in China. The old names hold on to key positions, while a new breed of dealmaker rises to the top of the ranks. Which firms have got their strategy right?

Debt markets

Why BAA’s refinancing can’t get off the ground

Euromoney April 2007

The foundation on which Ferrovial built its acquisition of BAA was its securitization exit. But nearly a year after the buyout, the refinancing is nowhere to be seen. Louise Bowman finds out what’s happening.

Has Moody’s credibility been downgraded?

Euromoney April 2007

Moody’s efforts to sell a new methodology for rating banks met with a vitriolic chorus of disapproval from market participants and ended in a humiliating climb-down. Now that the agency has patched up its joint default analysis it faces another struggle – to regain its credibility. Alex Chambers reports.

Middle East

Dubai International Capital and Istithmar: Dubai investment arms flex their buying muscle

Euromoney April 2007

Dubai’s investment agencies might not have the scale of their counterparts from other parts of the Middle East but they are becoming voracious buyers of assets. Who are they and what are their plans? Sudip Roy and Simon Brady profile the people and strategies behind Dubai International Capital and Istithmar as they join the ranks of the world’s most powerful investors.

Dubai World's Istithmar: The new kid on the block

Euromoney April 2007

In less than four years Istithmar, the investment arm of conglomerate Dubai World, has become one of the most influential private and public equity and real estate financiers in the world. Its blue-chip holdings include Time Warner, Standard Chartered Bank and large swathes of Manhattan real estate. Sudip Roy reports from Dubai on how the fund has risen to prominence so quickly.

Dubai International Capital (DIC) looks to spread its investment wings

Euromoney April 2007

Simon Brady speaks to Sameer Al Ansari (SA), executive chairman, Dubai International Capital, and Rabih Khoury (RK), DIC’s head of Middle East and North Africa Investments about the strategies of the international investment arm of conglomerate Dubai Holding and how it fits in the Dubai Investment Group.

Bankers keep their cool as Lebanese stand-off continues

Euromoney April 2007

Lebanese banks have maintained a comfortable financial position despite last year’s Israeli attack and a continuing stand-off between Hizbollah and the government. However, the macroeconomic situation is far from rosy, not least because the country has the world’s highest debt-to-GDP ratio. James Drummond reports from Beirut.

Iran banks rebuff US charges

Euromoney April 2007

Are Iranian banks based in London an unwitting victim of political tensions in the Gulf, as US authorities try to limit their access to international finance?

Hedge funds

Funds seek long-term capital for management

Euromoney April 2007

For the funds, there are lots of advantages: diversification of funding sources; the ability to invest in less-liquid opportunities; and the power to raise more AUM. But do investors understand what they are buying? Helen Avery reports.

Covered bonds

US banks pay for covered charge

Euromoney April 2007

For most of this decade the majority of US investment banks have scorned covered bonds. Not any longer. So if it's true that they no longer believe it to be an unprofitable backwater of the European capital markets, what factors are at work? Philip Moore discovers.

Bank of America readies a benchmark

Euromoney April 2007

Despite encouraging news from Bank of America, most US mortgage providers have so far remained aloof despite investor enthusiasm for covered bonds. Jethro Wookey reports.

Commodities

Commodities: Who is setting the energy agenda?

Euromoney April 2007

Energy development and production have vast and growing capital needs that offer opportunities for investment banks. Add in commodity risk management as well as carbon trading and the prospects look even more glittering. Peter Koh reports, while a new survey shows which banks are leading the way.

Asia

Uneasy days in Asian debt

Euromoney April 2007

Asia’s debt markets have soared and spreads over US and European markets have all but disappeared. Meanwhile, risk appetite continues to rise as new products become increasingly marginal. Asia’s debt bankers have much to ponder. Chris Leahy reports.

Vietnam is hottest yet in new year surge

Euromoney April 2007

Stock markets keep on rising as the country celebrates the onset of the Year of the Pig. But market participants expect a correction soon and the regulators are eager to ensure that it is a controlled one that does not see off foreign capital. Elliot Wilson reports.

Philippines tries to match promises with delivery

Euromoney April 2007

Long overdue fiscal prudence and a rising economic tide have presented the Philippines with its best chance in decades for sustainable economic growth. Chris Leahy reports.

Japan

Japan: Watanabe invites foreign investors to come and play

Euromoney April 2007

With gross public debt more than 170% of GDP and domestic investors increasingly diversifying overseas, the country is keen to attract foreign investors, even as it struggles to reduce government bond issuance and stave off roll-over risk. Hiroshi Watanabe, Japan’s vice-minister of finance for international affairs, speaks to Peter Lee about Japan’s funding policy and broader economic prospects.

Eisuke Sakakibara, MR YEN: Japanese firms must localize and globalize to prosper

Euromoney April 2007

Eisuke Sakakibara is known as Mr Yen for the influence of his pronouncements on Japan’s currency and was Japan’s vice-minister for finance for international affairs from 1997 to 1999. An internationalist famed for making key policy speeches in English, he argues in this interview with Tetsuya Shibata that Japanese companies must become more outward-looking to prosper.

The slow e-road to Japan’s bond trading future

Euromoney April 2007

Japan’s small and slowly developing bond e-trading business is dominated by two firms, and having two separate platforms for the same product isn't speeding things up. Lawrence White asks the CEOs why this is.

Private banking

Asian private banks look to stay ahead of the herd

Euromoney April 2007

Asian private banks are continuing to visit the wilder shores of alternative investments. Chris Wright reports.

Real estate

Singapore offers inspiration to Asia

Euromoney April 2007

Singapore leads the way in Asia Reits, followed by Japan and Hong Kong. Other countries are trying to take the same course, but with varying degrees of success. Chris Wright reports.

Debates

Inflation-linked debate: Market reaches critical mass

Euromoney April 2007

The inflation-linked bond market has grown dramatically in size and sophistication. What is driving its expansion, and just how far can the market develop?

Cash management debate: How to make sure that Sepa pays off

Euromoney April 2007

The regulatory framework of Europe’s single payments system is effectively in place. But the details of implementation by banks and corporates are still a matter of debate.

Debt news and analysis

Electronic trading: Members not so keen on letting hedge funds into EuroMTS

Euromoney April 2007

But move would boost liquidity when volumes are falling.

Covered bonds: LBB looks outside Pfandbrieffor issuance

Euromoney April 2007

Structured covered bond may be repeated by other German issuers.

Credit default swaps: Loan market waits for a transformational index

Euromoney April 2007

The launch of LCDX and release of Isda documentation in Europe could revolutionize risk transfer.

Bank funding: HBOS keeps its options open

Euromoney April 2007

The influence of Basle II is starting to be felt in UK mortgage lenders’ funding plans.

People moves: Patterson moves to advisory role at Citi

Euromoney April 2007

Debt market round up: Lehman lose Zirps, Roase

Euromoney April 2007

Debt market round up: Merrill poaches Baldini

Euromoney April 2007

Structured finance news and analysis

US sub-prime: ABS CDO pipeline dries up as sub-prime fears start to bite

Euromoney April 2007

Hysterical headlines and wild index swings have disguised what is really going on in the world of home equity loan securitization.

Permanent capital vehicles: Permanent feature or fad?

Euromoney April 2007

Are present market conditions a threat or opportunity for permanent capital vehicles in structured finance?

CDOs: Hannover Re manages risk with CDO technology

Euromoney April 2007

SG CIB takes its cue from collateralized loan obligation securitization.

Real estate: A sting in the tail

Euromoney April 2007

Let Hoteloc be a warning on the risks in short tail period.

SF market round up: Mizuho Securities USA rebuffs Calyon’s $750 million lawsuit

Euromoney April 2007

In December 2006, Mizuho unveiled Alexander Rekeda, Doug Munson, Jim Shepard, Bill Budd and several others as part of its new structured credit and debt capital markets team in New York. The bankers had formerly worked at Calyon, covering various areas of structured finance and debt.

SF market round up: Huge European CLO pipeline builds

Euromoney April 2007

Derivative markets news and analysis

TotalDerivatives: KfW CLO builds synthetic notes and real hospitals

Euromoney April 2007

The fourth CLO designed to free up risk capital for reinvestment in the PFI market has been launched. Roger James reports.

TotalDerivatives: UK sub-prime fallout will be manageable

Euromoney April 2007

Anxiety rippled through the UK credit market when the UK’s top non-conformist mortgage lender, Kensington Group, said it was considering a sale to a US bank. Roger James explains why.

Foreign exchange news and analysis

FX Settlement: CLS considers pre-netting

Euromoney April 2007

Industry-owned utility ponders fundamental change to business model.

FX strategy: Local knowledge is a global advantage

Euromoney April 2007

A wobble in China, a rapid sell-off in global equities, a flight to the safe haven of government bonds and the unwinding of carry trades were all evidence of a change in investors’ risk appetite starting in February and going through into March. The moves showed many things, including the interdependence not only of various currencies but also different asset classes. For a brief period, the path of global equity markets seemed to be dictated by what was going on in an intraday basis in spot sterling/yen.

FX market round up: Keep on moving

Euromoney April 2007

There was a flurry of activity in the FX employment market in March as those market participants who got bonuses banked their cheques.

Equity markets news and analysis

Real estate: Hot property in the convertibles market

Euromoney April 2007

More real estate companies have come to the market in the past two months than in the past two years.

Investment banking: Equity revenues may rise 20%

Euromoney April 2007

The equities business at leading investment banks is booming, according to a report from the Boston Consulting Group.

Equity trading: New challenges for vol and correlation traders

Euromoney April 2007

Trading and exchanges: Instinet challenges TSE

Euromoney April 2007

Revenues at Instinet’s Asian business grew by an impressive 50% last year, double the growth in regional trading volumes. The electronic broker has ambitious plans to expand throughout the region this year, opening an office in Singapore, becoming the first remote member of the Australian Stock Exchange, and establishing a partnership in India to offer electronic direct market access. However, it is in its new adopted home of Japan that the broker is making its boldest moves.

Equity market round up: The month in numbers

Euromoney April 2007

8,400 - 86 - 49 - 7 - 5

Equity market round up: People moves

Euromoney April 2007

Equity market round up: A private equity index

Euromoney April 2007

Capitalizing on the surge of private equity funds to list on stock markets, in March Standard & Poor’s launched its S&P Listed Private Equity Index.

Alternative investments news and analysis

M&A: Minority stakes for banks

Euromoney April 2007

Cross-border activity to increase, say participants.

US sub-prime: Hedge funds make light of sub-prime woes

Euromoney April 2007

Press reports that hedge funds will be the hardest hit by the sub-prime mortgages free fall in the US have been proved wrong by Paulson and Co. According to sources, the $7 billion merger arbitrage and event-driven hedge fund has produced 100% net returns year to date, and 60% in February alone on the back of sub-prime bets.

People and markets: Calello assumes global role at Credit Suisse

Euromoney April 2007

Appointment shows growing importance of Asia for business and for career growth.

Hedge fund management: JPMorgan on an ‘aggressive’ drive in alternatives

Euromoney April 2007

JPMorgan has overtaken Goldman Sachs as the largest manager of hedge fund assets globally.

Profile: Havens goes for high yield as an arb complement

Euromoney April 2007

Havens Advisors’ hedge funds focus on merger arbitrage, high-yield bonds and distressed debt. Helen Avery speaks to founder Nancy Havens about the opportunities in high-yield.

AI market round up: Goldman gets slap on the wrist

Euromoney April 2007

Goldman Sachs has been fined what some might call a rather lenient amount, $2 million, for selling short an IPO pre-sale.

AI market round-up: Wealthy dump equity for alts

Euromoney April 2007

AI market round-up: Citadel markets HF expertise

Euromoney April 2007

Asia news and analysis

IPOs: Great China sale nears its end

Euromoney April 2007

Will AgriBank be an IPO too far?

Real estate: A lifeboat for choppy markets

Euromoney April 2007

Asian investors still love property, despite the tight spreads.

Malaysia: Ringgit easy

Euromoney April 2007

Bank Negara Malaysia, the central bank, announced in March a further relaxation of foreign exchange regulations designed to normalize trading in the Malaysian ringgit.

People and markets: Calello assumes global role at Credit Suisse

Euromoney April 2007

Appointment shows growing importance of Asia for business and for career growth.

Asia market round up: Morgan Stanley ventures into Vietnam

Euromoney April 2007

In March, Morgan Stanley became the latest bulge-bracket firm to enter the increasingly crowded Vietnam securities market.

Latin America news and analysis

Argentina: CB governor Martin Redrado says ability to control inflation is limited

Euromoney April 2007

Focus should be on monetary and wage policy, says Redrado.

Investment banking: Goldman boosts Brazil team in big launch

Euromoney April 2007

Goldman Sachs is pursuing innovative structures, including LBOs and other transactions not previously executed in Brazil as it seeks to become one of the top three banks in the country.

Capital markets: Hungry high-yield investors drive issuers to think about toggles

Euromoney April 2007

"Actually, I just pitched one of those today," says a debt capital markets banker when asked whether he detected developing interest among emerging market clients in toggle notes.

Mexico pension funds: High pension fund commissions lead to anaemic returns

Euromoney April 2007

Latin American markets have proved to be a fine investment in recent years, although not, it seems, for Mexican private pension fund managers. Pension funds, afores as they are locally known, are coming under increasing scrutiny for failing to provide the kind of stellar returns posted in Chile and Peru, despite new freedoms to diversify investments.

Mexico banking: Low-income Mexicans to buy banking off supermarket shelf

Euromoney April 2007

House painter Miguel Hernández has dreamed for years of buying a house and a car for his wife and three children. However, as one of the millions of Mexicans without a bank account, he has always been denied credit. But his luck could change in June when US-owned superstore Wal-Mart de Mexico opens banking services, joining a growing roster of local retailers moving into banking for low-income earners. "I’ve shopped at Wal-Mart for years, they know me and I hope they’ll let me open an account. It would change everything," says Hernández.

Brazil: Interim treasury secretary doesn’t shine

Euromoney April 2007

Investors worry about lack of outside experience, lack of star quality and the temporary prefix.

Borrower view: Vitro opens the window to a brighter future

Euromoney April 2007

Relics of a troubled past are soon going to be put behind Mexican glass company Vitro, which has just completed a total debt refinancing. Chloe Hayward speaks to CFO Alvaro Rodríguez about his company’s rocky past and shiny future.

Latin America market round up: Hugo Chávez watch

Euromoney April 2007

"Chávez is the ideological leader of the guerrillas in Colombia"

Latin America market round up: Slim says LatAm governments need more investment

Euromoney April 2007

One man not joining the cult of Chávez is Latin America’s richest man, Carlos Slim.

EEMEA news and analysis

Investment authorities: Mubadala expands its reach

Euromoney April 2007

Abu Dhabi investment vehicle builds global partnerships.

Saudi Arabia: Cristal deal glint in global M&A

Euromoney April 2007

As the deal between US-based Lyondell Chemical and Saudi Arabia’s National Titanium Dioxide (Cristal) closes so Saudi Arabian merger and acquisition activity looks set to increase further, and to cover more types of business, in 2007.

Securitization: Up to $500 million in pipeline from Ukraine

Euromoney April 2007

Ukraine is the latest emerging market in which asset-backed securities are being issued, with both international and domestic transactions appearing in recent weeks.

Finance minister reassures investors on Egyptian economy

Euromoney April 2007

With growth surging ahead and inflation high, some analysts have voiced their concerns that the Egyptian economy is getting ahead of itself.

Russia: Making greenbacks from going green

Euromoney April 2007

Private equity: Bain and Actis hunt big game in Africa

Euromoney April 2007

Armenia: Armeconombank looks to London for funding

Euromoney April 2007

Armeconombank is looking to chart new territory for Armenian banks with an international equity offering.

Islamic finance: Bond’s car is Shariah-compliant

Euromoney April 2007

Aston Martin announced the start of a new chapter in its financing history as the sports car manufacturer agreed its leveraged buyout to a consortium of investors led by sports car veteran David Richards.

Kazakhstan: Property play proves popular investment

Euromoney April 2007

UK and continental European investors snapped up shares in Chagala Group, the leading property developer in oil-rich western Kazakhstan, enabling it to raise $120 million through an IPO on the main market in London last month.

EEMEA market round up: Deutsche issues groundbreaking CDO

Euromoney April 2007

Deutsche Bank, in conjunction with VTB Bank Austria and VTB Bank, has launched the first rated CDO of CIS corporates.

EEMEA market round up: Kazakh RMBS deal sets benchmark

Euromoney April 2007

BTA Ipoteka became the first Kazakh bank to issue a securitization of residential mortgage loans in the international public markets.

EEMEA market round up: Emaar to launch convertible bond

Euromoney April 2007

Dubai’s Emaar Properties has announced that it has struck a shares-for-land agreement with Dubai Holding, a state-owned conglomerate.

Market leaders

Sub-prime contagion: Guilty by association

Euromoney April 2007

The sub-prime mortgage crisis in the US will feed through to mortgage markets elsewhere as share prices plummet and borrowing costs soar.

Barclays’ merger proposal unnerves investors

Euromoney April 2007

ABN merger may give global scale, but at what cost to the businesses that have driven the UK bank forward?

Making hay in China: rain or shine

Euromoney April 2007

Success in investment banking has always depended on relationships and connections, as well as expertise.

Japan looks beyond its borders

Euromoney April 2007

Recent setbacks will not hold back the world’s second-largest economy’s growing globalization.

When greed is green it’s good

Euromoney April 2007

Bankers’ growing interest in environment-friendly financial opportunities can only be a good thing – whatever their motivation.

Lehman’s statements of intent

Euromoney April 2007

Big hires, new local offices and investment in a specialist hedge fund show the US firm is getting serious about the emerging markets.

In and out of the money in covered bonds

Euromoney April 2007

Too many banks are chasing too few fees.

Editorial

Liquidity is never there when you need it most

Euromoney April 2007

In recent years success in the financial services industry has been predicated on two main strategies: first, taking on significant if not massive proprietary risk, a strategy as old as the hills; second, underwriting risk positions and using the capital markets to exit. This is an even more well-established feature of the most successful investment banking operations.

Columns

Inside Investment: Sorcerer’s apprentices

Euromoney April 2007

The bizarre decision by Moody’s to grant Aaa status to a rag-tag assortment of obscure Nordic credits has put the raters in the spotlight. The relationship between the rating agencies and the big investment banks should also come under scrutiny.

Against the tide: Stock market sell off – This time it is different

Euromoney April 2007

The recent sell-off in global stock markets will not be a repeat of last May – a short correction leading to new highs. There is now more to worry about in the global economy and the liquidity cycle is at a turning point.

Front end

Pfandbrief is a very long word…

Euromoney April 2007

The excitement of the inaugural Euromoney US covered bond conference clearly got to some delegates in New York last month. Not least Dr Louis Hagan, executive director of the VdP – otherwise known as the Association of German Pfandbrief Banks.

Moody’s goes Bollywood or bust

Euromoney April 2007

Hats off to the financial institutions team at a US investment bank who made a highly amusing Bollywood movie using an online service.

Desktop Zar: One bank, one market, one leader

Euromoney April 2007

Anyone who is anyone in the FX market wants to put up a good showing in the annual Euromoney survey – it is widely accepted as the most accurate gauge of how a bank’s business is doing. In some cases, it is rumoured that success in the poll is even more important than growth in revenues.

Now we can concentrate on the league…

Euromoney April 2007

The Euromoney investment banking champions league game table is taking shape, and after a bloody back and forth at the top, Citi has put daylight between itself and its nearest competitor, BNP Paribas.

BNP Paribas: Time gentlemen, s’il vous plaît

Euromoney April 2007

The good times might be back in Asia’s markets for foreign investment banks. Alas, though, the feel-good factor does not appear to have reached French bank BNP Paribas.

Quotes of the month

Euromoney April 2007

Off the record

Euromoney April 2007

Research guide

Research guide: The 2007 Guide to Financial supply-chain management

Euromoney April 2007

The financial supply chain is an important concept for CFOs and treasurers to understand. However, it is one that they might be unfamiliar with, and certainly it is unlikely to be at the top of their agenda.


Bull market: A random market movement causing an investor to mistake himself for a financial genius

Top 10 financial definitions that are funnier since the credit crunch

Ruromoney Jobs Post a job