November 2008
| Euromoney November 2008 A wave of corporate defaults will follow the onset of a vicious global recession as sure as night follows day. But this time, that night will see zombie companies stagger the earth, dragging their uncovenanted leverage multiples behind them. Louise Bowman explains. |
Euromoney November 2008
The acquisition of the European and Asian arms of Lehman Brothers means that the Japanese firm is now the world’s largest independent investment bank. The deal shocked many who had expected a western buy-out. Lawrence White speaks to Takumi Shibata and Sadeq Sayeed, the architects of the deal.
Euromoney November 2008
In October the credit crunch finally devastated global equity markets as investor panic threatened to bring down all but the very strongest banks. Alex Chambers was pounding the sidewalks of New York just as the crisis entered its most tumultuous period and perhaps its denouement.
Euromoney November 2008
For the hundreds of hedge funds caught up in the collapse of Lehman Brothers International’s prime brokerage, it might take years to claw back securities entrusted as collateral. Some face destruction through
rehypothecation. It’s the first case of its type, and now the entire structure of prime brokerage is under scrutiny.
Euromoney November 2008
Martín Redrado, president of the Central Bank of Argentina, tells Sudip Roy why the banker should get through the global crisis intact.
Euromoney November 2008
The economy has reached an inflection point. Change is coming that suggests the socialist republic will not only survive but, relatively speaking, could thrive, so long as investors are patient. Chloe Hayward reports on efforts to inject capitalism into the state-controlled economy.
Euromoney November 2008
A tightly regulated and fast growing market looks attractive, but tightening solvency regulations and gummed-up credit markets mean smaller insurers are finding life tough. That may create a rare chance for brave foreigners to enter the market. But global uncertainty could be advantageous for better-capitalized home banks. John Rumsey reports.
Euromoney November 2008
A three-way merger of Costa Rica’s largest state-owned banks to help deal with desperate funding shortages and reduce their operating expenses is not without its drawbacks. Chloe Hayward reports from San José.
Euromoney November 2008
The inclusion of the Pfandbrief in the German government’s banking guarantee marks a turning point – not just in the financial downturn but in the product’s entire history. Jethro Wookey reports.
Euromoney November 2008
The credit crisis is prompting corporate treasuries to make efficient use of their cash. But it has also thrown up doubts about how secure short-term investment vehicles such as money market funds are. Laurence Neville reports.
Euromoney November 2008
When it comes to mergers and acquisitions, Turkey’s banking sector remains a land of opportunity. UniCredit analyst Matteo Ferrazzi says: “In central and eastern Europe, opportunities for mergers and acquisitions are few and far between. Most banks are already in solid hands or owned by foreign players. But in Turkey, it is a different case and there are still banks to be privatized.”
Euromoney November 2008
Corporates can see the potential of shared service centres for reasons including compliance and costs, increased back office efficiency and labour arbitrage. However, there is no one-size-fits-all solution.
Euromoney November 2008
But Barclays deal reprices agency sector.
Euromoney November 2008
Euromoney November 2008
Amendments made to accounting rules by the International Accounting Standards Board (IASB) in mid October could allow banks to write back billions in losses incurred in trading books.
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Swiss commission investigation is unwarranted, claims suspended.
Euromoney November 2008
A good deal has already been written about the relatively high cost, at least when compared with many other markets, of processing trades in foreign exchange.
Euromoney November 2008
News that ICE is to relaunch its FX contracts gets a cool reception.
Euromoney November 2008
The huge losses being reported by corporates from emerging markets around the world suggest that not all is as rosy in FX as might have been reported.
Euromoney November 2008
Euromoney November 2008
Investors in convertible bonds have been washed out by the storm in debt, equity and derivatives markets, so potential issuers are having to look to other buyers.
Euromoney November 2008
Euromoney November 2008
The collapse of Lehman Brothers has made investors wary of derivatives-based investments, but the US structured notes industry remains confident the market will grow.
Euromoney November 2008
Euromoney November 2008
Seesawing markets set a number of records over the four weeks between mid-September and mid-October, including:
Euromoney November 2008
Excuse the cliché, but there is a silver lining in the cloud hanging over hedge funds. Many are destined to shut down. But that means more opportunity for those that survive, argues Neil Wilson.
Euromoney November 2008
Euromoney November 2008
Mid-caps starved of operational and growth capital have new lenders.
Euromoney November 2008
Under pressure from investors to put money to work, private equity firms are reconsidering the structure of their investment strategies.
Euromoney November 2008
Difficult market conditions cost the hedge fund industry $210 billion over the third quarter, according to Hedge Fund Research. Of that, $31 billion was in outflows as investors pulled money out. The entire industry, which was thought to hit $2 trillion last year, is now at $1.72 trillion, says HFR.
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
IMF loan may not be enough to stave off banking and currency collapse.
Euromoney November 2008
Russia’s mega-rich are fast emerging as victims of the global credit crunch.
Euromoney November 2008
The credit crisis could leave in its wake rich pickings for Middle East sovereign wealth funds. But what about private-equity-style government groups that rely more on leverage to fund their investments?
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Pension system nationalization announced last month brings country ‘closer to the abyss’.
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Central bank governor reveals the extent of intervention required by the FX losses of a Mexican retailer.
Euromoney November 2008
Euromoney November 2008
Corporate FX losses are already running into billions. The problem, as the dollar’s rally continues, could be endemic.
Euromoney November 2008
Whisper it quietly, but Sarkozy’s bail-out plan looks the most market-savvy.
Euromoney November 2008
With CDS prices at unprecedented levels, the crisis shows no sign of abating.
Euromoney November 2008
Predicting corporate default rates on the basis of historical experience is a futile pastime.
Euromoney November 2008
Unprecedented high spreads between European government bonds are prompting some radical – and frankly unworkable – new ideas.
Euromoney November 2008
Can Gulf financial centres’ high ambitions be fulfilled in a post-credit crunch world with falling oil prices?
Euromoney November 2008
What was previously a winning model has become instantly bereft of merit in the eyes of investors.
Euromoney November 2008
The central bank has begun to address the financial crisis but must take more action.
Euromoney November 2008
The witch-hunt of Dick Fuld is wrong. But that doesn’t mean it won’t continue.
Euromoney November 2008
The list of badly flawed financial institutions is long: Barclays (crumbling shareholder value), Société Générale (poor controls), UBS (total mismanagement), Lehman Brothers (vainglorious leadership), Bear Stearns (dereliction of management).
Euromoney November 2008
When structured products started turning into four-letter words, investors should have taken heed.
Euromoney November 2008
The government bail out packages unveiled across developed countries last month may have prevented the collapse of a host of banks with more toxic assets than equity.
Euromoney November 2008
Governments worldwide have moved to recapitalize banks. But the amounts injected will only be sufficient to avert a great depression; they are not enough to sustain lending and avert a global recession.
Euromoney November 2008
Apparently, you can learn everything you ever wanted to know about investment banking in just four weeks.
Euromoney November 2008
Rage against the dying of the light
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008
Show me the bonus!
Euromoney November 2008
Euromoney November 2008
Euromoney November 2008