February 2009
| Euromoney February 2009 "Return to profitability in 2009 is our most important priority". The bank’s chief executive details his vision for a new UBS - Can Rohner rescue UBS?
UBS’s chief executive was the first global bank head to tackle the impact of the credit crunch. His actions may have saved the bank. Much remains to be done. The future of the firm’s investment bank is in doubt. And so will Rohner’s own position be, if he doesn’t quickly return the bank to profit and shut the door on outflows in its wealth management franchise. Clive Horwood reports
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Euromoney February 2009
Structured products are proving neither as safe nor as lucrative as investors were led to expect. However, discomfited clients are prompting those banks that have survived to devise products better suited to difficult conditions. Peter Koh reports.
Euromoney February 2009
The Private Banking and Wealth Management Survey 2009 received 1643 valid votes (1244 'part B' votes, 399 'part A' votes), representing
$11.8 trillion of Assets under Management.
Euromoney February 2009
The most canny issuers in 2008 were those that realized it was important to get on and raise capital even if the price was not great. Waiting for the market to improve was and remains a potentially fatal strategy. Alex Chambers reports.
Euromoney February 2009
Old-style capitalism is in disrepute. Fans of Islamic finance say it is a model whose ethics give it more sustainability. But optimists will be disappointed to see how far it is part of the global bust. Dominic O’Neill reports.
Euromoney February 2009
A looming recession threatens a shake-up of the country’s staid industries. A boldly led Japan Inc would help the global economy. But such leadership has been promised before and never delivered. Lawrence White reports.
Euromoney February 2009
In the second part of Euromoney’s foreign exchange debate, which took place in late 2008, industry experts consider the future for the business. There is still cause for optimism, although inflation remains a big unknown and there are real fears of governments’ ability to sustain debt levels.
Euromoney February 2009
European Commission digs its heels in over central counterparty.
Euromoney February 2009
Latin American sovereigns are on track to meet their 2009 financing needs after an impressive start to the year, according to senior debt bankers. Barclays Capital reckons that 34% of this year’s estimated total of $19 billion of emerging market sovereign issuance has already been successfully placed despite fears that the US and Europe would crowd them out. Latin American corporates, in contrast, are facing more difficult and expensive financing.
Euromoney February 2009
“It’s the right time to go for me. I was going to go a year ago. It’s been 25 years and I’m 50 years old. Time for new blood to fight the new fight!” says Paul Hearn on announcing his retirement from BNP Paribas in January.
Euromoney February 2009
The UK Treasury is understood to be considering the establishment of a conduit-style fund that would source investment directly from institutional investors such as pension funds and insurance companies to fund its infrastructure investment programme. The UK government would own the conduit and take the first-loss risk in the vehicle. Management of the conduit would be outsourced to a third party – insiders suggest that one of the monoline guarantors is being considered. The conduit could be launched in the next three to six months.
Euromoney February 2009
Credit Suisse has announced the formation of a new group in its EMEA global markets solutions business (GMSB) designed to address what co-head of global investment banking Jim Amine describes as a “unique opportunity” presented by the current debt market dislocation. In an internal memo, Amine explained that the new debt advisory and restructuring group (DA&R) will enable the bank to provide an integrated solution to challenging market conditions.
Euromoney February 2009
Euromoney February 2009
Goodbye SLS, hello APF.
Euromoney February 2009
Foreign exchange prime brokers and their exchange-traded product counterparts, the full commission merchants (FCMs), will be fully aware of the complexities involved in modern risk management. To an extent, the uptake of electronic trading has made their task far easier – there are clear audit trails, and trade confirmations are, in most cases, sent out in almost real time.
Euromoney February 2009
Analysts debate just how clued up Trichet and the council are to the problems of the real world.
Euromoney February 2009
News that China experienced a severe foreign exchange outflow in the fourth quarter of 2008 came as a major surprise to most analysts and left them searching explanations. According to an initial report written by Stephen Green, Standard Chartered’s head of research for China, the unexplained outflows could have been as much as $240 billion, a figure he described as “a very big, very scary number”.
Euromoney February 2009
According to analysts at JPMorgan, there is little certainty among all the doom, gloom and despondency in the financial markets. But although few people can confidently predict the outcome of the global financial crisis, JPMorgan believes it can be relatively sure that 2009 will be a year of less leverage and more regulation.
Euromoney February 2009
The US Commodity Futures Trading Commission is continuing its efforts to put an end to some of the sharper practices that have plagued the country’s retail foreign exchange market. On January 15, the regulator announced it had charged James Ossie of Atlanta, Georgia, and his company, CRE Capital Corporation (CRE) of Alpharetta, Georgia, with operating a Ponzi scheme. The CFTC claims that the scam sucked in more than 100 apparent clients and involved about $25 million. Neither Ossie nor CRE had ever been registered with the CFTC.
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Premier Foods seeking approval for rights issue and placement.
Euromoney February 2009
Consolidation among investment banks has had a big impact on the equity capital markets league table results in 2008 and will do so again in 2009.
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Where there is market turmoil, you can bet your bottom dollar there will be a lawsuit. And indeed, more than betting, these days investors are handing over money on a long-term basis to fund managers who will pick out lawsuits that are likely to pay out.
Euromoney February 2009
Downsizing in CLO, CDO, CSO; upscaling mortgage and ABS.
Euromoney February 2009
Cost savings accelerate move towards independent administrators.
Euromoney February 2009
Do end investors, be they feeder funds or funds of hedge funds, or indeed any party offering advice on investing in hedge funds, properly understand the strategies being run? The Madoff case has thrown light on the fact that even the simplest of strategies are clearly not understood by end investors.
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
The huge fraud underlines the crucial role of hedge fund administrators and independent prime brokers. An SEC that’s more au fait with hedge funds would also help. Neil Wilson reports.
Euromoney February 2009
Euromoney February 2009
Argentina’s restructuring veteran says debt default plans are unrealistic
Euromoney February 2009
Sales of distressed real estate assets in Mexico could total more than $10 billion this year. “Mexico is very interesting at the moment,” says a local portfolio manager. “There are four big companies that are struggling that have big real estate portfolios in the country. Now there is an expectation that they will have to sell some of these assets.”
Euromoney February 2009
Latin American sovereigns are on track to meet their 2009 financing needs after an impressive start to the year, according to senior debt bankers. Barclays Capital reckons that 34% of this year’s estimated total of $19 billion of emerging market sovereign issuance has already been successfully placed despite fears that the US and Europe would crowd them out. Latin American corporates, in contrast, are facing more difficult and expensive financing.
Euromoney February 2009
Chile is on track to weather the financial crisis and avoid a recession. “Chile managed the boom years incredibly well and now they have the funds to help smooth the financial cycles and work through this crisis. We have a pretty favourable outlook on Chile for 2009,” says Casey Reckman, associate director in Fitch’s Latin American sovereign group.
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
In January the Asian debt market reopened with more than $30 billion of bonds sold, breaking a record that has stood for 10 years. The region’s syndicate bankers are confident that more could be on the way as governments look to fund stimulus packages and the region’s top banks seek to raise fresh capital to shore up their balance sheets.
Euromoney February 2009
Three key questions arise from the recent sale of stakes in Chinese banks by their global counterparts, two of them widely asked, one not. Observers are wondering what the impact will be on global banks’ relations with China, and what will happen when the lock-ups on foreign bank stakes in ICBC expire in April. Rather fewer are asking if, irrespective of the global lenders’ capital positions, this is anyway a good time to be bailing out of Chinese banks.
Euromoney February 2009
Bank of America/Merrill Lynch tops DCM bookrunner tables.
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Russian fund group Da Vinci Capital Management has launched the marketing campaign for its latest investment vehicle. The CIS Private Sector Value Fund (PSVF) is designed to offer investors the chance to profit from the opportunities available in private equity in Russia and other members of the Commonwealth of Independent States.
Euromoney February 2009
In a high-profile move, Grigory Marchenko has been appointed as chairman of the National Bank of Kazakhstan (NBK) for the second time, replacing his successor, Anvar Saidenov.
Euromoney February 2009
It is not all bad news at Royal Bank of Scotland. At least its Saudi franchise is improving, which might ultimately fetch the troubled UK bank a higher price if it decides to sell the stake it inherited from ABN Amro.
Euromoney February 2009
Despite remaining a largely centrally planned economy, Belarus has not been immune to the fallout from the global credit crunch and the associated macroeconomic slowdown. At the beginning of the year the country was forced to devalue the Belarussian rouble by 20% to BR2,650 to the dollar and raise its key refinancing rate to 14% from 12%.
Euromoney February 2009
The Central Bank of Nigeria tightened its foreign exchange management on January 19, moving from a wholesale to a retail Dutch auction system. Applications for international currency must therefore now be deal-specific.
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
The scale of the loss at RBS plus the talk of full nationalization and the circumstances at Merrill Lynch diverted attention from Deutsche Bank. But its losses are perhaps the most disheartening of the three.
Euromoney February 2009
Claims of special access to the best managers and extraordinary due-diligence skills are not rooted in reality.
Euromoney February 2009
Beleaguered European corporates can only dream of such quick and easy access to equity capital.
Euromoney February 2009
The resolution of one Latin America banking crisis in the early 1980s could provide lessons for today’s policymakers.
Euromoney February 2009
The UK Treasury’s latest bank bail-out plan will fail unless it works out what bad assets are worth.
Euromoney February 2009
Kuwait's central bank has announced new credit facilities for local companies.
Euromoney February 2009
As the terrible fourth-quarter results were unveiled, Bank of America started briefing against John Thain, Merrill Lynch’s chief executive. This is always a high-risk press strategy. A public relations specialist comments: "Washing dirty laundry in public is dangerous. Now even grannies in Topeka, Kansas, know that Bank of America is in chaos."
Euromoney February 2009
This year is not set to be one of economic recovery – the financial assets that are cheap are cheap for a very good reason, and it’s not a propitious one.
Euromoney February 2009
The decision of the Federal Reserve to turn on the printing presses will result in a re-run of the 1970s. For investors the best safe havens are hard assets, including gold – Keynes’ “barbarous relic”, writes Lincoln Rathnam.
Euromoney February 2009
Yes, the share prices of RBS, Lloyds and Barclays have been crushed. The equity markets simply must adjust to banks' reduced status
Euromoney February 2009
"The negative net revenues for FICC in the quarter were due to losses from investments, including corporate debt and private and public equities, and trading in credit products. These results were adversely impacted by unprecedented weakness across the broader credit markets..."
Euromoney February 2009
Euromoney February 2009
Euromoney February 2009
According to Euromoney’s favourite Feng Shui queen, Master Lynn Yap, the coming 12 months will be nothing if not harrowing.
Euromoney February 2009
"I’m a new kind of thug with a Washington buzz ‘coz dealing debt pays better than dealing drugs." Watch the video here.
Euromoney February 2009
Euromoney February 2009