Private Banking Survey 2015

Private Banking Survey 2015

US leaders march on Swiss banks’ global territory

The loan market fights back

The loan market fights back

Is a sudden turn away from the bond markets what Europe really needs?

March 2015

March 2015

Bond trading: Information trumps execution

Euromoney March 2015

Inside the honeycomb: is this the future of bond trading? As bond market participants face up to the reality of diminished liquidity, low turnover and heightened risk of price gapping, the search for solutions is veering away from new trading protocols and exchange-like platforms towards providers of high quality pre-trade information. Do Algomi’s Honeycomb and MTS’s tie-up with B2SCAN point the way ahead?

Capital markets

Does Europe need its own private placement market?

Does Europe need its own private placement market?

Euromoney March 2015

Private placements have usurped securitization as Europe’s great SME financing hope. The financial markets support EU commissioner Jonathan Hill’s Capital Markets Union initiative to promote it. But the thriving US market will be hard to compete with, let alone replicate. Which leaves two questions: Can the EU build it? And, even if it can, will issuers and investors come?


Financial technology

Financial technology: Snowflake unlocks markets for intangible assets

Financial technology: Snowflake unlocks markets for intangible assets

Euromoney March 2015

Innovation is held back by the gap between the old financial system, investing and lending primarily against hard assets, and the new knowledge economy that depends on intangible assets. A new type of bank could benefit SMEs seeking to develop innovative products. It could also give investors the chance to redeploy speculative capital more productively. But who is the driving force behind Snowflake?


From Peregrine to Snowflake – the re-invention of Andre Lee

Euromoney March 2015

From the pariah of Peregrine to thought-leader for a new type of finance, Andre Lee’s re-emergence is an example to those whose careers the financial crisis cut short.

Latin American bond markets

Building out Latin America's bond markets

Building out Latin America's bond markets

Euromoney February 2015 euromoney.com

The region’s local debt markets are at a crucial point. International interest is growing. Investment banks are building up. But with one exception, domestic supply and demand remains limited. Can other countries follow Mexico’s lead? Euromoney investigates the dynamics of Latin America’s main bond markets.


LatAm bond markets: Currencies’ depreciation will test local appetite

Euromoney March 2015

International investors are increasingly looking at Latin America’s local currency markets, but foreign exchange volatility makes the buyside wary of losing any potential gains, as has happened with some recent deals. The mixture of currency and credit risk may be too heady a cocktail for some.

LatAm bond markets: Brazil’s local markets brace to take the strain

Euromoney March 2015

The troubles at Petrobras have hurt all of Brazil’s borrowers but bankers in the country think the worst is now over and that the bad news has been priced in. The proof will come when issuers return to the markets, but who wants to go first – and can the local markets produce the goods?

LatAm bond markets: Mexico – the standard bearer

Euromoney March 2015

For many reasons Mexico is the envy of its emerging market peers. The next step in its development will require attracting more international investors, but there are big challenges ahead.

LatAm bond markets: Argentina – A question of politics

Euromoney March 2015

Argentina’s relative seclusion from the international capital markets has meant a lot of volume has built up in the local markets.

LatAm bond markets: Chile – Financing their own

Euromoney March 2015

Bring up the topic of Chilean financial markets to a financier with a regional role and more often than not the adjective they use is 'sophisticated'. However, while the country has the longest-standing investment-grade credit rating and has strong, well-capitalized banks, that isn’t synonymous with sophistication.

LatAm bond markets: Colombia – Only for the strongest

Euromoney March 2015

Having a buyside full of risk-averse investors is a common theme among Latin America’s local debt capital markets but Colombia takes this to the highest level. Unless you are locally-rated AAA or AA+ then forget about the debt markets – bank debt is for you.

LatAm bond markets: Peru – Ready for a big leap forward

Euromoney March 2015

Peru’s economy has been averaging more than 5% growth a year for the last 10 years but that growth has not, as yet, been matched by corresponding growth in the volume of bonds issued in its local debt capital markets.

LatAm bond markets: HSBC – building from debt

Euromoney March 2015

HSBC is pushing hard in its drive into Latin America’s markets. From a DCM foundation, it is moving into other areas, though competition will be fierce.

Foreign exchange

FXCM CEO reveals next steps post-SNB disaster

FXCM CEO reveals next steps post-SNB disaster

Euromoney February 2015 euromoney.com

After the events of Black Thursday, the CEO of crest-fallen FXCM, the FX broker, discusses the shake-up in its business model, the future for retail flows, and lashes out at the institutional FX market structure.


Latin American investment banking

Latin America: The great rotation in M&A

Latin America: The great rotation in M&A

Euromoney March 2015

With equity and now debt funding getting scarcer in public markets, Latin American corporates must think of other options. For longer-term investors, and for those with a strong appetite for risk, the region’s troubles are a rare opportunity.


Western Europe

Novo banking comes to Portugal

Novo banking comes to Portugal

Euromoney March 2015

It took the collapse of Banco Espírito Santo, rather than the eurozone crisis, to redraw the map of Portuguese banking. Will the revised landscape show Iberian consolidation, or a new Chinese foothold on the continent?


Haitong sets out its stall after BESI buy

Euromoney March 2015

The investment banking arm of Banco Espírito Santo’s search for an investor had begun long before the shenanigans at its parent bank began to come to the surface in the summer of 2014, according to Francisco Cary, BESI’s deputy CEO and chief financial officer.

Emerging Europe

Emerging Europe: The growing pains of CEE private equity

Emerging Europe: The growing pains of CEE private equity

Euromoney March 2015

Successive crises have taken their toll on the private-equity industry in emerging Europe and enthusiasm for the region has waned. Nevertheless, its combination of strong growth and opportunities for convergence with western Europe continues to attract a hard core of supporters.


Emerging Europe: Turkish M&A on the rise

Euromoney March 2015

Boosted by a rich run of privatizations, the Turkish M&A market burst into life last year, hitting the highest total value of deals for close to a decade. The hope for 2015 is that the same feat can be repeated. In an election year, anything is possible.

Emerging Europe: Belarus embarks on a charm offensive

Euromoney March 2015

Belarus’s leaders are promising a dramatic package of reforms that could overhaul the country’s sclerotic command economy and reduce its dependence on Russia. The only trouble is, no one believes them. Mixed messages to the bond markets haven’t helped.

Belarus pushes private-sector plans

Euromoney March 2015

Belarus’s first deputy economy minister Alexander Zaborovsky insists that policymakers are keen to boost the share of the private sector in the economy through the development of new businesses. This meets with a high degree of scepticism locally, given the government’s record on the treatment of entrepreneurs.

Asia

Regulation: Philippines remains a tough nut to crack

Regulation: Philippines remains a tough nut to crack

Euromoney March 2015

The country’s banking industry is growing fast. New laws designed to encourage foreign investment make it easier for offshore firms to wholly purchase local lenders. But there are plenty of barriers to entry aside from regulation.


Africa

IMF: Can Ghana resist temptation?

IMF: Can Ghana resist temptation?

Euromoney March 2015

The country hopes a deal can revive its stumbling economy, but it will be hard to stick to the IMF’s conditions when the 2016 elections are so close at hand.


Banking news

Bank regulation: ‘Basel IV’ sparks banker fury

Bank regulation: ‘Basel IV’ sparks banker fury

Euromoney March 2015

Basel wants end to use of credit ratings; further regulatory changes deplored.


Regulatory capital: Banks spread the search for tier-2 buyers

Euromoney March 2015

Rabo and BPCE pioneer samurai deals; Japanese investors see big risks at euro banks.

Negative rates put Nordic banks under pressure

Euromoney March 2015

Retail banks to be hit hardest; corporate clients set for higher charges.

Markets news

Money markets: Short-term bank funding costs hit by Fidelity move

Money markets: Short-term bank funding costs hit by Fidelity move

Euromoney February 2015 euromoney.com

Prompted by new SEC rules, the largest prime money market fund in the US will switch to a government mandate. The move might herald the transformation of the $1.7 trillion prime MMF industry.


Neptune initiative on track for second phase

Euromoney March 2015

Standard bond-trading language project retains support of dealer banks as it enters network-building stage

TPG, SG acquire CMBS teams for real estate push

Euromoney March 2015

Private equity firms staff up; bank versus non-bank competition increases; talent ‘harder to come by’ than in 2008.

Corporate bonds: QE and negative rates warp credit markets

Euromoney March 2015

Investors forced out along the curve; issuers play currency and duration game.

Asia news

Malaysia’s CIMB mulls next move after merger setback

Malaysia’s CIMB mulls next move after merger setback

Euromoney February 2015 euromoney.com

Malaysia’s quest to create a regional champion with a large Islamic bank came to an end when a plan for a three-way merger was scrapped. The country’s second-largest lender by assets is now retrenching to boost returns and eyeing strategic acquisitions.


Rising dollar makes renminbi second-most overvalued currency

Euromoney March 2015

What goes up must come down, even the renminbi. Having appreciated by more than 30% since 2008 against a trade-weighted basket, there is growing consensus that 2015 will see further falls in the Chinese currency.

Latin America news

Brazil's education still smart despite regulatory blow

Brazil's education still smart despite regulatory blow

Euromoney March 2015

Tarpon takes control of Abril for R$1.3 billion; new regulation might limit numbers of higher students.


Asia still sees plenty of potential in Latin America

Euromoney March 2015

Toshifumi Murata of Latin America for Bank of Tokyo-Mitsubishi UFJ (BTMU) is confident of continued growth.

Brazil: Petrobras will be shut out of bond markets until 2016

Euromoney March 2015

Needs credibility before returning; wants to avoid punitive pricing.

EEMEA news

Lebanon sells $2.2 billion of bonds

Lebanon sells $2.2 billion of bonds

Euromoney March 2015

Biggest-ever bond sold in two tranches of 10 and 15 years, underpinned by robust banks.


Symbolic Hungary deal ends ‘hostile’ attitude to banks

Euromoney March 2015

Hungary’s government commits to reduce bank taxes, while a proposed stake in Erste Bank shows ‘we’re all in the same boat’, says the minister behind the plan.

Angola to test African Eurobond appetite

Euromoney March 2015

Angola could become the first African sovereign bond borrower since the great oil price crash this year in a debut deal that will set the tone for frontier-market debt.

Comment

Capital Markets Union: Make do and mend

Euromoney March 2015

Jonathan Hill has eschewed grand ambition for practical reality in his CMU green paper.

Middle East: Assessing the Dubai International Financial Centre

Euromoney March 2015

Dubai’s success as a financial centre depends on whether or not it has succeeded in its aims. And what were they?

Brazil's local capital markets: Blame it on Brasilia

Euromoney March 2015

Brazil has all the ingredients for successful local markets, but it keeps failing to deliver.

Columns

Gulliver and Flint face prisoner’s dilemma at HSBC

Gulliver and Flint face prisoner’s dilemma at HSBC

Euromoney March 2015

Before revelations about HSBC’s private bank, its chairman and CEO were seen as a winning combination. As the fallout becomes increasingly political, could their relationship be coming under threat?


Banking bonuses: trust, don’t verify

Euromoney March 2015

CEO Stuart Gulliver helpfully explains HSBC’s former practice of using a Swiss bank account in the name of a Panama registered corporation to take bonus payments for the Hong Kong bank.

Off message: When PR goes gonzo

Euromoney March 2015

If a communications team is faced with the challenge of spinning the closure of a business line, it can get weird.

Against the tide: The fragmentation of Europe

Euromoney March 2015

Political pressures and lack of growth have put the European project under threat. Reform is urgently needed to set Europe back on course.

Inside investment: Pukeanomics – the markets' rollercoaster ride

Euromoney March 2015

The record books have multiple new market landmarks to note so far in 2015. Investors should be wary, it will be a rollercoaster ride and there may be nausea ahead.

Front end

Private Banking Survey Awards Dinner 2015: Photos

Private Banking Survey Awards Dinner 2015: Photos

Euromoney February 2015 euromoney.com

Awards dinner photos are available here.


Quotes of the month

Euromoney March 2015


 
       
 

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