Awards for Excellence 2012: Best Sovereign Adviser
The bank is helping emerging market governments steer clear of trouble by reducing FX and inflation risk, while advising European governments on how to manage through the crisis.
Banks have a big role to play in helping troubled sovereigns find a way through the debt crisis. Lazard played a prominent part in advising Greece on its restructuring of private-sector debts this year, while Deutsche represented bondholders.
Behind the scenes, HSBC also advised Greece. "We had been engaged with Greece for several years, since our time as a leading primary dealer, conducting small liability management exercises for them, and were advising them very early on that some form of larger scale debt re-profiling was needed," says Spencer Lake, co-head global markets at HSBC. "We were at the centre of negotiations on PSI1, that then led to PSI2, and were able to help with insights as a leading participant in government bond markets and as having globally a leading liability management platform for private and public sector clients." He says: "It had become clear that Greece will have to go through a comprehensive debt restructuring eventually, and the PSI conducted earlier this year was a bridge to that which successfully avoided a hard default.