Banks tap emerging markets growth The rapid expansion of trade within emerging markets is a big opportunity. But Basle III requirements represent a huge risk to trade finance.

International investor interest in Latin America has intensified scrutiny of the corporate governance and investor relations of companies in the region. Big companies such as Vale, Petrobras and bank BBVA have responded remarkably well to this scrutiny. Rob Dwyer reports.

Over the past year, Euromoney has written often of the generational shifts in the economic and financial balance of power between the old world and the new. Many of the world’s biggest banks are pinning their hopes for growth on such shifts, and express nothing but excitement at their prospect.

Aims to double MENA revenue; Africa regional office to move to Johannesburg

IPO suffers from high pricing; Debt restructuring completed after five years

The bank hasn’t pushed too hard into marquee investment banking businesses; Shareholders stand to benefit from a low cost-income ratio and high returns

The bank finds that it can’t have its cake and eat it.

The merger of the Peruvian and Colombian stock exchanges will transform the equity capital markets of the Andean region and help them to compete with Brazil for investment, say local experts. Jason Mitchell reports.

Nigeria’s finance minister, Olusegun Aganga, says he has nothing to hide about the pre-election depletion of the country’s Excess Crude Account. But, as he explains to Dominic O’Neill, with a new sovereign wealth fund the government will save more, protecting the economy from shocks and encouraging private and foreign investment in key infrastructure projects.

Is equity issuance faltering in Latin America, in particular Brazil, because of overoptimistic expectations from issuers and their lead banks? Might a shift in focus away from Brazil be beneficial? Rob Dwyer finds out.

It began with the confiscation of a vegetable stall in Sidibouzid, Tunisia. Now it has spread throughout the Middle East. A region where political change had seemed unthinkable is approaching a defining moment. Andrew Mortimer reports.

The expected big bust in US commercial real estate never happened, and investors are starting to move in. That’s good news for US banks that have portfolios under water. But are the loan owners and investors being overly confident? Helen Avery reports.

Mexico’s banking sector reported a 20.2% increase in earnings in 2010, with an average return on equity of 13.5%. With the country being tipped as the region’s potential star performer this year, Mexican banks should continue to enjoy strong earnings as lending rates recover to pre-crisis levels.

At least three SOEs expected to list; Debate over currency unresolved

Brazil highly attractive to developed market investors; South-south trend overstated

So far Santander Mexico and BBVA Bancomer are the only Mexican banks to issue international bonds. They came to the market at the end of January to each sell Ps5 billion ($413.5 million) of three-year bonds (both deals were self-led, jointly with Banamex) and both priced at 20 basis points over TIIE.

Issuers/investors baulk at valuation levels; Russia outperforms on the fund inflow front

The country’s leaders and financiers are looking to build a unique gateway into Latin America.

In an attempt to establish an equity investment culture in Kazakhstan, the authorities in Astana have announced plans to launch a series of initial public offerings in state-controlled companies, in the hope of attracting widespread interest from ordinary local citizens.

New Eurobond set to test market sentiment; State sales planned to boost local stock market

Morgan Stanley is seeking out the niche in the wealth management business that used to belong to Merrill Lynch.

Loans grow in appeal for both banks and munis; State infrastructure banks offer viable alternative

Is the Brazilian real overvalued? Is there a credit bubble? Is Brazil headed for a correction?

The country should not be held up as a model for other peripheral sovereigns to follow.

The return of Bill Winters to the financial markets was something of a damp squib, at least to those who had come to view him as the once and future king of investment banking.

To Berlin, where film star Kevin Spacey was ruminating on life as a senior bank executive in his new movie Margin Call, which was screened at the city’s film festival in mid-February. Spacey muses that he found it "fascinating to try to humanize" bankers, people who – in his words – "in a lot of cases are just regular people who have regular jobs". According to the New York Times’s Andrew Ross Sorkin, the actor researched the role at Citigroup’s Lower Manhattan offices last June, asking employees: "Is it possible to be good at what you do without liking the company you work for?" Presumably not too many people rushed to answer that one. He also wanted to know: "If you knew a security was worthless and wanted to sell it, how would you grapple with the moral implications of doing so?" That must have produced a few furrowed brows as well. The film (which focuses on MBS traders) is directed by JC Chandor, whose father used to work at Merrill Lynch and might have provided some illuminating insights. "The film to me is a tragedy," he says, because these people are "realizing that they have wasted a little bit of their lives, or a lot of their lives." But it can’t be too realistic a portrayal of the sub-prime meltdown: the chief risk officer is... Demi Moore.

Conditions for expanding the EU’s EFSF are set to be agreed by the end of the month. Even if only some of the Franco-German proposals are implemented, the euro will be greatly strengthened.

Goldman Sachs’s Gary Cohn thinks hedge funds, not banks, are likely to cause the next financial crisis. He needs to take a long hard stare in the looking glass.

"Fucking well turn that music down. I’ve asked you twice TO TURN THE MUSIC. DOWN"

To cricket aficionados, great writers such as EW Swanton and CLR James are as integral a part of the game’s rich tapestry as any player. Now a new name can be added to the list of cricket writers: Anshu Jain, Deutsche Bank’s corporate and investment bank chief.

Euromoney: "So will they just pick the four banks that pitch the best?"

Euromoney is a great believer in mucking in with the tough jobs. So, in a recent media versus Barclays Capital football challenge in Singapore for the Beyond Social Services children’s charity, your correspondent put up his hand to go in goal. We had expected to be facing a few unfit FX traders. Instead we found ourselves playing a team from EPSN Star Sports who had brought along Steve McMahon, the former Liverpool and England player, renowned as one of the true hard men of the English game through the late 1980s and early 1990s.

Has Barclays perfected the art of interest rate alchemy? It seems to think it might be close to mastery of the vagaries of interest rate curve management, judging by statements in its recently released annual report for 2010. Barclays said that interest rate hedges of product balances such as deposits had generated a gain of £1.403 billion ($2.28 billion) in 2010, while comparable hedges of group equity brought in £1.788 billion.

Investment bankers are often described in the financial media as being in combat with each other, battling for deals, fighting for market share and warring for promotion. It is of course not unheard of for this metaphorical fighting to become real, and this alas appears to have been the case when seasoned bankers from two top Wall Street banks squared up at the Grand Khaan Irish Pub in Ulaan Baatar, Mongolia’s capital. The scrap arose during the early stages of the pitching process for the IPO of Mongolia’s Tavan Tolgoi mining assets, a deal that is expected to raise more than $2 billion and has lured senior Asia bankers from at least 18 global firms to the city. Reports as to the ferocity of the encounter vary. One source who was in town at the time tells Euromoney that blows were exchanged; a banker from another firm not involved in the incident tells us that it was "not much more than boozy insults and posturing". The deal has certainly led global banks to employ every trick in the book to try to win favour: Morgan Stanley, which ultimately failed in its bid, attracted much controversy in Mongolia for hiring the son of prime minister Sükhbaatar Batbold to help its cause. With the banks to be involved in the deal now selected (see Asia news section), most of the combatants have left the arena, but with billions more dollars-worth of deals expected to come out of Mongolia in the next couple of years the beleaguered staff at the Grand Khaan might have to brace themselves for more incursions by beer-fuelled, BlackBerry-armed pugilists.

Investors are learning to price in factors such as autocracy premia and remembering that oil and democracy rarely mix easily.

Deutsche Börse and NYSE Euronext create powerhouse; Competitive playing field not level

Range of options mooted; Wind-down on the cards

Must be backed by trade flows; Only option purchases permitted

Strong demand from conventional investors; regulatory support, hunger for yield, a simple structure and clever timing.

EBRD executive highlights overall strengths;
Multilateral returns to profit

From Punch Taverns to a string of commercial real estate-backed deals, borrowers and bondholders in distressed European securitizations are squaring up for a bitter fight. The chaotic process by which these structures threaten to unravel will be a lasting legacy of the ABS binge. Louise Bowman reports.

Takes controlling stake in troubled lender PanAmericano; Investment expected to be treated as private equity

The equity transaction that Petrobras priced on September 23 last year set a world record. The deal was skilfully executed but many of the arguments that divided investor opinion on the transaction rumble on. Rob Dwyer tells the inside story.

Oil E&P company’s international bond a first; Other African corporates should follow

BNP Paribas, Deutsche Bank, Goldman Sachs and Macquarie were selected in late February by the Mongolian government to run the IPO of the country’s Erdenes Tavan Tolgoi mining assets, according to sources familiar with the deal. The IPO, which is expected to raise more than $2 billion, is viewed as a potential landmark for Mongolia. Consequently, the world’s top investment banks have been pitching furiously in Ulaan Baatar since January this year. Officials at the banks named told Euromoney that they did not wish to comment on the deal, presumably for fear of offending their rumoured client. However, three independent sources have confirmed the four firms as being mandated.

Foreign buying of ETFs affecting valuations; Lack of liquidity creating dangerous pressure

Inflation is back, and so are inflation markets after a three-year hiatus brought on by the financial crisis. With some central banks happy to let their economies reflate to foster employment and a sustained recovery, inflation-linked debt might be the best bet in town. Hamish Risk reports.

The wilderness years may be the title of a TV mini-series but it could as easily be a state of mind. I have been thinking about those who are in exile. Obviously potentates such as Zine El Abidine Ben Ali, the former president of Tunisia, come to mind, but might the phrase also apply to senior bankers who are temporarily resting?

A new Euromoney survey shows three established leaders have high market shares and plenty of rivals. Large banks, recovering from their own near-death experiences, have singled out rates as one of the first businesses to fight their way back into. Newcomers are pitching in too.

Turkey’s ambition for an investment-grade rating might be realized this year. Strong fundamentals and political stability almost guarantee it. But if it gets a triple-B rating, two problems remain. What can foreign investors buy, and will making the grade undermine further reform? Nick Lord reports.

The three established leaders have high market shares and plenty of rivals. Large banks, recovering from their own recent near-death experiences, have singled out rates as one of the first businesses to fight their way back into. Newcomers are pitching in too. Peter Lee reports.

Huseyin Erkan is chairman and chief executive of the Istanbul Stock Exchange and one of the main proponents of a deepening of Turkey’s capital markets. The potential for new securities, markets and issuers is there but many bridges need to be crossed. Erkan speaks to Nick Lord.

With Portugal struggling to pay its debts and the economy shrinking, the 
country needs help. Enter Angola – oil rich, with money to burn, and Portugal’s former prized colony. Angolan investment is growing fast – and nowhere more quickly than in the country’s troubled banks. Some Portuguese are up in arms about it. Sudip Roy reports.

Erstwhile cornerstone investors have fled the worst-affected parts of the developed-world government bond markets as credit concerns infect the once risk-free rates world. Volatility has risen while liquidity between dealers is much diminished and periodically evaporates. Yet bank dealers still see money to be made in this exciting new world and are opening their balance sheets to issuers and investors. Some will no doubt live to regret it. Peter Lee reports.

The 2011 guide to Technology in Treasury Management