April 2019

Euromoney 50th Anniversary

Capital markets: From cottage industry to powerhouse

Capital markets: From cottage industry to powerhouse

When the newspapers of the day refused to publish prices from the new international bond market growing up at the end of the 1960s, Euromoney was founded to report on the business. The rise of international capital markets since has been astonishing, a driver of growth and development across the world but also a source of periodic crises. Euromoney has reported on market failures and resurgences, on great deals and disasters, and on pioneers and villains. Now, as markets still struggle to cope with the aftermath of 2008, we look forward with hope and anxiety to what might come next.

Capital markets: The origin of crises

The LDC crisis, Black Monday, LTCM, the GFC – the past 50 years in global finance have been defined by disasters rather than successes. Why do banks and investment banks lurch from crisis to crisis – and will it ever change?

Why private capital will dominate markets for the decades to come

Big pools of private capital, led by sovereign wealth funds, private equity sponsors and family offices, now dominate capital formation in the key growth industry sectors of technology and biotech and the expanding markets of Asia. New tech will let networks of private investors connect and exchange it more easily.

Derivatives: From innovation to exploitation… and back again?

Market veterans discuss how innovation in derivatives helped to open debt markets, hedge risk and tailor investments, before threatening the stability of the system during the global financial crisis of 2008. Can that early spirit of creativity be harnessed for today’s markets?

How leverage transformed the M&A business

In business school they teach you that rising equity markets drive increased mergers and acquisitions activity, but perhaps it is really the debt markets that have driven the booms and busts in M&A. Some of the smartest practitioners in financial advisory look back over their careers.

Capital markets: How artificial intelligence will set the price for credit

Pricing new issues on intuition and market feel is ancient history – artificial intelligence and algorithms are setting the market price for credit, using factors and correlations humans can guess but not follow. Is AI the latest black box risk that will bring illiquid credit markets low or could it make them more efficient?

Capital markets across the decades

Euromoney has covered every twist and turn of the capital markets since it was launched 50 years ago. Our archive serves as a history lesson for all practitioners in the market today.

Comment

Banks must re-embrace public stakeholders

From Deutsche Bank to Santander or ING, banks in Europe need to change with the times and accept accountability to a wider public, represented by their governments: as with weak capital, deficient ethics will only entail greater state control.

Banking

Can Cabannes save SocGen's investment bank?

Can Cabannes save SocGen's investment bank?

Disastrous fourth-quarter results cast a long shadow over Société Générale’s business, especially its corporate and investment bank. Deputy chief executive Séverin Cabannes has given up on fixed income. But is his plan to refocus on core strengths enough to reverse its fortunes?

Exchanges

US equities exchanges: If you can’t beat them, join them

US equities exchanges: If you can’t beat them, join them

Tired of paying what they view as exorbitant fees to the incumbents, some large US brokers, banks and financial services firms have now decided to take the US equity exchanges on at their own game. The names involved and the amount of order flow that they now control mean that – this time – MEMX could just work.

Columns

Sideways: Deutsche Bank's Garth Ritchie – the Brexit thinker

The news that Garth Ritchie, head of investment banking at Deutsche Bank, is being paid €250,000 a month for extra responsibility 'in connection with the implications of Brexit' has been condemned in Germany, where politicians and union leaders are preparing to oppose a potential merger with Commerzbank and associated job cuts.

Capital markets

Sea sells Sea shares on the NYSE

Sea sells Sea shares on the NYSE

The performance of the share price in Sea was unusually strong; part of the reason is the magic name Tencent on the shareholder register.

Emerging Europe

Private banking

Front End