Liquidity in the world’s bond markets has reached crisis point.
Liquidity in the world’s bond markets has reached crisis point.
The debate on how to reform the government-sponsored enterprises (GSEs) that now so dominate US mortgage finance has been raging almost from the minute they were taken into conservatorship by former Federal Housing Finance Authority director James Lockhart on September 6 2008.
One of the most audacious punts in the market has been the bet by holders of junior preferred shareholdings in Fannie Mae and Freddie Mac that the liquidation of the agencies in their current form will translate into a payday for junior creditors.
Investors hold about 99% of all bond inventory.
Amid the litany of complaints against the sell side, one trader at a large investment manager bemoans the continuing pretence of some banks that they are big traders in many instruments across all markets to all investors.
The revival of viable, well-funded private-label mortgage issuance is the holy grail of the US housing market.
Prime minister Shinzo Abe’s radical policies have lifted Japan from its slumber.
In Brownsville, southwest Texas, on the border with Mexico, unemployment is 11.1%.
State-owned companies have, until now, set the tone in China.
As Detroit files for Chapter 9 bankruptcy, municipalities need to look at ways to increase revenues.
The market is showing signs of revival, but it will be smaller and less diversified than it was at its peak.
In 1989, Tangipahoa parish in Louisiana found itself $8 million in debt for roads that had never been completed.
The Chinese economy is growing ever more slowly – probably slipping even faster than officially admitted, and from a base whose size is possibly exaggerated too.
The emerging market sell-off since May is just the start of a painful multi-year adjustment process – and China has blazed a trail for the next downturn.
Institutions and private equity have stepped into the gap left by banks, not least because of property’s attractive and duration-matching returns.
Credit growth in Peru is under control, but lending is highly dollarized and there are concerns about credit quality.
Following in the footsteps of India and China, Indonesia’s second-tier cities are becoming attractive investment destinations.
As growth in China falters and India seems to spiral ever more helplessly downward, southeast Asia has become central to the fortunes of banks in the Asia-Pacific region.
Beyond the shadowy world of the big-four Gulf sovereign wealth funds, which can be opaque, seemingly inactive or conservative, a second tier of sometimes equally elusive SWF-style entities has sprung up.
With a high concentration of ownership in the Andean region, consolidation is difficult.
High levels of non-performing loans, a stagnating economy and deterrents to foreign investment are putting pressure on Vietnam’s banks.
A buoyant local economy means Saudi banks are riding high, but they remain over-exposed to their domestic market.
In an exclusive interview, Riad Salamé, the longstanding governor of Banque du Liban, discusses Lebanon’s perpetual political and economic challenges, the resilience of its banks and the prospects for needed structural reform.
Well run and well capitalized, with a flourishing Islamic sector, their only possible weak point is the high level of household debt.
Singapore’s status as a regional hub and burgeoning centre for private banking attracts many global banks, but local bank DBS maintains its pre-eminence.
While interest rates remain relatively low, business is booming and so is consumer power.
Bank M&A in the Middle East has accelerated over the past year.
Banks are pressing each other hard for market share in credit cards.
With room to grow domestically, and foreign stakeholders in two of the biggest banks already active in the region, there is little incentive for Chile’s banks to expand abroad.
They are benefiting from the economy’s recovery, but some analysts are cautious about heavy exposure to retail lending.
Banks in Chile, Peru and Colombia are building platforms across the Andean region as a single commercial market between the three countries develops.
With growth finally returning to the region, emerging Europe’s big banking players are focusing on the most profitable markets and punishing hostile or incompetent policymakers.
Despite the broader reassessment of emerging market investment, Mexican debt and equity issuance is sustaining and enhancing its appeal in international markets.
CRT was a natural candidate to open the project finance bond market in Brazil because the sponsors of Rodovias do Tietê are Atlantia Bertin Concessões (a 50/50 joint venture of Atlantia and Bertin), and Ascendi (a 60/40 joint venture of Mota-Engil and Banco Espírito Santo).
For all their strengths, the ferocity of this summer’s market sell-off has amplified some vulnerabilities that could be the first true test in a decade of the resilience of banks and the economy as a whole.
It was second time lucky for the first Brazilian toll-road financing to come to the market without the support of BNDES.
The country’s new leadership has yet to find solutions to serious economic issues.
Famed for his tough approach to regulation, Czech central bank head Miroslav Singer now has his sights set on currency market intervention to reflate the country’s flagging economy.
Despite its recent travails, the Turkish banking sector has been a hive of activity in the past year among foreign banks vying for a foothold in the market.
During the past three years, Russian banks have plastered over holes in the corporate sector with record profits from retail.
In mid-2013, Rusal had its lowest net debt level since 2008: less than $10 billion, Oleg Mukhamedshin, deputy CEO, tells Euromoney.
Ngozi Okonjo-Iweala is convinced she can diversify the economy.
From informal retailers to supermarket chains, Africa’s baby boomers are fuelling a consumer boom that is spilling over to agribusiness.
Euromoney speaks to providers and users of transaction banking in the Gulf region about the market’s growing importance and the localization of expertise.
The new head of the International Finance Corporation, Jin-Yong Cai, tells Euromoney about the need for the World Bank’s private-sector arm to take more risks and be more activist in developing policy ideas in such areas as infrastructure development and poverty reduction.
The future structure of housing finance in the US might well not be decided on Capitol Hill or New York, but in a small, working-class suburb of San Francisco.
Richard Fisher, president of the Federal Reserve Bank of Dallas, tells Euromoney why no bank is too big to fail and why Texas has much to teach the rest of the US economy