Western Europe

Banks and corporates are taking a variety of approaches to mitigating the impact of rising interest rates, quantitative tightening and economic uncertainty on the availability of liquidity.

Just back from Davos, the bank’s new head of sustainable finance says the industry needs to do more, and Barclays needs to do more on transition.

Private credit funds are committing more to specialist non-bank lenders such as iwoca, seeing big potential in small business credits, even if NPLs are set to climb.

Some leading FX banks have struggled to stay competitive in forwards, swaps and swaptions thanks to SA-CCR rules, but compressing portfolios helps.

While big US banks edge slowly towards exchange-like trading of loans, a group of market veterans have tested a system in Asia and will soon launch in Europe.

Appetite for corporate issuance remains robust as investors dismiss recession fears and take on credit exposure.

Strong collective-action campaigns might hurt some banks' reputations, but they will do little to convince those institutions to change their energy policies.

Going all out to keep the sell side sweet seems a sensible strategy for success in the difficult P2P FX market.

The recent update to the green taxonomy and implementation of the SFDR RTS have received a mixed reception in parts of the EU.

With little likelihood of currency volatility subsiding any time soon, corporates continue to face difficult decisions when it comes to how best to mitigate FX risk.

Some issuers are grabbing the opportunities offered by a new capital markets year. Others would do well to face reality sooner rather than later.

It seems difficult to convince investors that higher bank profits are sustainable.

As Europe’s economic mood sours, a sharp rise in interest rates is putting commercial real estate through its first big cyclical turn since 2008. The non-bank sector, which has become a vital enabler of funding at higher leverage, now faces a test of its resilience.

First Abu Dhabi Bank looked long and hard at Standard Chartered, and others will do the same so long as it’s cheap. But any suitor must win the approval of Temasek.

The European Commission has mandated instant payments across the eurozone, and banks must urgently ensure that their payment systems are fit for purpose.

The ECB is barely half way through raising rates. Quantitative tightening will further raise the cost of debt in 2023, and is set to test bond market capacity.

AT1s rallied on news that UBS will redeem a key deal in January. But with refinancing costs higher than coupon re-sets, the pressure now passes to other big banks.

The UK government has launched a sprawling range of measures to reform the country’s financial sector and markets. But the moves were mostly already under way – it is really all about the optics.

While there are some entertaining items – one country banning meat, the UK voting to UnBrexit – Saxo sees recession failing to halt inflation with the world economy on a war footing.

On December 1, EU member states agreed on a general approach for the Corporate Sustainability Due Diligence Directive. The final text shields banks from their full responsibility to prevent environmental harm, thanks in part to France’s post-Brexit ambitions.

As a long recession looms for the UK, past successes may be a sign of future problems.

Concerns about the wider economy and its impact on disposable income have eroded individuals’ appetite for FX trading, despite attractive levels of volatility.

While other economic blocs aren’t so convinced of the merits of issuing retail central bank digital currency, the eurozone is ploughing ahead. In doing so, however, it is having to water down the project to such an extent that its usefulness will be limited.

Shareholders will be keenly watching two market levels for Credit Suisse shares in the weeks ahead: the theoretical ex-rights price and the subscription price for the capital increase that is under way.

Societe Generale and AllianceBernstein may look like an equities odd couple. Leveraging Societe Generale’s derivatives franchise is key to the new joint venture, as is maintaining AllianceBernstein’s reputation for independence.

Credit Suisse directors may sigh with relief that shareholders have approved the latest capital raise, but they are already guiding to yet another big loss.

Most governments would have been delighted to do what Iceland managed with its sale of Íslandsbanki shares earlier this year. But an audit of the deal has triggered a war of words with the body responsible for it, as well as some very odd conclusions from an Excel spreadsheet.

After 12 years of near continuous restructuring and capital raising at Credit Suisse, the longest-serving chief financial officer of any G-Sib bank offers a few parting lessons.

Euromoney meets Damian Payiatakis, Barclays Private Bank’s head of sustainable and impact investing, to talk about how quiet private wealth has been so far at the UN Climate Change Conference.

NatWest digital SME bank Mettle has broken new ground in its partnership with Polish fintech firm Vodeno.