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IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY EC unveils NGEU funding strategy. Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an

average of about

INDUSTRY BODIES DECIDE SLLS MUST HAVE EXTERNAL The world’s three loan industry trade associations are close to finalising a global update to the Sustainability Linked Loan Principles that will introduce mandatory external verification of companies’ performance against some ESG targets.. External verification is a big departure for the private, relationship-driven syndicated loan market, but the move brings it in line with ICMA’s

more

RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SOFTBANK, TENCENT-BACKED KEEP PLANS US$500M US IPO You need to be logged in to view this content OBITUARY: RONNY CHNG Ronny Chng, a veteran of Asian banking, died on Thursday. He was head of corporate banking overseas and multinational corporates at United Overseas Bank. He joined the Singaporean bank in June 2008 as head of loan syndicate and distribution before taking over as head of debt capital markets in 2009. He became head of group investment banking in

LOGIN | IFR

IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. BONDS | GLOBAL | IFR IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar. IFR Digital Edition. Access a digital replica of IFR's print magazine, updated each Friday.

REQUEST A TRIAL

Once you have submitted your request, you will be contacted by a Refinitiv representative to discuss your subscription requirements. If you require further information, please contact your local Refinitiv representative using the details below: Europe, Middle East & Africa: cmi.emeasales@refinitiv.com.

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY EC unveils NGEU funding strategy. Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an

average of about

INDUSTRY BODIES DECIDE SLLS MUST HAVE EXTERNAL The world’s three loan industry trade associations are close to finalising a global update to the Sustainability Linked Loan Principles that will introduce mandatory external verification of companies’ performance against some ESG targets.. External verification is a big departure for the private, relationship-driven syndicated loan market, but the move brings it in line with ICMA’s

more

RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SOFTBANK, TENCENT-BACKED KEEP PLANS US$500M US IPO You need to be logged in to view this content OBITUARY: RONNY CHNG Ronny Chng, a veteran of Asian banking, died on Thursday. He was head of corporate banking overseas and multinational corporates at United Overseas Bank. He joined the Singaporean bank in June 2008 as head of loan syndicate and distribution before taking over as head of debt capital markets in 2009. He became head of group investment banking in

WELCOME TO IFR

International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

IFR AWARDS | IFR

Goldman Sachs is IFR’s US Bond House and North America High-Yield Bond House of the Year. US Bond: Ford Motor Credit’s US$8bn three-tranche bond. Bookmark this page. Yankee Bond: Nissan’s US$8bn four-tranche holdco bond. Bookmark this page. Euro Bond

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Request Trial About IFR. Refinitiv International Financing Review is the leading source of fixed income, capital markets and investment banking news and commentary. MERKUR MARKET ON FIRE AMID FLURRY OF LISTINGS IFR 2361 - 28 Nov 2020 - 04 Dec 2020. Norway’s previously obscure Merkur Market has grown astronomically in 2020, with 40 companies executing fast-tracked listings on the unregulated multilateral trading facility so far – up from just three last year. More significantly and in a boon for Nordic banks, about 20 companies

raised more than US

STANDARDS UNDER PRESSURE AS SUSTAINABILITY-LINKED Vaccitech, the co-inventor of AstraZeneca’s Covid-19 vaccine, is taking a stab at a US$100m Nasdaq IPO. Morgan Stanley, Jefferies, Barclays and William Blair are joint books on the IPO, and a public filing posted on April 9 potentially sets up a late April debut for

the biotech.

EUR GOVTS - AUCTION CALENDAR You need to be logged in to view this content T-MOBILE ISSUES US$3.8BN OF HIGH-YIELD DEBT FOR 5G Mobile carrier T-Mobile returned to the US high-yield bond market for the second time this year on Tuesday, raising US$3.8bn of cash to fund its recent investment in 5G spectrum and to pay down other debt.. The carrier spent US$9bn in the auction of 5G spectrum earlier this year, with rivals such as Verizon and AT&T also spending heavily to compete in the rollout of new 5G technology. THE NEXT BOOM IN SUSTAINABLE FINANCE: ESG DERIVATIVES The uncertain fallout from the coronavirus outbreak in China has paralysed loan syndications across Asia, as lenders struggle to assess the damage to Chinese businesses and borrowers that rely heavily on

Chinese demand.

STORIES BY ELEANOR DUNCAN IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. OBITUARY: RONNY CHNG Ronny Chng, a veteran of Asian banking, died on Thursday. He was head of corporate banking overseas and multinational corporates at United Overseas Bank. He joined the Singaporean bank in June 2008 as head of loan syndicate and distribution before taking over as head of debt capital markets in 2009. He became head of group investment banking in

IFR AWARDS | IFR

Riding to the rescue: Covid-19 was the single greatest contributing factor to record-breaking SSAR supply in 2020, causing significant revisions to the funding plans

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up IFR AWARDS 2020: THE WINNERS Morgan Stanley is IFR's Bank of the Year 2020. Best-in-class return on equity, best share price performance of its peers, record revenues across a now balanced institution – and a deal roster to be proud of. Given the tragic circumstances of 2020, a victory lap for those who have been along for RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation.. FWD has been working towards a Hong Kong IPO of up to US$3bn in mid-2021, IFR reported in September. INDUSTRY BODIES DECIDE SLLS MUST HAVE EXTERNAL The world’s three loan industry trade associations are close to finalising a global update to the Sustainability Linked Loan Principles that will introduce mandatory external verification of companies’ performance against some ESG targets.. External verification is a big departure for the private, relationship-driven syndicated loan market, but the move brings it in line with ICMA’s

more

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content LSEG SETS SIGHTS ON US$10BN-PLUS BRIDGE TAKEOUT London Stock Exchange Group could turn to the bond market before April to take out large chunks of the bridge loan it used to buy data and analytics company Refinitiv, according to people familiar with the matter.. The US$27bn acquisition was completed last week and LSEG can now weigh up refinancing options. “The bridge has been out there for 16 to 17 months so it would make sense for it RABO LAUNCHES SDG-LINKED LOAN TEMPLATE TO TACKLE FOOD Rabobank has launched a standardised “SDG 12.3” sustainability-linked loan template for financing that aims to tackle food loss and waste and drive investment towards achieving the third target of the UN’s Sustainable Development Goal number 12.. The goal covers responsible consumption and production, and the third target seeks to halve global food waste per capita at the retail and PRICED - BANCO GENERAL US$400M PERPNC10 AT 5.25% Our Privacy Statement & Cookie Policy. All Refinitiv websites use cookies to improve your online experience. They were placed on your computer when you launched this

IFR AWARDS | IFR

Riding to the rescue: Covid-19 was the single greatest contributing factor to record-breaking SSAR supply in 2020, causing significant revisions to the funding plans

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up IFR AWARDS 2020: THE WINNERS Morgan Stanley is IFR's Bank of the Year 2020. Best-in-class return on equity, best share price performance of its peers, record revenues across a now balanced institution – and a deal roster to be proud of. Given the tragic circumstances of 2020, a victory lap for those who have been along for RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation.. FWD has been working towards a Hong Kong IPO of up to US$3bn in mid-2021, IFR reported in September. INDUSTRY BODIES DECIDE SLLS MUST HAVE EXTERNAL The world’s three loan industry trade associations are close to finalising a global update to the Sustainability Linked Loan Principles that will introduce mandatory external verification of companies’ performance against some ESG targets.. External verification is a big departure for the private, relationship-driven syndicated loan market, but the move brings it in line with ICMA’s

more

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content LSEG SETS SIGHTS ON US$10BN-PLUS BRIDGE TAKEOUT London Stock Exchange Group could turn to the bond market before April to take out large chunks of the bridge loan it used to buy data and analytics company Refinitiv, according to people familiar with the matter.. The US$27bn acquisition was completed last week and LSEG can now weigh up refinancing options. “The bridge has been out there for 16 to 17 months so it would make sense for it RABO LAUNCHES SDG-LINKED LOAN TEMPLATE TO TACKLE FOOD Rabobank has launched a standardised “SDG 12.3” sustainability-linked loan template for financing that aims to tackle food loss and waste and drive investment towards achieving the third target of the UN’s Sustainable Development Goal number 12.. The goal covers responsible consumption and production, and the third target seeks to halve global food waste per capita at the retail and PRICED - BANCO GENERAL US$400M PERPNC10 AT 5.25% Our Privacy Statement & Cookie Policy. All Refinitiv websites use cookies to improve your online experience. They were placed on your computer when you launched this

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WELCOME TO IFR

International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

LOGIN | IFR

IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. BONDS | GLOBAL | IFR IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar. IFR Digital Edition. Access a digital replica of IFR's print magazine, updated each Friday.

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY EC unveils NGEU funding strategy. Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an

average of about

INDUSTRY BODIES DECIDE SLLS MUST HAVE EXTERNAL The world’s three loan industry trade associations are close to finalising a global update to the Sustainability Linked Loan Principles that will introduce mandatory external verification of companies’ performance against some ESG targets.. External verification is a big departure for the private, relationship-driven syndicated loan market, but the move brings it in line with ICMA’s

more

RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SOFTBANK, TENCENT-BACKED KEEP PLANS US$500M US IPO You need to be logged in to view this content RABO LAUNCHES SDG-LINKED LOAN TEMPLATE TO TACKLE FOOD Rabobank has launched a standardised “SDG 12.3” sustainability-linked loan template for financing that aims to tackle food loss and waste and drive investment towards achieving the third target of the UN’s Sustainable Development Goal number 12.. The goal covers responsible consumption and production, and the third target seeks to halve global food waste per capita at the retail and

WELCOME TO IFR

International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

LOGIN | IFR

IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. BONDS | GLOBAL | IFR IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar. IFR Digital Edition. Access a digital replica of IFR's print magazine, updated each Friday.

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY EC unveils NGEU funding strategy. Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an

average of about

INDUSTRY BODIES DECIDE SLLS MUST HAVE EXTERNAL The world’s three loan industry trade associations are close to finalising a global update to the Sustainability Linked Loan Principles that will introduce mandatory external verification of companies’ performance against some ESG targets.. External verification is a big departure for the private, relationship-driven syndicated loan market, but the move brings it in line with ICMA’s

more

RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SOFTBANK, TENCENT-BACKED KEEP PLANS US$500M US IPO You need to be logged in to view this content RABO LAUNCHES SDG-LINKED LOAN TEMPLATE TO TACKLE FOOD Rabobank has launched a standardised “SDG 12.3” sustainability-linked loan template for financing that aims to tackle food loss and waste and drive investment towards achieving the third target of the UN’s Sustainable Development Goal number 12.. The goal covers responsible consumption and production, and the third target seeks to halve global food waste per capita at the retail and

WELCOME TO IFR

International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception BOOK UPDATE: AUTO ABS FRENCH LEASES 2021 You need to be logged in to view this content

REQUEST A TRIAL

Once you have submitted your request, you will be contacted by a Refinitiv representative to discuss your subscription requirements. If you require further information, please contact your local Refinitiv representative using the details below: Europe, Middle East & Africa: cmi.emeasales@refinitiv.com. SOFR TO BECOME MAIN US DOLLAR LIBOR REPLACEMENT DESPITE The secured overnight financing rate will become the main replacement for Libor in US financial markets, according to a number of experts speaking at the International Swaps and Derivatives Association’s annual general meeting, despite the emergence of some alternative

lending rates.

DEAL-CONTINGENT OPTIONS: RISKY BUSINESS GETS RISKIER Asia's bond markets remained open for corporate hybrids and high-yield issuers last week despite a vicious sell-off in worldwide risk assets. As the global spread of the new coronavirus slammed stocks and froze the US new issue market, 15 Asian issuers priced US dollar bonds last week – including 10 without an investment-grade rating. THE NEXT BOOM IN SUSTAINABLE FINANCE: ESG DERIVATIVES The uncertain fallout from the coronavirus outbreak in China has paralysed loan syndications across Asia, as lenders struggle to assess the damage to Chinese businesses and borrowers that rely heavily on

Chinese demand.

T-MOBILE ISSUES US$3.8BN OF HIGH-YIELD DEBT FOR 5G Mobile carrier T-Mobile returned to the US high-yield bond market for the second time this year on Tuesday, raising US$3.8bn of cash to fund its recent investment in 5G spectrum and to pay down other debt.. The carrier spent US$9bn in the auction of 5G spectrum earlier this year, with rivals such as Verizon and AT&T also spending heavily to compete in the rollout of new 5G technology. UPDATE-MOVES-JP MORGAN NAMES IB CO-HEADS IN LEADERSHIP JP Morgan has appointed Viswas Raghavan and James Casey as co-heads of global investment banking as part of sweeping changes to leadership in the business.. Carlos Hernandez, head of investment banking, is moving to a new position as executive chair of global investment banking and appointed Raghavan and Casey to take his place.. The other changes cascade below them, and include FIJI STARTS WORK ON FIRST BLUE BOND The Republic of Fiji is working on its first blue bond issuance, according to an official from the Pacific Island country's central bank.. In 2017, Fiji became the first emerging market to sell a sovereign green bond, raising 100m Fijian dollars, or around US$50m,

from a

A HISTORY OF THE PAST 40 YEARS IN FINANCIAL CRISES A look at a number of financial crises over the last 30 years suggests a high degree of commonality: excessive exuberance, poor regulatory oversight, dodgy accounting, herd mentalities and, in many cases, a sense of infallibility. William Rhodes has been involved in the industry for more than 50 years and has lived through nearly every

modern

WELCOME TO IFR

International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

ASIA | STRUCTURED FINANCE | IFR Americas, EMEA. IFR 2378 - 10 Apr - 16 Apr. Steve Slater. Tencent block smashes records. EQY. 09 Apr 04:40. 3 min read. Asia. IFR 2378 -

10 Apr - 16 Apr.

STORIES BY ELEANOR DUNCAN IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. THE NEXT BOOM IN SUSTAINABLE FINANCE: ESG DERIVATIVES The uncertain fallout from the coronavirus outbreak in China has paralysed loan syndications across Asia, as lenders struggle to assess the damage to Chinese businesses and borrowers that rely heavily on

Chinese demand.

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SUSTAINABLE EQUITY ISSUE: SCHNEIDER ELECTRIC’S €650M The leads opted not to pre-sound the deal, a relatively rare move now in equity-linked, especially considering the market volatility in November (even if it was positive vol around vaccines). “Schneider is a prestigious issuer,” said Thierry Petit, head of equity-linked for EMEA at BNP Paribas, which was sole global coordinator. UPDATE 1-HYATT LAUNCHES US$900M BOND DESPITE FALLEN ANGEL Hyatt Hotels is the third US hotel chain to come to market in recent weeks and is building on the success of its peers with a US$900m two-part trade Tuesday. Spreads started considerably wide of the company's outstanding curve and did not move far from initial price thoughts as investors sought compensation for the heightened risk in

the travel

1997: CHINA TELECOM'S US$4.2BN IPO: LANDMARK PRIVATISATION Creation of a national champion - It is hard to imagine many more challenging times than late 1997 to attempt a record-breaking Asian IPO. The Asian crisis had begun in May, and the effects were soon to feed through to the Hong Kong market. It is

WELCOME TO IFR

International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

ASIA | STRUCTURED FINANCE | IFR Americas, EMEA. IFR 2378 - 10 Apr - 16 Apr. Steve Slater. Tencent block smashes records. EQY. 09 Apr 04:40. 3 min read. Asia. IFR 2378 -

10 Apr - 16 Apr.

STORIES BY ELEANOR DUNCAN IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. THE NEXT BOOM IN SUSTAINABLE FINANCE: ESG DERIVATIVES The uncertain fallout from the coronavirus outbreak in China has paralysed loan syndications across Asia, as lenders struggle to assess the damage to Chinese businesses and borrowers that rely heavily on

Chinese demand.

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SUSTAINABLE EQUITY ISSUE: SCHNEIDER ELECTRIC’S €650M The leads opted not to pre-sound the deal, a relatively rare move now in equity-linked, especially considering the market volatility in November (even if it was positive vol around vaccines). “Schneider is a prestigious issuer,” said Thierry Petit, head of equity-linked for EMEA at BNP Paribas, which was sole global coordinator. UPDATE 1-HYATT LAUNCHES US$900M BOND DESPITE FALLEN ANGEL Hyatt Hotels is the third US hotel chain to come to market in recent weeks and is building on the success of its peers with a US$900m two-part trade Tuesday. Spreads started considerably wide of the company's outstanding curve and did not move far from initial price thoughts as investors sought compensation for the heightened risk in

the travel

1997: CHINA TELECOM'S US$4.2BN IPO: LANDMARK PRIVATISATION Creation of a national champion - It is hard to imagine many more challenging times than late 1997 to attempt a record-breaking Asian IPO. The Asian crisis had begun in May, and the effects were soon to feed through to the Hong Kong market. It is BONDS | GLOBAL | IFR IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar. IFR Digital Edition. Access a digital replica of IFR's print magazine, updated each Friday.

IFR SPECIAL REPORTS

The coronavirus pandemic cast a lengthy shadow and dominated all walks of life in ways unthinkable in a pre-Covid world. Governments around the globe implemented various initiatives in attempts to mitigate its effects. And all this came at a tremendous financial cost, leading to fundraising on an unprecedented scale as support packages were put

ABOUT IFR | IFR

IFR (Online) Updated throughout the day. The same rich information as the publication, enhanced with breaking developments. Offers a regular news flow, including daily ‘wraps’ from each region and asset class. Provides unique real-time commentary and analysis on rates, credit and FX markets, around the globe, 24 hours a day.

REQUEST A TRIAL

Once you have submitted your request, you will be contacted by a Refinitiv representative to discuss your subscription requirements. If you require further information, please contact your local Refinitiv representative using the details below: Europe, Middle East & Africa: cmi.emeasales@refinitiv.com. CPPIB SONIA DEBUT MAKES STRONG IMPRESSION You need to be logged in to view this content ABS: HALST 2021-B (AUTO LEASE) US$1.1BN+ *ANNOUNCED* Type a keyword to start your search. Advanced Search. Search for ' '

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A HISTORY OF THE PAST 40 YEARS IN FINANCIAL CRISES A look at a number of financial crises over the last 30 years suggests a high degree of commonality: excessive exuberance, poor regulatory oversight, dodgy accounting, herd mentalities and, in many cases, a sense of infallibility. William Rhodes has been involved in the industry for more than 50 years and has lived through nearly every

modern

LG ENERGY SOLUTION FILES TO KRX FOR MEGA IPO Type a keyword to start your search. Advanced Search. Search for ' '

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IFR AWARDS | IFR

Goldman Sachs is IFR’s US Bond House and North America High-Yield Bond House of the Year. US Bond: Ford Motor Credit’s US$8bn three-tranche bond. Bookmark this page. Yankee Bond: Nissan’s US$8bn four-tranche holdco bond. Bookmark this page. Euro Bond IFR AWARDS 2020: THE WINNERS Morgan Stanley is IFR's Bank of the Year 2020. Best-in-class return on equity, best share price performance of its peers, record revenues across a now balanced institution – and a deal roster to be proud of. Given the tragic circumstances of 2020, a victory lap for those who have been along for the journey might be unseemly.

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY EC unveils NGEU funding strategy. Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an

average of about

RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content LSEG SETS SIGHTS ON US$10BN-PLUS BRIDGE TAKEOUT LSEG, which after the takeover of Refinitiv owns IFR, agreed an underwritten bridge loan in August 2019 of around US$13.5bn to support the acquisition. The takeout could be in excess of US$10bn divided between bonds and loans and split into different currencies. Those involved think it will be weighted to bonds over loans and to US

dollars over

PRICED - BANCO GENERAL US$400M PERPNC10 AT 5.25% Our Privacy Statement & Cookie Policy. All Refinitiv websites use cookies to improve your online experience. They were placed on your computer when you launched this NEIGHBORLY PREPS WHOLE BUSINESS ABS DEBUT Neighborly preps whole business ABS debut. Home services franchisor Neighborly is readying its first-ever whole business securitization for pricing next week, marking the first bond of this type in the asset-backed securities market in 2021. The US$800m Barclays -led deal, Neighborly Issuer LLC Series 2021-1, follows the successful WBS

debut of

RABO LAUNCHES SDG-LINKED LOAN TEMPLATE TO TACKLE FOOD Rabobank has launched a standardised “SDG 12.3” sustainability-linked loan template for financing that aims to tackle food loss and waste and drive investment towards achieving the third target of the UN’s Sustainable Development Goal number 12.. The goal covers responsible consumption and production, and the third target seeks to halve global food waste per capita at the retail and

IFR AWARDS | IFR

Goldman Sachs is IFR’s US Bond House and North America High-Yield Bond House of the Year. US Bond: Ford Motor Credit’s US$8bn three-tranche bond. Bookmark this page. Yankee Bond: Nissan’s US$8bn four-tranche holdco bond. Bookmark this page. Euro Bond IFR AWARDS 2020: THE WINNERS Morgan Stanley is IFR's Bank of the Year 2020. Best-in-class return on equity, best share price performance of its peers, record revenues across a now balanced institution – and a deal roster to be proud of. Given the tragic circumstances of 2020, a victory lap for those who have been along for the journey might be unseemly.

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. EC UNVEILS NGEU FUNDING STRATEGY EC unveils NGEU funding strategy. Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region's recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an

average of about

RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content LSEG SETS SIGHTS ON US$10BN-PLUS BRIDGE TAKEOUT LSEG, which after the takeover of Refinitiv owns IFR, agreed an underwritten bridge loan in August 2019 of around US$13.5bn to support the acquisition. The takeout could be in excess of US$10bn divided between bonds and loans and split into different currencies. Those involved think it will be weighted to bonds over loans and to US

dollars over

PRICED - BANCO GENERAL US$400M PERPNC10 AT 5.25% Our Privacy Statement & Cookie Policy. All Refinitiv websites use cookies to improve your online experience. They were placed on your computer when you launched this NEIGHBORLY PREPS WHOLE BUSINESS ABS DEBUT Neighborly preps whole business ABS debut. Home services franchisor Neighborly is readying its first-ever whole business securitization for pricing next week, marking the first bond of this type in the asset-backed securities market in 2021. The US$800m Barclays -led deal, Neighborly Issuer LLC Series 2021-1, follows the successful WBS

debut of

RABO LAUNCHES SDG-LINKED LOAN TEMPLATE TO TACKLE FOOD Rabobank has launched a standardised “SDG 12.3” sustainability-linked loan template for financing that aims to tackle food loss and waste and drive investment towards achieving the third target of the UN’s Sustainable Development Goal number 12.. The goal covers responsible consumption and production, and the third target seeks to halve global food waste per capita at the retail and RMBS: WFMBS 2021-RR1 (144A/REG S) *ANNOUNCEMENT* You need to be logged in to view this content IFR AWARDS 2020: CALL FOR ENTRIES The awards year runs from November 16 2019 to December 31 2020. To help with our selections, banks, advisers and issuers may submit brief written presentations along with supporting data. IFR journalists will also organise pitch meetings. Pitching is entirely optional and consideration for an award will not be limited to advisers or issuers NEIGHBORLY PREPS WHOLE BUSINESS ABS DEBUT Neighborly preps whole business ABS debut. Home services franchisor Neighborly is readying its first-ever whole business securitization for pricing next week, marking the first bond of this type in the asset-backed securities market in 2021. The US$800m Barclays -led deal, Neighborly Issuer LLC Series 2021-1, follows the successful WBS

debut of

STORIES BY ELEANOR DUNCAN IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. T-MOBILE ISSUES US$3.8BN OF HIGH-YIELD DEBT FOR 5G Mobile carrier T-Mobile returned to the US high-yield bond market for the second time this year on Tuesday, raising US$3.8bn of cash to fund its recent investment in 5G spectrum and to pay down other debt.. The carrier spent US$9bn in the auction of 5G spectrum earlier this year, with rivals such as Verizon and AT&T also spending heavily to compete in the rollout of new 5G technology. UPDATE 2-GUATEMALA DRAWS ROBUST DEMAND ON NEW SOCIAL BOND Makes changes throughout. Guatemala became the second Latin American sovereign to tap the dollar bond market in a matter of weeks on Tuesday as the region's governments rush to raise funding to fight the Covid-19 pandemic.. The sovereign is poised to raise US$1.2bn, a US$500m through a 12-year social bond to counteract the impact of the virus, and other US$700m through a tap 6.125% OMA SAVINGS BANK PLANNING EUR150M NOV 2027 COVERED TAP You need to be logged in to view this content EMEA STRUCTURED FINANCE HOUSE: BNP PARIBAS In a year when regulatory uncertainty and Brexit deadlines sometimes left EMEA securitisation in limbo, one bank refused to stand still. For all-round ability, for leading the full-stack charge and for deploying hefty balance sheet, BNP Paribas is UPDATE-MOVES-JP MORGAN NAMES IB CO-HEADS IN LEADERSHIP JP Morgan has appointed Viswas Raghavan and James Casey as co-heads of global investment banking as part of sweeping changes to leadership in the business.. Carlos Hernandez, head of investment banking, is moving to a new position as executive chair of global investment banking and appointed Raghavan and Casey to take his place.. The other changes cascade below them, and include EUROPCAR FLOP RAISES AWKWARD QUESTIONS FOR CDS MARKET Credit derivatives contracts on struggling car rental company Europcar proved worthless when they failed to provide any payout to protection holders on Wednesday, raising once again questions about the efficiency of credit-default swaps as well as corporate bond markets more broadly.. The lack of payout on Europcar CDS is highly unusual even in this often bewildering corner of financial

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International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS Richard Li’s FWD weighs listing venue options. FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation. FWD has been working towards a

Hong

STORIES BY ELEANOR DUNCAN IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. ASIA | STRUCTURED FINANCE | IFR Americas, EMEA. IFR 2378 - 10 Apr - 16 Apr. Steve Slater. Tencent block smashes records. EQY. 09 Apr 04:40. 3 min read. Asia. IFR 2378 -

10 Apr - 16 Apr.

THE NEXT BOOM IN SUSTAINABLE FINANCE: ESG DERIVATIVES The uncertain fallout from the coronavirus outbreak in China has paralysed loan syndications across Asia, as lenders struggle to assess the damage to Chinese businesses and borrowers that rely heavily on

Chinese demand.

MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content SUSTAINABLE EQUITY ISSUE: SCHNEIDER ELECTRIC’S €650M The leads opted not to pre-sound the deal, a relatively rare move now in equity-linked, especially considering the market volatility in November (even if it was positive vol around vaccines). “Schneider is a prestigious issuer,” said Thierry Petit, head of equity-linked for EMEA at BNP Paribas, which was sole global coordinator. UPDATE 1-HYATT LAUNCHES US$900M BOND DESPITE FALLEN ANGEL Hyatt Hotels is the third US hotel chain to come to market in recent weeks and is building on the success of its peers with a US$900m two-part trade Tuesday. Spreads started considerably wide of the company's outstanding curve and did not move far from initial price thoughts as investors sought compensation for the heightened risk in

the travel

1997: CHINA TELECOM'S US$4.2BN IPO: LANDMARK PRIVATISATION Creation of a national champion - It is hard to imagine many more challenging times than late 1997 to attempt a record-breaking Asian IPO. The Asian crisis had begun in May, and the effects were soon to feed through to the Hong Kong market. It is

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International Financing Review is the leading source of fixed income, capital markets and investment banking news, analysis and commentary. IFR's team of market specialists report on capital-raising across asset classes, from rumour to market reception

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Riding to the rescue: Covid-19 was the single greatest contributing factor to record-breaking SSAR supply in 2020, causing significant revisions to the funding plans RICHARD LI’S FWD WEIGHS LISTING VENUE OPTIONS FWD Group, the Asian insurer backed by billionaire Richard Li, is considering a listing in Singapore or a combination with a US-listed acquisition vehicle in order to maintain a dual-class shareholding structure, according to people familiar with the situation.. FWD has been working towards a Hong Kong IPO of up to US$3bn in mid-2021, IFR reported in September.

IFR ASIA AWARDS

Quick to adaptIn rapidly changing conditions, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid recovery efforts. STORIES BY ELEANOR DUNCAN IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. THE NEXT BOOM IN SUSTAINABLE FINANCE: ESG DERIVATIVES The uncertain fallout from the coronavirus outbreak in China has paralysed loan syndications across Asia, as lenders struggle to assess the damage to Chinese businesses and borrowers that rely heavily on

Chinese demand.

SUSTAINABLE EQUITY ISSUE: SCHNEIDER ELECTRIC’S €650M While structured equity was late to the ESG party, with the first green convertible bond by a European company only arriving in 2020, it caught up quickly. When EDF printed its convert in September it was the biggest green bond from a European corporate in any format. Yet it was the world’s first ASIA | STRUCTURED FINANCE | IFR IFR Sign In. Sign in to IFR and access unique real-time commentary and analysis on a range of assets, around the globe, 24 hours a day. MARKETAXESS OPENS SECONDARY TRADING TO D&I FIRMS You need to be logged in to view this content 1997: CHINA TELECOM'S US$4.2BN IPO: LANDMARK PRIVATISATION Creation of a national champion - It is hard to imagine many more challenging times than late 1997 to attempt a record-breaking Asian IPO. The Asian crisis had begun in May, and the effects were soon to feed through to the Hong Kong market. It is BONDS | GLOBAL | IFR IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar. IFR Digital Edition. Access a digital replica of IFR's print magazine, updated each Friday.

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The coronavirus pandemic cast a lengthy shadow and dominated all walks of life in ways unthinkable in a pre-Covid world. Governments around the globe implemented various initiatives in attempts to mitigate its effects. And all this came at a tremendous financial cost, leading to fundraising on an unprecedented scale as support packages were put

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BUZZ-USD/SGD EDGES HIGHER; DXY +0.14% You need to be logged in to view this content ABS: HALST 2021-B (AUTO LEASE) US$1.1BN+ *PRICE GUIDANCE You need to be logged in to view this content UBM DEVELOPMENT UPDATES ON EUR HYBRID SLB PLANS You need to be logged in to view this content EUR GOVTS - BEARISH ENGULFING ON SEP BTPS UNDER 150.26 You need to be logged in to view this content CPPIB SONIA DEBUT MAKES STRONG IMPRESSION You need to be logged in to view this content A HISTORY OF THE PAST 40 YEARS IN FINANCIAL CRISES A look at a number of financial crises over the last 30 years suggests a high degree of commonality: excessive exuberance, poor regulatory oversight, dodgy accounting, herd mentalities and, in many cases, a sense of infallibility. William Rhodes has been involved in the industry for more than 50 years and has lived through nearly every

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Add to My IFR Create an alert IFR 2363 - 12 DEC 2020 - 18 DEC 2020 AIRBNB AND DOORDASH AUCTION IPOS DON'T STOP THE POP Efforts by high-flying gig economy “unicorns” Airbnb and DoorDash to maximise their IPO valuations by using auction-like processes produced imperfect outcomes as investors rushed to buy their shares in the aftermarket in a late-year scramble for new-issue returns. After respectively raising US$3.5bn and US$3.4bn from investors, Airbnb's 112.8% debut gain on Nasdaq on Thursday and DoorDash's 85.8% jump in its first NYSE session a day earlier delivered a combined US$80bn-plus boost in valuation for the duo, but it meant both companies sold shares at much lower prices than they potentially could have. This was despite both pricing their IPOs well above their marketing ranges after taking steps intended to more efficiently price their offerings amid Silicon Valley venture capital firms' long-running concerns about the perceived underpricing of traditional IPOs. With slight variations, Goldman Sachs ran what it is now calling its "transparent order process" (GS TOP) for DoorDash and Morgan Stanley a direct order entry process for Airbnb to help price and allocate the shares in a more automated fashion. Both deals stuck close to the playbook of September's strongly performing US$1.3bn Unity Software IPO. That deal employed a modified Dutch auction process to give the company a demand curve to show the level of investor interest at multiple price points and theoretically allow it to sell stock to the highest bidder. However, management and ECM syndicate were able to override the results of the process to still allocate stock to select investors rather than hedge funds and other short-term investors more likely to flip the stock. That is what they are believed to have done, and those involved with the Airbnb and DoorDash deals appear to have done the same. This approach is in contrast to the more typical bookbuild for a hot tech IPO whereby big investors put in orders for 5%–20% of the deal without price limit or at the top of the marketing range and then seek to convince the syndicate they will be long-term investors and deserve a large allocation. Both Airbnb and DoorDash still achieved higher IPO prices than they would have using a traditional bookbuild, a senior banker close to both deals insisted. He attributed DoorDash's sharp aftermarket gains to concentrated allocations and a lack of "tradeable float". However, bankers away from the deal said that the auction-like pricing mechanism was really designed to collect a lot of data that could be used to placate Silicon Valley rather than to dramatically change the way IPOs are priced. “It’s nice to have a demand curve and all this data but I don’t know how it affected the price at all," an ECM banker said. "It seems like a way to justify or understand pricing but not anything more meaningful." Investors are also lukewarm on the process. “It takes a lot of finesse out of the capital markets," said one portfolio manager who put in bids for both DoorDash and Airbnb. "Personally, I like the interaction with management and the syndicate. Putting a mathematical overlay on top of the process really does take a lot of the personal interaction out of the process.” Contact with the banks’ syndicate and sales functions was limited, he said, and investors did not get a “last look” to amend their bids if they came up short. Exuberance Still, the white hot 2020 US IPO market, in which IPOs had up to Thursday delivered an average 78% return, is rendering much of the debate moot. "What’s happening is that absolute returns from IPOs have been very good, but the relative returns have been markedly better and that is driving the initial valuations of the deals we are seeing right now,” said Josef Schuster of index provider IPOX Schuster. “Investors know they have to be in these deals." A third ECM banker said while investors were usually closed to new investments at this point of the year, "irrat

EQY

11 Dec 15:00

7 min read

Americas

IFR 2363 - 12 Dec - 18 Dec

Anthony Hughes

IFR 2363 - 12 DEC 2020 - 18 DEC 2020

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DEBT MARKET RUNS DRY FOR US SHALE REVOLUTION Small US oil and gas producers are being hung out to dry by debt markets as an increasing focus on environmental investing adds to the frustration with a sector that has been a constant drain on capital for fixed-income investors. When oil prices slumped in 2014 and 2015, debt investors poured in billions to bail out small fracking companies that had propelled the US to become the world's largest energy producer. In the current slump, however, bankruptcies are soaring with debt markets open only to the largest, most established producers. "When oil collapsed in 2015 and 2016 a lot of money was invested in distressed exploration and production issuers, but ultimately very few investors made money," said Steven Purdy, head of credit research at TCW. "While fracking has been an absolute engineering success, and quite frankly a geopolitical success, it has not been an investment success," he said. The surge in energy bankruptcies this year points to the lack of rescue financing available. The trailing 12-month default rate for energy exploration and production companies has surged to 24.6%, according to Fitch. That compares to 15.6% for the broader energy sector, which is the highest since March 2017. Global high-yield rated oil and gas bond issuance has increased to US$32bn this year, according to Refinitiv data, above the US$21bn issued in 2019. But the increase has been driven by issuance from large fallen angel names such as Occidental Petroleum that have dropped into the index after rating downgrades. Market access for smaller producers has disappeared or is prohibitively expensive. A survey of 142 oil and gas producers, services firms and lenders by law firm Haynes and Boone in October found just 6% of respondents planned to source debt from capital markets in 2021. "It's a market depth issue," said Grant Moyer, head of leveraged finance at MUFG. "You're seeing fewer and fewer investors willing to entertain acting in that space. The fallen angels like the Occidentals of the world still have tremendous ability to issue, but the smaller or newer names are going to find the depth of the market is just not there." M&A The turmoil facing the sector created some merger and acquisition opportunities in the second half of this year. ConocoPhillips' is buying Concho Resources, Chevron is acquiring Noble, and Pioneer is acquiring Parsley Energy in deals with a combined value of over US$27bn. But these are seen as well established producers being bought by stronger names. Smaller producers are being left out. And in another sign that there is little appetite for new investment, those three transactions are being done on an-all stock basis. "We have seen zero premium M&A where corporates have realised that new capital is not warranted given the returns they can make at these oil fields," said Purdy. "The only way to survive is to merge equals and to reduce costs." This all points to a definitive end to the boom years of the industry when small producers could rely heavily on debt capital markets to fuel capital investment in new wells to generate attractive growth figures, leading to an acquisition by a larger player. "This has given way to a lot more prudence, which has led to bankruptcies and the impairment of capital if you're a high-yield investor," said Purdy. DRYING UP Even for the producers that can survive, traditional sources of financing are likely to get tighter. International corporate law firm Haynes and Boone's October survey showed industry leaders predict a 15.7% reduction in the borrowing base for reserve-based bank loans in 2021 compared with spring. "There is a lot of RBL pressure right now as some banks are exiting the market due to ESG concerns," said one energy-focused capital markets lawyer. As well as ESG, slumping commodity prices, and expectations of lower capital markets activity as growth slows in the sector have also been flagged by analysts as reasons why banks are slimming what are traditionally s

BON

11 Dec 10:52

5 min read

Americas

IFR 2363 - 12 Dec - 18 Dec

David Bell

IFR 2363 - 12 DEC 2020 - 18 DEC 2020 LAOS AIMS HIGH WITH RARE TRIPLE C BOND The Lao People's Democratic Republic, rated Caa2/CCC (Moody's/Fitch), is planning an ambitious bond offering that would make it the lowest rated Asian sovereign to access the US dollar bond market for years. The sovereign mandated Oppenheimer & Co as sole lead manager to arrange investor calls, which began on Wednesday. It is planning a US dollar five-year 144A/Reg S benchmark bond offering, subject to market conditions. This would be the first international bond offering by an Asian sovereign with a Triple C rating since Mongolia sold bonds in 2017, when it was rated Caa1/B–/B–. The timing comes as a surprise, given that many fund managers will soon close their books for the year or take leave days accumulated during an extremely busy year for issuance. Laos is under refinancing pressure, with its debut offshore deal, a US$150m 6.875% bond issue sold last December, falling due on June 30 2021. The sovereign’s international reserves stood at US$1.35bn in September, equivalent to less than three months of imports. In June 2020, the World Bank wrote that Laos’ external debt servicing burden would increase to around US$1.1bn per year in the medium term, equivalent to 55% of domestic revenues. Apart from the US dollar note issue, Laos also has US$165m-equivalent of Thai baht bonds due next year. “While debt reprofiling with a major bilateral creditor took place recently, going forward, with around half of public sector external debt repayment owed to China by 2023, and much of the debt linked to construction of large infrastructure projects, debt resolution has taken centre stage as one of the key macroeconomic issues for Lao PDR,” the World Bank wrote. It added that the government of Laos might consider renegotiating debt with creditors or participating in the G20’s Debt Service Suspension Initiative to freeze its repayments. Unlike other low-rated governments – such as Pakistan – Laos has so far avoided participating in the DSSI. Fitch downgraded Laos to CCC from B– in September, noting that Laos had decided not to roll over Thai baht bonds maturing in June due to challenging market conditions, and had instead extended most of its commercial bank loans and added US$100m to meet obligations coming due this year. The finance ministry and central bank each approached the syndicated loan market earlier this year, both via Taiwanese arrangers, but the progress of those financings is not clear. In August, Moody’s downgraded Laos to Caa2 from B3 and changed the rating outlook to negative, saying there was a “material probability” of default in the near term. Double-digit yields? With this in mind, a benchmark Yankee offering, which typically indicates the issue will be at least US$500m in size in order to qualify for the main indices, could be challenging. The sovereign said in a Singapore Exchange filing that if it raised at least US$150m it would use the proceeds to redeem its 2021 bonds in full. One banker said that the intention could be to roll over investors of the existing bonds, which are held mainly by a few large accounts, into a new deal in the hope that other investors will join. “It’s a funny one because lots of their metrics are actually improving, but they have this punishing refinancing schedule, particularly over the next 12 months,” said a fund manager. “If they can get this bond out, that lifts some of the refinancing needs pretty materially.” The 2021 bonds are quoted at a cash price in the mid 80s and investors might ask for a steep yield for the new five-years. A source said that Laos held non-deal roadshow calls about a month ago, and some investors were seeking yields as high as 12% for a new issue. Another fund manager said he expected price discussions to start around the 10% area, and said he would be interested in taking a small amount of the bonds. “Relatively speaking, our market is kind

BON RATE

11 Dec 12:13

6 min read

Americas, Asia

IFR 2363 - 12 Dec - 18 Dec

Daniel Stanton

IFR 2363 - 12 DEC 2020 - 18 DEC 2020 LAOS AIMS HIGH WITH RARE TRIPLE C BOND The Lao People's Democratic Republic, rated Caa2/CCC (Moody's/Fitch), is planning an ambitious bond offering that would make it the lowest rated Asian sovereign to access the US dollar bond market for years. The sovereign mandated Oppenheimer & Co as sole lead manager to arrange investor calls, which began on Wednesday. It is planning a US dollar five-year 144A/Reg S benchmark bond offering, subject to market conditions. This would be the first international bond offering by an Asian sovereign with a Triple C rating since Mongolia sold bonds in 2017, when it was rated Caa1/B–/B–. The timing comes as a surprise, given that many fund managers will soon close their books for the year or take leave days accumulated during an extremely busy year for issuance. Laos is under refinancing pressure, with its debut offshore deal, a US$150m 6.875% bond issue sold last December, falling due on June 30 2021. The sovereign’s international reserves stood at US$1.35bn in September, equivalent to less than three months of imports. In June 2020, the World Bank wrote that Laos’ external debt servicing burden would increase to around US$1.1bn per year in the medium term, equivalent to 55% of domestic revenues. Apart from the US dollar note issue, Laos also has US$165m-equivalent of Thai baht bonds due next year. “While debt reprofiling with a major bilateral creditor took place recently, going forward, with around half of public sector external debt repayment owed to China by 2023, and much of the debt linked to construction of large infrastructure projects, debt resolution has taken centre stage as one of the key macroeconomic issues for Lao PDR,” the World Bank wrote. It added that the government of Laos might consider renegotiating debt with creditors or participating in the G20’s Debt Service Suspension Initiative to freeze its repayments. Unlike other low-rated governments – such as Pakistan – Laos has so far avoided participating in the DSSI. Fitch downgraded Laos to CCC from B– in September, noting that Laos had decided not to roll over Thai baht bonds maturing in June due to challenging market conditions, and had instead extended most of its commercial bank loans and added US$100m to meet obligations coming due this year. The finance ministry and central bank each approached the syndicated loan market earlier this year, both via Taiwanese arrangers, but the progress of those financings is not clear. In August, Moody’s downgraded Laos to Caa2 from B3 and changed the rating outlook to negative, saying there was a “material probability” of default in the near term. Double-digit yields? With this in mind, a benchmark Yankee offering, which typically indicates the issue will be at least US$500m in size in order to qualify for the main indices, could be challenging. The sovereign said in a Singapore Exchange filing that if it raised at least US$150m it would use the proceeds to redeem its 2021 bonds in full. One banker said that the intention could be to roll over investors of the existing bonds, which are held mainly by a few large accounts, into a new deal in the hope that other investors will join. “It’s a funny one because lots of their metrics are actually improving, but they have this punishing refinancing schedule, particularly over the next 12 months,” said a fund manager. “If they can get this bond out, that lifts some of the refinancing needs pretty materially.” The 2021 bonds are quoted at a cash price in the mid 80s and investors might ask for a steep yield for the new five-years. A source said that Laos held non-deal roadshow calls about a month ago, and some investors were seeking yields as high as 12% for a new issue. Another fund manager said he expected price discussions to start around the 10% area, and said he would be interested in taking a small amount of the bonds. “Relatively speaking, our market is kind

BON RATE

11 Dec 12:13

6 min read

Americas, Asia

IFR 2363 - 12 Dec - 18 Dec

Daniel Stanton

IFR 2363 - 12 DEC 2020 - 18 DEC 2020

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TESLA RETURNS FOR US$5BN WITH 'DRIBBLE-OUT' Elon Musk's Tesla took just two sessions during the week to raise US$5bn of equity from an at-the-market offering, its second in just three months and its third equity offering this year. The high-flying electric car maker, whose stock price has soared 650% this year to catapult Musk to the status of the world's second richest man, revealed in a filing late on Thursday it had already completed the ATM during Tuesday and Wednesday's sessions. The move came as Tesla shares struck a record high of US$654.32 on Tuesday when the ATM was first announced. Assuming an average price around the US$600 per share mark, Tesla would have needed to issue only 8.3m shares or a small portion of the 250m-plus traded during the first four days of the week. Having now raised US$12bn of equity this year, Tesla's cash balance rises to US$19.5bn, giving it more firepower as it grows its EV sales and looks to add new factories in Germany and Austin, Texas. Sales agents Goldman Sachs, Citigroup, Barclays, BNP Paribas, Bank of America, Credit Suisse, Deutsche Bank, Morgan Stanley, Societe Generale and Wells Fargo were paid a 0.25% commission or US$12.5m to handle the ATM, down from 0.5% on the September ATM of the same size completed in just four days. The timing was curious given Tesla shares are set to join the S&P 500 on December 21, a highly anticipated market event expected to generate a hefty US$50bn of demand for its shares from index-hugging funds and an opportunity to issue stock via a follow-on with minimal discount. Follow-on share sales alongside index inclusion are rare but Facebook executed one in 2013 when it priced a US$3.8bn primary and secondary stock offering that coincided with the addition of its stock to the US equity benchmark. One senior ECM banker said Musk's decision to trigger the ATM suggested he was unlikely to opt for an index inclusion trade to raise further capital. "However that could change," the banker said. One counterintuitive reason to use the ATM now rather than wait until late December for a follow-on may be to avoid share price pressure leading up to index inclusion or the risk that capital market conditions may weaken closer to Christmas. Though index inclusion is usually a positive catalyst for a stock and has helped push Tesla stock higher in recent weeks, Tesla's high valuation has prompted some analysts to advise investors not to take a market-weight position in the stock. "We recommend investors not weight Tesla shares in their portfolio in equal proportion to the S&P because Tesla shares are in our view and by virtually every conventional metric not only overvalued, but dramatically so," JP Morgan analyst Ryan Brinkman wrote in a client note during the week. With a current market cap of close to US$600bn, Tesla will rank as the sixth largest company in the US equity benchmark ahead of Warren Buffett’s Berkshire Hathaway.

EQY

11 Dec 16:18

3 min read

Americas

IFR 2363 - 12 Dec - 18 Dec

Anthony Hughes

IFR 2363 - 12 DEC 2020 - 18 DEC 2020

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MICROSTRATEGY INCREASES BITCOIN BET MicroStrategy, an old-school provider of data analysis software, made the bold step earlier this year of trading the bulk of its cash holdings for bitcoin, thereby tying its future funding needs to the volatile cryptocurrency. It is now doubling down on that bet by ploughing the proceeds of a US$550m convertible bond into the cryptocurrency. The strategy has paid off, so far, and while bitcoin remains a risky – or at the least unproven – investment, MicroStrategy and sole bookrunner Jefferies were able to upsize the five-year CB from US$400m initially targeted and price the security at a 0.75% coupon and 37.5% conversion premium, the aggressive ends of 0.75%–1.25% and 32.5%–37.5% price talk. Sure, MicroStrategy’s shares tanked 13.9% to US$289.45 as it tapped investors on Tuesday, in part presumably because of a bad day for bitcoin which dropped around 1.7% to about US$18,765. “ offers the possibility of greater return potential for investors than holding such balances in cash and has increased the overall visibility of MicroStrategy in the market,” said CEO Michael Saylor on the decision in October to make bitcoin its “reserve currency”. Saylor spent US$425m on digital assets in the third quarter, cutting the company’s cash holdings to just US$52.7m. Since then, bitcoin has surged some 75% and MicroStrategy’s shares had nearly doubled (91.5%) ahead of the CB funding – so mission accomplished, perhaps. Fintechs Square and PayPal have both made bitcoin a core offering, though both on an agency basis for consumers rather than investing themselves. “ would describe themselves as a pioneer,” said one market source. “They are a real software company that’s been around for a long time that generates real revenue, a lot of which is recurring, and real cash.” In the third quarter, MicroStrategy grew year-on-year revenue by 6.4% to US$127.4m, but lost US$20.3m on an operating basis largely due to US$44.2m of “digital asset impairment losses”. The unconventional use of proceeds allowed for funding at impressive levels based on the conventional metrics of convertible bonds. The 500bp credit spread and 40 volatility used by most market participants showed the CB to be three points rich to theoretical value, according to Refinitiv data. MicroStrategy’s underlying shares have realised 60.5 vol over the past 200 days, and were at around 27 vol prior to the coronavirus pandemic and the bitcoin investment, so arguably a higher vol is warranted. But the reality is that the company is becoming ever more focused on bitcoin, especially as the float shrinks. MicroStrategy spent US$60.5m to tender for roughly 400,000 of its shares at US$140.00 apiece in September, leaving just 9.3m shares outstanding. The 1.4m shares underlying the new CB represent a potential 15% capital increase. BWS Financial, one of two firms that covers the company, recently dropped coverage, citing exposure to bitcoin volatility. “Saylor could end up being right on where bitcoin is in 20 years and the value creation for MicroStrategy, but we are not in the 20-year analysis business,” said BWS analyst Hamed Khorsand of the decision. That leaves Citigroup analyst Tyler Radke as the lone analyst actively following the company, according to Refinitiv data. Jefferies, presumably, will double the research output.

EQY

11 Dec 13:45

3 min read

Americas

IFR 2363 - 12 Dec - 18 Dec

Stephen Lacey

IFR 2363 - 12 DEC 2020 - 18 DEC 2020

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TESLA RETURNS FOR US$5BN WITH 'DRIBBLE-OUT' Elon Musk's Tesla took just two sessions during the week to raise US$5bn of equity from an at-the-market offering, its second in just three months and its third equity offering this year. The high-flying electric car maker, whose stock price has soared 650% this year to catapult Musk to the status of the world's second richest man, revealed in a filing late on Thursday it had already completed the ATM during Tuesday and Wednesday's sessions. The move came as Tesla shares struck a record high of US$654.32 on Tuesday when the ATM was first announced. Assuming an average price around the US$600 per share mark, Tesla would have needed to issue only 8.3m shares or a small portion of the 250m-plus traded during the first four days of the week. Having now raised US$12bn of equity this year, Tesla's cash balance rises to US$19.5bn, giving it more firepower as it grows its EV sales and looks to add new factories in Germany and Austin, Texas. Sales agents Goldman Sachs, Citigroup, Barclays, BNP Paribas, Bank of America, Credit Suisse, Deutsche Bank, Morgan Stanley, Societe Generale and Wells Fargo were paid a 0.25% commission or US$12.5m to handle the ATM, down from 0.5% on the September ATM of the same size completed in just four days. The timing was curious given Tesla shares are set to join the S&P 500 on December 21, a highly anticipated market event expected to generate a hefty US$50bn of demand for its shares from index-hugging funds and an opportunity to issue stock via a follow-on with minimal discount. Follow-on share sales alongside index inclusion are rare but Facebook executed one in 2013 when it priced a US$3.8bn primary and secondary stock offering that coincided with the addition of its stock to the US equity benchmark. One senior ECM banker said Musk's decision to trigger the ATM suggested he was unlikely to opt for an index inclusion trade to raise further capital. "However that could change," the banker said. One counterintuitive reason to use the ATM now rather than wait until late December for a follow-on may be to avoid share price pressure leading up to index inclusion or the risk that capital market conditions may weaken closer to Christmas. Though index inclusion is usually a positive catalyst for a stock and has helped push Tesla stock higher in recent weeks, Tesla's high valuation has prompted some analysts to advise investors not to take a market-weight position in the stock. "We recommend investors not weight Tesla shares in their portfolio in equal proportion to the S&P because Tesla shares are in our view and by virtually every conventional metric not only overvalued, but dramatically so," JP Morgan analyst Ryan Brinkman wrote in a client note during the week. With a current market cap of close to US$600bn, Tesla will rank as the sixth largest company in the US equity benchmark ahead of Warren Buffett’s Berkshire Hathaway.

EQY

11 Dec 16:18

3 min read

Americas

IFR 2363 - 12 Dec - 18 Dec

Anthony Hughes

BON P&M

BANKS FACE US$4.7TRN REVENUE LOSS BY 2025 - MCKINSEY Banks could lose up to US$4.7trn in revenue by 2025 from the impact of the Covid-19 pandemic and a “long winter” of low interest rates, and returns across the industry are set to tumble to just 1.5% next year, according to consultancy McKinsey & Co. McKinsey estimated between US$1.5trn and US$4.7trn in cumulative banking revenue could be lost between 2020 and 2024 from the impact of the global pandemic, which it expects to have a sharp impact in 2021 and a more moderate drag in the following three years. Its base case is for US$3.7trn of forgone revenue, which is equivalent to more than half a year of industry revenue. “We anticipate that, in months and years to come, the pandemic will present a two-stage problem for banks,” McKinsey said in its Global Banking Annual Review released on Thursday. “First will come severe credit losses, likely through late 2021… then, amid a muted global recovery, banks will face a profound challenge to ongoing operations that may persist beyond 2024.” McKinsey said almost all banks should survive, thanks to far stronger capital positions than the industry had in 2008. The average common equity Tier 1 ratio of banks globally is expected to dip from 12.5% in 2019 to 10.9% in 2021, but that should be the low point and the ratio is expected to recover to 12.1% in 2024 under its base-case scenario. That should only cause trouble for banks that were already unhealthy. The report estimated 3% of banks might suffer capital losses that take their reserves below 5.5% - “a threshold at which their viability would be jeopardised”. McKinsey said revenue from capital markets activities should rise modestly in the next four years, but not on the scale of the surge in trading and underwriting seen this year. After this year's revenue bonanza, trading revenues are likely to stabilise at a lower level and origination will slow as fewer firms issue debt and equity, but M&A activity is likely to increase, the report said. Market infrastructure revenues are predicted to grow as markets remain liquid. McKinsey estimated global revenues from investment banking and market infrastructure will total about US$390bn in 2024, up from US$380bn in 2019. It estimated US$174bn of the 2024 revenue will come from North America, where capital markets income is expected to outpace GDP growth. Revenues should also rise faster than GDP in Latin America, but will lag economic growth in Europe, developed Asia and the Middle East and Africa, the report said. “No one should confuse survival with success” McKinsey said high provisions for loan losses this year and next, and pressure on revenues from low interest rates will continue to weigh on profitability, which is already depressed in Europe in particular. Some 63% of banks did not return their cost of capital in 2019, and that grew to 77% in the first half of this year, the report said. Return on equity is expected to fall to 4.9% this year across global banks, from 8.9% in 2019, and sink to 1.5% in 2021, McKinsey estimated. Next year’s RoE is forecast to fall to -1.1% for banks in North America, -1.8% in Europe and -0.2% in developed Asia. McKinsey said RoE should improve to 8.6% globally by 2024, without management action. “But no one should confuse survival with success,” the report said. It said lessons should be learned from 2008, when banks that reacted to the crisis "quickly and decisively" fared much better in the long term than those that did too little or moved too slowly, which widened the advantage US banks had over European rivals. To improve RoE, McKinsey said banks need to cut costs to improve productivity, improve risk assessments and more proactively and accurately manage their capital. The banking industry’s cost-to-income ratio reduced to 54.4% last year from 56.6% in 2014, McKinsey said. But it said more could and should have been done: the cost of computing power, fo

BON P&M

09 Dec 23:01

4 min read

Global

Steve Slater

IFR 2363 - 12 DEC 2020 - 18 DEC 2020

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MICROSTRATEGY INCREASES BITCOIN BET MicroStrategy, an old-school provider of data analysis software, made the bold step earlier this year of trading the bulk of its cash holdings for bitcoin, thereby tying its future funding needs to the volatile cryptocurrency. It is now doubling down on that bet by ploughing the proceeds of a US$550m convertible bond into the cryptocurrency. The strategy has paid off, so far, and while bitcoin remains a risky – or at the least unproven – investment, MicroStrategy and sole bookrunner Jefferies were able to upsize the five-year CB from US$400m initially targeted and price the security at a 0.75% coupon and 37.5% conversion premium, the aggressive ends of 0.75%–1.25% and 32.5%–37.5% price talk. Sure, MicroStrategy’s shares tanked 13.9% to US$289.45 as it tapped investors on Tuesday, in part presumably because of a bad day for bitcoin which dropped around 1.7% to about US$18,765. “ offers the possibility of greater return potential for investors than holding such balances in cash and has increased the overall visibility of MicroStrategy in the market,” said CEO Michael Saylor on the decision in October to make bitcoin its “reserve currency”. Saylor spent US$425m on digital assets in the third quarter, cutting the company’s cash holdings to just US$52.7m. Since then, bitcoin has surged some 75% and MicroStrategy’s shares had nearly doubled (91.5%) ahead of the CB funding – so mission accomplished, perhaps. Fintechs Square and PayPal have both made bitcoin a core offering, though both on an agency basis for consumers rather than investing themselves. “ would describe themselves as a pioneer,” said one market source. “They are a real software company that’s been around for a long time that generates real revenue, a lot of which is recurring, and real cash.” In the third quarter, MicroStrategy grew year-on-year revenue by 6.4% to US$127.4m, but lost US$20.3m on an operating basis largely due to US$44.2m of “digital asset impairment losses”. The unconventional use of proceeds allowed for funding at impressive levels based on the conventional metrics of convertible bonds. The 500bp credit spread and 40 volatility used by most market participants showed the CB to be three points rich to theoretical value, according to Refinitiv data. MicroStrategy’s underlying shares have realised 60.5 vol over the past 200 days, and were at around 27 vol prior to the coronavirus pandemic and the bitcoin investment, so arguably a higher vol is warranted. But the reality is that the company is becoming ever more focused on bitcoin, especially as the float shrinks. MicroStrategy spent US$60.5m to tender for roughly 400,000 of its shares at US$140.00 apiece in September, leaving just 9.3m shares outstanding. The 1.4m shares underlying the new CB represent a potential 15% capital increase. BWS Financial, one of two firms that covers the company, recently dropped coverage, citing exposure to bitcoin volatility. “Saylor could end up being right on where bitcoin is in 20 years and the value creation for MicroStrategy, but we are not in the 20-year analysis business,” said BWS analyst Hamed Khorsand of the decision. That leaves Citigroup analyst Tyler Radke as the lone analyst actively following the company, according to Refinitiv data. Jefferies, presumably, will double the research output.

EQY

11 Dec 13:45

3 min read

Americas

IFR 2363 - 12 Dec - 18 Dec

Stephen Lacey

BONDS

IMA COMBINES DEFENSIVE PLAY WITH AGGRESSIVE CALL Italian manufacturer IMA was able to quash objections from some quarters over the short call period on the fixed-rate note portion of its €1.28bn debut trade as it offered high-yield investors the chance to gain exposure to a more defensive sector. IMA (B2/B), which designs and manufactures automatic machines for the processing and packaging of pharmaceuticals, cosmetics, food, tobacco, tea and coffee, was able to upsize the dual-tranche deal and price inside analysts' estimations of fair value despite an aggressive call structure. The trade, via issuer Sofima Holding, will fund IMA's buyout by its majority shareholder Sofima and BC Partners, who together acquired the company for €2.9bn in July, in one of the larger post-Covid 19 private equity deals in Europe. The offering was due to be split between a €800m seven-year non-call two fixed-rate note and a €450m seven-year non-call one floating-rate bond, but by launch the fixed portion had been upsized to €830m. "IMA does seem to generate decent cashflow," said one high-yield investor. "The majority of the business is supplying machinery to the packaging sector, which has been a thriving sector to be in this year. It's also a listed company. But I'm curious to see what makes them Single B ." The reason, according to S&P, is largely down to the company's leverage level. "Following the completion of the proposed LBO, assuming debt push-down and the post-transaction downstream merger, we forecast Sofima's leverage will further increase to 8.0x-8.5x for 2021, when including the €310m PIK notes in the capital structure as debt," said the ratings agency, pointing out that this is a "high" level of debt for a company of IMA's size and earnings. However, the agency also acknowledges IMA's ability to generate operating cash, which it forecasts will be between €40m and €100m for 2021. The company is, in theory, well positioned to benefit from the structural shifts in response to the Covid pandemic. "Thinking about how we’re moving into automation, packaging logistics and all of these things, the timing for the deal is extremely favourable. The company has a focus on pharmaceuticals and consumer goods like food and so on, all essential things that, when you think about the world we’re living in the last 10 months, are crucial to keeping things going,” said a source familiar with the deal. "This is arguably one of the best LBOs that Europe will see this year." Structure queries Much of the debate before pricing revolved around the call structure. Some accounts had taken umbrage at the fixed-rate bond's seven-year non-call two structure, with the investor saying the company should pay a heavy premium to compensate for the optionality. "Is IMA such a rapidly improving credit that they don't want to be left hanging out paying a higher coupon for longer?" he asked. "But, if so, why are they issuing a seven-year? To me it doesn't reconcile." A second high-yield investor said he had a strong aversion to the structure on the fixed-rate note, noting that Aston Martin had tried a similar exercise with a five-year non-call two bond but had backed down and switched to a five-year non-call four structure. UK luxury carmaker Aston Martin, however, was trying to bring investors on board a turnaround story in a difficult week in the US dollar high-yield market. The credit markets on both sides of the Atlantic are now arguably as strong as they have been all year, as Jaguar Land Rover showed on Wednesday with its second US dollar deal in two months. Still, some investors were unhappy that IMA was not offering more of an incentive to benefit from the potential upside. “This IMA deal is trying to be a loan dressed as a bond," said the second investor ahead of pricing. "I’m generally not a fan – I want to get some of that convexity. If you, like I am, are bullish on the market, and you think there’s room for spread

BON

10 Dec 16:36

6 min read

EMEA

Eleanor Duncan, Robert Hogg LATEST NEWS - GLOBAL Add to My IFR Create an alert

BONDS

PRICED - COMMUNITY HEALTH SYSTEMS US$2.8BN 2-PART SNR SEC NOTES; 6-YR

NC3, 8-YR NC3

PRICED: US$2.8bn 2-part total. Settle: 12/28/20 -US$1.9bn 5.625% cpn 6.25yr (3/15/27) NC3 (12/15/23) at 100.00, yld 5.625%. Spread: T+501bp. MWC T+50bp until 12/15/23, and then 102.813, 101.406, 100.00. Equity Claw: Redeemable until December 15, 2023 at 105.625% for up to 40%. CUSIP 144a: 12543D BG4 -US$900m 6.00% cpn 8yr (1/15/29) NC3 (1/15/24) at 100.00, yld 6.00%. Spread: T+538bp. MWC T+50bp until 1/15/24, and then 103.00, 101.50, 100.00. Equity Claw: Redeemable until January 15, 2024 at 106.00% for up to 40%. CUSIP: 144a: 12543D BH2 LAUNCH: US$2.8bn 2-part total. US$1.9bn 6.25yr NC3 at 5.625%, US$900m 8yr NC3 at 6.00% TIMING: Orders to be reconfirmed by 4:15pm with allocations thereafter UPDATE: US$2.8bn 2-part total (upsized from US$1.05bn). Adds a 8yr tranche with UOP being used to repay 1st lien 6.25% 2023 notes. 6.25yr NC3: 5.75% area, 8yr NC3: 6.00% area CHS/Community Health Systems, Inc., Caa2/B-, announced a US$1.05bn 144A/RegS 6.25-year NC3 senior secured note via Lead Bookrunners: CITI (Lead), CS, JPM; Joint Bookrunners: BAML, RBC, WFS, COS, DB, GS, TRUIST. TIMING: Investor call today (12/11) at 10:30am ET; pricing expected today. Equity Clawback: 40% at par plus coupon until December 2023. UOP: To partially refinance the 6.25% Senior Secured Notes due

2023.

BON

11 Dec 23:15

Quick read

Americas

John Balassi

BONDS

TWO ISSUERS TO RAISE US$3.1BN IN THE PRIMARY MARKET ON FRIDAY High-yield primary market sees US$13.3bn in supply this week Community Health Systems adds tranche, upsizes 2-part deal to US$2.8bn NFP Corp. add-on of 6.875% 2028 notes upsized to US$300m from US$200m Morgan Stanley lining up US$1.2bn of high-yield bond financing for E.W. Scripps Average high-yield spreads widened 4bp to 408bp on Thursday: ICE BofA 2020 YTD HY volume: US$427.394bn vs 2019 YTD: US$266.309bn FRIDAY'S HIGH-YIELD DEAL PRICINGS: Data provided by ICE BofA

BON

11 Dec 22:20

3 min read

Americas

John Balassi

RATE FX

BUZZ-USD/JPY-RALLY SELLING BIAS INTACT AFTER 4TH INSIDE WEEK, CLOUD

CAP

String of five higher daily lows broken with a new intraweek low today But 4th straight inside week, so no clear resumption of primary downtrend For that prices need to close below 4-week range lows at 103.655 on EBS Bearish rejection by daily cloud base Thurs keeps rally selling bias intact Cloud cover, 3-week range top and down TL from March to weigh on prices For more click on FXBUZ Charthttps://tmsnrt.rs/3n5Xtnj

RATE FX

11 Dec 20:59

2 min read

Global

Randolph Donney

RATE FX

BUZZ-IMM: LARGE EUR, GBP PURCHASES LIFT USD NET SHORT POSITION TO

4-MONTH HIGH

USD net short up in Dec 2-8 IMM period, largest short since Sep nL1N2IR29E EUR specs +16,535 contracts now long 156,429, despite slim 0.11% EUR rise JPY specs +663 contracts now long 48,166, JPY rose 0.17% GBP specs shrug off Brexit angst +13,609 contracts, short flips to positive AUD, CAD & Kiwi all lightly bought on upbeat vax/global growth view IMM PositionsChart: https://tmsnrt.rs/3gE5UUl Majors w-IMM returns Chart: https://tmsnrt.rs/2LnunBL

RATE FX

11 Dec 20:54

2 min read

Global

Paul Spirgel

RATE FX

USD/JPY TRADER

String of five higher daily lows broken with a new intraweek low today, but this will be the fourth straight inside week, so no clear resumption of the primary downtrend just yet. For that prices would need to close below the four-week range lows at 103.655 on EBS. Bearish rejection by the daily cloud base Thursday keeps the rally selling bias intact.

RATE FX

11 Dec 20:52

2 min read

Asia

Randolph Donney

BONDS

LAUNCH - COMMUNITY HEALTH SYSTEMS US$2.8BN 2-PART SNR SEC NOTES; 6-YR

NC3, 8-YR NC3

LAUNCH: US$2.8bn 2-part total. US$1.9bn 6.25yr NC3 at 5.625%, US$900m 8yr NC3 at 6.00% TIMING: Orders to be reconfirmed by 4:15pm with allocations thereafter UPDATE: US$2.8bn 2-part total (upsized from US$1.05bn). Adds a 8yr tranche with UOP being used to repay 1st lien 6.25% 2023 notes. 6.25yr NC3: 5.75% area, 8yr NC3: 6.00% area CHS/Community Health Systems, Inc., Caa2/B-, announced a US$1.05bn 144A/RegS 6.25-year NC3 senior secured note via Lead Bookrunners: CITI (Lead), CS, JPM; Joint Bookrunners: BAML, RBC, WFS, COS, DB, GS, TRUIST. TIMING: Investor call today (12/11) at 10:30am ET; pricing expected today. Equity Clawback: 40% at par plus coupon until December 2023. UOP: To partially refinance the 6.25% Senior Secured Notes due

2023.

BON

11 Dec 20:51

Quick read

Americas

John Balassi

BONDS

DEAL: NFP PRICED BOFA,BARC,JPM,MS,SMBC NIKKO,TD,MUFG,CIBC,DB,REGIONS,UBS,KKR,MQB USD300m 6.875% fxd. snr unsec 144A/Reg S without registration rights. Caa2/CCC+. BofA/Barc/JPM/MS/SMBC Nikko/TD/MUFG/CIBC/DB/Regions /UBS/KKR/MQB. 104.5%/105%. LBO. 6.047% YTM, 5.634% YTW

BON

11 Dec 20:49

2 min read

SF RATE

IFR SF CLOSE - PRIMARY MARKET SEES ACTIVITIES ACROSS ALL SECTORS Cascade Funding completes US$626m inactive reverse mortgage loan note Conduit transaction BANK 2020-BNK30 prices CMBS Morgan Stanley clears over US$284m prime jumbo securitization Continental Finance lands US$188.9m solar loan ABS 2020 YTD ABS issuance: US$189.677bn vs 2019 ABS issuance: US$233.992bn - IFR Data Refinitiv/SDC US Securitization Weekly League tables - click link below: https://ifrmarkets.s3.amazonaws.com/0000ABS/US+Securitizations+Weekly121120.xls Below is a recap of activity in the US Structured Finance market through Friday. ABS PRICED *Largest Tranche Size Doris Dastas Tel: +1 718-775-5378; doris.dastas@refinitiv.com Client Support: IFR.Clientsupport@refinitiv.com Subscription sales: Americas: cmi.americassales@refinitiv.com Asia-Pacific & Japan: cmi.asiasales@refinitiv.com Europe, Middle East & Africa: cmi.emeasales@refinitiv.com

SF RATE

11 Dec 20:49

3 min read

Americas

Doris Dastas

BONDS

PRICED - NFP CORP. US$300M ADD-ON OF 6.875% 8/15/28 SNR NOTE AT 105.00 PRICED: US$300m add-on of 6.875% 8/15/28 NC 8/15/23 at 105.00, YTM 6.047% (YTW 5.634%). Settle: 12/22/20. CUSIP 144A: 65342R AD2 PRICE TALK: 104.50-105.00 Tranche Size: US$300m (upsized from US$200m) NFP Corp., Caa2/CCC+, announced a US$200m 144A/RegS add-on of 6.875% 8/15/28 NC 8/15/23(1st call @ 103.438)) senior note via joint bookrunners BofA / Barc / JPM / MS / SMBC / TD / MUFG / CIBC / DB / Regions / UBS / KKR / Macquarie. TIMING: Investor call today (12/11) at 11:00am ET; pricing expected today. UOP: (i) to fund current, pending or future acquisitions and (ii) to pay fees and expenses in connection with this offering. Any proceeds not used for such purpose may be used for general corporate purposes.

BON

11 Dec 20:47

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John Balassi

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11 Dec 23:15

PRICED - COMMUNITY HEALTH SYSTEMS US$2.8BN 2-PART SNR SEC NOTES; 6-YR

NC3, 8-YR NC3

11 Dec 22:20

TWO ISSUERS TO RAISE US$3.1BN IN THE PRIMARY MARKET ON FRIDAY

11 Dec 21:43

USD SWAPS/EURO$S CLOSE- MOST SPREADS COMPRESS AFTER DIVERGENT MORNING; FT ARTICLE INFLUENCES; STRIP WELL-BID

11 Dec 21:30

US GOVTS WRAP - 30S HIT 1.60%, SPURRING PROFIT TAKING AND WAM EXTENSION POSITION PARING

11 Dec 21:29

MBS CLOSE-LOWER COUPONS RIP TIGHTER AS CURVE-FLATTENING REVERSAL AIDS

11 Dec 21:06

US ECON - IFR US ECONOMICS WEEKLY PREVIEW

11 Dec 20:59

BUZZ-USD/JPY-RALLY SELLING BIAS INTACT AFTER 4TH INSIDE WEEK, CLOUD

CAP

11 Dec 20:54

BUZZ-IMM: LARGE EUR, GBP PURCHASES LIFT USD NET SHORT POSITION TO

4-MONTH HIGH

11 Dec 20:52

MAJORS POSITION SUMMARY

11 Dec 20:52

USD/JPY TRADER

11 Dec 20:51

LAUNCH - COMMUNITY HEALTH SYSTEMS US$2.8BN 2-PART SNR SEC NOTES; 6-YR

NC3, 8-YR NC3

11 Dec 20:49

DEAL: NFP PRICED BOFA,BARC,JPM,MS,SMBC NIKKO,TD,MUFG,CIBC,DB,REGIONS,UBS,KKR,MQB

11 Dec 20:49

IFR SF CLOSE - PRIMARY MARKET SEES ACTIVITIES ACROSS ALL SECTORS

11 Dec 20:47

PRICED - NFP CORP. US$300M ADD-ON OF 6.875% 8/15/28 SNR NOTE AT 105.00

11 Dec 20:38

BUZZ-COMMENT-EUR/USD-DIP-BUYING BIAS INTACT ABOVE THE 10-DAY MOVING

AVERAGE

PRICED - COMMUNITY HEALTH SYSTEMS US$2.8BN 2-PART SNR SEC NOTES; 6-YR

NC3, 8-YR NC3

11 Dec 23:15

Quick read

Americas

John Balassi

Bonds

TWO ISSUERS TO RAISE US$3.1BN IN THE PRIMARY MARKET ON FRIDAY

11 Dec 22:20

3 min read

Americas

John Balassi

Bonds

USD SWAPS/EURO$S CLOSE- MOST SPREADS COMPRESS AFTER DIVERGENT MORNING; FT ARTICLE INFLUENCES; STRIP WELL-BID

11 Dec 21:43

13 min read

Americas

Nelson Thomson

BON RATE

US GOVTS WRAP - 30S HIT 1.60%, SPURRING PROFIT TAKING AND WAM EXTENSION POSITION PARING

11 Dec 21:30

6 min read

Global

Duncan Balsbaugh

BON RATE FX

MBS CLOSE-LOWER COUPONS RIP TIGHTER AS CURVE-FLATTENING REVERSAL AIDS

11 Dec 21:29

7 min read

Americas

Matthew Swift

SF RATE

US ECON - IFR US ECONOMICS WEEKLY PREVIEW

11 Dec 21:06

Quick read

Americas, EMEA

RATE FX ECON

BUZZ-USD/JPY-RALLY SELLING BIAS INTACT AFTER 4TH INSIDE WEEK, CLOUD

CAP

11 Dec 20:59

2 min read

Global

Randolph Donney

RATE FX

BUZZ-IMM: LARGE EUR, GBP PURCHASES LIFT USD NET SHORT POSITION TO

4-MONTH HIGH

11 Dec 20:54

2 min read

Global

Paul Spirgel

RATE FX

MAJORS POSITION SUMMARY

11 Dec 20:52

Quick read

Forex

Bonds

PRICED - COMMUNITY HEALTH SYSTEMS US$2.8BN 2-PART SNR SEC NOTES; 6-YR

NC3, 8-YR NC3

PRICED: US$2.8bn 2-part total. Settle: 12/28/20 -US$1.9bn 5.625% cpn 6.25yr (3/15/27) NC3 (12/15/23) at 100.00, yld 5.625%. Spread: T+501bp. MWC T+50bp until 12/15/23, and then 102.813, 101.406, 100.00. Equity Claw: Redeemable until December 15, 2023 at 105.625% for up to 40%. CUSIP 144a: 12543D BG4 -US$900m 6.00% cpn 8yr (1/15/29) NC3 (1/15/24) at 100.00, yld 6.00%. Spread: T+538bp. MWC T+50bp until 1/15/24, and then 103.00, 101.50, 100.00. Equity Claw: Redeemable until January 15, 2024 at 106.

11 Dec 23:15

Quick read

Americas

John Balassi

Bonds

TWO ISSUERS TO RAISE US$3.1BN IN THE PRIMARY MARKET ON FRIDAY High-yield primary market sees US$13.3bn in supply this week Community Health Systems adds tranche, upsizes 2-part deal to US$2.8bn NFP Corp. add-on of 6.875% 2028 notes upsized to US$300m from US$200m Morgan Stanley lining up US$1.2bn of high-yield bond financing for E.W. Scripps Average high-yield spreads widened 4bp to 408bp on Thursday: ICE BofA 2020 YTD HY volume: US$427.394bn vs 2019 YTD: US$266.309bn FRIDAY'S HIGH-YIELD DEAL PRICINGS: Data provided by ICE BofA

11 Dec 22:20

3 min read

Americas

John Balassi

BON RATE

USD SWAPS/EURO$S CLOSE- MOST SPREADS COMPRESS AFTER DIVERGENT MORNING; FT ARTICLE INFLUENCES; STRIP WELL-BID Payer flows dominated the morning trade in the front-end out to 5-years. Directional receiver flow owned the early long-end flow as players tried to lock in some return after yesterday’s well-received bond auction. Deflationary worries due to the ongoing Brexit Mess, and COVID19 related slowdown added to the chase for long-end yield. But front-end payer flows reversed to receiver flows as an FT article regarding a potential collateral squeeze drove FRA/OIS spreads tighter

and Eurodollars

11 Dec 21:43

13 min read

Americas

Nelson Thomson

BON RATE FX

US GOVTS WRAP - 30S HIT 1.60%, SPURRING PROFIT TAKING AND WAM EXTENSION POSITION PARING * Long End Profit Taking Exit WAM Ext Trades * Macro Markets Priced For Fed WAM Extension * Trading Bias Supportive Buying Long End Dips * Monday Data Dearth And Fedspeak Blackout Friday featured a follow through rally extension to 1.60% 30s after yesterday’s 30s auction coup. Of course growing concerns over no-deal for Brexit trade talks, and no-deal for a stateside stimulus bill stymied sellers even more. However like someone rang the bell, and actually did, at the regular

futures open,

11 Dec 21:30

6 min read

Global

Duncan Balsbaugh

SF RATE

MBS CLOSE-LOWER COUPONS RIP TIGHTER AS CURVE-FLATTENING REVERSAL AIDS Spreads Tighter As Early Flattening Reverses; Off Tights As Flows Weigh Mon Just T-Bills & $4.1bn Max In MBS Purchases Plus Class B 48-Hours New Schedule To Purchase Up To $53.1bn Dec 14 To 28 The UMB30 basis closed mostly tighter, led by 1.5%, with treasuries rallying early in risk-off fashion before coming under pressure with equities paring losses and curve-steepening resuming with longer-dated treasury technicals a bit stretched. The basis had opened narrowly changed ahead of today&rsquo

11 Dec 21:29

7 min read

Americas

Matthew Swift

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TAKE A BOUGH

IF A TREE falls in a forest and no one is around to hear it, does it make a sound? For years it’s been a thought experiment that has tantalised us all. Well, not any more. Italian bank UniCredit has signed a partnership with Treedom to create the UniCredit Forest, a sustainable initiative that allows UniCredit employees to plant trees remotely and follow their growth online – which is up there with counting your legs and watching paint dry in the excitement stakes. The initiative will create a forest consisting of at least 90,000 new trees that, it is said, will help reduce global CO2 by approximately 20,542,500kg over the next 10 years. Impressive. And at least it will go some way to making up for the reams of paperwork produced for the tonnes of new shares UniCredit has issued over the past few years. WHEN IT COMES to the boardrooms of Europe’s biggest banks, there’s been something of an executive deforestation of late – and everyone’s heard the thudding of the axes. As well as UniCredit, Credit Suisse, ING, NatWest Markets, HSBC and UBS have all changed CEO in 2020. But in a year of resignations, retirements and reshuffles could there still be room for one last twist? A Dutch court has ordered a criminal investigation into the role UBS boss Ralph Hamers played in ING’s failure to crack down on money laundering when he was head of the Dutch bank. Hamers only took the helm at UBS in November, so it will be up there with Brian Clough’s brief tenure at Leeds United if the axe falls. UBS is confident there is no suggestion of any wrongdoing and insists it is satisfied with its own internal due diligence process prior to the appointment of Hamers, who will remain in the corner office during the investigation – assuming he’s had time to find it. CHRISTIAN SEWING IS fast becoming the Juergen Klopp of banking as he exudes positivity whatever the result. Last week, he heralded a new phase in the bank’s restructuring, telling employees in a memo on Wednesday that “we’re now switching from defence to offence”. Unfortunately, while Klopp usually lives up to the hype with his brand of attacking football, Sewing’s idea of offence is a return on equity of 8% and more cost cuts. But then, taken in the context of McKinsey’s freshly-released global banking report, Sewing suddenly appears as optimistic as his fist-pumping compatriot in front of a packed Kop End. According to the consultancy, banks could lose up to US$4.7trn in revenues by 2025 from the impact of the Covid-19 pandemic and “a long winter” of low interest rates, while returns are set to tumble to just 1.5%. Never mind offence, that’s just offensive. JAMIE DIMON, THE longest-standing bank CEO in the universe, who has swatted aside all-comers, was on his usual top form last week when he said he’d like JP Morgan to join the acquisition trail, specifically by buying a fund manager. "Asset management: my line is open," he said. But straight-talking Dimon then went on to praise rival Morgan Stanley, which acquired fund manager Eaton Vance for US$7bn in October, after snapping up online retail brokerage E*Trade Financial earlier in the year. "I think Morgan Stanley has done a good job with a couple of deals they've done," he said. Maybe he’s going soft after all. IFR 2363 - 12 Dec - 18 Dec

More Bellwether

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IFR EVENTS

IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar

IFR DIGITAL EDITION

Access a digital replica of IFR's print magazine, updated each Friday. Plus regular Special Reports and Roundtables, covering industry themes

and trends.

Latest Digital Edition

IFR EVENTS

IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar

IFR DIGITAL EDITION

Access a digital replica of IFR's print magazine, updated each Friday. Plus regular Special Reports and Roundtables, covering industry themes

and trends.

Latest Digital Edition

IFR EVENTS

IFR hosts a comprehensive programme of conferences, seminars and roundtables throughout the year, providing authoritative insight into the trends and outlooks for specific regions and asset classes. View Events Calendar

IFR DIGITAL EDITION

Access a digital replica of IFR's print magazine, updated each Friday. Plus regular Special Reports and Roundtables, covering industry themes

and trends.

Latest Digital Edition

prev

next

BELLWETHER

TAKE A BOUGH

IF A TREE falls in a forest and no one is around to hear it, does it make a sound? For years it’s been a thought experiment that has tantalised us all. Well, not any more. Italian bank UniCredit has signed a partnership with Treedom to create the UniCredit Forest, a sustainable initiative that allows UniCredit employees to plant trees remotely and follow their growth online – which is up there with counting your legs and watching paint dry in the excitement stakes. The initiative will create a forest consisting of at least 90,000 new trees that, it is said, will help reduce global CO2 by approximately 20,542,500kg over the next 10 years. Impressive. And at least it will go some way to making up for the reams of paperwork produced for the tonnes of new shares UniCredit has issued over the past few years. WHEN IT COMES to the boardrooms of Europe’s biggest banks, there’s been something of an executive deforestation of late – and everyone’s heard the thudding of the axes. As well as UniCredit, Credit Suisse, ING, NatWest Markets, HSBC and UBS have all changed CEO in 2020. But in a year of resignations, retirements and reshuffles could there still be room for one last twist? A Dutch court has ordered a criminal investigation into the role UBS boss Ralph Hamers played in ING’s failure to crack down on money laundering when he was head of the Dutch bank. Hamers only took the helm at UBS in November, so it will be up there with Brian Clough’s brief tenure at Leeds United if the axe falls. UBS is confident there is no suggestion of any wrongdoing and insists it is satisfied with its own internal due diligence process prior to the appointment of Hamers, who will remain in the corner office during the investigation – assuming he’s had time to find it. CHRISTIAN SEWING IS fast becoming the Juergen Klopp of banking as he exudes positivity whatever the result. Last week, he heralded a new phase in the bank’s restructuring, telling employees in a memo on Wednesday that “we’re now switching from defence to offence”. Unfortunately, while Klopp usually lives up to the hype with his brand of attacking football, Sewing’s idea of offence is a return on equity of 8% and more cost cuts. But then, taken in the context of McKinsey’s freshly-released global banking report, Sewing suddenly appears as optimistic as his fist-pumping compatriot in front of a packed Kop End. According to the consultancy, banks could lose up to US$4.7trn in revenues by 2025 from the impact of the Covid-19 pandemic and “a long winter” of low interest rates, while returns are set to tumble to just 1.5%. Never mind offence, that’s just offensive. JAMIE DIMON, THE longest-standing bank CEO in the universe, who has swatted aside all-comers, was on his usual top form last week when he said he’d like JP Morgan to join the acquisition trail, specifically by buying a fund manager. "Asset management: my line is open," he said. But straight-talking Dimon then went on to praise rival Morgan Stanley, which acquired fund manager Eaton Vance for US$7bn in October, after snapping up online retail brokerage E*Trade Financial earlier in the year. "I think Morgan Stanley has done a good job with a couple of deals they've done," he said. Maybe he’s going soft after all. IFR 2363 - 12 Dec - 18 Dec

More Bellwether

BELLWETHER

TAKE A BOUGH

IF A TREE falls in a forest and no one is around to hear it, does it make a sound? For years it’s been a thought experiment that has tantalised us all. Well, not any more. Italian bank UniCredit has signed a partnership with Treedom to create the UniCredit Forest, a sustainable initiative that allows UniCredit employees to plant trees remotely and follow their growth online – which is up there with counting your legs and watching paint dry in the excitement stakes. The initiative will create a forest consisting of at least 90,000 new trees that, it is said, will help reduce global CO2 by approximately 20,542,500kg over the next 10 years. Impressive. And at least it will go some way to making up for the reams of paperwork produced for the tonnes of new shares UniCredit has issued over the past few years. WHEN IT COMES to the boardrooms of Europe’s biggest banks, there’s been something of an executive deforestation of late – and everyone’s heard the thudding of the axes. As well as UniCredit, Credit Suisse, ING, NatWest Markets, HSBC and UBS have all changed CEO in 2020. But in a year of resignations, retirements and reshuffles could there still be room for one last twist? A Dutch court has ordered a criminal investigation into the role UBS boss Ralph Hamers played in ING’s failure to crack down on money laundering when he was head of the Dutch bank. Hamers only took the helm at UBS in November, so it will be up there with Brian Clough’s brief tenure at Leeds United if the axe falls. UBS is confident there is no suggestion of any wrongdoing and insists it is satisfied with its own internal due diligence process prior to the appointment of Hamers, who will remain in the corner office during the investigation – assuming he’s had time to find it. CHRISTIAN SEWING IS fast becoming the Juergen Klopp of banking as he exudes positivity whatever the result. Last week, he heralded a new phase in the bank’s restructuring, telling employees in a memo on Wednesday that “we’re now switching from defence to offence”. Unfortunately, while Klopp usually lives up to the hype with his brand of attacking football, Sewing’s idea of offence is a return on equity of 8% and more cost cuts. But then, taken in the context of McKinsey’s freshly-released global banking report, Sewing suddenly appears as optimistic as his fist-pumping compatriot in front of a packed Kop End. According to the consultancy, banks could lose up to US$4.7trn in revenues by 2025 from the impact of the Covid-19 pandemic and “a long winter” of low interest rates, while returns are set to tumble to just 1.5%. Never mind offence, that’s just offensive. JAMIE DIMON, THE longest-standing bank CEO in the universe, who has swatted aside all-comers, was on his usual top form last week when he said he’d like JP Morgan to join the acquisition trail, specifically by buying a fund manager. "Asset management: my line is open," he said. But straight-talking Dimon then went on to praise rival Morgan Stanley, which acquired fund manager Eaton Vance for US$7bn in October, after snapping up online retail brokerage E*Trade Financial earlier in the year. "I think Morgan Stanley has done a good job with a couple of deals they've done," he said. Maybe he’s going soft after all. IFR 2363 - 12 Dec - 18 Dec

More Bellwether

BELLWETHER

TAKE A BOUGH

IF A TREE falls in a forest and no one is around to hear it, does it make a sound? For years it’s been a thought experiment that has tantalised us all. Well, not any more. Italian bank UniCredit has signed a partnership with Treedom to create the UniCredit Forest, a sustainable initiative that allows UniCredit employees to plant trees remotely and follow their growth online – which is up there with counting your legs and watching paint dry in the excitement stakes. The initiative will create a forest consisting of at least 90,000 new trees that, it is said, will help reduce global CO2 by approximately 20,542,500kg over the next 10 years. Impressive. And at least it will go some way to making up for the reams of paperwork produced for the tonnes of new shares UniCredit has issued over the past few years. WHEN IT COMES to the boardrooms of Europe’s biggest banks, there’s been something of an executive deforestation of late – and everyone’s heard the thudding of the axes. As well as UniCredit, Credit Suisse, ING, NatWest Markets, HSBC and UBS have all changed CEO in 2020. But in a year of resignations, retirements and reshuffles could there still be room for one last twist? A Dutch court has ordered a criminal investigation into the role UBS boss Ralph Hamers played in ING’s failure to crack down on money laundering when he was head of the Dutch bank. Hamers only took the helm at UBS in November, so it will be up there with Brian Clough’s brief tenure at Leeds United if the axe falls. UBS is confident there is no suggestion of any wrongdoing and insists it is satisfied with its own internal due diligence process prior to the appointment of Hamers, who will remain in the corner office during the investigation – assuming he’s had time to find it. CHRISTIAN SEWING IS fast becoming the Juergen Klopp of banking as he exudes positivity whatever the result. Last week, he heralded a new phase in the bank’s restructuring, telling employees in a memo on Wednesday that “we’re now switching from defence to offence”. Unfortunately, while Klopp usually lives up to the hype with his brand of attacking football, Sewing’s idea of offence is a return on equity of 8% and more cost cuts. But then, taken in the context of McKinsey’s freshly-released global banking report, Sewing suddenly appears as optimistic as his fist-pumping compatriot in front of a packed Kop End. According to the consultancy, banks could lose up to US$4.7trn in revenues by 2025 from the impact of the Covid-19 pandemic and “a long winter” of low interest rates, while returns are set to tumble to just 1.5%. Never mind offence, that’s just offensive. JAMIE DIMON, THE longest-standing bank CEO in the universe, who has swatted aside all-comers, was on his usual top form last week when he said he’d like JP Morgan to join the acquisition trail, specifically by buying a fund manager. "Asset management: my line is open," he said. But straight-talking Dimon then went on to praise rival Morgan Stanley, which acquired fund manager Eaton Vance for US$7bn in October, after snapping up online retail brokerage E*Trade Financial earlier in the year. "I think Morgan Stanley has done a good job with a couple of deals they've done," he said. Maybe he’s going soft after all. IFR 2363 - 12 Dec - 18 Dec

More Bellwether

BELLWETHER

TAKE A BOUGH

IF A TREE falls in a forest and no one is around to hear it, does it make a sound? For years it’s been a thought experiment that has tantalised us all. Well, not any more. Italian bank UniCredit has signed a partnership with Treedom to create the UniCredit Forest, a sustainable initiative that allows UniCredit employees to plant trees remotely and follow their growth online – which is up there with counting your legs and watching paint dry in the excitement stakes. The initiative will create a forest consisting of at least 90,000 new trees that, it is said, will help reduce global CO2 by approximately 20,542,500kg over the next 10 years. Impressive. And at least it will go some way to making up for the reams of paperwork produced for the tonnes of new shares UniCredit has issued over the past few years. WHEN IT COMES to the boardrooms of Europe’s biggest banks, there’s been something of an executive deforestation of late – and everyone’s heard the thudding of the axes. As well as UniCredit, Credit Suisse, ING, NatWest Markets, HSBC and UBS have all changed CEO in 2020. But in a year of resignations, retirements and reshuffles could there still be room for one last twist? A Dutch court has ordered a criminal investigation into the role UBS boss Ralph Hamers played in ING’s failure to crack down on money laundering when he was head of the Dutch bank. Hamers only took the helm at UBS in November, so it will be up there with Brian Clough’s brief tenure at Leeds United if the axe falls. UBS is confident there is no suggestion of any wrongdoing and insists it is satisfied with its own internal due diligence process prior to the appointment of Hamers, who will remain in the corner office during the investigation – assuming he’s had time to find it. CHRISTIAN SEWING IS fast becoming the Juergen Klopp of banking as he exudes positivity whatever the result. Last week, he heralded a new phase in the bank’s restructuring, telling employees in a memo on Wednesday that “we’re now switching from defence to offence”. Unfortunately, while Klopp usually lives up to the hype with his brand of attacking football, Sewing’s idea of offence is a return on equity of 8% and more cost cuts. But then, taken in the context of McKinsey’s freshly-released global banking report, Sewing suddenly appears as optimistic as his fist-pumping compatriot in front of a packed Kop End. According to the consultancy, banks could lose up to US$4.7trn in revenues by 2025 from the impact of the Covid-19 pandemic and “a long winter” of low interest rates, while returns are set to tumble to just 1.5%. Never mind offence, that’s just offensive. JAMIE DIMON, THE longest-standing bank CEO in the universe, who has swatted aside all-comers, was on his usual top form last week when he said he’d like JP Morgan to join the acquisition trail, specifically by buying a fund manager. "Asset management: my line is open," he said. But straight-talking Dimon then went on to praise rival Morgan Stanley, which acquired fund manager Eaton Vance for US$7bn in October, after snapping up online retail brokerage E*Trade Financial earlier in the year. "I think Morgan Stanley has done a good job with a couple of deals they've done," he said. Maybe he’s going soft after all. IFR 2363 - 12 Dec - 18 Dec

More Bellwether

BELLWETHER

TAKE A BOUGH

IF A TREE falls in a forest and no one is around to hear it, does it make a sound? For years it’s been a thought experiment that has tantalised us all. Well, not any more. Italian bank UniCredit has signed a partnership with Treedom to create the UniCredit Forest, a sustainable initiative that allows UniCredit employees to plant trees remotely and follow their growth online – which is up there with counting your legs and watching paint dry in the excitement stakes. The initiative will create a forest consisting of at least 90,000 new trees that, it is said, will help reduce global CO2 by approximately 20,542,500kg over the next 10 years. Impressive. And at least it will go some way to making up for the reams of paperwork produced for the tonnes of new shares UniCredit has issued over the past few years. WHEN IT COMES to the boardrooms of Europe’s biggest banks, there’s been something of an executive deforestation of late – and everyone’s heard the thudding of the axes. As well as UniCredit, Credit Suisse, ING, NatWest Markets, HSBC and UBS have all changed CEO in 2020. But in a year of resignations, retirements and reshuffles could there still be room for one last twist? A Dutch court has ordered a criminal investigation into the role UBS boss Ralph Hamers played in ING’s failure to crack down on money laundering when he was head of the Dutch bank. Hamers only took the helm at UBS in November, so it will be up there with Brian Clough’s brief tenure at Leeds United if the axe falls. UBS is confident there is no suggestion of any wrongdoing and insists it is satisfied with its own internal due diligence process prior to the appointment of Hamers, who will remain in the corner office during the investigation – assuming he’s had time to find it. CHRISTIAN SEWING IS fast becoming the Juergen Klopp of banking as he exudes positivity whatever the result. Last week, he heralded a new phase in the bank’s restructuring, telling employees in a memo on Wednesday that “we’re now switching from defence to offence”. Unfortunately, while Klopp usually lives up to the hype with his brand of attacking football, Sewing’s idea of offence is a return on equity of 8% and more cost cuts. But then, taken in the context of McKinsey’s freshly-released global banking report, Sewing suddenly appears as optimistic as his fist-pumping compatriot in front of a packed Kop End. According to the consultancy, banks could lose up to US$4.7trn in revenues by 2025 from the impact of the Covid-19 pandemic and “a long winter” of low interest rates, while returns are set to tumble to just 1.5%. Never mind offence, that’s just offensive. JAMIE DIMON, THE longest-standing bank CEO in the universe, who has swatted aside all-comers, was on his usual top form last week when he said he’d like JP Morgan to join the acquisition trail, specifically by buying a fund manager. "Asset management: my line is open," he said. But straight-talking Dimon then went on to praise rival Morgan Stanley, which acquired fund manager Eaton Vance for US$7bn in October, after snapping up online retail brokerage E*Trade Financial earlier in the year. "I think Morgan Stanley has done a good job with a couple of deals they've done," he said. Maybe he’s going soft after all. IFR 2363 - 12 Dec - 18 Dec

More Bellwether

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