Top stories
BP makes good
BP Capital Markets proved that, while the Gulf of Mexico oil spill is still fresh in people’s minds, investors are a forgiving lot. The BP subsidiary printed a US$3.5bn two-part bond offering last week, offering no new issue concessions to a mostly US order book and outshining almost all other recent oil and gas issuers. Timothy Sifert reports.
AIA: IPO discount or acquisition premium?
AIA, the Asian arm of bailed-out US insurer American International Group, started pre-marketing its Hong Kong IPO last week, setting the scene for a renewed debate about the company’s valuation.
Banks prepare to fund mega media M&A; deals from Turkey
Two of the largest M&A deals that Turkey will see this year are in the same sector and under way at the same time, and banks are lining up to finance them. US private equity player Providence Equity Partners is in the process of talking to bidders for its 47% stake in Digiturk. At the same time Dogan Media Holdings is talking to potential suitors about the sale of all or some of its properties.
A year to forget
The collapse of IPOs for Liberty Mutual in the US and Lucien Barriere in France were all the more significant for coming at the end of a difficult third quarter that saw postponed and cancelled IPO activity worldwide reach a record level. Equities have rallied, but investors are still cash-poor; the latest casualties stumbled as the sellers were not willing to slash pricing to make them must-own stocks. Robert Sherwood and Robert Venes report.
Investec readies new deal, as Paragon secures a line
After the disappointment following Bank of America Merrill Lynch’s decision to abandon the effort to sell its Moorgate 2010-1 non-conforming RMBS, the primary market for this sector stepped up in pace last week.
Glitzy return for Dubai
The Middle Eastern capital of all things glitzy and glamorous – Dubai – returned to the bond market last Wednesday in grand style, sending a strong signal about the turnround in investor perception. It paid no charge for its curve extension, tapping red hot demand at the perfect time, as Bakyt Azimkanov reports.
A new golden era
After a period of range-bound trading through the first half of 2010, gold has finally broken out of its comfort zone and the rally is firmly back on track as investors bet that a new round of quantitative easing from the Federal Reserve will drive further dollar weakness. Analysts are surprisingly unified in their bullish outlook, though at current levels a sell-off remains a real threat. Helen Bartholomew reports.
IFR on Reuters Insider
Sept 20: Boom time for India's loan market
India’s capital markets are expanding fast and hotspots include infrastructure, disinvestment and telecoms, says Keith Mullin, IFR’s Editor-at-Large.
Aug 24: Basel Committee backs burden-sharing for bank bond investors
New proposals from the Basel Committee could mean bond investors bear a greater burden when banks fail. IFR’s Matt Attwood tells us what the proposals could mean for debt markets.
Aug 17: Russia's planned debut Eurorouble bond seen worth US$2bn
Russia is expected to launch a debut benchmark Eurorouble bond issue in the third quarter to raise about US$2bn at a healthy premium over the country’s dollar bonds, says IFR’s John Weavers.
Up Front
Concentration risk
For professionals working in the weapons of mass destruction industry (aka derivatives dealers), it has been a difficult few years. From the collapse of Lehman Brothers and AIG’s near demise to dodgy Greek government accounting, derivatives markets have borne heaps of blame – and drawn much unwanted attention from politicians keen to clean up the murky industry.
The rise and rise of Carsten K
Just under two years after joining UBS as the head of its basket-case FICC division, former Goldman Sachs partner Carsten Kengeter completed his route march to the top when he was given sole control of the firm’s investment banking division.
3i banks on debt markets with MIM acquisition
3i Group last week agreed to acquire Mizuho Investment Management, a unit of Mizuho Corporate Bank, for £18.3m (US$29m) and also lured key personnel including MIM founder and CEO Jeremy Ghose to head 3i’s foray into debt management.
Also In This Issue
- Goldman Sachs warns on regulatory arbitrage
- Banks stronger, but still vulnerable
- ISDA warns on speculation clampdown
- 3i banks on debt markets with MIM acquisition
- US to the rescue as Asia starts to resist S Korean paper
- Glencore overcomes challenge
- Investors reassert discipline in LatAm
- Sri Lanka makes triumphant return
- Gulf's tightest FIG yield
- Running for cover in Australia
- Fitch to stress-test its RMBS
- 3i on CLO acquisition trail
- Banks look for assets
- Viacom markets US$2bn MBT deal
- Emaar reopens UAE
- Germany: Deutsche dominates
- Elster Group sets tone for IPO market
- Amyris catalyses IPO for growth
- AIA: IPO discount or acquisition premium?
- Not so fast for Boston
- Bondholders square off with Ireland
- Derivative holdings hit record
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