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High wireless act
In a year of political shocks and whipsawing markets, one bank showed particular leadership. For remaining committed to clients through all the ups and downs, reopening markets after periods of stress and developing creative solutions, Goldman Sachs is IFR’s US Bond House of the Year.
Cheers for the beers
The tie-up between the world’s two largest brewers was always going to mean some significant debt issuance, and Anheuser-Busch InBev’s US$46bn offering did not disappoint.
Margin of difference
Hitting market themes, leading innovation and gaining market share may be aspirations held dear by many underwriting banks but they are frustratingly difficult to achieve. One bank managed just this in the euro market in 2016, however. BNP Paribas is IFR’s Euro Bond House of the Year.
Setting the stage
Nykredit Realkredit stole a march on Europe’s major lenders as it opened the market for so-called Tier 3 debt, setting the stage for a flood of similar issuance from the banking sector.
Broader appeal
The yen market in 2016 had to react to unprecedented market conditions as the Bank of Japan took radical steps to reinvigorate the economy. For doing more than its peers to deepen the market for higher-yielding assets and reach new investors, SMBC Nikko is IFR’s Yen Bond House of the Year.
Holding focus
HSBC Holdings’ ¥181.8bn (US$1.8bn) triple-tranche TLAC Samurai debut overcame British political turbulence and investor uncertainty about the paper’s regulatory treatment in Japan to smash a European record for financial issuers.
Clarity begins at home
Maintaining focus at home while also performing a leading role on the global stage requires application that not all possess. Barclays, however, is no stranger to treading this path and is able to do so in a way that means it never loses focus. Barclays is IFR’s Sterling Bond House of the Year.
Firing on all cylinders
The Bank of England’s post-referendum stimulus measures brought the sterling market to life, and National Grid Gas Finance quickly pounced on those conditions to sell the biggest corporate bond that the market had ever seen.
Making the impossible possible
In a year where negative rates deepened further, forcing out ever more regular issuers, one bank stood out as a pioneer of the new thinking required to survive in the changed markets of 2016. For its leadership and conviction, and for pushing the boundaries of what was possible, Credit Suisse is IFR’s Swiss Franc Bond House of the Year.
Lovin’ it
McDonald’s returned to the Swiss bond market in September, taking advantage of the ultra-low rates environment to print with the lowest coupon in any currency for the global burger chain.
Covering new ground
DBS Bank broke new ground in May with the first covered bond from an Asian issuer in Australia’s Kangaroo market, opening up a new funding channel as the senior secured format gains traction across the region.
Gateway to Europe
For executing the corporate market’s first-ever negative-yielding bond, the largest-ever euro bond and for providing unrivalled consistency of market access during a year of shocks and volatility, BNP Paribas is IFR’s Europe Investment-Grade Corporate Bond House of the Year.
Sugared pill
Sanofi demonstrated what was possible when it sold the first negative-yielding non-financial corporate bond in euros in September, a landmark transaction brought about by the ECB’s market-changing stimulus measures.
Keeping the crown
In a year when competition to lead the FIG pack was more ferocious than ever, UBS fought off its peers and retained the crown it first won in 2015. For its acumen, ubiquity and consistency, UBS is IFR’s Europe Financial Bond House of the Year.
Stars align
Prudential reopened the Reg S US dollar market for Tier 2 perpetual hybrids after a three-year hiatus, spearheading a US$5bn wave of supply from European insurers eager to lock in equity-like capital at a price too good to ignore.
While the sun shines
Financial institutions had a bumpy ride in 2016. Under pressure to raise debt and capital, they faced additional headwinds such as the Brexit referendum and a sharp rise in short-term funding costs. Morgan Stanley was there each time with a solution, making it IFR’s North America Financial Bond House of the Year.
Breaking new ground
Total loss-absorbing capacity regulations have had a significant impact on the issuance habits of US lenders over the past year, making many opt for shorter maturities as they wait for the final rules to emerge.
One step ahead
In a year dictated by political as much as economic risk, bond arrangers have had to be ever more resourceful, innovative and able to leverage expansive global franchises to stand out. For these reasons, HSBC is IFR’s Sovereign, Supranationals, Agencies and Regionals Bond House of the Year.
Long-dated stampede
In a year that saw central bank bond-buying squeeze yields to previously unimaginable levels, France’s ultra-long dated 20 and 50-year April trade kicked off a trend that was unstoppable once it started.
Getting to the top
It can be hard to stand out in the covered bond market, a well-oiled machine in which nearly every European bank and others beside play, but Credit Agricole has climbed to the top of the pile after many years of hard work. For its momentum and mettle, Credit Agricole is IFR’s Covered Bond House of the Year.
Fortune favours the brave
Canadian Imperial Bank of Commerce became the first non-eurozone issuer to sell euro-denominated debt at a negative yield in any sector as it priced a covered bond that, held to maturity, would lose investors money.
Top of the tree
Sustainability and social bonds developed from fresh innovations to fully fledged partners of more traditional Green products in 2016, driving SRI’s expansion into new frontiers. For its commitment to developing a robust framework for the sector while pioneering innovation across a growing global marketplace, Credit Agricole is IFR’s SRI Bond House of the Year.
Outperformer
TSKB blazed a path this year when it carried sustainability principles beyond the traditional SRI hunting grounds into the new world of emerging Europe, and the innovative approach was fully vindicated when the bank unearthed jaw-dropping levels of demand.
Well-oiled machine
In a tough year for high-yield supply, Deutsche Bank was there for tricky and innovative trades both great and small, retaining its crown as IFR’s Europe High-Yield Bond House of the Year.
The best laid plans…
LeasePlan’s chunky LBO trade was already impressive enough from a structuring standpoint, but a bold decision to hold off printing in the jaws of volatility was also the year’s best market call.
When opportunity knocks
For delivering results through times of exceptional volatility in the junk-bond market and demonstrating strong judgement in underwriting leveraged financings – while aggressively gaining market share from competitors – Barclays is IFR’s North America High-Yield Bond House of the Year.
Security clearance
February 2016 was just about the worst time to underwrite LBO debt since the financial crisis.
Rock-bottom interest rates, quantitative easing and negative yields have turned the fixed-income investor universe upside down. How do fund managers make sense of these changes and how are they positioning their portfolios in response?
2016 couldn’t have been much worse for equity capital markets bankers: big spikes in volatility, intermittent periods of market closure, pulled deals and a collapse in fees. How have they weathered the storm, and how will they carry their injuries into 2017?
Chinese banks and brokers are taking over the Asian investment banking league tables, as more mainland issuers and investors turn to the international markets. Global rivals need to rethink their approach.
Big banks have lost more than US$60bn in their corporate centres in the last four years. Some critics say the units can mask the true performance of business divisions.
The rise and rise of the passive fund is yet another result of the low interest rate environment. And a worrying one.
A long-term commitment to re-balancing the Chinese economy should make the M&A boom more sustainable. But worries about capital flight and the renminbi’s weakness may force the authorities to put a stop to the party.
Fintech start-ups have mostly played around the edges of investment banks’ core activities – but not for much longer. The global financial full-service model was already creaking, but an Uber-style disruption to front-office activity is no longer a distant threat.
A growing realisation that over-enthusiastic and uncoordinated banking regulation is damaging the real economy, combined with the shock election victory of Donald Trump, is likely to see the regulatory onslaught of the post-financial crisis period lessen in intensity, if not reverse course.
