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A fistful of dollars: US dollar bonds were the best (and sometimes only) funding solution for many issuers in 2012. And whether it was in the US, Europe or Asia, one bank stood out in making dollar deals happen. With unmatched execution across products and regions, JP Morgan is IFR’s US Dollar Bond House of the Year.
Shaking off Sandy: Just days after Hurricane Sandy devastated the US northeast, AbbVie, the pharmaceutical spin-off from Abbott Laboratories, priced the biggest ever investment-grade bond deal in the US market at US$14.7bn. Despite syndicate and buyside desks being half-staffed, the six-part deal attracted US$41bn of demand in a morning’s work, making it IFR’s US Dollar Bond of the Year.
Building on success: While there is no shortage of banks that can demonstrate credentials across certain asset classes within the single currency, few can claim to be able to offer expertise and a proven track record across the whole piece. BNP Paribas can, however, and for its comprehensive abilities it is IFR’s Euro Bond House of the Year.
Powering the periphery: A deal has to be truly extraordinary to steal the show during the busiest week for European corporate bond supply in over three years. EDP’s September transaction was not only 10 times subscribed, but was also the first of its kind from a Portuguese corporate in over 20 months. The €750m five-year is IFR’s Euro Bond of the Year.
Anticipating change: The dynamics of Japanese markets have shifted quickly and significantly over the past 12–18 months. For staying ahead of the curve, helping a variety of issuers access the yen market, for opening new horizons for Japanese investors and for its unmatched distribution capability, Mizuho is IFR’s Yen Bond House of the Year.
Showing the way: In a year in which few investors were willing to book European FIG paper, one bank bet that Japanese investors still had an appetite for the right name. For cracking the Japanese market open with a huge trade against a complicated backdrop, Nordea’s ¥120.2bn multi-tranche Samurai issue is IFR’s Yen Bond of the Year.
Going global: Conservative, boring, staid – that was how most market participants viewed the sukuk market at the beginning of 2012. No longer. And no deal pushed the boundaries further than Abu Dhabi Islamic Bank’s Hybrid Tier 1 note, which wins IFR’s Islamic Bond of the Year.
Riding the wave: The volume of corporate bond that deals that priced in Europe in 2012 meant execution teams had to put on an exceptional show to outshine the competition. For its expertise in swathes of products and currencies, leadership in the face of unprecedented competition, and its innovative flair, BNP Paribas is IFR’s EMEA Investment-Grade Corporate Bond House of the Year.
Three of the best: A highly accommodative market for European corporate bonds eliminated any excuse issuers might have had for not pushing the boundaries. For demonstrating in three currencies that hybrid debt can be a valuable feather in corporate caps and a useful asset in investors’ portfolios, BG Group’s three-part hybrid bond is IFR’s Investment-Grade Corporate Bond of the Year.
Pushing the boundaries: Over the past year, US banks have gone on a capital securities issuance spree, and European financials have regained access at more reasonable levels. For showing leadership and providing a safe pair of hands to its clients, Bank of America Merrill Lynch is IFR’s Financial Bond House of the Year.
Leap of faith: UBS made a bet in August that US desperation for yield was at fever pitch, and won in style when it launched the first ever Yankee CoCo deal. The US$2bn Tier 2 write-down transaction’s stellar performance since then has opened the market for others to follow, making it IFR’s Financial Bond of the Year.
Access all areas: Liability management is a crucial part of any top-tier bank’s armoury these days. To succeed in this area takes commitment and requires dedicated experts able to deliver a strong deal roster across a diverse range of asset classes. Deutsche Bank demonstrated all these things and is IFR’s EMEA Liability Management House of the Year.
Deleverage and optimise: Low interest rates and ample liquidity created the perfect climate for companies looking to deleverage and re-optimise their balance sheets in 2012. Meeting a rush of demand for liability management, however, was not every bank’s cup of tea and only a few excelled. Citigroup was one such bank and is IFR’s US Liability Management House of the Year.
A safe pair of hands: As any treasurer will tell you it is a daunting prospect to face a new year with a fresh funding programme and an uncertain market environment. The first months are crucial, and you need a counterparty that is going to show loyalty, innovation and above all else, leadership. Deutsche Bank is IFR’s SSAR Bond House of the Year.
Pride of the collection: At the start of 2012 investors were offered a rare chance to purchase what one lead manager called a “collector’s item” in the sovereign bond market. With investors clamouring for Canada’s US$3bn five-year bond offered at historically low spreads, this deal has to be IFR’s SSAR Bond of the Year.
Breaking from the pack: The European covered bond market was not as dominant in 2012 which allowed new issuers to step in and sell the product to supply-starved investors in new jurisdictions. For its ability to navigate the global market and display a comprehensive understanding of the changing needs of issuers, Barclays is IFR’s Covered Bond House of the Year.
Out of the ashes: Having been locked out of covered bonds since 2009, Bank of Ireland achieved a startling response from investors when it returned to the market. It attracted some €2.5bn of demand and wedged open an issuance window for other Irish banks. Its €1bn three-year issue is IFR’s Covered Bond of the Year.
Innovating to stay on top: In another year of challenges, including negative rates and drastic changes in regulations and markets, Credit Suisse held its head high, providing innovative answers and maintaining its lead in the face of stiffening competition. For its solid performance and novel solutions, the firm is IFR’s Swiss Franc Bond House of the Year.
Blazing the trail: For pioneering a radically new structure, capitalising on the strengths of its home ground, and providing much needed return in a yield-starved environment, Swiss Re’s SFr320m 7.25% perpetual non-call 5.5-year hybrid bond wins IFR’s Swiss Franc Bond of the Year.
New kid on the block: It has often been assumed that the top spot in the sterling market was the natural preserve of UK-based banks. Deutsche Bank showed this was not necessarily the case. It brought new and rare issuers to the currency and offered investors welcome diversification. Deutsche Bank is IFR’s Sterling Bond House of the Year.
Sending the right signals: London’s transport network coped remarkably well during an exceptionally busy summer that included the Queen’s Diamond Jubilee and the Olympic Games. But unbeknown to most of its customers, Transport for London also excelled in securing long-term funding at the lowest possible cost. TfL’s £500m 3.875% July 2042 bond is IFR’s Sterling Bond of the Year.
A high-yield machine: For reopening the market, leading the charge on jumbo transatlantic deals for debut issuers and leveraged buyouts, and bringing the broadest range of issuers across geographies and credit quality throughout another volatile year dominated by refinancings, Deutsche Bank is IFR’s EMEA High-Yield Bond House of the Year.
Auto trade: If there was one deal that stood out this year, and appealed to the broadest array of investors, it was German auto parts supplier Schaeffler’s. For ticking all the boxes that represent a truly global deal, Schaeffler’s €2bn-equivalent four-part trade is IFR’s EMEA High-Yield Bond of the Year.
A creative spark: In a red hot 2012, Credit Suisse outperformed in the US market by maintaining strong market share despite its size, and bringing forth creative, difficult and consistent issuance. For these reasons, it is IFR’s North America High-Yield Bond House of the Year.
Mission accomplished: HD Supply, the victim of a hung LBO from 2007, defied the odds in tapping the US high-yield market in 2012 to solve a serious near-term debt problem. A US$1.625bn two-part issue priced in April completely reshaped the company and is IFR’s North America High-Yield Bond of the Year.
New frontiers: In a challenging period for high-yield issuance, a transaction from one of Asia’s frontier markets stood out. For helping to reopen Asia’s corporate high-yield market and setting a benchmark for Mongolian credits, Mongolian Mining Corp’s US$600m debut is IFR’s Asia-Pacific High-Yield Bond and Emerging Asia Bond of the Year.
It has been a long road back for RBS’s investment banking unit from the day that the British government stepped in to prop up the bank with a £20bn cash injection. The story of its partial recovery involves two separate restructurings, the slashing of £700bn from its assets, a surprising (and temporary) surge in profits and a series of ruthless decisions.
The process of restructuring Greece’s sovereign debt was, for the banking professionals involved, one of the most complicated they had ever experienced. The fact that it was accomplished in nine months was, perhaps, a minor miracle. Here, IFR examines how the deal made it over the line.
Global investment banking fees are expected to drop 10% in 2012. But that number flatters the reality experienced by a number of market participants. To many, the year felt a lot worse than that.
The JOBS Act has made the IPO process for smaller companies in the US quicker, cheaper and easier. That may have boosted listings – and possibly even employment (and not just among bankers). But has it taken away the time investors need to make informed decisions?
New capital and liquidity requirements under Basel III are likely to have all kinds of consequences – including a slowdown in lending across the spectrum. Banks must find new ways of drumming up capital and cleaning up their balance sheets.
A string of insider-trading scandals in recent years has tarnished the reputation of Japan’s banking community and prompted the country’s Financial Services Agency to review regulations on insider information. Observers hope the efforts will clean up the industry and restore faith in Japanese banks.
It is not easy to kill the loan markets. But with a sharp drop in volumes, the European syndications market certainly looked close to death in 2012. Nevertheless, bankers are confident that syndications will rebound strongly in the year ahead.
Users of derivatives, both in the banking industry and the wider world, have spent months gearing up for the profound changes in regulations that 2013 will bring. But as implementation of the changes comes ever closer, room for considerable confusion remains.
Argentina has imposed capital controls, seized assets, nationalised companies – and shows little sign of yielding in a bitter and long-running legal battle with its so-called holdout creditors. Antagonising the markets is no way to attract the long-term investment the country needs, which raises the question: how much longer can this go on?
From the ECB’s cheap money to the wildly different price expectations of buyers and sellers, there are plenty of reasons why Europe’s banks are not deleveraging quickly enough. Will they pick up the pace in 2013?
A lot of water has passed under the bridge since the Asian financial crisis 15 years ago, and although there is still plenty of work to be done, the region has made spectacular progress. The current turmoil in Europe has left Asia looking like a safe bet.