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Gold blend: Banks continue to struggle with structured equity as a global business, such is the regional focus created by accounting and legal differences. But by blending equity and derivatives, Goldman Sachs ensured deals got done when none seemed possible and is IFR’s Structured Equity House of the Year.
Dressing to the left: When both straight debt and convertible bond markets were open to issuers, equity-linked lost out. Expertise in structuring deals and an ability to drive their economics were key in convincing issuers to step up to meet investor demand. Credit Suisse is IFR’s Americas Structured Equity House of the Year.
Naming its price: Priceline captivated market participants on a six-year CB in March whose terms were so aggressive as to effectively serve as a straight-debt surrogate. For providing the market with a sense of direction and successfully arbitraging investment bank competition, Priceline’s US$1bn CB is IFR’s Americas Structured Equity Issue of the Year.
Return to form: Structured equity was back in 2012 as volumes exceeded that of the previous two years and the big names returned with jumbo transactions. Securing a near 20% market share and featuring on all of the most notable deals, Deutsche Bank is IFR’s EMEA Structured Equity House of the Year.
VW’s US road trip: A sharp pick-up in activity meant a rare glut of jumbo transactions in Europe towards the end of 2012, but only one took a mothballed structure and made it mainstream. Volkswagen’s €2.5bn mandatory convertible bond issue is IFR’s EMEA Structured Equity Issue of the Year.
Reach and diversity: While primary issuance in the Asia-Pacific equity-linked market fell this year, JP Morgan found creative solutions to help issuers print in tricky conditions. It achieved great terms, came up with smart restructuring solutions, and showed its diversity and geographical breadth, making it IFR’s Asia-Pacific Structured Equity House of the Year.
Hitting the sweet spot: The March 2011 earthquake and tsunami left Tepco reeling from a nuclear meltdown and ready to dump liquid assets. Its 8% stake in KDDI meant the telecoms operator’s share price was suffering. For relieving pressure on both companies and opening the market to others, KDDI’s ¥200bn convertible bond is IFR’s Asia-Pacific Structured Equity Issue 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.