Markets, as the cliche has it, hate uncertainty. To which the only sensible response is “who doesn’t?”. But markets don’t seem to hate it very much at the moment. There is, after all, an awful lot of uncertainty about. The upheaval that is MiFID II, the much more extreme upheaval that is Brexit, the first interest rate hike cycle in a decade in the US, the beginning of the end of quantitative easing on both sides of the Atlantic and a new person in charge of the Fed. Not to mention the kind of geopolitical upheaval that would once have had...Read more
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Top of the league
JP Morgan bestrides the world of finance in a way unprecedented in the modern era. It does more deals, makes more money and has bigger ambitions than any other banking institution. JP Morgan is IFR’s Bank of the Year and Loan House of the Year.
The full menu
One bank has dominated the debt capital markets this year. And while much of that dominance is thanks to its achievements in its US home market, it has proven its credentials across the globe. That bank is Citigroup, which is IFR’s Bond House, US Bond House, North America Financial Bond House and Latin America Bond House of the Year.
Edging in front
Morgan Stanley capitalised on the resurgence in ECM in 2017. It maintained its position as a leader of IPOs, built its presence in block trades and remained the bank adviser of choice, making it IFR’s Equity House and Asia-Pacific Equity House of the Year.
Take your partners
As volatility evaporated, derivatives businesses had to focus on core strengths to make headway in 2017. For an integrated approach that spread equity know-how across asset classes and enabled effective risk transfer across the broad client franchise, BNP Paribas is IFR’s Derivatives House and Equity Derivatives House of the Year.
Heart and soul
HSBC remains at the forefront of innovation in the emerging markets. The bank’s ability to connect bond issuers to markets around the world is unparalleled, especially in Asia where it remains the dominant shop. HSBC is IFR’s Emerging Markets Bond House and Asia Bond House of the Year.
Big fish in calm waters
The past year could have been tough for independent advisers on capital market transactions, with issuers finding it relatively easy to raise both equity and debt. But for successfully bringing distressed sovereigns back to the market as well as acting on a raft of IPOs, Rothschild is IFR’s Capital Markets Adviser of the Year.
Corporate protector
For successfully defending businesses such as Unilever from unwanted approaches, and maximising prices when a bid made sense, as well as advising on some of the most significant strategic acquisitions that have been completed in the past 12 months, Morgan Stanley is IFR’s M&A Adviser of the Year.
Fulcrum position
Houlihan Lokey was involved in most major corporate reorganisations in 2017. The firm dominated by driving the kind of outcomes possible only when a team of advisers is focused on unlocking value for its clients. Houlihan Lokey is IFR’s Restructuring Adviser of the Year.
Cleaning up
Only one bank can boast of having been the key adviser on the year’s biggest transactions from European banks, US insurers and Asian fintech firms. For its range of work on complex deals across all products and regions, Morgan Stanley is IFR’s Bank of the Year for Financial Institutions.
Global connections
Its unrivalled global presence and prowess across the entire spectrum of banking have long marked out Citigroup as a vital partner for public sector clients. But in 2017 it took that a step further, leveraging its assets to create some landmark and often innovative solutions for governments – often against strong headwinds. Citigroup is IFR’s Bank of the Year for Governments.
Sponsor support
Coming up with new transaction ideas while navigating a crowded field of private equity firms, family offices, sovereign wealth funds and other asset managers has been crucial for sponsor bankers in a busy year. One firm has cemented its lead over rivals, making Goldman Sachs IFR’s Bank of the Year for Financial Sponsors.
Bankers have long complained that the rules that arose from the ashes of the financial crisis are ill-prepared at best and punitive at worst – and ultimately driven by a spirit of banker-bashing. The election of a US president with a similar view looked set to unleash a wave of creative regulatory destruction. But the early signs indicate that authorities will take a more constructive approach.
Green bonds have quickly become an important piece of sustainability financing. Yet while Green loans have emerged more slowly, they have plenty to offer both borrowers and lenders – and provide options not available in the bond market. Environmentally responsible lending may finally be ready to take off in earnest.
A reformed and reshaped global banking industry is investing for growth again. But with decent profits still elusive for some, and a host of headwinds to battle against, it’s too early to declare that happy days are here again.
Growth is (relatively) strong, markets are up as a result and capital markets activity is buoyant. The return of Tepco to the bond markets and the funding dynamism of Softbank were among factors that gave bankers in Japan and those who focus on the market from abroad a certain swagger.
Banks are in a fight for talent with technology, consulting and other firms, but are they ignoring too many students from poorer backgrounds? Some bankers think so, and want the net widened so they can add true diversity.
Singapore and Hong Kong look poised to allow shares with weighted voting rights in a bid to attract more listings from the new economy. But will it change anything?
Not so long ago it looked like the classic standalone investment bank would become a thing of the past. But with all the regulations put in place in the wake of the financial crisis, could the standalone model be poised for a comeback?
Grand plans to transform Saudi Arabia’s oil-focused economy have caught the attention of every major bank over the past year. But many could be in for a long wait as they seek returns on the resources being lavished on the country.
The weakness in the oil market, relative to the highs enjoyed in past years, has provided a supportive backdrop for Islamic bonds, forcing oil-rich Middle Eastern issuers to fund in the market. The market’s outlook will be determined in large part by oil’s future path, though investors will also be looking for assurances that Middle Eastern issuers honour their legal obligations.