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Bucking the trend:
A combination of declining client volumes and a market slump in late 2018 have weighed on banks’ equity derivatives desks over the past 12 months. For growing its business in this challenging environment and solidifying its position as one of the top dealers, Citigroup is IFR’s Equity Derivatives House of the Year.
Back with a bang
Credit markets have rebounded from the losses of late 2018 and since proved popular with yield-hungry investors. Despite depressed client activity and concerns about the end of the cycle, banks brave enough to invest have reaped the rewards. For expanding its business and re-establishing itself as one of the top dealers, Barclays is IFR’s Credit Derivatives House of the Year.
Techno beat
Low volatility in foreign exchange has made it hard for banks to gain ground in this highly electronic market. For increasing market share through technological investments and helping provide innovative solutions for clients in emerging markets, BNP Paribas is IFR’s Foreign Exchange Derivatives House of the Year.
Trade tensions between Beijing and Washington are threatening to spill over into capital markets, with some policymakers even calling for a ban on Chinese listings in the US. Just how far can it go?
As Japanese fund managers broaden their search for yield, international issuers are finding they no longer need to spend the time and money to prepare local language documentation. Old habits die hard, however, and lengthy marketing periods are still standard practice.
Primary bond markets have proved a testing ground for the transition from inter-bank offered rates to new alternative risk-free rates. But the abundance of issuance referenced to Sonia and SOFR should not obscure the unfortunate fact that most of the proceeds have immediately been swapped back to Libor by the borrowers.
Is the traditional green bond market threatened by the emergence of transition bonds, SDG bonds, general-purpose bonds with environmental targets and other debt classes intended to encompass wider environmental goals? Does it matter if new market segments are more effective at reducing the emission of greenhouse gases?
As another painful year for Europe’s banks draws to a close, the need for big bank consolidation has never been greater.
