Fighting for fees
Despite lacklustre demand for banking services over recent years, a number of foreign banks are pushing into Germany, keen to grab market share. With incumbents unlikely to give up easily, the industry is set for an intense battle.
Overcoming hurdles: With attention more often than not focused on other parts of the eurozone and the problems faced by countries mainly in the southern part of the region, it is easy to forget that Germany is not without issues of its own. Its much-vaunted auto industry, for example, was rocked by the Volkswagen emissions scandal that broke in September 2015. The sector has long since been a mainstay of the country’s corporate world, so the revelations and their consequences cut deep into national pride. That the credit has been partially...Read more
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Despite lacklustre demand for banking services over recent years, a number of foreign banks are pushing into Germany, keen to grab market share. With incumbents unlikely to give up easily, the industry is set for an intense battle.
After last year’s stellar level of issuance, the Schuldschein market remains highly liquid as strong investor demand sees high volumes maintained and an increase in the number of larger deals.
Europe is staring down the barrel of a patchwork bail-in regime as Germany and others reshape the rules in differing ways.
As the euro corporate bond market prepares to welcome a price-insensitive investor to the stage, borrowers have been quick to feed the hunger for credit. But behind that backstop bid from the ECB lie plenty of unknowns.
An increased funding requirement has seen KfW compelled to come to market when others have preferred to sit things out. It seems to be rising to the task, however.
The VW emissions scandal cast a long shadow over the German auto sector. But while VW’s spreads remain wider than its peers, other manufacturers look to have put the crisis behind them. For VW, ABS has provided a safety net.
The data shows that IPOs in Germany are more likely to need restructuring than anywhere else in EMEA. Looking at it another way, deals in Germany face less risk of cancellation. Either way, a strong corporate pipeline is crucial to rebuilding confidence.
KfW last sold Deutsche Telekom shares a decade ago and has not completed any privatisation work for over three years – yet ECM bankers are not optimistic for a revival any time soon.