Turbulence of the type experienced in financial markets in the last 12 months has a habit of turning things on their head. Banks have needed an iron grip to hold on to their rankings in the capital markets businesses they participate in. In the first half of 2009, reputation has counted for little: there has arguably never been a better time for smaller and medium sized players in any business to make a play for the big time. In several asset classes, key established players, with bigger problems to contend with, have scaled back their...Read more
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The EEA primary market suffered another huge blow in 2009. The once prolific CIS banking pipeline dried up, while most blue chip corporates with access to the market found it cheaper to secure funding elsewhere. Although the sovereign market has reopened, non core countries have to pay up for the privilege. It all meant banks were competing for a radically reduced pool of deals, as John Weavers reports.
In 2008 conditions were perfect for convertibles and issuance disappointed. In the second half of the year volumes collapsed and just 32 deals were completed. In 2009 leverage remains an issue for many companies, yet terming out debt, and the ability to access markets, have been just as important. This has ensured a recovery in US and European CB markets, as Owen Wild reports.
Equity’s rise to prominence has coincided with the contraction of borrowing options and a need to reduce leverage. The need to issue has provided ECM teams with a boost in fees from rights issues and accelerated deals to offset the lost revenue of IPOs. The rise in underwriting has also given banks with a balance sheet an opportunity to punch above their weight. Owen Wild reports.
The European corporate bond market has undoubtedly been the success story of the year so far. with record issuance volumes and encouraging after-market performances, it has set the tone for returning confidence across the sector. This at a time when many corporates were following a defensive liquidity strategy amid recessionary fears, rising defaults, increasing downgrades and heightened market volatility. Andrew Perrin reports.
While the loan market has picked itself up from the canvass at the start of the year, volumes remain muted. Many of the former behemoths in the business are loathe to compete as they once did. But while the bond market has filled much of the void, some banks have also capitalised on the opportunity to make unexpected appearances in the top 10, as David Cox reports.