It has been a year that has seen the headlines dominated by a sovereign debt crisis in Europe. This time last year, the carnage that would be wrought by cripplingly high debt in Greece, Portugal and Ireland was already visible on the horizon. Europeans had already taken concerted action to save Greece, although the cost of those measures remained unknown – as they arguably still are today. Questions were being asked about where that left the other PIGS – Spain was still viewed in a similar light, before distancing itself, and then ultimately...Read more
To purchase printed copies or a PDF of this report, please email leonie.welss@lseg.com and shahid.hamid@lseg.com
It has been a huge year for the covered bond market, which has taken up the slack left by the disintegration of parts of the sovereign debt market. Established markets have seen record-breaking issuance while newer jurisdictions, from the US in the west to Australia in the East, have been busy preparing the ground, hoping to join the party. Peter Carvill reports.
Recovery of the credit markets has opened up new funding sources for cash-rich technology companies. One less apparent vehicle that has surfaced in recent years is the long-dated, deeply-subordinated convertible bond. By taking advantage of structural enhancements unique to the asset class, such securities provide significant tax shield of straight debt but at a lower cash costs. Stephen Lacey reports.
The sovereign debt crisis in Europe has cast a cloud over the euromarket in recent months, with even European companies often gravitating to dollar financing. But while international borrowers have hitherto been powerless to resist its allure, there are signs the golden era for dollar corporate bond issuance may be drawing to a close. David Rothnie reports.
Indian Eurobond issuance could more than double this year after nine rate hikes in a year by the Reserve Bank of India. Although financials dominate the market, the global reach for yield is driving improved funding arbitrage and investor diversification opportunities for India’s burgeoning corporate sector. Joti Mangat reports.
Turkey’s local currency bond market has undoubtedly had an impressive year, but the country is still a very long way from having a fully functioning market. From a standing start, borrowers have started to come to the market. But without a deep and liquid investor base, the country looks set to remain dominated by bank funding. Nick Lord reports.
In the immediate aftermath of the March 11 earthquake, many outside Japan thought the country’s capital markets had been decimated. But foreign issuers were positively surprised to see investor attention quickly refocus on the superior-yielding Samurai market. Global FIGs stormed the yen market as an alternative funding ground, proving the doubters wrong. Atanas Dinov reports.
Poland has shied away somewhat from euro-denominated issues over the past year, thanks to the southern European economic crisis, but has had little trouble meeting its targets. However, international investors are eying its relatively high budget deficit. Denise Bedell reports.
To view the digital version of this report, please click here. The IFR Top 250 Borrowers ranking includes all Thomson Reuters league table-eligible borrowings in syndicated loans, international bonds, convertible bonds and securitisations for the period May 1 2010 to April 30 2011. The rankings reflect the activity of borrowers at the parent level. In recent years majority-owned subsidiaries that borrow in their own names were given separate entries of their own but this is no longer the case, due to difficulties in presenting this data...
To view the digital version of this report, please click here.
Mexico is one of the most highly rated sovereigns in Latin America with a number of notable transactions demonstrating investors’ enthusiasm for its paper. Their only complaint might be that its recent successes mean it may be a quiet end to the year. Jason Mitchell reports.
The European Financial Stability Facility entered the Top 250 list in its first year as a formidable presence in the global debt market, supplementing the already considerable borrowing of the European Union to assist in the financing of Europe’s distressed sovereigns. Their prominence is likely to last for many years to come. Michael Winfield reports.
The deal was notable for its size as well as its timing, two factors that meant success could not be taken for granted. Yet ultimately the quality of the issuer, and the promise of more lucrative further down the line, carried the day, ensuring AT&T’s US$39bn bridge loan was well received. Michelle Sierra reports.
PPL transformed its electricity business over the past year, buying subsidiaries from German giant E.ON and carefully using the debt and equity markets to do so. Stocking up term debt might have been the cheapest option but PPL had its credit rating to think about. Timothy Sifert reports.
In a year that will always be associated with the oil spill in the Gulf of Mexico, BP had its work cut out to raise the financing it needed in the summer of 2010. But in a highly innovative deal the energy giant pulled off one of the loan coups of the year, just one of the deals it completed in the 12 month period. Chris Mangham reports.
It was a deal that drew criticisms as well as praise, but Hutchison Whampoa undeniably fulfilled its target when it issued its US$2bn perpetual bond in October. The deal squeezed through just before the door slammed shut on the market and performed poorly in the secondary, but it generated more interest than similar deals at the same time, and maintained the group’s desired debt to equity ratio. Prakash Chakravarti reports.
With its portfolio companies facing various important financing needs, Kohlberg Kravis & Roberts was among the most active borrowers in the leveraged finance markets. Such successful transactions for Del Monte, First Data Corp, Energy Future Holdings and ATU Auto-Teile Unger Handels highlight KKR’s solid presence and skill in the market. Joy Ferguson reports.
A thoughtful and popular issuer, Credit Suisse has established itself with investors across markets and asset classes, as evidenced by its issuing patterns over the past year. While one transaction in particular deserves the biggest share of the limelight, it has been a consistently strong borrower and has once again burnished its credentials as a favoured name across borders. Matthew Attwood reports.
Size alone does not guarantee a borrower access to the capital markets, with concentration limits always providing a potential banana skin to any deal. With this in mind Lloyds Banking Group, boasting a huge balance sheet and the rank of the UK’s largest retail bank, planned its market forays strategically over the last year, flitting between structures, currencies and asset classes to maximise diversity. Anil Mayre reports.
To view the digital version of this report, please click here. National Australia Bank’s funding strategy over the last 12 months spanned a range of currencies and structures. Its focus on diversification was well rewarded when investors shrugged off a one-notch downgrade by Moody’s in May. Tanya Angerer reports. Among the Australian majors, NAB has been the most opportunistic issuer over the last year. It pushed funding boundaries in terms of regions, types of investors and maturities, and was the first to embrace new products. Bank of New...
Macquarie’s ongoing ability to access capital markets with benchmark sized offerings via its numerous subsidiaries – coupled with its global distribution expertise – stood it in good stead when dealing with the funding challenges it endured following the global financial crisis. It has been creative in expanding its funding options with several cross-border deals, mainly focused on tapping the US investor base. Adam Tempkin reports.