What is normal? It is a question nobody knows the answer to, exactly. The last time there seemed to be a clear answer to it was in 2007, before the credit crunch bit, but it seems increasingly clear that the answer that would have been given then no longer holds. In the second half of that year, the market was abnormally frozen, while 2008, defined by the collapse of Lehman and the near collapse of the financial system, was anything but normal. In 2009, things looked to be getting back to normal in debt capital markets, a sense that was...Read more
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The measures employed by the European Central Bank to support both the covered and peripheral bond markets ultimately shared a common objective: providing aid to the ailing European banking sector. The outcome of the two programmes, on the other hand, has so far been mixed, as the performance of the underlying debt markets demonstrates. Michael Winfield reports.
The corporate hybrid market is enjoying a mini-revival having reopened last month in Europe amid a great deal of fanfare. The structure offers obvious benefits for issuers and investors alike in the current low interest rate environment. Bankers are braced for one of the busiest periods for corporate hybrid issuance since the onset of the credit crisis in 2007. Andrew Perrin reports.
In contrast with the middling performance of the European debt capital markets, the US bond market continues to thrive. Yankee and domestic issuers are tapping into the highly liquid US investor base and taking advantage of the attractive interest rates, while issuers are enjoying funding near historical lows and continue to push out their maturities. Borrowers see no immediate prospect of an end to the party. Timothy Sifert reports.
The publication last month of the Basel Committee’s core capital requirements provided much-needed clarity on some aspects of the debt side of the bank capital market. But others, especially the role of contingent capital, still await elucidation. While key aspects of the new regulatory landscape are yet to be revealed, market participants are beginning to make assumptions about how the market will look in future. Matthew Attwood reports.
The European high yield market is coming of age. A broader range of companies are looking to extend debt maturities and refinance loans with bonds, while a strained banking community continues to restrict its corporate lending activities. But can the market ever reach the same level of maturity as its US equivalent? Hardeep Dhillon reports.
After a couple of fallow years CIS Eurobond issuance returned with a vengeance in 2010. Russia, Ukraine and Belarus took full advantage of growing investor appetite with a combined US$8.5bn of supply. Russia and Ukraine look set to become annual issuers, but smaller states are unlikely to follow Belarus’ debut offering anytime soon. John Weavers reports.
International bond issuance volumes out of Latin America are set to break records this year. Borrowers are returning in droves, tapping everything from core US dollar markets, to perps and local currency plays. Some investors have been calling a peak to the euphoria, but bankers reckon it will continue, albeit at a slower pace. Paul Kilby reports.
Amidst the ongoing sovereign debt problems in Europe, Japan has drawn the attention of emerging market sovereigns as an alternative funding source, thanks to a guarantee programme provided by the Japan Bank for International Cooperation. Atanas Dinov reports.