Germany stands at an interesting juncture. Chancellor Angela Merkel has impressed with her time in office so far, but the honeymoon is over and she now needs to tackle pressing economic reforms that will once again put Germany on a growth trajectory and reduce unemployment levels of close to four million. Business confidence is slowly picking up as companies, rehabilitated after years of balance sheet restructuring and deleveraging, are looking once again at acquisition opportunities to boost output and efficiency. This has been a boon for...Read more
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Germany may no longer be divided in a political sense, but in terms of its economy, there is a growing disparity between the confidence shown by captains of industry and the average citizen. With unemployment hovering just below four million, can Chancellor Merkel push through the overdue reforms needed to deliver domestic growth, while keeping ordinary Germans on side? Adrian Simpson reports.
The past 12 months have seen significant changes for German banks. Unicredit acquired Hypovereinsbank, DrKW began to integrate more closely with its parent bank under a new head, while Commerzbank acquired Eurohypo. Deutsche Bank continues to shine internationally and retains a substantial share of its domestic market. At the same time, Germany is under attack from foreign banks. Owen Wild reports.
After years of underperformance, few people were confident about the strength of the recovery in German ECM that became apparent in early 2005. But through a mixture of IPOs on the back of high oil prices, new structures, and the resurgence in M&A, Germany is finally back. With a strong pipeline for 2006 and REITs around the corner, things can only get better. Owen Wild reports.
With around €25.5bn issued in Q1 2006 compared to €22.2bn in the same period last year, jumbo pfandbriefe issuance has improved but Germany's poll position in the European covered bond sector is slowly being eroded. Spain is leading the charge and others like the UK are picking up steam. However, jumbos aside, there are still pockets of growth in Germany, notably for prospective mortgage-backed landesbank supply and in the private placement market. William Thornhill reports.
After at least four years of waiting, the German securitisation market finally looks set to take off. Volumes are likely to be dominated by CMBS conduits, and following the legal passage of the refinancing register last year, multi-family residential and RMBS should follow. William Thornhill looks at the developing scene.
The German loan market is hot. Having fallen to a distant third position to the dynamic French and mature UK markets, Germany is now at the centre of Europe’s spectacular M&A-led revival. Nachum Kaplan reports.
In line with the pick-up in the German economy, demand for credit from the Mittelstand is on the increase. As this new cycle begins, the signs are that middle-market companies are looking at a range of funding alternatives, rather than relying upon traditional loans from their house banks. Michael Marray reports.
Germany has long been heralded as Europe’s most promising market for leveraged finance, yet for various reasons the actual deal flow never quite reflects its potential. Despite a slow start to the year, market participants remain convinced that the increasingly sophisticated German market is on track to exceed its 2005 levels. Adrian Simpson reports.
Retail derivatives-based structured products are huge business in Germany. Nevertheless, dealers hope to increase volumes significantly in this rapidly evolving market by returning to the market's roots. Mark Pelham reports.