Germany is at heart of Europe. It is a metaphor that encapsulates the importance of the country, which sits at the centre of the continent, but also the fundamental interrelationship between the fortunes of individual country with the continental collective. As Europe has suffered the global virus of disappearing liquidity and recessionary fears, so the beating of the heart has grown somewhat fainter. But it beats on. The healthiest component of this body politic (or should it be body economic?) remains the vibrant pfandbrief market, which...Read more
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Times are tough in the financial markets but some companies are better placed than others to deal with credit problems. When investors fly to quality, E.ON is among the favoured destinations. The company is capitalising on its popularity among investors and trying to reach out to new groups to consolidate its position of strength. Solomon Teague finds out more.
The German leveraged finance market forms part of the mainstream of Western European activity. But what goes up must come down and a boom in good times has left it among the most obviously affected by the general downturn in demand for leveraged debt since July 2007. Donal O’Donovan and Solomon Teague report.
While other covered bond jurisdictions have fallen from grace, the German Pfandbrief levels have barely flinched, significantly outperforming its peers since the onset of the market turmoil. But can the asset class continue to decouple from the general market trend? Rachelle Horn investigates the fundamentals underpinning its success.
After a stellar start, the German property derivatives market looks in danger of slipping into obscurity. The largest real estate market in Europe barely features as a derivative market, and quarterly activity is falling while it rises elsewhere. Until brokers can be tempted back to market making, liquidity will remain low and volumes capped. Owen Wild reports.
Private equity remains a highly contentious sector in Germany, with the infamous remark of German politician Franz Muntefering, who liked the industry to locusts, probably representative of the feelings of many. Debates rage in parliament over how to control their activities, while newspapers bemoan their exploitation of the old and the helpless, with one case reporting the eviction of an old lady from her home by one uncompromising fund. Christof von Dryander of Cleary Gottlieb Steen & Hamilton argued private equity has been a force for good...
Many expected the credit crunch to result in an increasing number of restructurings but this has yet to materialise. This might be because portfolio companies are generally performing well, though it could also reflect the more lax covenants and lack of amortisation in pre-crunch deals. “Restructuring was quite strong in Germany up to early 2007,” said Werner Meier at Cleary Gottlieb Steen & Hamilton. “At that point the economy was stronger than anticipated and in a series of cases borrowers, who many anticipated were close to default, were...
Bankers feared the worst in the German loan market as credit conditions deteriorated throughout 2007 amid the reverberations of the collapsing US housing sector, but the worst has not happened. Prices have been hit but the markets remain open, especially for corporates that have built up strong relationships with a syndicate of banks, as David Cox reports.
After losing out in its attempts to secure a major European partner, Deutsche Boerse has taken a different approach to maintaining its competitive edge amid a consolidating landscape. The acquisition of the ISE has given the exchange a foothold in the lucrative US derivatives market while cooperation agreements are currently addressing its ambitions in the growing Asian markets. So far the strategy has paid off, but competition continues to increase. Helen Bartholomew reports.
How do you regulate a market just enough to protect investors, but not so much as to stifle innovation and inflict unnecessary costs? Regulation can be a thankless task, and when you hear about it, it usually means something has gone wrong. IFR took some time out of its schedule to catch up with BaFin, one of Europe’s preeminent regulators.
As ECM activity falters, bankers tip renewable energy as a sector where deals are still possible leaving Germany well placed amid challenging markets. But as non German renewable energy companies advance, could Frankfurt's status as a listing hub for the sector be under threat? Chris Vellacott reports.
Germany’s sovereign market is one of the strongest in Europe, and while spreads between it and other countries in Europe had been contracting, the onset of the credit crunch seems to have reasserted the preeminence of German debt. Michael Winfield reports.