After a solid start to 2007, the ECM market has been thrown into disarray as the sub-prime meltdown hit equity markets hard through August. With most markets taking their usual holiday breather, the true impact of increased volatility and investor nervousness will not become apparent until later in the year. Pipelines remain in tact, although ECM bankers who were quick to shrug off the wider impact of the late February correction, are facing what should be their busiest time of year with some trepidation. Global equity issuance volumes were...Read more
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The flow of equity issuance from Russia and the CIS is relentless with the year’s volumes surpassed only by the UK in the EMEA region. Yet returns have been disappointing and the risk/reward profile has left many investors looking for new opportunities. Could sub-Saharan Africa really be like Russia five years ago as some suggest? Owen Wild reports.
Volatile equity markets and a difficult backdrop for structured credit have played havoc with the performance of some listed closed-end funds. Trading at or below NAV appears to be the norm for many, and the permanency of permanent capital has come into question. With some of the exuberance removed, bankers are hoping to be left with a best-in-class market that can finally flourish. Helen Bartholomew reports.
The ethanol industry once held great promise to reduce the US dependency on foreign oil. It still does, though the rosy outlook has been clouded by the economic realities of competition. While government subsidies have had their desired affect, a still fragmented industry is faced with higher cost of capital that has forced participants to be more creative in how they fund expansion. Robert Sherwood reports.
Rising interest rates and poor debuts have led to expectations of a property slowdown, but many are nervous of calling the top of the market. The adoption of REITs in Germany and UK and the potential of emerging Europe are ensuring that pipelines remain bulging. How much will make it to market remains to be seen, as Owen Wild reports.
Nearly three-quarters of the convertible bonds issued in 2006 were structured with net-share settlement provisions. The popular feature could disappear and make convertibles a less attractive financing option altogether when new rules take effect, requiring issuers to account for both the debt and equity components of these bonds. Philip Scipio reports.
The value of the Brazilian stock market has increased almost ten-fold in five years and is still growing, with a record 46 IPOs so far this year. For those who believe the trend is about to fade, it may be time to think again. Christopher Langner reports.
The 2006 merger between the New York Stock Exchange and Euronext triggered a spate of consolidation in the sector. The drive to cut costs and adapt to the changing needs of investors and issuers are just part of the story as Ian Forrest reports.
Private companies have long had access to public investors through publicly traded permanent financing vehicles, but a number of competing listing platforms recently expanded that access by allowing companies to sell of stock, while avoiding regulatory scrutiny. Their development has dramatic implications on how capital is raised, despite the fact that the venues themselves may be short lived. Stephen Lacey reports.
The success of the LSE’s AIM has highlighted a sentiment shift among investors and issuers to alternative listing platforms. A rise in international listings has played a big part in the growth but, if the US relaxes its rules, that impact could be diluted as Ian Forrest reports.
China’s A-share market has taken off following years of reform work and a huge injection of state money into domestic brokerage industry. However, the market continually teeters between boom and bust, and while the market shows huge promise, it lacks depth and a critical mass of good and decent yielding blue chip stocks. Fiona Lau reports.
Despite the rise of the QIP, Indian DR issuance continues to thrive, but is underpinned by jumbo follow-on issues for companies that already have ADS programmes in the US. While the QIP grows in acceptability, the limit on investor numbers continues to hamper deal size.
Japan’s equity capital markets have seen a remarkable transformation over the last 12 months with the primary market metamorphosed into a ghost town. The slumping issuance figures paint a bleak picture for Japanese bankers, but for some the year has been saved by the emergence of highly tailored and highly profitable structured trades. Govinda Finn reports.