Another year means another chance for Germany to slough off its recent dismal record and make a positive impression in the capital markets. That’s the theory, and bankers have certainly started 2005 in a more upbeat mood. Then again, that was the story last year, so is there any more reason for optimism now? Economically, the country has been afflicted by a combination of contracting growth, sluggish domestic consumption and rising unemployment. Add in high oil prices and a strong euro, and the alarm bells begin to ring. Some recent consumer...Read more
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The need for German banks to sell non-performing loans has sparked a flurry of interest from buyers of distressed debt. But with a slower than expected NPL disposal programme in 2004 and some expensive sales, will the same funds remain interested? Kate Haywood reports.
German ECM activity is set to jump in 2005, according to bankers and investors, confident that the market cannot continue to underperform its neighbours. But is there any real justification for the improved sentiment and expectations of IPOs, M&A-driven capital increases and privatisations? After all, there was a similarly upbeat mood a year ago, but 2004 brought only 28 deals. Owen Wild reports.
Second-guessing of likely German federal government swap use has become a near obsession for derivatives dealers, partly because the local debt management agency shrouds its intentions in secrecy. Increasingly sophisticated asset and liability management by insurance firms is also driving derivatives flow, while Landesbanks and mortgage hedgers remain active swap users. Mark Pelham reports.
German lenders are under siege. Despite rapid growth in syndicated loans as borrowers move away from bilaterals, banks are facing highly aggressive competition and the problems linked to the lack of consolidation in their home market. Add the rapidly approaching Basle II deadline and the loss of the State guarantee mechanism, and the pressure for change in German loans cannot be ignored. Adrian Simpson reports.
Financing middle-market Germany provided the European high-yield bond market with a steady stream of business in 2004, and the same if not better flows are expected in 2005. As corporates turn away from the loan market because of changes to lending in anticipation of Basle II and the end of Landesbank guarantees, high-yield investors are welcoming the supply with open arms. Kate Haywood reports.
The arrival in Germany of foreign capital seeking treasure among the debris of the domestic banking system has created potential for a large secured bond market. Meanwhile, the new pfandbrief law means that borrowers must lift the lid on their once opaque cover pools. Joti Mangat and William Thornhill investigate signs of a restructured German debt market.
As the deadline approaches for the loss of the Landesbanks’ State guarantee, a number of concerns continue to plague the sector. Restructuring challenges linger and nagging doubts remain as to whether Landesbanks will retain a place in the German banking system. Are they just obsolete institutions destined to ultimately disappear? Helene Durand investigates.
German investment banks have not run a smooth course in recent years. Ever-increasing competition has led to falling earnings and even losses, but with foreign competitors failing to target mid-cap companies and lacking retail penetration, unique opportunities remain for the domestic houses. Owen Wild reports.
Germany, still the Eurozone’s giant, has experienced the dismal trio of contracting growth with sluggish domestic consumption and rising unemployment. Coupled with elevated oil prices and a strengthening euro, this augurs ill for the future. But with recent consumer surveys upbeat and reforms underway, can the mild recovery regain momentum? Zaki Kada reports.