North America

A quick reaction to warning signs in Asia meant Atlantic Natural Foods was better positioned than some to deal with Covid-19 – but it still needed flexibility from its bank

Bill Demchak, CEO of PNC Financial Services, has spent years building the firm into a formidable force; its exit from BlackRock now sees it on the cusp of a new era.

Goldman Sachs has launched its transaction services business in the US, trusting that its superior tech will be enough to beat the incumbents.

The US investment bank is finally enjoying the fruits of a decade of investment in Asia. It has spent big to hire the bankers and analysts it needs to drive deal activity in China, Japan and Australia. Now the hard part starts – making money.

The country is losing the war on the coronavirus, as well as wasting the ensuing digital payments opportunity eagerly grasped by others in Latin America.

Goldman Sachs chief executive David Solomon’s decision to back a rival to Democratic politician Alexandria Ocasio-Cortez may come back to haunt him.

The Hertz share sale saga has baffled many in the industry, but it has illuminated a new type of feral retail investor that is winning grudging respect from some of the financial industry’s aristocrats.

Hedge funds and real money clients looking to shake up their FX trading strategy now have the option of basing their trades on proprietary market analysis from RBC.

Capital markets volumes show how well the industry has adapted since the coronavirus crisis began, but as economies emerge from lockdown, bankers and clients need to look much further ahead.

Banks have to prepare for crises; if investors won’t make companies do the same, should someone else?

US users see weaknesses in transaction cost analysis and order management integration.

FX trading algorithms are getting smarter at dealing with crises – and getting more popular as a result.

Will forcing all foreign firms to comply with US audit standards be the straw that breaks the camel’s back in Beijing?

BlackRock’s contract with the Federal Reserve to support the corporate bond market leaves the world’s biggest asset manager with no room for governance error.

Investors looking to profit from – and hedge against – credit deterioration due to Covid-19 will need to pick their spots when fighting the Federal Reserve.

Will it be back to business as usual as soon as lockdown restrictions are lifted?

Companies never want to sell equity at rock bottom prices, but bank lenders will often only relax covenants and hold off seizing assets if new capital comes in below them. Enter private equity managers with dry powder, snapping up big preferred stock deals to help cash-strapped issuers bolster their capital structures.

Appetite for Special Purpose Acquisition Companies is growing as investors find comfort in their new structure. Market participants expect more to come this year along thematic lines, with the first ESG Spac launched in May.

Central bank intervention has delayed the deluge of insolvency that Covid-19 lockdowns will cause, but it can only plug the dike for so long. Lenders face the grim prospect of deciding who to save and who to let go.

JPMorgan is in discussion with more global banks, corporates and third-party service providers to join its Interbank Information Network.

Bank of America has seen mandates increase in the last month as digital solutions become increasingly important to overcome isolation and social-distancing rules.

Accounting standards that make banks provision upfront for all expected loan losses are encouraging exactly what regulators don’t want to happen at this stage of the coronavirus crisis.

Liquidity data from CLS has revealed unusual trading activity around the 4pm London fix – but it has more to do with corporate inertia than market manipulation.

Revolvers could be the debt Achilles heel of cash-strapped corporates.

After brief illnesses, JPMorgan’s Jamie Dimon and Morgan Stanley’s James Gorman were back on form in this month’s earnings calls.

Some parts of US investment bank earnings in the first quarter of the year looked more like boom than bust as record trading and debt issuance helped offset weakness elsewhere. Now the banks are building reserves to prepare for coming out of lockdown

Sell-side research is integrating alternative data to navigate the current coronavirus crisis. It’s the future for bank research, but it’s not an easy transition.

Alternative data can tell in near real time the story of economic and financial market disruption now playing out, but asset managers need artificial intelligence to read it.

Bank scraps share buyback and postpones dividend decision as COO Arana warns lack of fiscal response from the government risks deeper decline.

JPMorgan chief executive Jamie Dimon has had a good start to the Covid-19 crisis, while his Goldman Sachs counterpart David Solomon is faltering.