Emerging Europe

Signs of a U-turn in thinking at the top could see bank balance sheets finally cleaned up in ‘Europe’s Takenaka moment’, according to analysts at Berenberg Bank, warning a more punitive leverage ratio could take markets by surprise.

Scott Thiel, deputy chief investment officer of fundamental fixed income at BlackRock, comments on today’s ECB announcements.

The growth of e-auctions, consultants and Sepa, as well as rising corporate demand for innovative services, means the request for proposal (RFP) – the bidding process for corporates when tapping a bank for cash-management services – is evolving to meet new demands.

From the disastrous initial bailout proposal to predictions of more debt restructuring, Cyprus might not just be synonymous with beach holidays for some time to come.

The stress witnessed in local bond markets during the past few weeks has driven emerging market currencies sharply lower, but the sell-off might only just be starting.

The popularity of some seemingly high-risk frontier bond issues suggests investors are driven by the need to fill index allocations rather than issuer quality. It also suggests the traditional market-capitalization approach of indices needs reconsideration.

Government considers reforms, including nationalization; Private managers reject profiteering claims

15 companies slated for privatization; Eyes on Russian, Turkish buyers

The country’s rapidly growing SMEs urgently need funding avenues other than those provided by the country’s banks. Some new options are beginning to emerge to solve that conundrum.

A sell-off in emerging market local currency debt is on the cards amid global deflation, a stronger dollar and rising US Treasury yields, say bearish analysts. If these predictions ring true it won’t be pretty for FX unhedged real money investors.

Qatar’s investment in VTB helps future deals between Russia and the Gulf, but relations will remain difficult.

Chinese investors are seeking more investment opportunities overseas, but are they attracted to the prospect of a new passport rather than the yield?

HSBC’s Flint sees tension rise between home and host regulators; Deutsche says balkanization threatens financial stability.

Last December, our European Investment Strategy service predicted that “2013 would be the year of the big U-turn on obsessive austerity”, says BCA Research

Much of the discussion around Basel III has focused on issues such as the treatment of trade finance instruments, but one topic that is beginning to attract attention is how notional pooling – a liquidity management technique – will be affected by the latest incarnation of the Basel Accord.

Euromoney prides itself on having international reach, but it seems that there is one corner of the world that our reputation hasn’t stretched to. On a recent trip to South Sudan, the world’s newest country, a senior bank official at a local bank branch in Juba misinterpreted Euromoney’s request for an interview on the growth of the banking system there.

After a deluge of negative headlines from the eurozone this year, why are policymakers in emerging Europe still queuing up to pledge their allegiance to the single currency?

Hedge funds are a curious bunch. Take Dromeus Capital Group, which last November trumpeted the launch of its Greek-focused hedge fund, Dromeus Greek Advantage Fund, to bet on the recovery of Greek assets.

The Turkish central bank governor’s unorthodox policies have riled, muddled and, say some, outsmarted markets. He thinks they work. But is he trying to do too much with so many different instruments and targets?

Perish the thought: the US is seeking to sharpen personal liability against bankers falling foul of anti-money laundering laws, raising the spectre of bankers in jail. Financial institutions must urgently redouble their compliance efforts as recent lapses catapults the issue up the regulatory agenda.

Sberbank CEO German Gref says he has led Russia’s biggest bank through a thorough transformation. It has grown onto the international stage and bulked up in investment banking. What are his objectives, and how does he see its role at home and in the region?

Cyprus’s problems stem in part from doing business in Russia. But the Russian state’s attitude doesn’t make keeping money at home enticing.

Prompt for bank deposit and bond repricing... or a catalyst to accelerate bank harmonization efforts.

Macro hedge funds back with a vengeance; return to trading on fundamentals.

Potential participants question current proposals; repo market could shrink by 66%.

With concern growing over the credit risk embodied in many sovereign bonds, fixed-income investors need to think harder about how they assess risk.

Koc, Arcelik tap dollar buyers; more deals in the pipeline.

Leverage up, covenant protection down; up to 15 new CLOs in Europe by year-end.

State seeks bailed-out bank sales; mooted deals get mixed reception.

Slovenia’s banking crisis means the country is likely to experience the sharpest contraction amongst Central and Eastern European countries this year. The banking sector is on life support and corporates are battling valiantly for scarce funding.