Newly peaceful, liberalized Algeria is an attractive prospect for Middle Eastern and European investors. But a change in the political wind has blown in a whiff of protectionism. Dominic O’Neill reports from Algiers.

The global financial crisis has taken hold in the region, leading to a drastic slowdown in traditional capital-raising. With job cuts expected soon, investment bankers are working hard to meet nervous clients’ needs and perhaps simultaneously save their own jobs. Lawrence White reports.

"You may ask what there is to celebrate," said Hans Van Beeck to a decent-sized crowd of clients at Société Générale’s Beaujolais Nouveau party in Tokyo on October 20. Referring to the markets’ gloomy mood, Van Beeck, chief country officer for the French bank’s securities operation in Japan, suggested that the young wine might stand as "a symbol of nature’s ability to rejuvenate itself" and thus lift his guests’ spirits, if only temporarily.

At a town hall meeting in New York on November 17, embattled Citi chief executive Vikram Pandit felt compelled to spell out the basics of banking to his assembled troops.

"Fees are way up... I mean, risk is being more appropriately priced"

"The issue has gone unanswered for years. What is going on is simple stealing. We don’t need new laws against this, we already have them. If the Fed won’t step in, then the Department of Justice has to"

Don’t shed a tear for government authorities working overtime to sort out the financial crisis. The dire situation is playing into their hands by not only increasing their influence but also helping to solve one of their own long-running challenges – how to attract top talent on the cheap.

Investors’ fears about the limitations of the debt capital markets have reached extreme levels of late. A UK treasurer recently told Euromoney about an incident his firm experienced earlier this year.

Even though it is now under pressure from the global financial crisis, Brazil can look back on 2008 as a relatively good year, with growth close to target, and look forward from a position of strength, sustained by high forex reserves and a sound policy environment. Laurence Neville reports.

Among the delegates at the 2008 Felaban conference in Panama City were two senior members of the fixed-income department at Santander, named best bank in Euromoney’s 2008 Awards for Excellence in July. The Spanish bank sent Dan Vallimarescu (head of DCM) and Erik Deiden (senior VP) to the conference but unfortunately managed to book their trip so late that the best hotels available were not exactly Panama’s finest.

A tumbling blade has to land some time. Hank Paulson may have decided against trying to stop it directly but John Paulson is apparently back buying mortgage-backed securities. Louise Bowman speaks to other credit investors who believe there is money to be made from this shattered market.

The spread of the credit crisis to emerging countries will have more than just domestic repercussions.

Banks in emerging markets appeared to have escaped the worst of the financial crisis. Now, as capital markets seize up and the global economy heads for recession, they must face the same liquidity and solvency pressures as their western counterparts. Sudip Roy looks at the banks most likely to cope.

With capital markets effectively closed, cash-rich Chinese firms are well placed to profit. They have tended to rely less on international markets for funding than some regional peers, and are able to develop strategies without the liquidity worries that plague rivals. Lawrence White reports.

Data from the Islamic Finance Information Service indicate that rapid growth of Shariah-compliant banking comes mostly from a low base. Is the sector set for a wave of consolidation as organic growth slows? Chris Wright reports.

Zombie banks are stalking the global economy, choking off credit to viable businesses. The solution, writes Lincoln Rathnam, is a straightforward separation of the good from the bad.

The market is growing fast in Muslim countries and among Muslim communities. Its fuller development, Euromoney’s roundtable of experts suggests, depends on clearer views on objectives, further development of regulation and standardization of products and approaches.

Access to debt refinance has all but dried up for corporate treasurers. Those expecting tier back-up loan facilities to bail them out could be in for a nasty surprise. Alex Chambers looks at how companies can survive the liquidity crisis.

Long sheltered from the credit crunch, sovereign, supranational and agency spreads have ballooned in the wake of the introduction of government-guaranteed bank debt. How will SSA names find their place in the uncharted territory of Libor-plus? Jethro Wookey reports.

Beloved by the international markets for her professionalism and by most compatriots for her reformist zeal, Mulyani Indrawati is battling with those who prefer things done the old way. Lawrence White spoke to her at the G20 summit.

The credit crisis has, so far, raised Santander’s relative standing among its peers, as the Spanish bank has sidestepped some of the pitfalls of its rivals and picked up a few bargain acquisitions. The bank’s reputation for savvy deal-making has also been enhanced, making it surely one of the most sought after financial sector clients for any investment bank.

If Congress is intent on playing the blame game, what of those who lend the stock?

Dubai’s property bubble has finally burst. For Abu Dhabi, it is a pain, but also an opportunity.

Chi-X has announced that it is bringing its multilateral electronic equities trading platform to Japan, placing itself in direct competition with the oft-criticised Tokyo Stock Exchange.

Last month a non-asset trigger event was announced for the Granite master trust. This is securitization-speak for saying the Northern Rock master trust is dead. It is now a static pool – similar to a traditional pass-thru structure. The decision to allow the trust to breach – by allowing the seller’s (Northern Rock) interest to fall below 8.75% – increases the risk of note extension on short triple As with long legal final maturities and all non-triple A-rated notes. Even so, news of the event sent all Granite triple-A spreads wider – to 560/660bp, according to RBS ABS research.

Up to now interest in volatility as an asset class or strategy has been limited.

Kurt Baker, head of Morgan Stanley’s prime brokerage arm in Asia, has left the company. Morgan Stanley chief executive John Mack announced in October that the prime brokerage business would be reassessed. Hedge funds’ sentiments towards prime brokers in the current climate were expressed in Clontarf Capital’s November newsletter. "For many hedge funds, particularly those with assets below $300 million, it is clear that while they may have thought they had a loving relationship with their prime broker, they were, in effect, being used all along," says the newsletter. "The party is firmly over for many funds, and the prime broker is one more adversary to deal with in what feels like a multi-pronged attack (from markets, investors and regulators, as well as other funds)."

57 the level of the State Street Investor Confidence Index, a record low

In a stark reflection of the reliance of Spanish securitizers on the European Central Bank’s largesse, the Spanish government has itself agreed to purchase Spanish RMBS and SME CLOs. It has established a Financial Asset Acquisition Fund that will purchase securities with a minimum double-A rating up to €50 billion in volume. Spain has also introduced a mortgage moratorium for the unemployed under its mortgage policy facility. This will enable jobless workers and pensioners with families to support to defer mortgage payments for up to two years. The moves reflect concern about the impact that Spain’s real estate slump will have on the wider economy.