October 2010
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LATEST ARTICLES
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Renewed quantitative easing is not a sound answer to the threat of double-dip recession or deflation. A credit bubble cannot be cured by pumping in more credit.
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Energy and commodities focus persists; Growing frustration on Latin side
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Dodd-Frank Act US fiduciary standard hits brokers; Costs likely to increase for issuers and investors
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Gulf investment banking has hopes of staging a delayed recovery.
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Omani telco could raise $600 million; UAE mobile phone retailer to follow with IPO
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Biggest province to issue bond; Investors attracted by juicy yields
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Dismal trading volumes in the third quarter were punctuated by some chunky investment-grade bond issues and stock offerings that were a disappointment to investment banks in terms of fee generation.
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EU tracks US derivatives regulation with a time lag; Barnier sets regulatory sight on commodities markets
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Moves to curb supposed speculation on futures exchanges are pointless populism, as commodity price spikes reflect physical market supply/demand factors.
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Deal resumes Russian equity issuance; Proceeds earmarked for capex programme
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Lending still shrinking as NPLs weigh on sentiment; Regulatory changes may help ease the burden
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Wall Street: Money Never Sleeps, the sequel to Wall Street, had its world premiere last month at the Ziegfeld Theatre in Manhattan. It wasn’t exactly Wall Street meets Hollywood but a lucky few from the "Street" were able to walk the red carpet, thanks to small walk-on parts that added some authenticity. Noted omissions from the film were the New York Stock Exchange, and the big Wall Street firms, which had featured in the original. The film focuses on the world of credit default swaps, and the now well-publicized world of high-frequency trading, where many say the "new greed is going’’. There weren’t a lot of bankers there. Warren Buffett was, Nouriel Roubini was, so too Tyra Banks, with the cast and the director, Oliver Stone. Sunil Hirani, the former chief executive of Creditex, a credit derivatives broker, with a small walk-on cameo, said Stone knew enough about credit derivatives to be dangerous. Euromoney assumes that doesn’t mean in an AIG sort of way. The original Wall Street was the inspiration that launched the career of many a banker and stockbroker. It will be hard to match that with this one. As one banker who was inspired by watching the film 20 years ago told Euromoney after watching the sequel: "I drifted off somewhere in the middle and found myself thinking about the original." Aaah... Sentimentality.
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It’s fast shaping up to be one of THE stories of the decade, a collision of the much-maligned worlds of football and finance. The battle for ownership of Liverpool Football Club has drawn in some of the biggest names in global finance. Controversial US club owners Tom Hicks and George Gillett have been desperately trying to refinance £325 million ($512 million) of debt, lent by RBS to the holding company through which they own the 18-times English championship-winning club.
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Canada’s PotashCorp up for grabs; China’s Sinochem might intervene
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The Saga of Iceland’s involvement in the financial crisis has elements of tragedy and farce. But it would be unwise to underestimate this nation of warriors, poets and volcanoes.
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"History tells you that the dollars you put to work at this stage in the cycle are very attractive. Buying larger equity stakes does not mean that you are oversizing – it just means that you are buying at a different point in the cycle"
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Investors more active in hedging market tail risk; Exchange traded products may be skewing volatility curve
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Banks have shown themselves incapable of safeguarding the system in which they operate. Intrusive, interventionist, expert, powerful, independent regulatory authorities are the answer.
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At the end of October, the winner of the prestigious Financial Times/Goldman Sachs business book of the year award will be announced at a swanky dinner in New York.
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"That deal was an ambulance-chasing, low fee, beauty parade ordeal, which we were very happy to do for the league table credit"
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The reputations of many analysts soared as other bankers lost credibility. But are their opinions as sound as many think?
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Currency-market intervention cannot boost Japan’s exports in the short term. Nor does it tackle the country’s deeper economic malaise.
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Chairman calls rules misconceived; Wants help against foreign competition
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Cross-border regional ties growing; Asian investment interest emerging
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Rating agency clarification boosts market; Some investors say hybrid debt is flawed
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To commemorate its London centenary, RBC sent umbrellas to clients. Euromoney wondered whether any banks had plans to celebrate anniversaries for their businesses in Canada, and if so what would they send round.
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New agency to launch in November; Investor demand is key
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Listing to follow merger of Dangote subsidiaries; Dangote Group to own 95.9% of merged entity
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As the high-yield debt markets converge further with leveraged loans, the model of a modern head of leveraged finance at a big house is a banker with a focus on lending, such as Andy O’Brien at JPMorgan or David Flannery at Bank of America Merrill Lynch. An Irish surname isn’t obligatory, but a reputation for hard work and patient application to client needs is, and flashy behaviour is not encouraged.
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$1.25 billion government bond sale; More payment delays at other Dubai entities