Real money investors such as mutual funds, as well as credit hedge funds, prop traders and other specialist investors, are finally treating credit risk as an asset class to be managed like any other. They bring new liquidity to the markets in default swaps and credit indices that have made this possible.

Emilio Botín knew that launching a frontal assault on the UK banking market was never going to be a bed of roses. But the 70-year-old chairman of Grupo Santander, Spain's largest bank, and his team were knocked for six by the furore that was unleashed in response to their £8 billion-plus bid for Abbey, the sick man of British banking.

New approaches to instilling high standards have fed into this year's Euromoney corporate governance survey. Initiatives include activist fund managers taking on mandates to advise other investment groups and the incorporation of governance criteria into bond ratings.

It's late on a Thursday night and the party cognoscenti are headed for one of Asia's slickest nightspots. From the exterior, f.bar, a bunker-like building with an unpromising squat black façade is guarded by serious-looking security personnel clad head to toe in matching black.

Bulgaria cleared an important hurdle when it finally approved the sale of mobile phone company BTC to a consortium led by Advent International in February, in one of the region's largest leveraged buy-outs. Financing for the deal finally closed in June. Gyuri Karady of Baring Private Equity Partners says: ?It tested the legal framework in Bulgaria, and it looks like the rule of law prevailed, which is a triumph for Bulgaria.? Progress on the deal was one of the factors that helped the country obtain an investment-grade rating later in the year.

No-one disputes that China's growth rate needed reining in. While investors worry over the possible consequences of a sharp slowdown, most economists believe that, contrary to global historical precedent, the Chinese authorities might have pulled off the trick of a relatively painless cool-down. But serious structural flaws in the economy remain and make China a perilous place to invest.

First Wit dumped its attempt to build a retail platform. Next, it dumped its name, and moved out of its Silicon Alley headquarters in New York to Connecticut. Then last year Charles Schwab Capital Markets bought it. At least Wit, by then Soundview, the name of the boutique it bought in 1999, was joining a like-minded firm with ambitions to change how markets work.

Nordea has become the first bank anywhere to completely outsource its company equity research. It is unlikely to be the last. The pan-Nordic bank is to cease its own coverage of stocks in the Nordic region and will instead buy research on 200 regional stocks, including buy, sell and hold recommendations, from Standard & Poor's. This follows a similar deal with S&P last year in which Nordea outsourced all its US, European and Asian company equity research coverage to the US group.

When it comes to picking stocks and beating the market, women are better, says DigitalLook.com. In a study of 100,000 portfolios from July 2003 to July 2004, the company found the average woman's portfolio grew 10%, beating the FTSE All-Share by 3% and the average man's portfolio by 4%.

Through western eyes, China and India might seem locked in a struggle for economic supremacy. The truth is quite different. The economies are complementary more than being competitors with each other, and the implications will shape the global economy for decades to come.

German savings banks are using credit default swaps to reduce their credit risk concentration for the first time.

South African banks are working out how to structure and finance the Black Economic Empowerment (BEE) deals that are altering the ownership structure of the country's financial services industry. Under South Africa's voluntary Financial Sector Charter, direct black ownership in financial institutions should reach 10% by 2010.

Does present poor hedge fund performance cast doubt on the broad validity of the sector or have new investors that flooded into hedge funds recently fallen for myths about their success and failed to see performance in a historical context? What is clear is that attempts to match capacity to demand have at least temporarily undermined some hedge fund strategies.

Banks in Arab countries enjoyed much better results in 2003, especially during the second half. In 2002 earnings fell on the back of weakness in global investment markets, tight margins, and higher provisions. Net profit bounced back in 2003, rising by over 15% for the top 100 Arab banks.

Investors ask tough questions these days about companies' ability to honour their commitments. After all, no-one wants to fall victim to the next corporate scandal. But Toys “R” Us shareholders and bondholders are safe, aren't they? Surely official “spokesanimal” Geoffrey the Giraffe and chums won't let them down.

Google's decision to use an auction for its IPO sprang from a desire to get what it regarded as a fair price, avoid post-issue upsets and offer fair investor access. Did it succeed in these goals and might it have done better had it shown more respect to its bankers?

MBNA Europe's delinked programme should help Europe's ABS issuers to respond to investor demand

Iraq and Argentina's debt problems will dominate this month's IMF/World Bank meetings, with the size of their liabilities casting doubt on the international financial system's ability to cope.

CEE private equity, after a tough period that saw many funds go out of business, is enjoying a surge in activity, thanks to access to leveraged finance. Some funds are making big returns. Others, however, are still struggling.

Following a period of sustained economic growth, the Caribbean is faced with a new challenge. Recent developments in international legislation might reduce capital inflows and put more pressure on the region's financial sector.

For years, Deutsche Bank's Asian equity business was little more than an also-ran. The bank had a reputation for aggressive tactics and profligate hiring but failed to build a credible business, to the amusement of rivals. But with new management hired to fix the problems, Deutsche seems to be getting it right.

Sandy Nairn loves a good challenge. After 10 years at Templeton Investment Management he took on the task of reviving Scottish Widows Investment Partnership, Lloyds TSB's languishing Edinburgh-based investment business in November 2000.

Oil and gas still lord it over all other sectors of the Russian economy but beyond the energy markets other businesses are making their mark on the international stage. Euromoney identifies some of the rising stars.

By Camilla Palladino

Foreign investment sentiment was already being battered by the Yukos affair, the Kremlin's attack on what was Russia's biggest oil company. However, waning confidence was dealt a fresh blow in August when a Duma deputy officially called for an investigation into ?grey? schemes used by foreigners to hold billions of dollars-worth of Gazprom shares.

A well-executed privatization programme, carefully directed investment in education, valuable trade agreements and astute management of debt and inflation have underscored the growing health of the Jordanian economy, symbolized by its graduation from IMF programmes.

If your competitors are beating you to the most lucrative deals, it could be they're better at pressing the flesh. Wooing potential clients over drinks or dinner is as much a part of a banker's job as making formal pitches.

Hedge funds are suddenly receiving high allocations in IPOs even though their participation can sometimes reduce issuers' proceeds. Are they suitable buyers or are investment banks favouring the clients which pay them the most?

The youthful managers of Kazakhstan's financial sector are determined that oil and minerals wealth will be used to create a strong mixed economy. A well-regulated banking system and controls on the inflationary effects of oil earnings have been established but diversification and financial markets development still face significant hurdles.

Argentina has over half a million creditors, while Iraq has comparatively few. But dealing with $100 billion of Iraq's debt has given everyone from the IMF to the Paris Club a tough problem to resolve. The US government will urge generosity but a happy solution for all interested parties is next to impossible.