Search results for

The Shariah-compliant debt market has grown rapidly, with interest from issuers and investors outside as well as inside the Muslim world. The next development is likely to be more corporate issues using Islamic structures.

The Central Bank of Jordan has advanced deregulation of the country's banking sector considerably in recent years. According to Adel Satel, analyst at Moody's Investors Service: "Continued reforms in the financial sector have strengthened the banking system's capital base, and introduced additional prudential requirements and more transparency into the system." Roger Smithyes, general manager of Jordan International Bank London, says: "Overall, the sector is very well managed and very well controlled. It goes in line with the general view of Jordan."

www.breakingviews.com

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?

Slovakia boasts the fastest growth rate in central and eastern Europe as it turns from regional laggard to leader. It has boosted growth, controlled government spending and attracted FDI with a tax policy some of its larger neighbours dislike. They won't intimidate finance minister Ivan Miklos.

Structured credit is becoming a syndicated market. At the forefront of this development is JPMorgan, which in April structured and launched the first syndicated single-tranche collateralized swap obligation, a CDO whose underlying reference portfolio consists of credit derivative swaps. Aria CDO 1 is an active deal managed by AXA Investment Managers. JPMorgan recruited a five-strong group of selling banks to distribute the deal just as it would involve co-lead arrangers to sell a corporate bond.

Iran's economic liberalization programme has shown impressive results. But the victory of conservative forces in the latest elections threatens further progress. Meanwhile the country's banks are incapable of funding its corporations, which are turning instead to the capital markets.

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 relationship between the creditworthiness of the hundreds of names that might be referenced in a CDO creates a new risk category. Default correlation risk is the risk that one default makes another default more likely. In a simple example, a default by a major supplier might increase the likelihood of a default by one of its customers. High default correlation in the underlying reference portfolio doesn't just make investing in a CDO more risky overall. It alters its payment profile. Higher default correlation means closer risk profiles for both junior and senior investors. Low default correlation should mean greater pricing differences between junior and senior tranches.

Full results

The new coalition government led by Indian prime minister Manmohan Singh will kick off privatization sales with a billion-dollar initial public offering in September.

Coca-Cola Hellenic Bottling Company, Coca-Cola's second biggest bottler, had been buying back its outstanding debt on an ad hoc basis throughout 2003. ?We'd been mopping up bonds that came into the market with spare cash last year as we had been building up a lot of cash and had almost completely repaid commercial paper outstandings,? says John Fulton, group treasurer. But in 2004, the Athens-based company decided to do something bigger: to deal with liabilities that were soon to come due, extend its maturity profile and achieve a lower cost of funds.