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Asset managers face tough choices on technology spending, even as transaction volumes fall and margins shrink. Regulators’ push for T+1 settlement will require expensive upgrades of existing systems or purchase of new ones. Handing over the middle and back office to the revamped custody banks is an alternative. But fund managers are wary of outsourcing.

Vulture funds – or distressed-debt investors, as they’d rather be called these days – have never had it so good. The supply of distressed-investment opportunities is at an all-time high. It’s going to stay that way for a while yet – regardless of whether the global economy booms, slumps or just bumps along.

Nearly six months ago, the MTS bond markets were offered a shortlist of clearing houses. It should be a simple choice between the London Clearing House and Clearnet but the process is dragging on. The cause of this delay may be that Gianluca Garbi, CEO of EuroMTS, is trying to force decisions in Clearnet’s favour.

Dubai is moving fast to develop an international financial centre with strategic links to western markets. Its plans are ambitious but UAE regulatory problems, regional rivalries and simmering political tensions might prove to be stumbling blocks.

Partner, PricewaterhouseCoopers

Chile

"Damn, damn you," the cabbie shouts. That's an approximation, in reality each curse began with the letter f. He quickly turns around and apologizes unreservedly before giving his "welcome to Singapore" spiel.

Fund management

India

One analyst is convinced that Bank of America's stock price performance is overdone, and benefits from sleight of hand. In a series of reports published since August last year, David Hendler, financial-services analyst at independent research firm CreditSights, has drawn attention to Bank of America's earnings from derivatives transactions. "We think the key driver of performance has been the company's over-reliance on interest-rate bets that previously went awry and of late have come in the money." Such activity is, he says, a volatile source of earnings. It would also seem to belie Bank of America's executives' table-pounding about the need for consistent earnings and less volatility.

Issuer: JetBlue Airways CorpAmount: $158.4 millionLaunched: April 11 2002Lead manager: Morgan Stanley