Top stories
Intesa tests covered RMBS
Intesa Sanpaolo’s plan to sell a covered bond backed by RMBS will be keenly watched. The deal should provide a neat funding solution for Intesa and help shift a bunch of retained deals clogging up its balance sheet. The structure may also present an avenue to begin the effort to dispose of the mountain of retained RMBS held by European banks. Aimee Donnellan and William Thornhill report.
Basel is for wimps
Bankers worried about Basel III should reflect on what their Zurich-based rivals will have to endure under a strengthening of the so-called Swiss finish. UBS and Credit Suisse are adamant that the new capital rules will not make them uncompetitive in investment banking and say that their strategies have long taken into account the likelihood of much more demanding capital requirements. Justin Pugsley and Matthew Davies report.
Mexico stretches limits
In making its debut 100-year bond foray, Mexico became the first Latin American sovereign to stretch so far along the curve – and the only issuer to sell a century bond with a US$1bn size. Stirring its fair share of controversy at what some believe is the peak of an EM bubble, the deal nonetheless broke new ground. Paul Kilby reports.
VimpelCom calls lenders
Russian telco VimpelCom’s US$6.6bn cash and share bid for Italian telco Wind and control of Egypt’s Orascom Telecom will be backed by a new US$6bn–$6.5bn financing that is still taking shape as bankers try to get their heads around an increasingly complex transaction with many moving parts that relies on keeping as much existing debt in place as possible. Alasdair Reilly reports.
Ripping up the book
All restructuring eyes are on European Directories this week ahead of an appeal by senior lenders against a surprise court ruling that favoured juniors in the company’s restructuring. At issue is a pivotal tool used to effect most European LBO restructurings and the market keenly awaits the outcome. Sandrine Bradley reports.
US$9.3bn of ABBs and no losses
Goldman Sachs received praise from across the Street last week after securing the sole bookrunner mandate for a SKr28.2bn (US$4.2bn) sale of Volvo shares by Renault. The plaudits were given as every bank has been eyeing the French carmaker’s non-core stake for a year, with many firm bids put to Renault over the past 12 months, yet only Goldman was able to secure the sale.
AIB secures vital US$2bn
The sale last week of Allied Irish Banks’ 22.4% equity stake in M&T Bank posed a unique set of challenges. An outright sale of the position was not possible because of its sheer size and regulatory restrictions, requiring structural ingenuity on the part of underwriters. Equally problematic was the fact that everyone knew the troubled Irish bank was a forced seller. Stephen Lacey reports.
IFR on Reuters Insider
Sept 20: Boom time for India's loan market
India’s capital markets are expanding fast and hotspots include infrastructure, disinvestment and telecoms, says Keith Mullin, IFR’s Editor-at-Large.
Aug 24: Basel Committee backs burden-sharing for bank bond investors
New proposals from the Basel Committee could mean bond investors bear a greater burden when banks fail. IFR’s Matt Attwood tells us what the proposals could mean for debt markets.
Aug 17: Russia's planned debut Eurorouble bond seen worth US$2bn
Russia is expected to launch a debut benchmark Eurorouble bond issue in the third quarter to raise about US$2bn at a healthy premium over the country’s dollar bonds, says IFR’s John Weavers.
Up Front
Running for cover
ABS-CDOs are back! The instrument that caused the financial crisis is back in business. And it has the encouragement of Europe’s powers that be.
Stan Gekko
It’s just as well that Michael Douglas has already finished filming the sequel to the iconic Wall Street film Wall Street, because he might have had some stiff competition for the role Gordon Gekko in the form of former Merrill Lynch chief executive Stan O’Neal.
Basel is for wimps
Bankers worried about Basel III should reflect on what their Zurich-based rivals will have to endure under a strengthening of the so-called Swiss finish. UBS and Credit Suisse are adamant that the new capital rules will not make them uncompetitive in investment banking and say that their strategies have long taken into account the likelihood of much more demanding capital requirements. Justin Pugsley and Matthew Davies report.
Also In This Issue
- AIFMD edges closer to compromise
- Hong Kong eyes renminbi listings
- City job recovery to slow
- TARP losses undershoot estimates
- India: Reliance to go longer with debut US benchmark
- Mexico stretches limits
- Return to form at ABS East
- Qtel dials right digits, again
- Hungry for restaurants
- Barclays watches its language
- AXA debuts RMBS covered
- UMS seen tweaking JBIC structure
- Lloyds tests new ground with yen bonds
- Rousting RMBS debut
- BAA's European flight path cleared
- Sweden: Hexagon closes senior
- Univision debt troubles eased by rival
- Pemex extends date
- UK: SKIL docks on AIM
- Elpida’s endless appetite for capital
- Cure for an ailing IPO
- Hong Kong: Strong early momentum builds for AIA IPO
- Ambac, Lehman settle up
- Shinsei in frame for Takefuji
- Lessons from Liverpool board wrangle
- Sovereign CDS liquidity converges
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