Biggest high-yield hybrid to test appetite 9 May 2006 Lottomatica is selling a E750m hybrid bond the largest junk hybrid in Europe despite some uncertainty in the US market. AArated Swiss Re s recent $2bn hybrid deal was well received, and early indications are that demand for a junk deal will also be strong.
UBS makes Pactual’s bankers earn their premium 9 May 2006 The Swiss bank looks, at $3.1bn, to be paying a premium to beef up Brazil. Goldman Sachs reportedly valued the business at half the price. But at least UBS is getting full control. And, in delaying most of the payment for five years, it has hedged itself against a blow up.
UBS fails to keep up with investment bank pack 4 May 2006 While the bank s traders had a strong Q1, it wasn't as good as rivals apparently due to gaps in commodities, fixed income and high yield. UBS is urging investors to be patient while it fills these holes. Thank goodness asset management has given them a reason to stick around.
Deutsche Bank’s traders deliver the goods 3 May 2006 The German investment bank sparkled in Q1. The trading desks drove the group s pretax return on equity way above target. So they should thrive in what is usually the group s strongest period. The bank needs to keep up the pace to close its discount.
Credit Suisse’s investment bank bounces back 2 May 2006 The former CSFB flew in Q1. Revenue growth outshone US peers without the soaring costs which marred last year s results. That will go some way to rewarding dogged investors. But the division needs to show stamina and speed to help close the group s discount.
Wal-Mart bank critics guilty of hypocrisy 28 Apr 2006 Among the forces aligning against the retailer are community banks, who say WalMart would destroy American capitalism. But this assumes that small banks dole out credit better than big ones do. That s not what the numbers universally suggest.
Will carbon trading go up in smoke? 28 Apr 2006 It s a fair question after the price of emission permits fell by 50% in three days. It turns out Europeans aren t as gassy as expected. Some hedge funds are smarting, and some utilities might look less valuable. But the market serves a real need. It shouldn t disappear.
ABN toils under weight of reforms 26 Apr 2006 The Dutch bank struggled in Q1. Wholesale dragged down the US. The investment bank declined despite benign trading conditions. That's a sign of the huge task ABN has taken on in revamping wholesale and absorbing Antonveneta. Extra cost cuts will add to the workload.
New IMF mandate unlikely to solve anything 25 Apr 2006 The International Monetary Fund wants to do something about the huge US trade deficit and the country s too willing lenders. It won t be easy. The IMF can t force the US or China to change policies. And even if it could, it may be too late for good advice.
BSkyB sacks Goldman as broker – exclusive 21 Apr 2006 This may seem astonishing given the traditionally deep relationship between the Murdochs and Goldman. But given that Goldman just tried to buy ITV, one of Sky s biggest rivals, and is a close adviser to NTL, its other, you can see why.
Goldman conflicts threaten corporate franchise 21 Apr 2006 The backlash over its aggressive approach to UK companies and its willingness to back multiple horses in the same industry is taking a toll. Paulson's edict to cool it may provide a reprieve. But Goldman will find it increasingly hard to pursue its own and clients' interests.
Lehman snaps up Morgan Stanley’s European diaspora 20 Apr 2006 It s easy to see why. Lehman is doing lots of hiring, and is paying up to get talent. Morgan Stanley is going through a bloodletting. Defectors also think Lehman is like the old Morgan Stanley. That suggests Morgan Stanley boss John Mack should get with his reforms.
Merrill should consider hiving off brokerage 18 Apr 2006 Most of the firm s growth is coming from investment banking. Its brokerage and assetmanagement arms look lacklustre by comparison. CEO Stanley O Neal has already struck a smart deal for Blackrock to run the money manager. Perhaps the broker needs a life of its own, too.
Goldman pulls back from hostile bids 18 Apr 2006 This follows a series of unsolicited approaches for UK companies. Does it mean the bank is worried about treading on its clients' toes? Well, up to a point. Its reluctance to get involved in aggressive bearhug bids is completely understandable from a commercial perspective.
BPI’s rosier outlook may not secure its independence 11 Apr 2006 The Portuguese bank has lifted its veil of secrecy to show better prospects than markets expected. That should raise the bar to a takeover. But BPI has used pretty much all its firepower if BCP significantly improves its offer, BPI will have to fold or find a white knight.
Dimon’s first deal as JP Morgan boss stacks up 10 Apr 2006 The $3bn swap of businesses with Bank of New York plays to the JP Morgan CEO s costcutting strengths. It s a baby step, but structured cleverly. If Dimon can just get JP Morgan s trading engine humming, bigger ones may follow.
Wacker signals return of German retail investors 10 Apr 2006 The IPO of Wacker Chemie has gone swimmingly after retail investors made an unexpectedly strong showing. Pains from the Neuer Markt debacle have finally faded for small investors good news for the 30 big companies preparing to float.
Wall Street feels pain as clients go electronic 7 Apr 2006 Average commission rates on stock trades are tumbling as investors abandon costly fullservice trading. US brokerages find this especially painful because they have been slow to restructure.
Trump’s move into mortgages looks ill-timed 7 Apr 2006 Sure, there has been a pickup in US mortgage applications. But that looks like a false dawn. The homelending business suffers from excess capacity and loan volumes are liable to collapse.
Minority buyouts attract hedge fund swarm 7 Apr 2006 That s because squeezeouts, like NovartisChiron this week, follow relatively consistent patterns that savvy investors can exploit. Many variables that determine premiums can be assessed easily. One big one, though the strength of independent directors cannot.