Bank of England has hiring problems 30 Jun 2006 The Monetary Policy Committee is two members short, and its latest recruit isn t exactly top drawer. The UK chancellor makes the appointments. Brown may not be doing all he could. But the job isn t all that attractive.
European hybrids could be past their sell-by date 26 Jun 2006 Riskaverse investors have been dumping the once popular hybrid bonds, causing prices to fall off a cliff. That doesn't bode well for companies planning to use them for financing. It is also a sign that leverage levels in M&A may have peaked.
Calls for hedge fund regulation wrong-headed 23 Jun 2006 The Connecticut attorney general claims a probe into insider trading at Pequot Capital reinforces the case for more hedge fund oversight. But securities laws should be directed at actions not actors. And insidertrading is already wellcovered by existing laws.
Bond investors claw back some power 22 Jun 2006 Judging by recent bond issues by Saint Gobain and Bayer, bond investors are becoming more risk averse and more demanding. That said, issuers still have the whip hand. There s still a lot of liquidity sloshing around and pricing remains tight for now.
NYSE makes an odd case for buying Euronext 20 Jun 2006 The US exchanges's top brass are supposed to be selling the deal. But recent comments suggest they aren't sure what the benefits really are. Maybe there's some Machiavellian scheme behind it. But the message for NYSE shareholders seems to be lots of risk with little compensation.
Perella Weinberg launches super-boutique 15 Jun 2006 But execution will still determine its success especially whether it can keep the big egos working as one and attract secondtier talent. Rarely has an investment bank had as many advantages at birth: top talent, desire among firms for independent advice and over $1bn in funds.
Bond conundrum is back 14 Jun 2006 A few months ago, it looked like Greenspan s 2005 puzzle low yields in a strong economy was on the way to a solution. Not any more. US yields are down in the midst of an inflation scare. Why? Perhaps a lurking recession, or maybe just uneconomic bond buyers.
Why private equity prefers Amsterdam to New York 14 Jun 2006 KKR and Apollo listed their private equity funds on the Dutch stock exchange. Its appeal loose regulation and lax corporate governance. This is just the kind of regulatory arbitrage that's prompting US stock exchanges to go shopping abroad. They can't afford to sit around.
Jana launches largest hedge fund hostile bid 14 Jun 2006 But this is a capitalintensive business. It s questionable whether a hedge fund can take a sufficiently longterm view to maximise value. Jana Partners got impatient with slowmoving shareholder activism. So it s gone hostile on Houston Exploration, a $1.7bn oil company.
Window closes on listed buyout funds –for now 13 Jun 2006 Blackstone and Carlyle have reportedly postponed plans to launch listed buyout funds. In the current market conditions, it's not surprising. KKR already mopped up most of the demand. But these funds offer too many advantages for the firms to stay away for long.
Naked shorts come out of the closet 12 Jun 2006 This murky practice is now being blamed for Vonage s disastrous initial public offering. That may not be fair. Nevertheless, regulators are right to take a dim view of naked shorting.
NYSE first among equals in $20bn Euronext merger 2 Jun 2006 The Big Board comes out on top in its deal with the European bourse. It will control the board, and CEO John Thain will run the show. But you don't make shareholders money simply by signing a merger agreement. Thain needs to integrate the business if the deal is to pay off.
Perella firm may contain Weinberg name too 30 May 2006 Slapping two instantly recognisable names on a firm s nameplate has some branding advantages. But personalising companies has its disadvantages too. It can make them look like oneman or, in this case twoman bands.
Why are hedge fund bosses minting fortunes? 26 May 2006 The average pay of the top 25 hedge fund managers rose 45% to $363m in 2005. That partly reflects the scale of management fees. The old 2 and 20 fee structure gave way to 5 and 44 in the case of Renaissance Technologies, whose boss made an astonishing $1.5bn.
Fortress Investment considers IPO – exclusive 25 May 2006 This would be the first time a major US alternative asset manager floated its management firm. Fortress could be worth up to $6bn. It is a dream scenario for founders wanting to cash in the goodwill and brand equity they ve created while incentivising future partners.
NYSE has ample firepower for Euronext battle 24 May 2006 The Big Board s debtfree balance sheet leaves it plenty of room to gear up if it needs to increase its offer for the FrancoDutch exchange. Doing so would hit returns from the deal. But offering more cash might soothe Euronext investors worried that NYSE s shares are overpriced.
Euronext vote gives Theodore another chance 23 May 2006 The exchange s CEO did well to drum up two suitors despite being under pressure to sell to Deutsche Boerse. But both bids were unattractive. Unfortunately, the Germans were so far off the pace that Theodore may face an uphill struggle to get NYSE s price up.
Goldman promotes client guy 23 May 2006 The naming of Yoel Zaoui as sole head of investment banking in Europe comes just after Goldman's clients seemed to be taking the back seat. There may be no connection between the two events. But Zaoui looks like he'll be a strong advocate of corporate clients in internal debates.
Euronext deal would allow NYSE to skirt Sarb-Ox 23 May 2006 The Big Board s share of international listings has plummeted since SarbanesOxley passed into law in 2002. European exchanges have been the beneficiaries. Buying Euronext could give the NYSE a way back into the game.
NYSE bid puts pressure on Deutsche to do better 22 May 2006 The US exchange may not be paying a premium, but its bid looks superior to Deutsche Boerse s merger of partners . But it won t be easy for Deutsche to improve its proposal. It has, after all, eschewed paying premiums for rivals.