Viewsroom: Stock underwriting bonanza, Vietnam 18 Jun 2020 Equity capital markets bankers are having their day in the sun as companies scramble to raise money while central banks pump liquidity into the financial system, Breakingviews editors explain. Plus: Asia columnists Robyn Mak and Una Galani chew over Vietnam’s productive pandemic.
Wall Street underwriters get their day in the sun 16 Jun 2020 Investors are going bananas for new shares. Even bust rental-car firm Hertz can sell stock. Re-equitizing companies is bringing a bonanza of fees to global equity capital markets desks at investment banks. But the window is only open now thanks to central banks and governments.
Goldman’s new direction cashes in on its old one 10 Jun 2020 The Wall Street firm’s plan to lend to Amazon vendors takes its consumer aspirations up a notch. Whizzy tech and lack of banking baggage play in its favor. There’s also a whiff of old-school Goldman qualities, like a knack for milking relationships, and supreme self-confidence.
Wall Street takes bond-market largesse to the bank 8 Jun 2020 Companies have issued almost as much debt so far this year as in all of 2019. Thank falling rates, firms making up for dwindling income, and investors’ excess cash. But it leaves buyers and sellers exposed to a slow recovery. Investment bankers, though, have never had it so good.
Corona Capital: ZoomInfo IPO, U.S. trade 4 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: ZoomInfo goes public with a big pop despite Covid-19; and America’s goods-trade deficit with Europe will test Washington’s mood.
Bankers’ share sale boom hints at fragile recovery 27 May 2020 Saint Gobain sold $2.7 bln of shares in Sika, one of several recent so-called block trades. Such deals are a quick way for banks to win business but, as Citi’s experience with the Swiss group shows, carry risks. Companies’ rush to exit suggests stock market gains may be fleeting.
Morgan Stanley gets closer to real Reliance prize 22 May 2020 Deals are flowing fast as Mukesh Ambani rejigs his empire. The U.S. bank has helped raise $10 bln for the tech unit from Facebook, KKR and others. It wasn’t on a bigger deal inked with Aramco but that’s less important, especially with the $70 bln Jio unit’s IPO on the horizon.
Financial myopia could be healed by virus 21 May 2020 Apple, Airbus and Asahi are among many companies withdrawing forecasts during the pandemic. It’s a good time to reconsider campaigns by JPMorgan boss Jamie Dimon and others to end quarterly profit guidance. Covid-19 should help refocus attention on the longer-term.
Index makeover sets fresh benchmark for Hong Kong 20 May 2020 The main Hang Seng tracker is welcoming companies with secondary listings and dual-class shares, opening the door to Alibaba, Xiaomi and more. That will help diversify baskets overstuffed with banks and such. It also underscores the local bourse’s plight to attract tech startups.
Jamie Dimon returns to a changed investor climate 19 May 2020 Shareholders fired warning shots at the JPMorgan boss, recently back from surgery. An investor’s push for better information on climate risk is close to passing. The largest minority ever wants an independent chairman. Dimon’s remaining years in charge might not be easy.
Corona Capital: Travel companies, Oil 18 May 2020 Concise views on the pandemic’s corporate and financial fallout: Travel companies have sunnier days; oil traders have triumph of hope over experience.
Review: The devil wears Ferragamo 8 May 2020 The life of a junior banker is hell, and Bill Keenan offers a guided tour from his Deutsche Bank days. Through a torrent of Excel emergencies and late-night food deliveries he grasps Wall Street’s rapacious essence. That makes “Discussion Materials” an enjoyable if grating read.
Nomura plays it too safe during downturn 8 May 2020 The Japanese bank posted a quarterly loss of $325 mln as slumping markets dented its asset management unit. Nor did its trading desk produce the sort of bump enjoyed by rivals like Morgan Stanley. New boss Kentaro Okuda has some work to do in restoring Nomura’s killer instincts.
China’s big banks socially distance from economy 7 May 2020 ICBC and its hulking peers grew their bottom lines even as GDP plunged. They’re paying dividends, and some even reduced loan loss buffers. Such rude health suggests they haven’t extended sufficient credit to private businesses in need, which may capture Beijing’s attention.
Restructuring gurus face embarrassment of riches 1 May 2020 While fees from advising on M&A are drying up, helping companies navigate cash crunches and bankruptcy will be a big pandemic money-spinner, probably larger than past crises. Experts like Lazard don’t break out how much they make from such activities. That’s probably wise.
SocGen hits replay button on trading horror show 30 Apr 2020 The French bank plunged into the red due to $277 mln in losses on equity bets. That contrasts with investment banking peers who reported sharp rises in trading income. CEO Frederic Oudea’s pledge of more cost cuts does little to reassure there won’t be more goofs to come.
How Goldman Sachs walked into a pay trap 29 Apr 2020 CEO David Solomon’s $27.5 million package for last year is deservedly in the crosshairs at this week’s shareholder meeting. Goldman’s problem is the method rather than the magnitude, which isn’t out of whack with rivals. Still, it might want to borrow some of their good habits.
UK picks odd time to query investment bank model 29 Apr 2020 The Financial Conduct Authority has berated banks that lend to firms weakened by Covid-19 for demanding mandates on equity offerings. But companies have long used the promise of future fees to extract cheap loans from lenders. The watchdog risks further muddling the market.
Barclays’ JPMorgan impression may fall flat 29 Apr 2020 The UK bank, like CEO Jes Staley’s former employer, is preparing for the worst with a huge bad-debt charge. Peer Deutsche is looking through the virus pain. Barclays’ move could be a sign of strength, but investors may see it as evidence of the lender’s risky mix of businesses.
Blackstone becomes Wall Street’s deals backstop 23 Apr 2020 Advisory boutiques like Evercore and Moelis are putting their faith in private-equity firms to end the virus-induced merger drought. With $150 bln to invest, Steve Schwarzman’s outfit is the biggest, and ready to pounce. The juicy fees from big buyouts are a way off yet, though.