Structured products
Talking triggers: Rob Davies column
Regulators have given governments the freedom to decide at what point triggers should cause debt to be written off, giving investors a headache
Bund yield drop gives secondary market the jitters
After last month’s sell-off of risky assets, traders say positive technical factors could push real money investors back into the market before long.
Lovelier the second time around? Marty Fridson column
Private equity firms are sitting on $1 trillion of uninvested capital. That’s why they are buying ‘second-hand’ companies with questionable value potential from other private equity firms.
Equity Derivatives House of the Year, Asia
Credit Suisse
Indosat $650m bond success augurs well for Indonesia issuers
A $650 million bond from Indonesian telco Indosat, issued last month, was a record 16 times oversubscribed. What was it about the deal that attracted investors in such numbers?
Fixed income investors look to ethical funds – but do they pay?
Of all asset classes, fixed income has been one of the slowest to embrace ethical investment. Thanks in part to the growing influence of sovereign wealth funds, this may be set to change. But for many, lingering questions about whether constraining your…
Credit investors up in arms over lax covenants
Investors are complaining that documentation for high yield bond deals has become increasingly opaque and poorly structured, making it difficult to gauge the level of risk. Will the glut of high yield supply that is set to hit the market over the coming…
Technology provider of the year, Asia – Numerix
For its continued expansion in China and South Korea as well as its established business in Japan, Numerix is the Structured Products Technology Provider of the Year for Asia
Repricing of sovereign debt would be an 'earthquake' for financial markets – chief economist
The chief economist at Independent Strategy, Bob McKee, explains why a repricing of sovereign debt and defaults of advanced economies would be “logical” outcomes in the next stage of the financial crisis.
Special report: China
Special report: China
Repayment fears over China's local government debt
China’s local governments have channelled their debt through off-balance sheet financing vehicles that leave creditors little recourse to repayment in the event of default. Calls to reform this system could result in the formation of a municipal bond…
Tiger or pussycat? The emergence of China's sovereign wealth fund
Ever since its launch in 2007, China Investment Corporation, China’s sovereign wealth fund, has attracted widespread fear and suspicion. But its potential to move markets may have been overplayed.
Iraq woos bond investors as sovereign debt tightens
Iraq is beginning to open its doors again to international investors. With the country needing to raise capital to develop the infrastructure required to exploit its energy reserves, Credit looks at the role bond issuance could play in Iraq’s future.
Distressed debt expert sees opportunities from global recession
The head of special situations at Alcentra says distressed debt investors should head for Europe if the global economy slumps again.
Global economic imbalances may lead to 'bond trap' for investors
US-led efforts to rebalance the global economy are in danger of foundering on Europe’s fiscal retrenchment drive. The result, warn economists, may be a global bond trap, whereby surplus liquidity is channelled into safe government debt, freezing…
Product performance
The products reviewed this month include full principal protection and an accelerated growth product that has no downside risk, alongside a three and a six-month reverse convertible
Market snapshot
The sale of structured products in the US has increased by around 36% in June and July. In the UK, the market in the same two months was characterised by the continuing dominance of capital-at-risk products.
Raiffeisen joins growing Romanian structured products market
Raiffeisen lists its first certificates on the Bucharest Stock Exchange
FVC Custom Indexes
US and UK benchmark indexes declined sharply in June but recovered their losses in July, while the FVC’s global protected index recorded a rise in June
Bank funding blow from ECB repo withdrawal
As the European Central Bank winds down its repo facility, there are fears that traditional avenues of securitisation issuance are still not viable.