IFR's daily digest of views & news for capital markets professionals
On good times, great runs and the gender of bonds
Old chestnut: Two economists meet in the street. Says one to the other: “How are you?” Replies the second: “Compared to what?” We’ve all giggled over that one but it feels slightly more pertinent now than it has for a very long time. The good times are upon us again but how good are they really?
Comment: Waiting for the real Japan story to unfold
When it comes to opinions on Japan’s radical monetary policy, Tokyo is just as divided as anywhere else, says IFR Asia bureau chief Nachum Kaplan.
IFR Comment: The Fed needs to cushion negative "tapering" feedback
Since the beginning of the year the Fed has adopted a glacial stance toward communicating its desire to take the foot of the monetary accelerator. The current debate over tapering QE does not stem from a satisfaction with state of the labour market or concern over inflation risks but a desire to limit the perceived financial stability costs of QE. The communication challenge for the Fed is to ensure that financial markets do not overreact 1994-style to a likely tapering of QE this year.
UK should get on front foot with City
It is perhaps too much to expect Britain’s Conservative-led government to head any initiatives on Europe, such is the orgy of self-destruction in the party over whether the UK should stay in the European Union. But, insofar as David Cameron manages to get some respite from the madness, he should launch a strategy to enhance the City of London as Europe’s financial centre.
On European Whits, UKIP and oily decisions
If ever you wanted to find a way of distinguishing the Eurozone core from the periphery, today is the day. The core is taking the Whit Monday bank holiday, the periphery isn’t.
European securitisation event plans return to pre-crisis home
AFME and IMN’s Global ABS conference, the largest annual event in European securitisation, is returning to Barcelona for 2014, following three years in Brussels as the sector attempted to engage with European regulators and policymakers.
IFR Comment: Gold/silver support USD-strength expectation
Gold (and silver) have been a little under the radar since the sharp falls in mid-April. But both are sending some important signals as to the state of play in the markets currently.
Analysis: Shrinking US deficit reduces pressure for budget deal
(Reuters) - The chances of a deal between Democratic and Republican lawmakers that would overhaul the US tax system, trim government spending and reform safety net spending programs appear to be fading.
Top Stories from this week's IFR Asia magazine
Released online Saturday 23:00 Hong Kong / Friday 16:00 London
Citic Pac dispels perp doubts
Citic Pacific last week managed to accomplish something that no other high-yield issuer has managed in Asia this year: it priced a dollar-denominated hybrid that traded up in secondary.
Confidence lift for Asian buyouts
The all-Asian line-up of arranging banks and sponsors on the US$890m leveraged buyout of Chinese software and IT firm AsiaInfo-Linkage is a first for Asia. The US$330m debt package underlines the development of the region’s loan market and a growing acceptance of Chinese buyout structures.
Aviation trust IPO grounded
Three Asian airlines are looking to press ahead with IPOs in the coming months, but the response to the region’s first aviation trust is sending a very different message.
IPO revival gathers pace
Two Chinese companies priced their jumbo IPOs at or near the bottom of the final price guidance last week, raising hopes that early trading gains will inject new life into the struggling Hong Kong market.
Linkers arrive in India
India is preparing to offer its first inflation-linked bonds in 15 years in the first week of June. The Reserve Bank of India last week announced plans to auction a Rs10bn–Rs20bn (US$182m–$365m) first batch of linkers on June
Foreign banks see red in China
The many global banks that have established securities joint ventures in China knew that their investment would take time to pay off. The latest numbers, however, show that process may be taking longer than expected.
India launches online bond trading
India’s National Stock Exchange launched online trading of domestic corporate bonds last week, a service expected to add the much-needed depth to the local market for term debt.
Langham sets tone for trust IPOs
Langham Hospitality Investments has seen an encouraging investor response to its float, strengthening Hong Kong’s hopes of luring business trust listings away from rival Singapore.
REITs flock to dollar bonds
After Yuexiu REIT open the market earlier this month, a flurry of Hong Kong listed property trusts are turning to the US dollar bond market.
