Bendigo and Adelaide Bank issued prime residential mortgage-backed securities of A$500m (US4385m) yesterday through its Torrens Series 2015-1 Trust.... more
APAC Financial Markets • #BendigoAndAdelaideBank, #MortgageBackedSecurities, #RMBS, #TorrensSeries20151Trust #AssetBacked, #StructuredFinance
Wednesday, 10 June 2015
STRUCTURED FINANCE: Bendigo prints A$500m RMBS
Option traders brace for volatility in China"s stock markets
Options markets continue to suggest bearish investors fear a correction for China"s red hot stock markets.... more
APAC Financial Markets • #China, #Equities, #MSCI, #Options, #StockMarket, #Volatility #MarketNews
Two help Hilong drill for $100m three year financing
Oilfield equipment provider Hilong Holdings launched a $100m loan into general syndication, offering generous returns.... more
APAC Financial Markets • #Citi, #CiticBank, #HilongHoldings, #Loans, #NonIGLeveragedLoan, #Syndication #Issuance/Pipeline, #SyndicatedLoans
RBNZ Sees Scope for Another Rate Cut Despite Auckland Boom
New Zealand’s central bank lowered interest rates for the first time in four years to boost inflation as growth slows, setting aside the danger of fueling an Auckland housing boom. The currency plunged toward a five-year low…. more
APAC Financial Markets • #InterestRate, #NewZealand, #RBNZ, #ReserveBankOfNewZealand #MarketNews
Tokio Marine Rises After $7.5 Billion Deal to Buy HCC
Tokio Marine Holdings Inc. shares rose after analysts said the insurer’s plan to buy HCC Insurance Holdings Inc. will be positive for the Japanese company…. more
APAC Financial Markets • #HCCInsuranceHoldings, #TokioMarineHoldings #MarketNews
Bond Investors Are Getting Really Creative When it Comes to Hedging Their Risk
(Bloomberg) What do you get the credit investor who has everything? How about an effective hedge against a major blow-up in bonds?…. more
APAC Financial Markets • #BondInvestors, #Bonds, #HedgingRisk #MarketNews
China property groups diversify to survive
As the Chinese real estate market sours, developers have been forced to switch tack.... more
APAC Financial Markets • #Agriculture, #China, #ChineseRealEstateDevelopers, #Diversity, #ECommerce, #EvergrandeRealEstateGroup, #WandaCommercialProperties #MarketNews
Asia gains as Wall Street slide halts, kiwi tumbles
TOKYO (Reuters) - Asian stocks rose on Thursday, encouraged by gains on Wall Street, while the New Zealand dollar tumbled to a five-year low after the central bank cut interest rates for the first time in four years as the economy slows.
... more APAC Financial Markets • #Asia, #BusinessNews, #CentralBank, #InterestRates, #KiwiTumbles, #NewZealand, #StockMarket, #US, #WallStreet #MarketNews
S Korea cuts interest rates
South Korea"s central bank cut interest rates to a record low, a move seen as an attempt to stem the economic fall out from an outbreak of the Middle East Respiratory Syndrome (MERS).... more
APAC Financial Markets • #CentralBank, #InterestRates, #MERS, #MiddleEastRespiratorySyndrome, #SouthKorea #MarketNews
Greece, EU powers agree to step up debt talks as crunch looms
BRUSSELS (Reuters) - Greek Prime Minister Alexis Tsipras held a new round of late-night talks with the leaders of Germany and France and agreed to intensify negotiations with Athens" creditors ahead of a looming default at the end of the month.
APAC Financial Markets • #AlexisTsipras, #Creditors, #Default, #EU, #France, #Germany, #Greece, #IMF #MarketNews
RBS bankers look forward to privatisation
Losses and fines still present hurdles to return to independence.... more
APAC Financial Markets • #Fines, #Hurdles, #Independence, #Losses, #Privatisation, #RBS #MarketNews
Emerging markets: Trading blow
After years of boosting global growth, developing economies now a major drag on world economy.... more
APAC Financial Markets • #EmergingMarkets, #Trading #MarketNews
Goldman Sachs pre-IPO fund raises $1bn
Fund taps private client enthusiasm for pre-flotation companies.... more
APAC Financial Markets • #GoldmanSachs, #PreFlotationCompanies, #PreIPOFund, #PrivateClients #MarketNews
Morning Coffee: Does DBS need to hire 107 new bankers?
DBS is aiming to grow its private banking assets by 40% to US$100bn in less than three years, according to the firm’s head of wealth management, Tan Su Shan.
In making the announcement at the Reuters Wealth Management Summit this week, Tan left one vital question unanswered – how many more relationship managers (RMs) will she need to realise such an ambitious target?
In Asia, private banks’ ranking by assets under management (AUM) largely correspond with their ranking by RM headcount – DBS is currently eighth in both categories. A 40% rise would see the bank employing about 374 RMs, up by 107 from the current figure of 267.
Even if DBS manages to drive AUM growth with a slightly less dramatic headcount increase, it is unlikely to grow its workforce purely by hiring from competitors. Despite Tan’s stellar reputation as a leader, attracting that many experienced bankers to her ranks would be difficult with so many other firms jostling for talent.
DBS is more likely to use a combination of poaching, promoting its assistant-level RMs and perhaps even acquisitions. Last year it bought Societe General’s Asian private bank and is now looking to expand its market share in China.
APAC Financial Markets • #AssetsUnderManagement, #AUM, #DBS, #Hiring, #MarketShare, #PrivateBanking, #RelationshipManagers, #WealthManagement #MarketNews
The Wall Street Journal: ECB allows more emergency funding for Greek banks
The European Central Bank has increased the amount of money Greek banks can borrow under an emergency lending program, a Greek bank official said, continuing a lifeline for the country’s banks as tense negotiations between the Greek government and its creditors continue.... more
APAC Financial Markets • #ECB, #EmergencyFunding, #Greece, #GreekBanks #MarketNews
Citigroup"s FX deals might have made only $1 million but cost $2.5 billion
NEW YORK (Reuters) - Employee misconduct in foreign exchange trading that cost Citigroup Inc $2.5 billion in fines and penalties might have made only $1 million for the bank, an executive said on Wednesday.
... more APAC Financial Markets • #Citi, #Fines, #ForeignExchange, #FX, #Penalties, #Trading #MarketNews
HSBC"s investment bank to shed clients, assets in profitability push
LONDON (Reuters) - HSBC"s investment bank could shed more than a fifth of its clients and plans to reduce its credit and interest rates businesses by $100 billion over the next two years in its bid to improve profitability.
... more APAC Financial Markets • #50000, #HSBC, #InvestmentBanking, #JobCuts, #ReduceCreditBusiness, #ReduceRatesBusiness, #Redundancies, #ShedAssets, #ShedClients #MarketNews
CommonBond rolls out first student loan ABS
CommonBond pulled the trigger Wednesday on its inaugural securitization of student loans, a US$96.4m deal that has been in the works for months.... more
APAC Financial Markets • #CommonBond, #Inaugural, #Securitization, #StudentLoans #AssetBacked, #StructuredFinance
HSBC primes the exits in IB
It’s hard to know really what to make of this week’s HSBC’s “actions to capture value from our global presence in a changed world” in terms of what it means for the group’s investment bank and CEO Stuart Gulliver’s efforts to return it to (less ambitious) group target profitability by 2017. Except it basically consigns Samir Assaf to another bout of serial cutting of assets, businesses and people for at least another 18 months.... more
APAC Financial Markets • #CEO, #CuttingAssets, #CuttingBusinesses, #Exits, #HSBC, #IB, #InvestmentBanking, #JobCuts, #Redundancies, #StuartGulliver #MarketNews
Wells Fargo Sees Continued Growth Through Acquisitions
Wells Fargo’s wholesale banking head Timothy Sloan said the San Francisco-based bank expects continued growth through acquisitions, such as buying portfolios or selectively buying businesses.... more
APAC Financial Markets • #Acquisitions, #BusinessAcquisitions, #Growth, #PortfolioAcquisitions, #TimothySloan, #WellsFargo #MarketNews
One chart from Barclays explaining where you need to work in finance
If you’re nervously inclined, you might be worried about the coming liquidity crunch in the bond markets. Bloomberg points out that the size of the US corporate bond market has ballooned by $3.7 trillion over the past decade and that the concentration of these new securities in the hands of a small class of investors (mutual funds, insurance funds and insurance companies) threatens to create a liquidity crisis if they all attempt to exit at once.
Bloomberg isn’t the only place sounding alarm bells. Anshu Jain said much the same while he was still CEO of Deutsche Bank last week.
Analysts at Barclays have also put together a handy flow chart on the issue. Shown below, it also indicates where to work if you want to survive this impending doom.
Source: Barclays (h/t Tracey Alloway)
If you work in credit sales and trading, it seems that now is the time to get into index-based portfolio products. Think exchange traded funds (ETFs). Think total returns swaps (TRS). Think tradable credit default swap (CDS) indices like CDX. Look at the final two boxes above.
Credit traders had a tough first quarter, if Barclays and others are right, they’ll also have a difficult rest of the year.
Follow @MadameButcher
APAC Financial Markets • #Barclays, #Finance, #InvestmentBanking, #WhereToWork #MarketNews
The BoE FICC review: Key takeaways
Longer prison sentences for market abuse and direct regulation of the spot FX market are among the cornerstone recommendations of the final report.... more
APAC Financial Markets • #BankOfEngland, #BoE, #FICCReview, #Regulation #MarketNews
China"s Guotai Junan Securities Plans $4.8 Billion IPO
Guotai Junan Securities received regulatory approval to raise as much as $4.79 billion in an initial public offering in Shanghai, paving the way for what could be China’s largest IPO in five years.... more
APAC Financial Markets • #China, #GuotaiJunanSecurities, #IPO #Equities, #Issuance/Pipeline
Hong Kong proves a listings hot spot in 2015
Territory sees 56% year-on-year rise in the amount raised, as listings activity elsewhere declines.... more
APAC Financial Markets • #Equities, #HongKong, #HotSpot, #Listings #MarketNews
Asia ECM round-up: Manulife preps $297m SGX Reit
Canada"s Manulife Financial Corp is set to start pre-marketing its S$400m ($297m) real estate investment trust (Reit) IPO bound for the Singapore Exchange early next week.... more
APAC Financial Markets • #IPO, #ManulifeFinancialCorp, #RealEstateInvestmentTrusts, #REIT, #SingaporeExchange #Equities, #Issuance/Pipeline
Bajaj defies shaky market with $220m QIP
India’s Bajaj Finance scored a coup with its qualified institutional placement (QIP) that launched on June 4, raising Rp14bn ($219.84m) despite nervy market conditions and with a tight discount, even as one anchor investor offered to swallow the entire trade himself.... more
APAC Financial Markets • #BajajFinance, #Equities, #FollowOnRightsIssue, #India, #JMFinancial, #QIP, #QualifiedInstitutionalPlacement #Equities, #Issuance/Pipeline
Minsheng Leasing unit returns; Trafigura eyeing CNH facility
China’s Minsheng Financial Leasing is back in the loan market for a $175m-$200m facility, picking Credit Suisse as the sole bookrunner and mandated lead arranger.... more
APAC Financial Markets • #China, #CreditSuisse, #InvestmentGrade, #Loans, #MinshengFinancialLeasing, #Syndication #Issuance/Pipeline, #SyndicatedLoans
Nomura boosts rates strategy with new hire
Nomura has hired Bank of America Merrill Lynch’s Albert Leung to serve as a Northeast Asia rates strategist.... more
APAC Financial Markets • #AlbertLeung, #BAML, #HongKong, #Nomura, #NortheastAsia, #RatesStrategist, #RobSubbaraman #PeopleMoves, #Research
Giant said to mull $850m loan prepayment
Rumours are swirling that Chinese company Giant Interactive, which wrapped up a $850m leveraged buyout loan only last year, is considering prepaying the money early.... more
APAC Financial Markets • #BNPParibas, #ChinaMinshengBank, #CreditSuisse, #DeutscheBank, #GoldmanSachs, #IndustrialAndCommercialBankOfChinaInternational, #JPMorgan, #Loans, #NonIGLeveragedLoan, #Syndication #Issuance/Pipeline, #SyndicatedLoans
CrédAg closes second Formosa, BoC revises guidance
Crédit Agricole has returned to Taiwan’s Formosa bond with its second offering of the year, several bankers have told GlobalRMB, with banks the dominant buyers of the five year bond. Meanwhile, Bank of China Taipei Branch has revised guidance for its upcoming multitranche deal.... more
APAC Financial Markets • #BankOfChina, #Bonds, #CreditAgricole, #FormosaBond, #MultiTranche, #RMB, #Taiwan #Bonds, #Issuance/Pipeline
BPCE’s tier two brings in S$150m
French bank Group BPCE has priced a S$150m ($111m) tier two offering. The deal marks BPCE’s debut in the Singapore dollar market.... more
APAC Financial Markets • #BankCapital, #Barclays, #BPCE, #DBS, #FIG, #Natixis, #SingaporeDollarMarket, #UOB #Issuance/Pipeline
Third time’s a charm for Mirae $408m IPO
South Korea’s Mirae Asset Life Insurance Co has finally taken its IPO on the road, opening books on June 10 to raise up to W454bn ($408m) from the equity capital market, putting several past failed attempts behind it.... more
APAC Financial Markets • #Equities, #IPO, #MiraeAssetLifeInsurance, #SouthKorea #Equities, #Issuance/Pipeline
Haikou Meilan completes maiden international bond
Haikou Meilan International Airport took to the international bond market for the first time on June 9, raising Rmb600m ($98.5m) in the process.... more
APAC Financial Markets • #Bonds, #CorporateBonds, #HaikouMeilan, #InternationalBondMarket, #LocalCurrency, #Maiden #Bonds, #Issuance/Pipeline
Hyundai Heavy opens book on $222m EB
Hyundai Heavy Industries Co has started bookbuilding for a zero coupon exchangeable bond issue due in 2020 to raise $209.7m-$221.7m, which comes with a guarantee from Korea Development Bank.... more
APAC Financial Markets • #BAML, #Equities, #EquityLinked, #Guarantee, #HSBC, #HyundaiHeavyIndustries, #KoreaDevelopmentBank, #ZeroCouponExchangableBonds #Equities, #Issuance/Pipeline
RBI disappoints with draft Masala bond guidelines
The Reserve Bank of India has issued a much-awaited framework for Indian companies to sell rupee-linked bonds offshore but market players were not impressed with the restrictive guidelines.... more
APAC Financial Markets • #India, #MasalaBonds, #RBI, #ReserveBankOfIndia, #RestrictiveGuidelines, #RupeeLinkedBonds #Bonds
Pressing for Greek concessions, Merkel and Hollande keep Tsipras waiting
BRUSSELS/ATHENS (Reuters) - Greece and its international lenders moved closer to the brink on Wednesday with the leaders of Germany and France holding off on an expected meeting with Prime Minister Alexis Tsipras to press for more concessions from the Greek side.
Athens said it was waiting for the creditors to respond to ideas it put forward on Monday. Euro zone officials said the proposals were inadequate to plug holes in the Greek budget and also dodged key reforms to make the economy more competitive.
Without an agreement to unlock more aid money, Greece risks default.
"The Greek government has submitted its proposal to the institutions, along with two supplementary documents with specific alternatives on the fiscal gap and the sustainability of Greek debt ... So far, there has been no comment or response to the Greek representation in Brussels," a Greek official said in a statement.
Athens is likely to default on a 1.6 billion euro repayment due to the International Monetary Fund at the end of June unless it receives fresh funds from its frozen bailout or the European Central Bank lets it sell more short-term debt to Greek banks.
That will only happen if the two sides can agree in the coming days on a cash-for-reform deal that has been the focus of acrimonious negotiations for the last four months.
A default could lead to the imposition of capital controls and possibly put Greece on a path to becoming the first country to leave the 19-nation single currency area, undermining the euro"s avowed irreversibility.
German Chancellor Angela Merkel and French President Francois Hollande had been due to meet Tsipras on the sidelines of an EU-Latin America summit in Brussels to move the debt talks forward, but a French source said nothing was arranged so far.
"No meeting is planned at this stage - we"ll see what happens when we get there," the source said.
The European Commission said its chief, Jean-Claude Juncker, who accused Tsipras on Sunday of misrepresenting the creditors" proposals and misleading his parliament, had no plans as yet to meet the Greek premier either.
"For this final push, the Commission is of the view that the ball is now clearly in the court of the Greek government which needs to follow up on the agreement at the meeting with President Juncker last Wednesday night," spokesman Margaritis Schinas told a news conference.
An EU official said the Greeks had made no advance since submitting a three-page proposal on Monday viewed as insufficient because it did not address pension reform or labor market measures sought by the creditors.
"If there is no movement, there is no meeting," the official said.
DEBT RELIEF SOUGHT
For its part, Greece appears to be insisting it will not sign any deal unless it contains a commitment to official debt relief, while the creditors say they will only start discussing debt rescheduling once a deal is signed and implemented.
The brinkmanship carries risks for both sides.
The EU official said the Greek proposal on fiscal targets did not address how Athens would arrive at them. The primary surplus targets were also marginally below those requested by the creditors.
Athens also sent in a document on debt restructuring, which the creditors dismissed as irrelevant now because Greek debt sustainability could only be assessed once it implements reforms promised in exchange for aid it has already received.
After European Commission President Jean-Claude Juncker met Tsipras on June 3, the Commission asked Greece to put forward alternatives to the creditors" proposals it rejected on pensions and Value Added Tax.
While more talks between Athens and the institutions could take place on Wednesday, the creditors say it is now impossible to disburse the remainder of the money available to Greece under the existing bailout -- 7.2 billion euros -- without a formal extension of the bailout beyond its June 30 expiry date.
Financial markets have taken the Greek debt impasse in their stride, with little impact on euro zone bonds and stocks other than Greek financial instruments, even in a stressful period for government bonds globally.
In the past two months, as bond yields jumped worldwide due to improving inflation and growth expectations, the gap between benchmark German Bund yields and Italian, Spanish or Portuguese borrowing costs over 10 years has widened only slightly.
EU officials say the euro zone has put in place institutions since the start of the Greek crisis in 2010 with a financial rescue fund, a single banking supervisor and resolution system and better enforce fiscal rules that would prevent contagion to other peripheral states if Athens were to leave the euro.
Some market specialists are less certain.
"If Greece does exit then it is possible that all hell breaks loose and that risk assets and peripheral government bonds suffer," said Gary Jenkins, chief credit strategist at LNG Capital.
"However the least likely outcome is that Greece leaves and that the Eurozone takes no measures to stop speculation that it might fall apart."
(Additional reporting by Deepa Babington in Athens and Marius Zaharia in London; Writing by Paul Taylor; editing by Janet McBride)
APAC Financial Markets • #Greece, #Hollande, #IMF, #InternationalLenders, #Merkel, #Tsipras #MarketNews
Fitch shoots down Moody"s over China ABS rating
It only took a few deals, but a spat has already blown up between international ratings agencies when it comes to Chinese auto ABS. On Wednesday Fitch issued a strongly worded opinion on why it thinks the latest SAIC-GMAC Automotive Finance deal did not deserve the rating it has received from a competitor.... more
APAC Financial Markets • #ABS, #AssetBacked, #AutoABS, #China, #Fitch, #Moodys, #Rating, #SAICGMACAutomotiveFinance #AssetBacked, #StructuredFinance
Singapore one step closer to first covered bond
Singapore is on course for its first covered bond after the country’s monetary authority published feedback over a consultation paper it sent out in January.... more
APAC Financial Markets • #CoveredBonds, #FIG, #MAS, #Singapore #Issuance/Pipeline
Barclays taps HSBC"s Martinez for oil and gas role
Jorge Martinez, previously head of oil and gas for Asia at HSBC, is bringing his energy experience to Barclays later this year.
APAC Financial Markets • #Asia, #Barclays, #Energy, #Hiring, #HSBC, #JorgeMartinez, #OilAndGas #PeopleMoves
MGM Grand amends facilities worth HK$15.6bn
Macanese casino operator MGM China and subsidiary MGM Grand Paradise have amended and extended credit facilities raised in 2012.... more
APAC Financial Markets • #ExtendedCreditFacilities, #Loans, #Macau, #MGMChina, #MGMGrandParadise, #NonIGLeveragedLoan, #Syndication #Issuance/Pipeline, #SyndicatedLoans
Thailand: Banks bid for rare DTAC bond mandate
Thai banks are bidding for a mandate from Total Access Communication which is planning a return to the Thai bond market after a two-year absence.... more
APAC Financial Markets • #Bonds, #DTAC, #ThaiBanks, #ThaiBondMarket, #TotalAccessCommunication #Bonds, #Issuance/Pipeline
Standard Chartered CEO Plans to Strengthen Capital
Standard Chartered Chief Executive Bill Winters said he expects to have a plan in place by the end of the year to help the bank strengthen its financial position and get back on track after several challenging years.... more
APAC Financial Markets • #BillWinters, #CEO, #Challenge, #FinancialPosition, #StandardChartered, #StrengthenCapital #MarketNews
LOANS: MBK completes NT$46.742bn refi for CNS
South Korean private-equity firm MBK Partners completed a NT$46.742bn (US$1.5bn) seven-year refinancing on May 29 for Taiwanese cable TV operator China Network Systems.... more
APAC Financial Markets • #ChinaNetworkSystems, #Loans, #MBKPartners, #PrivateEquity, #SouthKorea, #Syndication, #Taiwan #Issuance/Pipeline, #SyndicatedLoans
LOANS: Walton"s NT$7bn refi nets 10
Ten banks have committed more than NT$7bn (US$228m) to Kaohsiung-based semiconductor maker Walton Advanced Engineering’s NT$7bn five-year refinancing in general syndication.... more
APAC Financial Markets • #Loans, #Refinancing, #Syndication, #Taiwan, #WaltonAdvancedEngineering #Issuance/Pipeline, #SyndicatedLoans
LOANS: Duo providing stapled financing of W4trn-plus for Tesco unit buyout
BNP Paribas and HSBC are providing stapled financing of over W4trn (US$3.60bn) to bidders for British retailer Tesco’s South Korean subsidiary, Homeplus.... more
APAC Financial Markets • #BNPParibas, #Financing, #Homeplus, #HSBC, #Loans, #SouthKorea, #Syndication, #Tesco #Issuance/Pipeline, #SyndicatedLoans
EQUITY-LINKED: HHI launches US$222m exchangeable bonds
Korean shipbuilder Hyundai Heavy Industries has launched a US$209.7m–$221.7m offering of zero-coupon exchangeable bonds, exchangeable for shares of Hyundai Merchants Marine.... more
APAC Financial Markets • #Equities, #EquityLinked, #HyundaiHeavyIndustries, #HyundaiMerchantsMarine, #Korea, #ZeroCouponExchangableBonds #Equities, #Issuance/Pipeline
HSBC China push faces regulatory hurdles
Strong local competitors and red tape have long thwarted foreign banks on the mainland.... more
APAC Financial Markets • #China, #HSBC, #RegulatoryHurdles #MarketNews, #RegulatoryIssues
EQUITIES: Greenstone cancels ASX IPO
Greenstone, the Australia unit of South African insurer Hollard Group, has cancelled its ASX IPO of up to A$997m (US$776m).... more
APAC Financial Markets • #ASXIPO, #Australia, #Cancelled, #Equities, #Greenstone, #HollardGroup, #SouthAfricanInsurer #Equities, #Issuance/Pipeline
Sukuks rise as pillars of global finance
Malaysia leads the charge in promoting wider distribution of the Islamic bonds, with US investors starting to feature more prominently in allocations.
APAC Financial Markets • #GlobalFinance, #IslamicBonds, #Malaysia, #Sukuk, #USInvestors #MarketNews
These Are Global Banking’s Winners and Losers Since the Crisis
(Bloomberg) It’s no wonder bank executives are still under pressure more than six years after the financial crisis.
Deutsche Bank AG, whose co-chief executive officers announced Sunday they’re stepping down, fares worse than its peers in share performance since the end of 2008, as well as in profitability and cost efficiency. HSBC Holdings Plc, which said Tuesday it would eliminate as many as 25,000 jobs and sell operations in Brazil and Turkey, ranks in the middle of the pack by most criteria. Its costs in relation to revenue have actually increased since 2008 — leading CEO Stuart Gulliver to cut deeper.
Shares of Frankfurt-based Deutsche Bank are worth half as much as the bank’s book value, indicating the market assigns less value to the company than management believes it might get in liquidation. The price-to-book value of London-based HSBC is also below 1.0.
Deutsche Bank’s return on equity of 2 percent is about a 10th of what it was before the crisis. ROE shows how well management is investing shareholders’ money.
HSBC’s ratio of cost to revenue is among the lowest because the company is predominantly a retail bank with thousands of branches and a small investment bank. Tellers and customer representatives are paid less than traders and investment bankers. Still, HSBC’s cost-to-revenue ratio has risen since the crisis, putting pressure on the bottom line.
Investors in Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co. and Barclays Plc have seen their investment more than double in the past seven years. Deutsche Bank and HSBC shareholders have gotten meager returns in comparison.
APAC Financial Markets • #Barclays, #CostToRevenueRatio, #Crisis, #GlobalBankingS, #GoldmanSachs, #Losers, #Performance, #PriceToBookValue, #ReturnOnEquity, #UBS, #Winners #MarketNews
BONDS: CCB NZ raises NZ$75m via dual-tranche issue
China Construction Bank, New Zealand, rated A1/A (Moody’s/S&P), has raised NZ$75m (US$53.6m) from the sale of a dual-tranche local bond with ANZ, CBA and Westpac as lead managers.... more
APAC Financial Markets • #ANZ, #Bonds, #CBA, #CCB, #ChinaConstructionBank, #DualTranche, #NewZealand, #Westpac #Bonds, #Issuance/Pipeline
Tuesday, 9 June 2015
HSBC loses sub-custody chief amid reorganisation
Colin Brooks, HSBC Securities Services’ head of sub-custody, has left the bank. He has been replaced by two global heads who will jointly run the reorganised investor and asset services business.
APAC Financial Markets • #ColinBrooks, #Departure, #HSBC, #HSBCSecurities, #InvestorAndAssetServices, #Reorganisation, #SubCustodyChief #PeopleMoves
Weigao $300m IPO sees delay as sponsor leaves
Shandong Weigao Orthopaedic Device Company has put its $300m IPO in Hong Kong on hold after Morgan Stanley, one its joint sponsors, allegedly dropped out as a lead banker, potentially delaying the listing by at least a few weeks.... more
APAC Financial Markets • #CICC, #Delay, #Equities, #HongKong, #IPO, #MorganStanley, #ShandongWeigaoOrthopaedicDevice, #UBS #Equities, #Issuance/Pipeline
P&M: RBI draft Masala bond guidelines disappoint market
The Reserve Bank of India has issued a much-awaited framework for Indian companies to sell rupee-linked bonds offshore, but, being restrictive, the guidelines failed to cheer the market.... more
APAC Financial Markets • #Guidelines, #India, #MasalaBonds, #Offshore, #RBI, #ReserveBankOfIndia, #Restrictive, #RupeeLinkedBonds #MarketNews, #RegulatoryIssues
EQUITIES: Dongxing Securities plans Rmb15bn private placement
Dongxing Securities has secured board approval for a proposed private placement of not more than 400m shares to raise up to Rmb15bn (US$2.42bn) at a floor price of Rmb33.22.... more
APAC Financial Markets • #DongxingSecurities, #Equities, #PrivatePlacement #Equities, #Issuance/Pipeline
Yuan Gets Early Warning on IMF Ambition as MSCI Defers on Stocks
(Bloomberg) China’s efforts to obtain reserve status for the yuan received an early warning, with a compiler of equity indexes saying the nation needs more policy changes before its shares can be added to an emerging-market benchmark.
New York-based MSCI Inc. deferred a decision on including yuan-denominated stocks, citing investor concerns such as accessibility and capital mobility. Chinese officials have called for the International Monetary Fund to include the yuan in its basket of reserve currencies in a review in October.
“The MSCI deferral is definitely a push for China to accelerate capital-market reforms,” said Banny Lam, co-head of research at Agricultural Bank of China International Securities Co. in Hong Kong. “Restrictions on fund flows must be eased.”
The onshore yuan was little changed at 6.2063 a dollar as of 10:16 a.m. in Shanghai, China Foreign Exchange Trade System prices show. Its gap with the central bank reference rate of 6.1173 was 1.5 percent, within the 2 percent daily limit. In offshore trading in Hong Kong, which is free from the mainland’s capital controls, the currency rose 0.03 percent to 6.2112.
China is making the yuan more freely usable in order for it to be included in the IMF’s Special Drawing Rights basket of reserve currencies, PBOC Governor Zhou Xiaochuan said in April. Changes in the past month include opening a market for short-term loans to foreign banks and allowing cross-border sales of funds.
The IMF’s mission to China said in preliminary findings released on May 26 that the yuan is no longer undervalued, and that it will work with Chinese authorities toward its inclusion in the SDR. The currency failed to qualify at the last five-yearly review in 2010 as it wasn’t seen to be “freely usable.”
“China will have to do more on capital-account opening in order to win the yuan a chance for SDR,” said Li Miaoxian, a Beijing-based analyst at BOCOM International Holdings Co. “It has to allow freer capital flows in and out of the country. The exchange rate must be more flexible and foreign central banks should be given wider access to the domestic bond market.”
APAC Financial Markets • #IMF, #MSCI, #Yuan #MarketNews
EQUITIES: Franshion raises US$563m from placement
Franshion Properties (China) has raised HK$4.37bn (US$563m) from a placement of 1.6bn shares, or 14.99% of its enlarged share capital, at a price of HK$2.73 each.... more
APAC Financial Markets • #China, #Equities, #FranshionProperty, #SharePlacement #Equities, #Issuance/Pipeline
EQUITIES: Guotai Junan launches largest A-share IPO in five years
Guotai Junan Securities has launched its Shanghai IPO of up to Rmb30bn (US$4.84bn).... more
APAC Financial Markets • #AShare, #Equities, #GuotaiJunanSecurities, #IPO #Equities, #Issuance/Pipeline
STRUTURED FINANCE: AOFM announces RMBS auctions
The Australian Office of Financial Management has announced details of the first two auctions of its remaining holdings of residential mortgage-backed securities, estimated at around A$4.6bn (US$3.55bn) in amortised face-value terms.... more
APAC Financial Markets • #AssetBacked, #Australia, #AustralianOfficeOfFinancialManagement, #MortgageBackedSecurities, #RMBS, #StructuredFinance #AssetBacked, #StructuredFinance
EQUITIES: Dolmen City prices REIT to yield 8.63%
Pakistan’s Dolmen City REIT has priced its Rs5.5bn (US$55m) IPO at a yield of 8.63%.... more
APAC Financial Markets • #DolmenCityREIT, #IPO, #Pakistan, #RealEstateInvestmentTrusts, #REIT #Equities, #Issuance/Pipeline
Korea Bonds Yield Less Than Treasuries for First Time Since 2006
(Bloomberg) South Korea’s government bonds are offering lower yields than U.S. Treasuries for the first time in nine years as monetary policy outlooks for the nations diverge.
The outbreak of a deadly virus and falling exports are bolstering the case for the Bank of Korea to cut borrowing costs from a record low as Federal Reserve officials weigh the timing of the first U.S. interest-rate increase since 2006. Eleven of 18 economists analysts surveyed by Bloomberg see the BOK easing as early as Thursday after the Middle East Respiratory Syndrome left nine dead and put thousands in quarantine.
South Korea’s 10-year yield was one basis point below that on comparable Treasuries as of 11:17 a.m. in Seoul Wednesday, data compiled by Bloomberg show. The last time the spread was negative was in October 2006. The won fell 0.2 percent to 1,120.85 a dollar and declined 0.2 percent to 9.01 per yen.
“The trend for Korean yields is downward as the economic outlook looks weak, while the U.S. recovery supports case for higher rates,” said Yoon Yeo Sam, a Seoul-based fixed-income analyst at Daewoo Securities Co., South Korea’s biggest brokerage by market value. “The closed yield gap with the U.S. could ignite concerns about outflows.”
The government will provide 400 billion won ($357 million) of financial support to South Korean businesses hurt by the MERS outbreak, Finance Minister Choi Kyung Hwan said Wednesday, a day after President Park Geun Hye asked her cabinet to prepare “all preemptive measures” to minimize the impact. Park also called for steps to revive exports as the won’s recent rise to a seven-year high against the yen hurts shipments.
The Korea Tourism Organization estimates more than 40,000 people have canceled visits, around 2,200 schools are shut and Hyundai Motor Group has suspended official events because of the disease. Exports fell the most in six years in May and business groups said the weak yen is making it tougher to compete with Japanese companies that make cars, steel and electronic goods.
The won has risen against 23 of 31 major currencies in 12 months. It has jumped 10 percent against the yen and 9.3 percent versus the euro, data compiled by Bloomberg show.
APAC Financial Markets • #BondYields, #Korea, #Treasuries #MarketNews
Vietnam Confronts Debt Surge Echoing China’s as Growth at Stake
(Bloomberg) For decades, Vietnam has modeled its growth after China’s, with a state-enterprise driven economy and a push toward low-cost manufacturing. Now, the Southeast Asian nation is trying to avoid the debt pitfalls of its larger neighbor.
Vietnam’s national debt is rising too quickly, said Nguyen Duc Kien, deputy head of the National Assembly Economic Committee. It may climb to a record 64 percent of gross domestic product by the end of 2015 from 60 percent last year, he said, a forecast that includes government-guaranteed liabilities that ratings companies leave out in their assessments.
“Public debt has risen at the fastest pace ever in a period when the economy had its slowest expansion,” Kien said in an interview in Hanoi Tuesday. “We need to be more mindful about how we spend money.”
Prime Minister Nguyen Tan Dung, who has increased spending on roads and export zones in recent years to bolster growth, began warning about “great payment pressure” earlier this year. That echoes concerns about China’s debt-fueled investment boom that helped spur one of the fastest expansions in the world and is now putting the brakes on the economy as companies and local governments struggle with repayments.
National debt rose about 20 percent every year from 2010 through 2014, Kien said, as officials tried to restructure loss-making state enterprises such as Vietnam Shipbuilding Industry Corp., formerly known as Vinashin, and Vietnam Airlines Corp., whose debt is guaranteed by the government.
Deteriorating Outlook
In contrast, Standard & Poor’s said in a March report it expects Vietnam’s general government debt to rise at an average rate of below 5 percent over the next three years, reducing net debt to 43 percent of GDP from about 46 percent. Fitch Ratings has an assessment of 49 percent at end-2014, while Moody’s Investors Service has it at 45.5 percent.
Vietnam’s national debt to GDP ratio is still higher than the median of 42 percent among its peers, said Andrew Fennell, Hong Kong-based associate director of Asia Pacific sovereign ratings at Fitch. Indonesia’s is about 24 percent and Bangladesh, which shares Vietnam’s BB- rating, is at under 29 percent.
“Fitch has historically and continues to view public finances” as one of Vietnam’s key credit weaknesses, Fennell said. “Further upside to the rating will be challenged by a deteriorating outlook for the country’s public finances.”
Seriously Inefficient
Dung has criticized “seriously inefficient projects with poor management, wasted investment and signs of corruption,” and reiterated a goal of curbing public debt at about 60 percent of GDP by 2020. In a report last month to the National Assembly, Finance Minister Dinh Tien Dung said officials will improve public debt management and better monitor use of debt guaranteed by the state and in provincial governments, without outlining specific measures to do so.
“Our annual liability, or how much we pay for the debt every year is more crucial than the overall debt number,” Bui Quang Vinh, planning and investment minister, told Bloomberg Tuesday in Hanoi. “Our liability is now getting close to the limit” of about 25 percent of state revenue, he said.
The 60-percent-of-GDP limit targeted by the government is the level recommended in the Maastricht treaty for European Union member nations, said Tamara Henderson, a Bloomberg economist.
“It’s not an alarming number,” she said. “Much of Vietnam’s external debt is on concessional terms” that are probably more favorable than market terms, and it is likely being used to fund critical infrastructure, including that to comply with agreements related to integration plans of the Asean nations in Southeast Asia, she said.
Vietnam’s household debt is contained at about 20 percent of GDP, compared with more than 80 percent in Malaysia and Thailand, according to HSBC Holdings Plc. A widening fiscal deficit and a weaker currency will pose a bigger burden on interest expense payments in dong terms, Trinh Nguyen, a Hong Kong-based economist at HSBC, said in a report last month.
Vietnam “will require more steadfast reforms to streamline expenditure spending, expand the tax base, and improve debt management,” she said.
APAC Financial Markets • #China, #Debt, #Vietnam #MarketNews
Lim Advisors COO leaves hedge fund
The Hong Kong hedge fund’s long-serving chief operating officer Oscar Wan has left the firm. He has been replaced by two of his former subordinates, who will share the duties.
APAC Financial Markets • #COO, #Departure, #HedgeFund, #HongKong, #LimAdvisors, #OscarWan #MarketNews, #PeopleMoves
China bottom of the class for fund investors
Korea has been ranked as one of the best markets in the world for fund investors alongside the US, according to new research. But China has received the lowest grade due to its restrictive market and high fees.
APAC Financial Markets • #China, #FundInvestors, #HighFees, #Korea, #RestrictiveMarket #AssetManagement, #Buyside
Asia Stocks Swing as Energy Producers Rise, Consumer Shares Fall
(Bloomberg) Asian stocks swung between gains and losses as energy companies advanced and consumer shares slid.
The MSCI Asia Pacific Index was little changed at 146.12 as of 9:16 a.m. in Tokyo after rising as much as 0.1 percent and falling less than 0.1 percent. West Texas Intermediate crude surged 3.4 percent on Tuesday as shale producers curbed output. Yields on 10-year Australian government notes climbed by 10 basis points after U.S. and European debt resumed losses.
“Rising bond yields remains the biggest risk for equities,” Tim Schroeders, a portfolio manager who helps oversee about $1 billion in equities at Pengana Capital Ltd. in Melbourne, said by phone. “There will be further fund flows into China, but whether that’s enough to push the market higher, I’m not sure. Some fund managers probably won’t be able to do anything until such time as MSCI announces its decision.”
MSCI Inc. said mainland Chinese stocks will probably be added to its indexes once market access issues are resolved, deferring a move that could lure billions of dollars to the world’s best-performing market.
Japan’s Topix index slid 0.1 percent. South Korea’s Kospi index added 0.4 percent. New Zealand’s NZX 50 Index slid 0.6 percent, while Australia’s S&P/ASX 200 Index lost 0.1 percent. Markets in China and Hong Kong have yet to open.
China Rally
China’s Shanghai Composite Index fell 0.4 percent on Tuesday after inflation data signaled weaker demand. The gauge rallied 58 percent this year as the government eased policy to revive growth and implemented reforms to rebalance the economy by focusing on consumption instead of investment.
E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent today. The underlying equity rose less than 0.1 percent on Tuesday as banks rallied amid higher bond yields while airlines and technology companies slipped.
Greece retreated from budget concessions to its creditors, setting the stage for another attempt by German Chancellor Angela Merkel and French President Francois Hollande to try to break the country’s financing deadlock. Any remaining bailout funds are off limits unless Greek Prime Minister Alexis Tsipras reaches an accord with creditors. The nation’s financial safety net expires on June 30.
APAC Financial Markets • #Asia, #ConsumerShares, #EnergyProducers, #MSCI, #StockMarket #MarketNews
MSCI Defers China Inclusion as It Opts to Work With Regulator
(Bloomberg) MSCI Inc. held off from adding China’s mainland stocks to its benchmark indexes, opting to work with the nation’s securities regulator to overcome remaining obstacles to inclusion.
The index provider expects to put yuan-denominated stocks, also called A shares, in its global benchmarks after settling investor concerns about accessibility and share ownership through collaboration with the China Securities Regulatory Commission, according to a statement issued Tuesday. MSCI said a decision to include Chinese stocks may come at any time.
The possible addition of mainland equities to MSCI’s global indexes has been a divisive issue among fund managers. Even as China’s stocks more than doubled over the past year, foreigners have been cautious about entering a market where retail investors account for 80 percent of trading.
“Some might regard it as disappointing that it did not happen immediately,” Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney, which manages about $124 billion, said by phone. “By the same token, it looks like it’s going to happen anyway at some point, it’s just a question of when. They’ve just got some remaining issues to resolve.”
Chinese regulators have addressed some of the concerns that emerged from MSCI’s review last year over market access. They increased the quota under the existing Qualified Foreign Institutional Investor scheme and granted a “temporary” waiver on capital gains levies in November for stock purchases through the Shanghai-Hong Kong exchange link.
Remaining Issues
MSCI said in its statement that it will work with Chinese regulators to establish policies that “effectively resolve the remaining accessibility issues.” Those include giving investors access to quotas commensurate with the size of their assets under management, improvements in liquidity and further clarification of share ownership rules.
Brendan Ahern, the chief investment officer at Krane Fund Advisors, which manages a U.S. exchange-traded fund investing in Chinese domestically-listed shares, said some investors might have expected an immediate inclusion of A shares to the indexes.
“Short term, it’s a disappointment for some of us who would like to see them start the process sooner,” Ahern said by phone Tuesday. “But the trajectory is there. It’s telling asset managers, ‘You have to figure this out — this change is coming.’ I don’t believe the three issues they raised are insurmountable. They won’t wait until the 2016 review to include A shares. It will happen sooner.”
Stocks Surge
The benchmark Shanghai Composite Index has jumped 152 percent in the past 12 months, the most among major global benchmark indexes, spurred by record margin debt and prospects the central bank will add to cuts in interest rates to boost the economy. The gauge is valued at 25.6 times reported earnings, compared with a multiple of 13.9 for the MSCI Emerging Markets Index.
“At these valuations, investors are not likely to jump in and buy more of the A-share market,” Jorge Mariscal, the emerging-markets chief investment officer at UBS Wealth Management in New York, which oversees $1 trillion in invested assets, said by phone Tuesday. “The timing is a little uncertain and the requirements may not be fulfilled, as MSCI has made it conditional. It could be delayed until next year or even later.”
Mobius Buying
Templeton Emerging Markets Group’s Mark Mobius, who was against inclusion as recently as March, became the latest convert in May, saying his funds are now buying China’s shares. Five of nine global investors interviewed by Bloomberg last month said mainland shares were ready for MSCI’s global indexes.
China, through companies listed in Hong Kong, accounts for more than 25 percent of the emerging-market benchmark. It’s the biggest weighting in the gauge, followed by South Korea’s 15 percent and 13 percent for Taiwan, data compiled by Bloomberg show.
Minsheng Securities Co. estimates $7.8 billion will flow into A shares based on limited inclusion and $154.5 billion based on full inclusion in MSCI indexes.
MSCI also said Tuesday it’s monitoring the opening of Saudi Arabia’s equity market, consulting investors regarding a possible inclusion of the MSCI Saudi Arabia Index in the emerging-market benchmark. The index-provider also said it added Pakistan to the list for consideration for an upgrade to developing-nation status as part of the 2016 review.
Kyoungwha Kim, Belinda Cao and Ye Xie
APAC Financial Markets • #China, #Defers, #Inclusion, #MSCI, #Regulator #MarketNews
Bond Market’s Storm Finally Hits Junk Debt as Buyers Flee ETFs
Suddenly, junk bonds have lost their luster.
After providing a haven from the global bond-market selloff, speculative-grade securities have now joined the rout, tumbling almost 1 percent since the end of May. Investors are starting to flee, yanking $1.5 billion from the two biggest high-yield bond exchange-traded funds over the past week, according to data compiled by Bloomberg.
This is a reversal in fate for bonds that had gained 4.8 percent in the first five months of 2015 and suggests that junk-bond investors will only tolerate rising benchmark yields for so long before they, too, bail.
“Price action was miserable across risk assets yesterday,” Peter Tchir, head of macro credit strategy at Brean Capital LLC, wrote in a note Tuesday. “It was the first time since yields shot higher that credit markets felt weak.”
Indeed, high-yield bonds were remarkably stable in May as German government bonds led the world’s bond market down 0.5 percent, according to Bank of America Merrill Lynch index data. That same month, global junk notes gained 0.4 percent.
And in April, as global bonds fell 0.6 percent, speculative-grade securities handed buyers 1.6 percent.
Part of the risky debt’s erstwhile resilience had to do with oil prices as the rebound in that market bolstered energy-company bonds that had been hammered at the end of 2014.
Yield Cushion
Also, speculative-grade notes tend to have shorter maturities and fatter cushions of extra yield over benchmarks than higher-rated bonds, features that can protect the market in periods of rising rates and climbing inflation.
High-yield debt markets have “shown a degree of resiliency here to the shift in the inflation outlook,” Jeffrey Rosenberg, a managing director at BlackRock Inc.’s, said in a Bloomberg radio interview Tuesday. “That resilience could be challenged if we follow up this bout of higher rates with a shift in” expectations for when the Federal Reserve will lift rates.
Case in point: BlackRock’s $14.3 billion high-yield bond ETF plunged 1.6 percent in the six days through Monday as $940.5 million exited the fund, Bloomberg data show. State Street Corp.’s $10.7 billion junk-debt ETF dropped 1.7 percent, with $571.7 million of withdrawals.
Sentiment Gauge
While ETFs are a small slice of the junk-bond market, they’re usually a telling gauge of sentiment, and the outflows are significant compared with the $6.7 billion of total deposits into these funds so far in 2015, Bloomberg data show.
Government yields in Europe and the U.S. are rising in the face of improving economic data and signs inflation is picking up (or, in Europe’s case, that there’s any inflation at all.) Yields on 10-year Treasuries have surged past 2.4 percent, reaching the highest level since Oct. 6, from 1.8 percent in April.
And now the $2.2 trillion world junk-bond market is losing steam, at a time of growing questions about how long stocks can keep rallying. The debt tends to be a leading indicator, and its deterioration bodes poorly for stock investors, Tchir said.
While the selloff is short-lived enough that it may just prove a blip in a market propped up by central-bank stimulus, it may also portend broader pain ahead.
APAC Financial Markets • #BuyersFleeETFs, #GlobalBondMarket, #JunkDebt, #Storm #MarketNews
Fintech set to sideline prime brokers
The disruptive influence of financial technology is already affecting prime brokers, a forum hears. With much of their work being replicated by technology, investors could soon be bypassing brokers.
APAC Financial Markets • #FinancialTechnology, #Fintech, #PrimeBrokers, #Sideline #MarketNews
Asia shares wallow near three month lows on Greece, Fed anxiety
TOKYO (Reuters) - Asian shares languished near three-month lows on Wednesday as the spectre of higher borrowing costs in the United States and concerns about the apparent lack of progress in talks between Greece and its creditors sapped confidence.
MSCI"s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.1 percent in early trade after having slipped to a three-month low the previous day. Japan"s Nikkei .N225 was up 0.4 percent, after big fall on Tuesday to three-week lows.
Share markets around the world, particularly some emerging markets that have relied on foreign capital, have been hit on growing expectations that the U.S. Federal Reserve will start to raise interest rates before the year is out.
U.S. bonds prices slipped as they were also hit by this week"s flood of supply, sending the 10-year U.S. benchmark bond yield to an eight-month high of 2.449 percent US10YT=RR on Tuesday. It last stood at 2.437 percent.
Strong U.S. data, including Friday"s report showing solid increases in employment, and recent comments from top Fed officials suggesting a rate hike is likely later this year have driven up bond yields in the past several days.
"In the big scheme of things, we could be witnessing the end of "Goldilocks" markets, where both bonds and shares prices have risen (on the back of easy monetary policy)," said Shuji Shirota, head of macroeconomy strategy at HSBC in Tokyo.
Bond yields also soared in Europe on Tuesday, with German 10-year Bund yields DE10YT=RR pushing close to an eight-month high hit last week amid rising economic optimism.
The higher yields dented the allure of equities and helped send European share prices.FTEU3 to four-month lows, with concerns about Greece further weighing on investor sentiment.
A new reform proposal submitted by Athens earlier this week failed to fully satisfy its creditors, heightening concerns whether Greece can agree on a deal to unlock new funding to ward off a debt default.
"Failure to agree this week would likely make it difficult to have a smooth resolution before the end of June, partly because another extension of the programme would require the approval of some national parliaments," Barclays analysts said in report.
In Asia, mainland Chinese shares may suffer a setback after U.S. index provider MSCI Inc (MSCI.N) said on Tuesday it will hold off including China-listed shares in one of its widely tracked indexes.
But MSCI also said it expects them to be incorporated once outstanding market accessibility issues are resolved - a move that would inject an estimated $400 billion of funds from asset managers to mainland shares.
Mainland share prices have soared over the past several months on hopes of stimulus from Chinese government.
In currency markets, the U.S. dollar was largely steady, underpinned by the higher bond yields. The dollar index .DXY, which tracks the greenback against a basket of six major currencies, was last down about 0.1 percent at 95.059, below Friday"s high of 96.909 hit after the upbeat U.S. jobs report.
(Editing by Shri Navaratnam)
APAC Financial Markets • #Asia, #FED, #Greece, #Shares, #StockMarket #MarketNews
Lack of non-cleared margin rules in Asia sparks dealer concern
Requirements for non-cleared swaps delayed until September 2016 but firms in Asia may still not be ready. A collective sigh of relief was audible in March when the Basel Committee on Banking Supervision (BCBS) delayed the planned introduction of margin rules for non-cleared swaps by nine months, from December 1, 2015 to September 1, 2016; but with the industry pushing for a two-year deferment and final rules not agreed between the major jurisdictions and no draft rules in derivatives hubs.... more
APAC Financial Markets • #Asia, #BaselCommitteeOnBankingSupervision, #NonClearedMarginRules, #NonClearedSwaps #MarketNews, #RegulatoryIssues
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