September 13, 2024 11:05 GMT
FINANCIALS: On Friday: Regulation, Rhetoric And Rates
FINANCIALS
For our full article, please check our Credit Weekly, published later this afternoon.
Capital regulations: US watering down global rules, it appears
- Basel III Endgame implementation in the US has appears to be being delayed after a significant lobbying effort from the industry, even stretching to Superbowl TV ads.
Dealmaking takes another (small) step forward; beware shorting targets
- Unicredit (UCGIM: Baa3/BBB-/BBB-) has bought 9% of Commerzbank (CMZB: Baa2 pos/BBB) and could go for a full deal, even with unions already politicising what's a logical deal from an industrial perspective.
- Insurance Insider reported on Tuesday (10-Sep) that, Scor (SCOR: A-/BBB+) and Covea were looking at a deal with Covea as the purported buyer. Much as in-market deals are often preferable, this was denied within a day by both parties. Which, of course, does not mean it definitely won’t happen.
- Greek state has announced a slate of banks to advise on a sale of its stake in NBG (ETEGA: Baa2/BB+ pos/BB+ pos). Any bid for NBG could be spread positive for it. UCGIM took a stake in Alpha from the Greek government previously. This deal appears to be a wait-and-see strategy from the Italians but could also develop further. Don’t be surprised to see other empire building banks look at this NBG stake.
US bank trading update; weak NII and marginally tougher rates trading
- JPMorgan talked down revenue expectations for the rest of this year, the equity is c.5% lower on the week; appears a negative for the US peers (less so, MS) and a smaller negative for Barclays and Deutsche from the European issuers.
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