Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FINANCIALS
Financials on Friday – a quieter week where the focus appears to be back on regulatory newsflow, especially a couple of warning shots from the ECB (German CRE, PE).
- BBVA (BBVASM: Baa2 dev/BBB+/BBB+) is continuing its hostile bid for Sabadell (SABSM: BBB-/BBB) and Reuters this week reported that it, along with its ex-Chair, faces a “potential trial” over bribery and corporate espionage. Investigations reportedly started in Jul-19 and “oral proceedings that commenced in recent weeks. This takeover is already politically-charged (ECB in favour of consolidation, local politicians against losing a Catalan champion) so certainly one to watch.
- Outside of this, the ECB has been taking its supervisory and surveillance role seriously with statements out about examining German banks’ exposures to commercial real estate, and also sounding warnings about bank lending more widely into the private capital world. The market has been well ahead on both themes but central bank intervention, even if simply, rhetorical, can elicit action from banks.
BBG reported Scott Kleinman of Apollo, talking at the SuperReturn conference, stating “everything is not going to be OK” in PE world as realisations slowed and holding periods extended. This will crimp returns and we see Goldman (GS: A2/BBB+/A) as most affected from both its balance sheet, and flow, businesses. - Finally, the ECB also cleared a resumption of dividend payments from Greek banks, all four of the majors in our €IG banks index getting individual clearances in the ensuing 24hrs. These were prohibited in 2008, in the wake of the financial crisis and marks the end of a very long rehabilitation process for those companies.
- In other news, a relatively busy week of primary issues which drove some widening in places. Reverse Yankee issuance was a feature, along with issuance from the insurers, including an RT1 debut for Phoenix (PHNXLN: BBB+). A couple of conferences (Goldman on global financials, TD Bank on North American financials) have driven a few headlines which have generally been supportive.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok