2003

Features : Selecting a 401(k) Plan Provider

Selecting a 401(k) Plan Provider: Navigating the Maze There are thousands of 401(k) plan providers to choose from. The consequences of making the wrong choice can be painful. For US companies, a 401(k) plan is an important tool to attract ...

Corporate Finance : Mergers & Acquisitions

THE AMERICAS $6 Billion Merger Creates Third-Largest Biotech Firm IDEC Pharmaceuticals and Biogen agreed to merge in a $6 billion deal that will create the third-largest biotech company in the world. Biogen’s main drug is Avonex, which is used to ...

Corporate Finance : Global Depositary Receipts

THE AMERICAS Trading Volume Holds Up Through Issuance Slump The volume of depositary receipt trading on US mar-kets in the first half of 2003 edged above that in the same period of last year, even as the number of new ...

Corporate Finance :Companies Refinancing Bonds at Record Pace

THE AMERICAS Corporations with lessthan- perfect credit ratings are rushing to borrow in the US high-yield bond market to refinance outstanding issues at lower rates and to avoid using bank loans, analysts say. New-issuance volume soared to a monthly record ...

Corporate Finance :Us Dollar Policy Confusing At Best

THE AMERICAS The US administration’s assertion that its dollar policy remains unchanged did little to clarify exactly what that policy is, analysts say. President Bush’s comments in early June that the dollar was devalued inappropriately and that the administration’s policy ...

Features : Round Up Some Deals

Latin American Corporate Finance Teams Get Ready to Round Up Some Deals Corporate financing in Latin America is about to make a comeback, as deals that make strategic sense can’t be put off any longer, bankers say. Growing confidence in ...

Milestones : Taking Note

“Argentine government officials want to ensure they are insulated from short-term speculative flows of capital” —José M. Barrionuevo, Barclays UNITED STATES HERE COME THE EUROPEANS It’s hard to believe that it was just three years ago that Nasdaq swaggered over ...

Newsmakers : Trouble At The Landesbanken

GERMANY The departure in June of CEO Jürgen Sengera from WestLB raised as many questions as it answered about the future operations of Germany’s fifth-largest bank and the country’s entire system of state-owned regional banks, or Landesbanken. What started as ...

Newsmakers : Corporate Criminals Begin Drawing Jail Time

UNITED STATES June may be a good month for weddings and graduations, but this rainy June in the US Northeast was not a propitious period for executives charged with corporate wrongdoing. On June 10, Samuel Waksal, former ImClone Systems CEO, ...

Features : Best Sub-custodians In 2003

Global Finance selects the winners in a specialized area of finance—one that is often hidden to end-users of custody services. Sub-custodians form the bedrock of the custody business. They hold and process securities on behalf of other custodians and possess ...

Corporate Finance : Global Depositary Receipts

EUROPE Six Continents’ Split-Up Creates Two New ADRs Two new American depositary receipt programs were created in April as a result of the separation of Six Continents, the world’s largest hotel group, into two companies. Bank of New York was ...

Newsmakers : J.p.morgan Landmark Sold

United states “The Tax Meagiure could attract $300 billion back into the US economy” 23 Wall Street in 1914 … When the Morgan bank building was completed in 1914 at the southeast corner of Wall Street and Broad Street, it ...

Features : Hotel Outsourcing Helps Close the Financing Gap

The separation of hotel brands and ownership of properties is enabling the lodging industry to entice investors to cough up money for expansion and development. Tough economic times have spawned a fundamental change in the way the hotel industry operates. ...

Corporate Finance : Low US Interest Rates Spur Dollar Bears

THE AMERICAS The US dollar plummeted to a four-year low against the euro in early May, giving foreign investors little incentive to chase paltry US returns on investments that could be further eroded by a declining greenback, analysts say. “The ...

Corporate Finance : Hong Kong’s Peg Could Come Loose

ASIA Hong Kong’s budget deficit keeps getting bigger, while deflation has been consistently underestimated, analysts say. The special administrative region’s fiscal reserves have fallen by 30% from their peak in 2001 and are likely to drop another 15% in 2003, ...

Corporate Finance : Russia’s Oil Revenue Supports the Ruble

EUROPE The ruble crisis seems like a distant memory. In August 1998, the Russian central bank threw in the towel.With the ruble under severe downward pressure, the central bank suspended trading of rubles for US dollars to conserve the country’s ...

Corporate Finance : Market Extends Gains To Sixth Month in Row

THE AMERICAS US corporate bonds extended their bull-market run to a sixth consecutive month in April, with highyielding issues leading the advance. Corporate spreads tightened by 30 basis points versus US Treasury securities during the month, according to Wei Wang, ...

Newsmakers : Foreign Exchange Market’s New Bedfellows

UNITED STATES/UNITED KINGDOM “Access to Bloomberg’s 170,000 desk-top machines will dramatically increase our reach.” —Bill Moran, EBS Bill Moran EBS, the global bank partnership that handles $90 billion a day in spot foreign exchange trades,wants to expand beyond the inter-bank ...

Corporate Finance : Dollar Appears Vulnerable To Weak US Economy

THE AMERICAS While war news out of Iraq was the main determinant of currency movements in April, the US dollar could resume falling once the focus of market participants inevitably returns to economic fundamentals, analysts say. “The dollar is in ...

Corporate Finance : High-Yield Funds Attracting Investors

THE AMERICAS Mutual funds that invest in high-yield bonds returned 5.4% on average in the first quarter of 2003, continuing a winning streak that began late last year, according to New Yorkbased Standard & Poor’s. “Junk bonds have been helped ...

Corporate Finance : 3DM Worldwide Issues ADRs Instead of Listing on Nasdaq

EUROPE UK-based 3DM Worldwide, which develops patents for the plastics industry and manages businesses in the Kyrgyz Republic, issued American depositary receipts in the over-the-counter market. The company’s US subsidiary, Detroit, Michiganbased 3DM Technologies, had proposed seeking a listing on ...

Corporate Finance : High-Yield Issuance Meets Strong Demand

THE AMERICAS A surge in new issuance of high-yield bonds in the US market is being met by strong demand. Even Warren Buffett, the Oracle of Omaha, is buying. High-yield bond issuance in February surged to $8.75 billion, according to ...

Features : World’s Best Treasury and Cash Management Providers

Global Finance selects the world’s best. The real-time global settlement process took a major leap forward in September 2002, when the CLS Bank went live, netting positions in a five-hour window in each 24-hour period. CLS, or continuous linked settlement, ...

Newsmakers : Oxley Back In The News

UNITED STATES No one can accuse Representative Michael Oxley, the Ohio Republican of Sarbanes- Oxley fame, of shunning the media spotlight.The chairman of the House Financial Services Committee was back in the headlines in March, when he turned his fire ...

Corporate Finance : Long-Delayed Telkom IPO Finally Makes It to Market

SOUTH AFRICA Telkom, South Africa’s state-controlled telephone and wireless operator, listed its shares on the Johannesburg and New York stock exchanges on March 4. The long-delayed partial privatization included an unusual pricing scheme. Members of a group of South Africans ...

Corporate Finance : Mergers & Acquisitions

THE AMERICAS Devon Energy Moves Into Deeper Water Oklahoma City, Okla-homa-based Devon Energy agreed to merge with Ocean Energy of Houston,Texas, in a $5 billion stock-swap trans-action.As a result, Devon Energy will become the largest US-based indepen-dent oil and natural ...

Corporate Finance : Foreign Exchange

THE AMERICAS Canadian Dollar Turns Suddenly Popular Rising interest rates, solid economic growth, a big trade surplus and strong commodity prices pro-pelled the Canadian dollar sharply higher in March. Why did the long-hapless loonie, as the Canadian cur-rency is known, ...

Milestones : Accounting Board Puts Options Expensing On Front Burner

UNITED STATES “Mandatory expensing—using flawed valuation models—will lead to inaccurate and misleading information for investors.” —Ken Wasch, SIIA The norwalk, Connecticut- based Financial Accounting Standards Board agreed unanimously at its meeting in March to add to its agenda the controversial ...

Corporate Finance : Foreign Exchange

Currency Traders Expect China To Revalue Yuan ASIA Participants in the foreign exchange market have caught a whiff of possible changes afoot in China’s tightly controlled currency regime. For the first time in many years, long-term forward currency contracts are ...

Features : World’s Best Foreign Exchange Banks 2003

Global Finance selects the leaders in the $1.25 trillion-a-day foreign exchange market. The foreign exchange market, with daily turnover of $1.25 trillion, remains the world’s biggest financial market, even though trading has dwindled somewhat following the introduction of the euro. ...

Corporate Finance : Global Depositary Receipts

THE AMERICAS Emerging Markets Fund Leads BLDRS Volume The baskets of listed depositary receipts, or BLDRS, a family of four exchange-traded funds launched on the Nasdaq Stock Market in November 2002, are gradually gaining investor acceptance, if trading volume is ...

Corporate Finance : Bidders Queuing Up For British Grocer

EUROPE William Morrison Supermarkets touched off a bidding war for rival British supermarket chain Safeway with an offer valued at $6.7 billion in stock and debt. The Safeway board withdrew its recommendation that shareholders accept the offer after Britain’s top ...

Corporate Finance : Cash-Laden Insurers Reaching for Yield

THE AMERICAS The US corporate bond market rallied strongly in the early weeks of 2003, with lower-rated bonds outperforming higherrated issues. As cash positions remain plentiful, interest rates are holding at historic lows, and spreads of corporate bonds to Treasury ...

Features : World’s Best Trade Finance Banks 2003

The financial services industry enhances its role as trusted intermediary by taking the risk out of international transactions As the locomotive of the global economy, the United States faces considerable uncertainty about potential conflict in Iraq and the threat that ...

Corporate Finance : Europe Passes US In Value of Deals

EUROPE For the first time in 11 years, the value of European corporate takeovers in 2002 was greater than the value of US takeovers. Crédit Agricole’s $16.8 billion agreement to acquire Crédit Lyonnais pushed Europe over the top in December, ...

Corporate Finance : Dollar Expected To Fall, But Not To Collapse

THE AMERICAS The US dollar fell 9.2% on a trade-weighted basis in 2002, and analysts predict further losses for the greenback this year, particularly against the euro. Fears of a plunge in the dollar are overdone,however, despite the potential for ...

Corporate Finance : ADR Trading Volume Up, Despite Weak Markets

THE AMERICAS Trading of American depositary receipts rose 6.8% in volume terms in 2002 to 28 billion shares, according to New Yorkbased Citibank Depositary Receipt Services. Overall trading volume continued to rise, particularly for Asian issuers, indicating investors’ ongoing interest ...

Corporate Finance : US Corporate Volume Slumped 28% in 2002

THE AMERICAS US corporate bond issuance in 2002 fell 28% to $465 billion, according to analysts at Dealogic in New York. The largest investmentgrade issue was General Electric Capital’s $6.9 billion, two-part offering on March 13 2002, which comprised $2 ...

Newsmakers : Biggs Leaving Morgan Stanley To Manage Hedge Fund

UNITED STATES Some Wall Street executives retire to play golf and spend more time with their families. Barton Biggs, 70, Morgan Stanley’s chief global strategist, is “retiring” later this year after 30 years with the investment bank to lead a ...

Milestones : Coca-cola Puts The Lid On Earnings Guidance

UNITED STATES COCA-COLA PUTS THE LID ON EARNINGS GUIDANCE We are quite comfortable measuring our progress as we achieve it.” —Douglas Daft, chairman and CEO, Coca-Cola Daft:Will let figures speak Athanta-based Coca-Cola,the world’s largest soft-drinks company,says it will no longer ...

Corporate Finance : Global Depositary Receipts

ASIA China Telecom Issue Poorly Received in US China Telecom slashed the size of its initial public offering by more than half in the face of weak investor demand, but the IPO was still the fifth-largest new issue of 2002. ...

Corporate Finance : Foreign Exchange

THE AMERICAS US Economic Recovery May Not Boost Dollar The US dollar will not realize any benefit from expected stronger growth in the US economy this year if the recovery is accompanied by a continued widening in the trade deficit, ...

Corporate Finance : Corporate Bonds

THE AMERICAS Sudden Rally Erases High-Yield Losses The sun came out in the high-yield corporate bond market in November, narrowing spreads to treasury securities with record speed and eliminating most of the market’s steep losses for the first 10 months ...

Cover story : Thinks to Look for in 2003

Japanese Bank Failure? Might a large Japanese bank fail in 2003? Quite possibly, say analysts, who point out that the government will be forced to step in to prevent a system- wide crisis of confidence. Pain is spread across a ...