2004

Corporate Finance : Corporate Bonds

GLOBAL High-Yield Issuance Setting Fast Pace The improving global economy is spurring an increase in debt issues by lesser-rated companies, as the risk of default declines, analysts say. Worldwide issuance of high-yield corporate bonds is running well ahead of last ...

Corporate Finance : Global Depositary Receipts

THE AMERICAS Bank of New York Automates Conversion of ADRs, Shares Bank of New York has introduced a system that enables institutional investors to electronically trade ordinary shares in foreign markets and to automatically convert those shares to American depositary ...

Features : Best Investment Banks

Citigroup scored a remarkable triumph for a commercial and retail bank by outperforming the cream of the crop in the first annual Global Finance Investment Banks Awards. In a triumph that evokes images of a ‘blue-collar’ horse like Funny Cide ...

Corporate Finance : Foreign Exchange

THE AMERICAS Dollar Continues to Rally On Prospect of Rate Rise The US dollar was off to the races in May, climbing to its highest level in more than eight months against the Japanese yen and rising against the euro ...

Newsmakers : China Fever Sparks Interest In Index

UNITED STATES/CHINA Tim Halter Chinese companies that trade on US stock markets offer some comfort to investors seeking to catch a ride on the China boom without taking too much risk, says Tim Halter, founder and managing director of USX ...

Corporate Finance : Floating-Rate Issues Becoming Popular

THE AMERICAS When Calpine Generating, a subsidiary of California-based power producer Calpine, came to market in late February with a $2.3 billion offering of high-yield bonds and term loans, it met resistance from investors who already held large amounts of ...

Newsmakers : Fed Chief Finds He Can Move Markets Once Again

UNITED STATES Alan Greenspan No matter how careful he is with his words, Federal Reserve chairman Alan Greenspan is going to have a tough time shifting to a rising-interest-rate environment without messing things up. Segue is simply not in his ...

Features : The Best Emerging Market Banks 2004

Emerging markets are poised to post their strongest growth in 20 years. Global Finance has picked the banks in 73 emerging market countries and four regions that have best been able to help their clients benefit from the upturn. All ...

Milestones : Banking Associations Of The World Unite

GLOBAL The American Bankers Association and the European Banking Federation have joined with their counterparts in Canada and Australia to form the International Banking Federation, or IBFed. Although the leaders of the associations have met informally for a number of ...

Newsmakers : Booming Bolsa Bodes Well For Mexican Economy

MEXICO Guillermo Prieto Treviño, president of the Mexican Stock Exchange, picked a good time to come to New York to promote investment in Mexico, with the bolsa hitting record highs. He says the rising market reflects a “stability premium” as ...

Corporate Finance : Chinese Companies Lead Parade Of Asian Issuers

ASIA Semiconductor Manufacturing International, or SMIC, China’s biggest memory-chip maker, launched a sponsored American depositary receipt program in conjunction with its $1.8 billion global initial public offering.The ADRs are traded on the New York Stock Exchange. A host of Asian ...

Milestones : Traders Fear Seoul Will Devalue Its Way To Prosperity

SOUTH KOREA Lee Hun-Jae The South Korean won suffered its biggest decline since November on news that the progovernment Uri Party gained control of the National Assembly in last month’s general election. Foreign exchange traders blamed the drop in the ...

Features : World’s Best Treasury Providers

Global Finance selects the best in the world. The big international banks make it look easy, sweeping up dollars and euros and various other currencies from remote corners of the world and investing the resulting cash pile in the highestyielding ...

Corporate Finance : Weak US Jobs Data Trigger Bond Rally

THE AMERICAS Bond prices soared and yields slumped in early March, as the US employment data surprised market participants once again with a smaller-thanexpected rise in payrolls. “We probably need as many as six months of unequivocally solid labor data ...

Corporate Finance : Comcast’s Hostile Offer Puts Disney in Play

THE AMERICAS Comcast, the biggest cable-TV operator in the US, made an unsolicited offer to buy Walt Disney, the American entertainment icon, but was swiftly rebuffed by Disney’s board. The $67 billion hostile stock-swap transaction, if successful,would create the biggest ...

Corporate Finance : Companies With ADRs Gain Research Following

SOUTH AFRICA South African companies that find themselves ignored by analysts in developed countries can get noticed by issuing American depositary receipts, bankers say. US and European companies have significantly higher price-to-earnings ratios and a stronger research following than South ...

Newsmakers : Around The World

ALAN GREENSPAN INVENTS A NEW VERSION OF FEDSPEAK Federal Reserve chairman Alan Greenspan has turned the English language into an instrument of monetary policy, analysts say.What is the difference between being patient and waiting for a considerable period, they ask? ...

Corporate Finance : High-Yield Issuance May Keep Growing

THE AMERICAS While US corporate bondmarket participants expect overall issuance to decline in 2004 as interest rates go up, high-yield issuance likely will remain strong and could even increase slightly. A healthier economy will make it more attractive for companies ...

Newsmakers : Zhou Says China Will Review Its Yuan Policy This Year

CHINA Zhou Xiaochuan, governor of the People’s Bank of China, said in mid- February that China’s exchange-rate mechanism would be revised this year. Zhou indicated that the yuan’s level on currency markets would be made more flexible, ending its rigid ...

Newsmakers : United States

NANDAPURKAR SWITCHES SIDES AS EUREX STORMS WINDY CITY Satish S. Nandapurkar, a former military officer in the US Air Force, dropped a bombshell on January 21, when he resigned as managing director, products and services, of the Chicago Mercantile Exchange ...

Corporate Finance : ADRs Returning to Role As Takeover Currency

THE AMERICAS The use of American depositary receipts to pay for foreign takeovers of US companies likely will increase this year, market participants say. Many foreign issuers have reconciled their accounting to US Generally Accepted Accounting Principles, or GAAP, and ...

Milestones : United States

RECORD TRADE DEFICIT: A SIGN OF STRENGTH OR WEAKNESS? After two years of a slumping dollar, one could be tempted to look for signs of improvement in the gaping US trade deficit. Look again. While exports have increased, imports are ...

Corporate Finance : Group of 7’s Warning Fails To Support Dollar

THE AMERICAS In a move that came as a surprise to some analysts, the Group of 7 industrial nations warned against excessive volatility and disorderly foreign exchange movements in its communiqué following the group’s early-February meeting in Boca Raton, Florida. ...

Milestones : Emerging Markets

WHERE WILL THE NEXT EMERGING MARKETS CRISIS ERUPT? The mere hint that US interest rates would eventually have to increase from their lowest levels in 40 years was enough to send shock waves through some emerging markets, particularly in Latin ...

Features : Corporate Aviation Market Pulls Out of Nosedive

Fractional ownership and ‘Jet Cards’ are helping boost demand for business jets. The market for executive jets hit a patch of turbulence when the economy tanked in 2001, but with the stock market soaring and mergers back in vogue, it ...

Corporate Finance : Dollar Declines Sharply, But Has Further to Fall

THE AMERICAS Despite expectations of strong US economic growth throughout 2004, analysts are nearly uniformly bearish on the dollar, which dropped to record lows against the euro in January. “The economy will be strong enough to keep the trade deficit ...

Newsmakers : Bush's New Baby Causes Surprise All Round

UNITED STATES “In his budget for FY 2005 the President promises to close loopholes, halt several abusive tax avoidance transactions, and simplify the tax code.” US President George W. Bush has made a name for himself with his efforts to ...

Features : World’s Best Trade Finance Banks

Therebounding global economy is creating opportunities for cross-border sales, but only the foolhardy operate without the safety net provided by a good trade banker. Citigroup, through its Banamex subsidiary, was selected to arrange the financing for Aeromexico’s purchase of spare ...

Milestones : Snow Talks Up The Dollar To Avoid A Crash

CHINA, JAPAN The Group of 7 finance ministers and central bankers will face some thorny currency issues once again when they meet in sunny Boca Raton, Florida, on February 6 and 7. The G-7’s communiqué of last September may turn ...

Features : ADRs Gain Favor

ADRs Look Set To Become the Capital-Raising Tool of Choice With interest rates poised to rise later this year, ADRs are expected to supplant convertible bonds as the preferred instrument for emerging-market issuers. Sanjeev Nanavati, managing director of depositary receipt ...

Corporate Finance : Credit Spreads Forecast To Remain Tight in 2004

THE AMERICAS A favorable confluence of economic factors is expected to keep credit spreads tight in 2004, analysts say. Corporate bonds outperformed US Treasury bonds by more than 500 basis points last year, thanks to an improvement in credit quality ...

Corporate Finance : US Accounting Rules Trip Up Foreign Issuers

THE AMERICAS In the past two years, foreign issuers of securities have agreed to pay a total of about $700 million to settle shareholder class actions in the United States, usually related to accounting issues, according to a study by ...

Corporate Finance : Business Investment Boosts Debt Issuance

THE AMERICAS US corporate bond issuance is getting a lift from increasing business investment, as well as improving credit quality, according to the New Yorkbased Bond Market Association. Corporate bond issuance rose 12.9% in the first three-quarters of 2003 versus ...

2003

Features : Global Briefing

Deal Flow Picks Up in a Market Well on the Road to Recovery Global Finance Award Winners Forecast a Continued Upturn in 2004 The global project finance market has sprung to life this year, following two years that many institutional ...

Corporate Finance : Taiwan Flat-Screen Maker Raises $573 Million in GDRs

ASIA Taiwan-based Chi Mei Optoelectronics, which produces thin-film transistor, or TFT, liquid crystal displays for flat-screen computers, cell phones and televisions, raised $573 million through offerings of global depositary receipts. The company plans to build three plants in an industrial ...