The junk market is hurting. Experts predict the pain will continue, with defaults peaking a couple of years from now.
Capital Raising & Corporate Finance
Capital Markets | Corporate Bonds
Demand for investment-grade corporate debt seems insatiable, even as investors shun riskier high-yield bonds.
The axe fell on Brazil heading into 2016 as it suffered a downgrade to junk status by Fitch Ratings, heightening the air of crisis as the beleaguered nation grapples with political turmoil and recession.
Kuwait Financial Centre (Markaz) has been among the Arab region’s leading asset management and investment banking institutions since 1974. Speaking with Global Finance, CEO Manaf Alhajeri explains that economically challenging times have a bright side: a chance to find value for long-haul investors.
Monetary Policy | Capital Markets
Casting aside concerns about the strong dollar and weakness in economies abroad, the Federal Reserve achieved an historic interest rate liftoff in mid-December.
In Myanmar, Asia’s odd man out and a global pariah for decades, small signs of progress mean a lot. So the early December launch of the Yangon Stock Exchange (YSX) was a big deal—even if no stocks trade there yet.
In November the European Investment Bank published its latest Bank Lending Survey for Central Europe and Southeastern Europe.
Dealmaking | Capital Markets
Global merger and acquisition prospects for 2016 seem likely to exceed the pace of activity in 2015, although the reasons are likely to differ from region to region.
The International Monetary Fund decided last month to alter its long-standing policy of not lending to countries with arrears to official creditors—national governments or agencies they sponsor—thereby enabling it to continue lending to Ukraine should it fail to repay on time a $3 billion bond due to Russia.
Traditional banks are pulling back from lending to small and midsize businesses. Just as happened in the US, funds are filling the void.
Capital Markets | Deal Activity
This could be a record year for mergers and acquisitions, surpassing the 2007 peak in the US and globally. But optimism is waning regarding the outlook for 2016.
Capital Markets | Remedial Measures
The European Commission cites four concrete steps for kick-starting the Capital Market Union
India seems to be on course with economic reforms under the leadership of prime minister Narendra Modi, achieving a significant landmark as it moved ahead of the US and China in the foreign direct investment (FDI) sweepstakes.
Cross Rates: An unprecedented wave of cross-border mergers and acquisitions is driving demand—and rates—for foreign currencies.
Italy: Sergio Marchionne, the 63-year-old CEO of Fiat Chrysler Automobiles (FCA), is celebrated as the mastermind of one of the few successful mergers in the industry’s history, the marriage of Fiat and Chrysler.
Capital Markets | Business Funding
In 1957, when the Treaty of Rome was signed and the European Economic Community was established, it was the first milestone in the long path toward free circulation of goods, capital, services and people among European countries.
Fixed Income | With this summer’s Greek debt crisis having abated somewhat and the European Central Bank (ECB) considering expanding its easy-money policies, US companies are rushing to the eurozone to issue debt at record-low interest rates.
Short-term risks have not dimmed the country’s economic prospects. That may explain why FDI from Asia and Gulf nations is surging.
African nations can no longer get by on mineral wealth and commodities alone—and they know it.
Arabia is meeting with some success in its efforts to entice foreign investors to six new economic cities in the kingdom.