In his column for the FTSE Global Markets blog, Patrick Artus, chief economist at Natixis, explains why the European Central Bank needs to return to a policy of purchasing sovereign bonds. He points to the deteriorating positions of Spain, Italy, France and Portugal and the continuous weakening of the economy. Given the size of these countries’ debts, the original planned solution (bond purchases by the EFSF/ESM) will not be sufficient.
Two drastic steps in institutional policy are needed to permanently solve the eurozone crisis, says Patrick Artus, chief economist at Natixis. One, the region should start a process of joint financing (i.e. pooling of debt), and two, components of federalism need to be implemented. His article on the subject, published as a guest commentary for International Financing Review, was the leading story on the publication’s website. He says that the region needs more than policy-makers’ willingness – there must be commitment to change from reaction to restoration.
While the Gulf region has been an important focus for international banking for many decades, regional capital markets have yet to develop the depth and breadth expected of more-developed markets.
To this end, S&P Capital IQ’s Managing Director, Damian Burleigh, advocates a general improvement in transparency in the latest issue of The Bahrain Banker, available online here.
Market commentators have long held that private industry in the US has spent the last few years steadily building up cash reserves at an ever-growing pace. Similar trends have been reported in Europe, albeit tempered by volatility stoked by the sovereign debt crisis.
When hard data from Global Markets Intelligence – the investment advisory arm of S&P Capital IQ – arrived on our desks that seemed to contradict the general consensus, we pitched tier one media and secured an interview with John Authers at the FT. The resulting article was published in the paper and online, here.
The ongoing debt crisis in Europe has focused more attention than ever on credit ratings, but a key question that is often overlooked is whether credit ratings actually do the job they are designed for. Blaise Ganguin, EMEA Head of Corporate & Infrastructure Ratings, Standard & Poor’s Ratings Services, tackles the question in this month’s edition of World Finance.
Given the nature of their business, airlines are especially reliant on the ability to conduct and collect cross-border payments. An article in Airline Fleet Management describes how the world’s largest airline, Delta Air Lines, collaborated with Citi Transaction Services to improve its cross-border payments processes.
BNY Mellon, the global leader in investment management and investment services, has received Gold awards for Best Trade Services Provider and Best Trade Bank in the Middle East in this year’s Trade and Forfaiting Review (TFR) Awards for Excellence. The firm also received Silver awards for Best Trade Bank in the World and Best Trade Services Provider, as well as the Bronze award for Best Trade Bank in Latin America. The rankings are based on results from the magazine’s 2012 Trade Finance Survey, and the results confirm BNY Mellon’s standing as a truly global transaction banking provider and recognised industry thought leader.
Given that Asia-Pacific is a core focus for leading political risk insurance broker BPL Global’s growth, the company’s office opening in Singapore was a key step given the city-state’s importance as an insurance hub for the region. This is reflected in the fact that Anthony Palmer – the company’s deputy chairman and a co-founder of the firm with 37 years of experience in the PRI market – is heading up the Singapore office.
Moorgate’s outreach resulted in coverage of the Singapore move in all the big trade publications, including Trade & Forfaiting Review, Trade Finance and Global Trade Review, as well as the specialist insurance press, with Post, Insurance Day, Insurance Times, Global Reinsurance and Insurance Business Review all picking up the story.
Falcon Group have won ” Best Specialist Trade Finance Institution” at this years Trade and Forfaiting Review’s (TFR) Excellence Awards. The alternative financier has been recognised in the TFR awards in three of the last four years. Interviewed by TFR following the announcement of the company’s success, Kamel Alzarka, Chairman and founder of Falcon Group, attributed Falcon’s continued success to its commitment to going a step further than most other alternative financiers in providing structured solutions to corporate funding.
The unnaturally low yield for Bunds is a very poor measure of Germany’s credit risk, says Rene Defossez, fixed income strategist at Natixis. His commentary piece on the topic was published this week in both Investment Week and its sister publication Investment Europe. The analysis, based on the correlation of yields and peripheral bonds, asserts that Germany’s financial exposure to the eurozone risk is potentially colossal; particularly now the Bund yield sits at 1.50%. Instead of looking at the Bund yield as a gauge of ‘safe haven’ status, Defossez says investors should look at other indicators like the Credit Default Swap (CDS), which is currently very high at 135bp.