Global Markets Intelligence reverses the corporate cash narrative

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.

Quantifying Risk with Standard & Poor’s

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.

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BNY Mellon Multiple Award Winner at TFR Awards for Excellence 2012

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.

To read the press release please click here

BPL Global opens office in Singapore to add to Asia-Pacific footprint

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 ReviewTrade Finance and Global Trade Review, as well as the specialist insurance press, with PostInsurance DayInsurance TimesGlobal Reinsurance and Insurance Business Review all picking up the story.

Falcon Group wins “Best Specialist Trade Finance Institution” at TFR Excellence Awards 2012

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.

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The Endgame for Bunds: Natixis’s Rene Defossez published in Investment Week

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.

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Analysing Apple: Natixis’ head of quant research describes a stock pattern matching technique for analysing the computing giant

Will Apple’s share price keep going up, or is the cycle of positive gains nearing its end? Natixis’s head of Equity Markets Quant Research, Adil Reghai, discusses the impact various events could have on Apple’s share price in a commentary article published in US specialist technology investment publication Value Walk. These events include Apple’s success in China, its ability to offer new products and maintain its image, as well as taking advantage of its ‘leader’ status in the field, just to name a few. Adil demonstrates a ‘pattern matching’ technique used in bioinformatics research, adapted by Natixis’ Quant Research team, to look for similarities between Apple’s current share price and those of other technology companies during similar stages in their evolution. Like any fast-growing company, Apple’s valuation and therefore its share price are sensitive to changes in market expectations for the company’s growth rate.

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Growth of global offshore wind power provides big opportunities for project finance, according to S&P

Many countries expect wind power to account for a large share of their renewable-energy investment to meet energy and climate goals, but the investment required globally to meet this vision is immense, explain S&P Credit Analysts Jose Abos and Terry Pratt, in an article written for Project Finance International (PFI).  Utility balance sheets and state lending organizations have been the dominant sources of funding for this relatively new asset class, but these will not be nearly enough to fund the ambitious investment needed by 2020.

S&P estimates that the amount needed to meet just the U.K. and German government’s goals falls between €91 billion ($117 billion) and €104 billion ($133 billion). As a result, project financing is becoming increasingly available for European offshore wind projects, and they see a growing market for it as governments, project sponsors, suppliers, and lenders manage investment barriers and help the industry grow.

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Flexibility is key to supporting sponsors’ ambitions – Natixis’s Graham Olive explains

The escalating Eurozone crisis is weighing on both target business’ financing options and operating environments. Meanwhile, private equity fundraising remains buoyant. In this week’s Private Equity News, Graham Olive, head of acquisition and strategic finance for northern Europe at Natixis, explains why this requires a pliant approach from lenders wishing to support sponsors’ acquisition and growth ambitions. Graham points to the example of a recent transaction – led by Natixis, the Royal Bank of Canada and J.P. Morgan Chase – to support the €1bn acquisition of Global Blue by Silver Lake Partners and Partners Group. A flexible approach was needed to structure the acquisition financing, not least to give the borrower the option of accessing capital markets in the near future.

To read the full article, please click here