The GlobalCapital Podcast

Business & Economics Podcasts

A weekly podcast from GlobalCapital, the capital markets news service based in London and New York, discussing its most interesting stories from around the world. Every Friday, listen to lively discussion about the very latest themes, the most innovative and important bond and equity issues and syndicated loans and much more from the capital markets. This podcast is for anyone working in - or who wants to work in - the capital markets from investment bankers, to funding and treasury officials, investors, lawyers, analysts, NGOs and lobbyists, regulators and policy makers, and analysts. GlobalCapital has been the "voice of the markets" for over 35 years, covering bond, loan, equity and securitisation markets around the world. We cover everything from public sector bond issuers, financial institutions, emerging markets and investment grade corporate bonds and loans to securitisation (including CLOs and ABS), regulation and market news as well as industry gossip. GlobalCapital is written for capital markets professionals but the podcast is of value to anyone with an interest in the industry, whether you have been working in it for as long as we have, or are looking to make your first career move into it. This podcast is a commute-sized slice of everything that's most interesting from the world's capital markets with the aim of helping you sound smarter in your morning meeting, or making you stand out from the crowd of other hopefuls when kick-starting your career. And don't forget, you can #AskGC anything you like and we will select the best questions to answer on the show. Contact us at podcast@globalcapital.com

Location:

United Kingdom

Genres:

Business & Economics Podcasts

Description:

A weekly podcast from GlobalCapital, the capital markets news service based in London and New York, discussing its most interesting stories from around the world. Every Friday, listen to lively discussion about the very latest themes, the most innovative and important bond and equity issues and syndicated loans and much more from the capital markets. This podcast is for anyone working in - or who wants to work in - the capital markets from investment bankers, to funding and treasury officials, investors, lawyers, analysts, NGOs and lobbyists, regulators and policy makers, and analysts. GlobalCapital has been the "voice of the markets" for over 35 years, covering bond, loan, equity and securitisation markets around the world. We cover everything from public sector bond issuers, financial institutions, emerging markets and investment grade corporate bonds and loans to securitisation (including CLOs and ABS), regulation and market news as well as industry gossip. GlobalCapital is written for capital markets professionals but the podcast is of value to anyone with an interest in the industry, whether you have been working in it for as long as we have, or are looking to make your first career move into it. This podcast is a commute-sized slice of everything that's most interesting from the world's capital markets with the aim of helping you sound smarter in your morning meeting, or making you stand out from the crowd of other hopefuls when kick-starting your career. And don't forget, you can #AskGC anything you like and we will select the best questions to answer on the show. Contact us at podcast@globalcapital.com

Language:

English

Contact:

+44 2077797307

Website:

https://www.globalcapital.com/article/b1smkgm3lj8q0c/gc-podcast-starting-out-in-investment-banking

Email:

gerald.hayes@globalcapital.com

Episodes

Why Ukraine wants to pay investors again

7/26/2024

Send us a Text Message. ◆ Ukraine restructures $20bn of bonds ◆ Excitement in digital bonds ◆ Is UK water going down the plughole? Swiftly after Ukraine was invaded by Russia, it agreed a two year suspension of debt service with bond investors. That expires on August 1. While many thought Ukraine would negotiate an extension, it has chosen instead to do a full restructuring, issuing new bonds in exchange for the old. We explore why, and whether this was a wise move. We are reaching the mid-point of the European Central Bank’s trials of distributed ledger technology for financial markets, including bonds ― a festival of experimentation in which banks, clearing houses, central banks and tech firms are trying different ways to get bond deals on to blockchains. There are strong hints we are about to get the first DLT bond from a eurozone sovereign. Supplying the most basic commodity, water, as a regulated monopoly sounds fairly straightforward, and not likely to generate a lot of credit risk. But Thames Water was downgraded to junk by Moody’s this week. If S&P follows suit, the once unthinkable will have happened: a UK water company breaching its licence due to credit weakness. How will the capital markets react?

Duration:00:41:55

The new big thing in ESG capital markets

7/19/2024

Send us a Text Message. ◆ UN circles banks on circular economy ◆ Topping out on Turkey ◆ CLOs: summer recess or summer resets? ESG capital markets are undergoing another revolution. The UN is beckoning banks to police their corporate clients' transition to being part of the circular economy. But what is the circular economy and are other shapes available? How can banks put pressure on businesses to better manage resources? We explain all. Turkey's bond issuers have absolutely obliterated the record for volume of bond issuance from the country this year. We discuss what led to this renaissance and what will affect supply and demand for Turkish bonds for the rest of the year. The European CLO market is also running at a hectic place, with deal resets galore set to ruin everyone's summer holiday plans. We discover the interesting market dynamics at play that are driving such a busy spell.

Duration:00:44:20

The new big thing in ESG capital markets

7/19/2024

Duration:00:44:37

Is Paris in peril?

7/12/2024

Send us a Text Message. ◆ Political shift threatens Paris's growing status ◆ The liberation of securitization in Europe as Macron weakened ◆ Bond issuance returns, mostly As new parliaments form after the EU, UK and in particular, French elections, we uncover how, despite each poll resulting in the widely expected outcome, capital markets might never be the same again. Paris's remarkable rise as a capital markets hub at London's expense after Brexit has been staggering. But will an emboldened left wing in the French parliament make life tougher for the tens of thousands of market participants — and their employers — that have lately made the French capital their home? French president Emmanuel Macron, not only championed Paris as a financial centre but has also been a driving force behind the push for relaxing EU securitization regulation. We look into whether his weakened mandate spells doom for that regulatory push. We also examine who will be picking up the baton in the EU and UK political arenas. Finally, it was no surprise to see issuance come roaring back this week once the polls were done. But we discovered that not every issuer was able to get the funding it wanted.

Duration:00:43:38

Debt and democracy — how polls, politics and protest weigh on capital markets

7/5/2024

Send us a Text Message. ◆ UK ousts Tories from power... ◆ ... setting up final round of French elections as only bar to primary market revival ◆ EM debt restructurings: balancing what creditors demand with what voters need This week, we looked once again at the intersection of politics and capital markets. The Labour Party, as predicted, won the UK general election by a landslide, with departing prime minister Rishi Sunak on his way to Buckingham Palace to resign as prime minister as we recorded. But what does the outcome mean for debt markets? Well, it may not matter as much as what is set to happen in France over the weekend, which has the final round of parliamentary elections. We discuss the likely outcomes and ramifications of those and how issuers will approach the bond market in their aftermath next week. Meanwhile, although further news of progress with emerging market sovereign debt restructurings might be encouraging for the asset class, we note that the recent violent protests in Kenya underscore the difficulty in balancing the demands of international creditors with the needs of citizens for governments in debt distress.

Duration:00:22:12

The mutual savings bank that loves M&A

6/28/2024

Send us a Text Message. ◆ Natixis’s sometimes requited love affair with elite M&A bankers ◆ What the French election could to ESG, and to the bank bond market When a posse of high-powered Paris dealmakers threatened to walk out of Natixis because they were being treated like “just another employee”, rivals said ‘I told you so’. They were sure Natixis’s unique way of doing M&A banking was falling apart. Nine months later, not so. France’s fourth largest investment bank, owned by the mutual savings bank group BPCE, is sticking to its plan ― and doubling down. Natixis’s ploy is, rather than trying to build its own M&A department, buying stakes in a growing network of independent boutiques. As investment banking correspondent David Rothnie explains, the key to managing this potentially unruly throng is flexibility. Before that, we look with corporate debt editor Mike Turner at how investors are pouring money into environmental, social and governance bond funds this year, and how that is playing out for issuers. And with the first round of the French parliamentary election coming this weekend, bank finance editor Atanas Dinov explores what the outcome could do to French access to the capital markets, especially for banks.

Duration:00:41:56

FIG market seeks way past French impasse

6/21/2024

Send us a Text Message. ◆ Banks need a bond market leader, just not a French one ◆ From Golden Goose to lame duck ◆ CMBS problems, rise of solar ABS Europe's banks have been unwilling or unable to issue bonds since French president Emmanuel Macron sent the markets into a tailspin a couple of weeks ago by calling parliamentary elections. We explain why the uncertainty the election is causing is so bad for so many bond issuers, and also which banks can restart issuance in their market. We also look at a triumphant return to sustainability-linked bond issuance for Enel, the Italian power company which created the structure. But it wasn't all good news from the country this week. Golden Goose, the maker of expensive trainers, pulled it IPO. We examine why. In securitization, we looked into problems in the commercial real estate sector that are hitting investors but rather more cheerily, we find out why solar ABS might be coming to Europe.

Duration:00:47:23

Things fall apart

6/14/2024

Send us a Text Message. ◆ Politics panic slaps SSAs, FIG but what of corporate bonds? ◆ EU denied its wish ◆ Introducing Primary Market Monitor Well, you can't say we didn't warn you. On last week's show we talked about European elections and the likelihood of volatility following the ECB's historic rate cut. Et voila! French president Emmanuel Macron's decision to call snap parliamentary elections in the wake of far-right successes in the EU equivalent has caused havoc in bond markets this week. SSA and FIG issuers abandoned deal plans. We discuss which bits of the market are still working, just how bad this bout of volatility is compared to recent times and what new issuance prospects are for the immediate future. The EU didn't have a vintage week as a borrower either. It priced a successful syndication, though as we discover, it lacked the glossy finish of other deals. Then it was denied access to MSCI's government bond indices. We reveal why this matters so much to the borrower, and the way forward. Finally, GlobalCapital is about to launch a new data product: Primary Market Monitor. We tell you what it is, what it does and how you can get an early look at it.

Duration:00:43:08

Taking the pulse of European securitization

6/7/2024

Send us a Text Message. ◆ Private credit, regulation and cuddly toys at Global ABS in Barcelona ◆ What the European parliamentary elections mean for EU bonds and Capital Marekts Union ◆ Will volatility follow the ECB's historic rate cut? The incursion of private credit into the securitization market, and how securitizations are regulated, were two of the big topics at Europe's biggest industry conference this week. We were joined by our colleagues from the Another Fine Mezz podcast to discuss all of that, the best freebies at the event and the perils of live podcasting. Meanwhile, the ECB made its first cut to interest rates in five years on Wednesday. It was well expected but now uncertainty is back as capital markets puzzle over where next for rates. Finally, June's EU parliamentary elections will have an influence not only on securitization regulations but also the future of the EU as a bond issuer and the path to Capital Markets Union. We discuss the likely outcomes.

Duration:00:52:00

A tale of two issuers: South Africa and Saudi Arabia

5/31/2024

Send us a Text Message. ◆ Which banks sell in run-up to rate cuts ◆ South Africa election and the bond market ◆ Saudi Arabia leaves peers behind Rates volatility returned to the European FIG market this week. We ask what credits investors are buying ahead of a key ECB monetary policy meeting, when it is expected to cut interest rates, and why. South Africa's election this week was, at the time of writing, likely to result in the African National Congress losing its exclusive grip on power for the first time in 30 years. We discuss what that and the likely outcomes mean for the bond market. As Saudi Arabia returned to the debt markets with another blockbuster sukuk, we examine just where the issuer sits in the debt capital markets and how it manages to keep investors keen when it has to raise so much compared to its peers.

Duration:00:35:36

The trouble with Capital Markets Union, EMEA investment banking and EM bonds

5/24/2024

Send us a Text Message. ◆ Capital Markets Union: gauffre it ◆ The EMEA investment banking riddle ◆ Why EM bond investors keep buying deals that end up under water Mairead McGuinness, the European Commissioner for financial services, financial stability and Capital Markets Union urged those attending the International Capital Markets Association's conference in Brussels this week to get on with building CMU. But were they listening? We cut through the waffle to discuss the path to a common capital market . Meanwhile, investment banks are reassessing how they make money from M&A and advisory in the EMEA region. We reveal the new approaches to client coverage and staff pay that are emerging. Finally, a plethora of borrowers from the emerging markets have been bringing deals at ever tighter spreads and paying very little in new issue premiums. But as we discover, these deals are not performing in secondary trading. We investigate why investors keep showing up for the paper.

Duration:00:40:58

Blockchain bonds on the launchpad as Macron touts big bank M&A

5/17/2024

Send us a Text Message. ◆ A pivotal moment for digital capital markets ◆ Who really benefits from bonds on the blockchain? ◆ FIG M&A in Europe There is no shortage of evangelists for digital capital markets. But adoption of bonds on the blockchain has been slow, not least because it hasn't always been obvious what problem the tech is solving, or how it can be widely implemented. This week, however, the ECB took a big step forward by launching trials of distributed ledger technology for bonds. We discuss what the ECB hopes to achieve with this initiative. We also debate whether it will change the face of finance or we know it, will fizzle out into nothing, or something in between. One thing is for sure: everything is to play for at this critical moment in the digitalisation of the bond market. We also took a keen interest in French president Emmanuel Macron's opinion this week that there is a need for consolidation among the EU's banks. Is big bank M&A on the agenda, and if so which firms? We also look into the likelihood of it happening as well as the pitfalls and benefits.

Duration:00:48:34

From the one that has the market abuzz to the one with 'war next door' — why airline IPOs are stacking up

5/10/2024

Send us a Text Message. ◆ Etihad to lead fleet of airline listings as IPO market and aviation sector blossom ◆ Air Baltic's historic coupon ◆ Open season for bank AT1s An airline IPOs are a rare bird. In the last nine years, there have been three. The industry has rebounded from Covid, however, as UAE carrier Etihad's results proved this week and now it and at least eight others are looking to list on stock exchanges this year, or next. We look at what is driving them to the equity market and what reception they will likely find when they get there. One of those airlines is Air Baltic. It was in the bond market this week raising €340m of five year debt, callable after two, at a cost of a whopping 14.5%. We look into the airline's capital markets strategy. Meanwhile, banks piled into the additional tier one capital market this week. We examine how they managed to cram so much issuance into such a small window at such tight pricing.

Duration:00:28:56

Is sustainability-linked finance over and who will run HSBC?

5/3/2024

Send us a Text Message. ◆ Sustainability-linked bonds lose appeal... ◆ ... as do the loan versions, come to think of it ◆ The favourites to take over from Quinn at HSBC When Enel missed a KPI on its sustainability-linked bonds, it could have marked a moment of maturation for a youthful product but issuance volumes are plummeting. Meanwhile, the international banks that lend to Turkey's financial institutions seem to prefer to make green loans rather than the sustainability-linked versions they made previously. We ask what is going on with sustainability-linked products — does all of this signify the last rites for an asset class that was supposedly so well-suited to funding the green transition? Meanwhile, Noel Quinn caused a surprise this week by announcing his plans to retire from HSBC, where he is chief executive. We look at who might replace him, and we think we've identified a clear favourite.

Duration:00:41:06

The curse of the millstone mandate

4/26/2024

Send us a Text Message. ◆ The 'marginal madate': it seemed like a good idea at the time ◆ GlobalCapital's new columnist, Craig Coben ◆ World Bank boosts lending capacity What do you do when that mandate you accepted in a quiet market to keep busy is still lurking about, taking up time and energy, when the market has picked up and juicier deals are to be done? Is extending balance sheet to clients as a second tier firm when the top tier won't anything other than an exercise in futility in the long term? GlobalCapital's new columnist and capital markets veteran Craig Coben joined us to discuss these very matters and more. Meanwhile, we have an update on the fast developing situation with the capital of multilateral development banks, the not so secret weapon in their campaign to increase their lending to the developing world. Also, hear from our sponsors, KfW, about their latest advance into blockchain-based digital bonds.

Duration:00:53:55

Callable capital, calling it off and cancelling cornerstones

4/19/2024

Send us a Text Message. ◆ Supranationals speak on callable capital ◆ Bank funding: pricing reset ◆ The demise of the cornerstone investor As the great and the good of the development finance world gathered in Washington, DC for the World Bank/IMF Spring Meetings, multilateral development banks published details about their callable capital, the next vital step along the way to powering up their lending to solve some of the planet's most urgent problems. We digest what they said and why it matters. In the FIG bond market, issuers decided to postpone new issues as rates volatility gripped the market. We figure out when they will be back and how much extra they will have to pay for the funding. Finally, equity capital market experts think the IPO revival is strong enough to do away with cornerstone investors. And what do the cornerstones think of that? Listen in to find out (spoiler alert: they're not exactly tearing up the paving stones over it).

Duration:00:44:50

Holy mountain mama: 'nuns on rampage' as W Virginia bans banks in ESG escalation

4/12/2024

Send us a Text Message. ◆ Why everyone from nuns to pro-coal US state treasurers are giving banks stick over ESG ◆ El Salvador's punchy new debt structure ◆ Appetite for duration in covered bonds West Virginia: almost heaven unless you're on state treasurer Riley Moore's list of banks the state won't do business with over fossil fuel financing. But unlike most ESG-related exclusions, in this case opprobrium is reserved for financial institutions deemed to be anti fossil fuel. Bank of Montreal has dodged making the list in a week where four others were added. But the pressure on banks to behave a certain way over ESG is mounting on both sides with some nuns in the US taking Citi to task over what they see as exploitation of indigenous people. We look into what this means for banks picking a treacherous route to building their ESG credentials while trying to make money serving traditional clients. We also examine what investors in their bonds think. Investors had another tricky consideration to make this week as El Salvador issued a funky new structure as it looks to beat its debt distress. We examine the new bonds and what the market reaction to them. Finally, we discuss the growing appetite for long dated covered bonds.

Duration:00:47:53

Do banks’ right hands know what the left is doing?

4/6/2024

Send us a Text Message. ◆ Do investors want unified capital markets coverage? ◆ Corporates fear democracy ◆ Why are FRNs trending? ◆ Second lien mortgages in arrears ― yes please Banks’ urge to cut costs in debt capital markets, especially syndicate desks, is prompting some to call for the ‘global capital markets’ model: one team for equity and all kinds of debt. They argue this could heal banks’ disjointed thinking and allay investors’ frustration that they have to say the same thing to five different bankers at every firm. But there are plenty of sceptics... Few in the corporate bond market expected its rally to last into this year, still less the second quarter. But here we are and it’s still running. A motley bunch crammed into the market this week and found a great reception. As Mike Turner explains, they’re partly packing the funding in to avoid this year’s great big risk event: the US election. Floating rate notes are the natural product for banks to issue, but normally they don’t much, because most investors prefer fixed rate bonds. So why are investors gagging to buy floaters now, just when everyone agrees interest rates are about to fall? Sarah Ainsworth goes through the ins and outs. Second lien mortgages are the kind of — shall we say 'challenging' — collateral familiar from the US securitization market, but as George Smith and Victoria Thiele highlight, the UK has produced four deals in the past five months. The latest, from Equifinance, had some pushback in the market, but investors were only joshing and bought it in the end. We ask if lower ranked mortgages are the hot new asset class.

Duration:00:39:27

Does experience matter on syndicate desks?

3/28/2024

Send us a Text Message. In the second part of GlobalCapital’s exploration of how bond syndicate desks are changing, after a swathe of the discipline’s senior bankers have been made redundant, we discuss the syndicate job itself. Technology and market transparency have stripped away some of the grunt work, but also made knowledge easier to come by. Are banks thinking they don’t need so much experience on desks? Bankers admit pricing bonds has often become more routine. But when markets get difficult, or situations do, as with Equinix’s recent pulled deal, you need experience. We also talk to Ana Fati and Mike Turner about the latest plunge down for Thames Water after shareholders refused to put in much needed equity. What are bond investors and lenders thinking about the UK water sector? And it’s been a huge week for African bond markets, with Zambia finally getting its official creditors and bondholders to agree to a restructuring. This one is meant to be tougher to bondholders, but if Zambia does well economically, it will have to pay extra. George Collard explores whether that is a good thing, or will prove a burden.

Duration:00:47:21

Can it really get any better than this?

3/22/2024

Send us a Text Message. ◆ MUFG's Del Canto and SG's Menzies on what comes next for capital markets ◆ The juniorisation of syndicate desks ◆ Two deals pulled despite fantastic markets It was only a few months ago that GlobalCapital asked more than 50 of the bond markets' most senior bankers where they thought the primary markets were headed in 2024 for our Review 2023|Outlook 2024 special report. This week, two of them joined us on the podcast to see which predictions had come true and what comes next for issuers and investors after what has been a stellar start to the year for bonds. Fabianna Del Canto is MUFG's co-head of capital markets in the EMEA region. She has worked in syndication and origination for over 20 years and jointly runs the Japanese firm's business in the investment grade, structured, leveraged and emerging markets. Andrew Menzies is Societe Generale's global head of debt capital markets. He has been at the French firm since 2003, working with clients across the Americas — during a stint in New York as the bank's head of DCM for the continent — the UK and Ireland, the Netherlands and Scandinavia. But as good as markets have been for issuers this year, there were two stark reminders that access to bond funding can never be taken for granted. Two issuers hooked their deals right in the middle of book building — Equinix and Raiffeisen Bank International. We examine both cases to see what went wrong. We also look into why some of the most senior syndicate bankers in the Street are leaving their jobs and being replaced by more junior staff.

Duration:00:53:22