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GC Asia
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Schuldscheine: die or defer
The Schuldschein market must adapt if it wants to win back its international borrower base. While competing with public bonds on price may be out of reach, the instrument can take a leaf out of the US private placement’s book and introduce deferred funding.
25 Feb 2021 -
Yo-yo books: the end justifies the means
Italy lost €45bn of orders from its 10 year bond issue this week when it tightened the spread to 4bp inside initial price thoughts. It was a close echo of when investors pulled €75bn of bids for Spain’s 10 year in January.
18 Feb 2021 -
Post-Covid extremes are not inevitable
Two factors bear outsized influence on capital markets — Covid-19 and central bank stimulus. But the temptation to see these powerful forces culminating in one of two extreme outcomes — another crash as a feeble economy flounders, or a boom like the 1920s US — must be resisted.
18 Feb 2021 -
Cancel culture: should govvies held by central bank be torn up?
Thomas Piketty and 100 other economists from across Europe put their signatures to an op-ed this week calling for the ECB to cancel its holdings of government debt. GlobalCapital debates whether it is radical but wise policy making, or would make matters worse still.
11 Feb 2021 -
Negative rates: there are other ways
The Term Funding Scheme could easily take on more importance as a policy tool at the Bank of England.
04 Feb 2021 -
Brave Draghi
If he can form a government that holds the demons of Italian politics at bay long enough to drag his country through the coronavirus pandemic, then Mario Draghi will have earned his laurels. But in Rome, glory has always been fleeting.
04 Feb 2021 -
Social RMBS, and not before time
Kensington is marketing the first ever RMBS 'social bond', which could mean investors accepting a lower spread for their mortgage bonds thanks to the label. But Kensington’s lending approach will be little changed by the new issue, raising the question of what the new issue changes.
28 Jan 2021 -
Long attacks are here to stay
Andrea Orcel, the new CEO of UniCredit, may be annoyed to be upstaged by Avalon Penrose, an actor whose hilarious and heart-tugging Twitter video about the GameStop share maelstrom has captured the insanity of stock markets. But these are the frothy markets we live in now.
28 Jan 2021 -
What price bonds in the Biden era?
A new era has begun in the US, with the swearing in of Joe Biden as president. For America and the rest of the world it is a sea change in leadership style and political substance.
21 Jan 2021 -
For corporate social bonds, SLBs are way to go
Social bonds have long been the poor cousin of green bonds. A smaller, less well organised market.
14 Jan 2021
