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GC Asia
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Guest view: excluding Alberta’s bonds from its repo list is (and should be) well within the ECB’s remit
GlobalCapital has argued that it is not the ECB’s job to exclude individual borrowers’ bonds from its list of repo-eligible securities on environmental grounds in response to our call for the Province of Alberta’s debt to be removed from its list of eligible marketable assets (EMA). We maintain that the ECB has plenty of justification to exclude this borrower.
11.30 AM -
Asia green loans: don’t blur the lines
Asian loans bankers are calling for relaxed restrictions on green and sustainability-linked loans, hoping for more business opportunities from the sector. But this approach could harm the development of the market in the long-term.
06.00 AM -
Argentina’s economic struggles are a danger for provincial restructurings
Eye-watering bond yields on Argentina’s recently restructured sovereign bonds indicate that investors have little faith in its economic plans. That will make it hard for issuers and investors to see eye-to-eye in the wave of provincial debt restructuring talks that has followed the sovereign's deal with bondholders.
27 Oct 2020 -
ECB can't pick and choose, even for the environment
An ESG think tank believes that the European Central Bank should drop Alberta’s euro bonds from its list of eligible marketable assets as a punishment for its support for polluting industries. But while it is a laudable aim, it is not practicable.
27 Oct 2020 -
Cov-lite has gone pretty well so far
The coronavirus pandemic has subjected the European leveraged loan market, where ‘cov-lite’ documents reign supreme, to a brutal test. The early results are positive.
27 Oct 2020 -
Banks: net zero in 2050 is not enough
One by one, banks are taking responsibility to help fight climate change, by setting targets to eliminate carbon emissions from their whole financing portfolios by 2050. This will not suffice. Banks must learn a new way of interacting with clients.
21 Oct 2020 -
Pfandbrief’s soft bullet highlights key differences
A proposed change to the Pfandbrief law introducing a soft bullet maturity is designed to harmonise Germany’s covered bond regime with the rest of Europe’s, as envisaged under the EU’s Covered Bond Directive. However, it could highlight the vast differences in how soft bullet covered bonds are repaid following extension triggers.
20 Oct 2020 -
Transition bonds: not so sustainable after all
Enel, the Italian energy company, scored a number of firsts last week when it sold a sterling sustainability-linked bond. But the effect of that deal that might last the longest could be that it has brought about the end of transition bonds.
20 Oct 2020 -
China’s sovereign bond: a missed SRI opportunity
China wowed investors last week with a $6bn 144A bond amid a trade war with the US, but it missed a chance to solidify its credentials in the socially responsible bond market.
20 Oct 2020 -
Why is nobody talking about Brexit?
Thursday marks the UK’s deadline for reaching a Brexit trade deal with the EU, which according to the country's prime minister Boris Johnson means that it will begin to shift focus to preparations for leaving without one. A no-deal Brexit could be a disaster but nobody in capital markets seems to care.
13 Oct 2020
