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‘Great moment of truth’ for EU as Brexit demands finance reforms
Leading ministers and financiers have told GlobalMarkets that the EU is likely to redouble efforts to reform its financial system, as member states brace for Brexit and try to protect themselves against a shift away from globalisation.
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UK levfin faces obstruction as Brexit chaos reigns
Leveraged finance bankers say they have a substantial deal pipeline in sterling to execute this autumn, while the UK's fall into political chaos threatens market volatility. Sub-investment grade buyers are likely to be offered buyout debt for Ei Group, Merlin and BCA Marketplace, among a flood of business totalling at least £15bn ($18.5bn), writes Owen Sanderson.
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Johnson dampens UK capital markets with ‘do or die’ Brexit
UK capital markets are once again in flux and in the dark over the country’s future, as new prime minister Boris Johnson vowed to take the UK out of the European Union on October 31 “do or die”, write Sam Kerr, Tyler Davies and Owen Sanderson.
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Growth IPOs boost 2019 returns but political risks persist
The EMEA IPO market has performed solidly in the first half of 2019, with high growth propositions in particular outperforming. Nevertheless, with disparate year-to-date returns between offerings and geopolitical tensions likely to surface in the autumn, sellers will act with heightened caution when the market reopens in September, writes Sam Kerr.
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Brexit delay clouds outlook for UK listings revival
The decision by the European Union and UK on Wednesday night to extend the country’s membership of the bloc until October 31 prolongs the uncertainty that is deterring UK companies from attempting IPOs.
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Further Brexit delay puts UK IPOs back on ice
Equity bankers expected clarity about Brexit by this week, for better or worse, and had hoped to start work again on UK IPO projects. But further delays and political uncertainty have swept these deals back to the sidelines.
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UK lenders rejected from Schuldschein amid Brexit uncertainty
Mersen, a French technology manufacturer, will not accept bids from UK-based lenders for its new Schuldschein “in anticipation of a potential Brexit”. Three bankers away from the transaction said they have also discussed excluding UK lenders with other borrowers.
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Brexit uncertainty will keep equity investors away
There was a dark mood in equity markets on Wednesday morning after the UK parliament rejected prime minister Theresa May’s negotiated Brexit withdrawal agreement by a huge majority for a second time. A possible delay to the UK's departure from the EU and all of the crippling uncertainty that entails is set to continue to hamstring equity capital markets.
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Brexit chaos claims London fund listing
The £200m ($262.56m) listing of Global Sustainability Trust, a London socially responsible investing (SRI) private equity vehicle, has been postponed due to negative market conditions — primarily the political chaos surrounding the UK’s exit from the European Union (EU).
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Tradeweb wins approval for Dutch venue
Trading platform operator Tradeweb has received regulatory approvals to operate trading venues from Amsterdam as it solidifies its preparations for Brexit.
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RBC corporate DCM head Seibel to run Mizuho’s EU arm
Mizuho International said it had hired Christoph Seibel, head of EMEA corporate debt capital markets at RBC Capital Markets, to be chief executive of its EU operations, Mizuho Securities Europe.
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Over half of UK banks and brokers could shift to EU
Twenty-seven universal banks, investment banks and brokerages have confirmed or are considering moving operations or staff from the UK to the rest of the EU, according to EY. Paris is gaining in popularity as a destination for UK financial services firms, but Dublin appears to be the top choice.
Comment
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Buckle up: Boris is at the wheel of the Brexit bus on the road to no one knows where
London’s capital markets are again under threat of severe disruption as the UK’s clown prince in chief, Boris Johnson, became prime minister this week.
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UK markets must soldier on through chaos after EU vote
UK capital markets issuers and investors who want to do deals need to prepare to ignore Brexit and come to market. There is no sense in waiting for political calm — the European election result shows it simply is not going to come.
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Investor flows should warn May against ‘no-deal’ Brexit
Investors are moving to abandon UK assets in record numbers as the country’s government continues to stumble towards a calamitous no-deal Brexit. The government should take notice and reverse to avoid disaster.
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Brexit Armageddon grows more likely
Rising hopes that the UK can escape the nightmare of Brexit are misplaced. A second referendum would carry huge risks, and even if the outcome were Remain, it would leave an unstable Britain with a damaged relationship with the rest of the EU.
UK Special Report

LATEST NEWS | RESULTS DAY REACTION | BEFORE THE VOTE |
Top Stories
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Capital markets reel as UK shatters EU unity
Capital markets have been hit by a cataclysm, the worst political shock since 11 September 2001 — though the immediate effects on financial markets may not be as grave as those of the 2008 financial crisis, because the solvency of banks is not in question.
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Focus turns to periphery pain after UK vote hits home
The UK may have knocked the eurozone periphery off a cliff as it stumbled on its way out of the European Union on Friday morning. Government bond spreads on Friday echoed those during the eurozone sovereign debt crisis. The gap between Germany and the periphery has opened up like the chasm that has developed between UK voters and the political establishment.
Banking and London
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Banks reassure staff, but recruiters expect carnage
Despite the carnage in UK and European bank shares, the bosses of major investment banks have reassured staff that immediate changes won’t follow. But recruitment industry sources predict the opposite, with one headhunter citing client plans to move 37,000 jobs to countries that plan to stay in the European Union.
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UK begins rush for third place
Long Europe's financial capital, the UK’s vote to leave the European Union casts doubt over the future of not just the city, but of the country's primacy as a business centre, the state of financial regulation in the country and the fate of Capital Markets Union.
Comment
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Brexit is a warning: populism can capture voters
Capital markets people thought Brexit would not happen because the UK electorate always chooses the sensible option in the end. But it hasn’t.
SSAs
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Brexit punctures SSA pipeline
Bund yields seared past their record lows on Friday morning after the UK voted to leave the European Union — but no one on the continent will be celebrating the super cheap funding on offer as ‘Brexit’ blocked next week’s pipeline and ensured the only certainty over the next few days is more uncertainty.
FIG
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Shock Brexit obliterates remaining certainty in FIG
European bank debt was thrashed in the wake of the UK's vote to leave the European Union on Friday morning. And though the panic hasn't matched that seen in February, when concerns on AT1 coupon payments triggered a selloff, the worst may be yet to come as markets face unprecedented governmental change.
Securitization
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ABS market's uphill battle just got steeper with Brexit
Peripheral ABS spreads blew out in Europe on Friday morning on the back of concerns that the UK's vote to leave the European Union could lead to further political disintegration across the continent. But beyond short term volatility, the result could exacerbate the problems facing the already struggling asset class.
Emerging Markets
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Selling muted in EM but Brexit threatens stability in CEE
Emerging market bond bankers called Britain’s decision to leave the EU on Friday "madness" but while the fundamental implications for most EM credit are expected to be limited, bankers are fiercely debating how instability in the European Union will affect eastern Europe.
Syndicated Loans
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European IG spectrum likely to shrink, EM outlook dour
The investment grade and emerging market loan markets have had a difficult time already this year, but the outlook has undoubtedly grown bleaker. Britain’s decision to leave the European Union has sent a shockwave through the markets that was simply too large to quickly comprehend.
MTNs
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Brexit ‘catastrophic’ for euro MTN houses
The UK’s decision to leave the European Union will have a “catastrophic” effect on MTN dealers specialising in the euro, according to bankers, but flows in dollars and Asian currencies should go some way to compensating.
Swiss francs
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Frustrated Swissie market surveys European kindergarten
The Swiss bond market is due a readjustment after the UK’s vote to leave the European Union on Thursday, market players said.
Corporate Bonds
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Corporate bond market searches for answers
After more than three months of stable and attractive funding conditions, the European corporate bond market has been turned on its head by the UK EU referendum result.
Equity
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Door for equity deals slams shut as UK turns its back on EU
Equity capital markets issuance in Europe will be minimal until September, after the UK’s shock vote to leave the European Union.
Derivatives
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Shell-shocked derivs traders add reg worries to post-Brexit blues
The UK’s decision to quit the EU has dealt an immediate hit to currencies, credit and equities, but also puts key components of the European derivative market in doubt.
Leveraged Finance
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Levfin bankers say ‘bring it on’, but Europe may lose deals to US
Talking to clients, readying deals set to come in the next two weeks, high yield and leveraged loan bankers on Friday began gearing up to fight gloomy forecasts for the post-Brexit world.
Asia reaction
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Asia scrambles in wake of Brexit call error
Asian markets went to sleep on Thursday confident that the UK would still be part of the European Union the following morning and that business would go back to normal. But the UK’s public defied expectations and voted to leave the EU, forcing Asia bankers to completely rethink their plans.
China
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RMB resilient as Asia tumbles on Brexit
The UK’s shock decision to leave the European Union has left most of Asia reeling with the region’s major currencies and stock indices all coming under severe pressure. But if there is one country that can handle the negativity better than the others, it will be China.
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Asia markets look to shrug off Brexit concerns
Markets watchers in Asia said they were optimistic, as GlobalCapital Asia went to press on Thursday, that next week would be a return to business as usual, given their widespread expectations that the UK would choose to remain in the European Union. But some warned that, irrespective of the outcome, currency risks could spill over to other asset classes, adversely affecting bonds and equities.
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Markets go large on UK Remain vote
Market indicators suggest the UK will vote on Thursday to remain part of the European Union, with riskier assets outperforming safe haven instruments — meaning the public sector bond market could reopen next week.
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MTNs to follow UK Remain vote?
MTN dealers are spying opportunities for deals on Friday, should Thursday's vote on the UK's membership of the European Union return a vote for Remain.
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Don’t blink now: corporate market braces for UK referendum vote
As UK voters made their way to the polling stations, Europe’s investment grade corporate bond market geared up for a frantic Friday, when the referendum’s results are announced.
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EU vote could reopen euro clearing fight
A British vote to leave the European Union could lead to the reopening of a spat between the Bank of England and the European Central Bank over clearing euro-denominated trades. Last year, the UK won a court battle in the European Court of Justice, keeping the right to clear euro-denominated trades outside the eurozone.
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Opportunistic EM borrowers eye market beyond Brexit
Emerging market bond bankers are already looking beyond Brexit as super-tight spreads in central and eastern Europe, caused by a Remain-led rally, make issuance levels look attractive.
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SSA market tipped to reopen as Remain gathers strength
Hopes are rising that the public sector bond market could spark back into life next week, as the Remain campaign in the UK’s referendum on European Union membership appears to be gaining momentum.
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Leveraged loans not quelled by Brexit as bonds fall silent
Stillness reigns in the European corporate bond market, as the UK referendum on its EU membership comes closer. However, the last new issue before Thursday’s poll came as late as Monday, when Christian Dior seized on an optimistic mood in markets to print its well-flagged €350m five year bond.
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Sterling bonds, CDS indices would widen sharply on Brexit, says Citi
A vote for the UK to leave the European Union next week could widen the performance rift between sterling and euro bonds and send European credit default swap indices to some of their widest levels this year, Citigroup predicts.
Comment
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Underestimate Brexit at your peril
Be under no illusion. A vote by Britain to leave the EU would be a cataclysmic event for the European capital markets. In the worst case scenario — Brexit kicking off a full EU collapse — it could make the horrors of late 2008 look like a picnic.
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Regulation shows the best and worst of Europe
Financial regulation, for anyone following it closely, is a microcosm of the weaknesses and the strengths of the European Union. It is at times maddening, confusing, incoherent, and vindictive, but gives the countries of Europe a collective voice far stronger than any individual jurisdiction. And, slowly but surely, it is creating a single market for capital.
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Bank Profiles
Latest news by market and league table performance
Bond Comments
-
SNCF SA EUR1.5bn 1% Jan 61
-
Spain EUR10bn 0.1% Apr 31
-
CEB EUR1bn 0% Jan 31
-
World Bank EUR2bn 0.2% Jan 61
-
NIB USD1.25bn 0.5% Jan 26
-
EFSF EUR3bn 0% Jan 31, EFSF EUR2bn 0.05% Jan 52
-
KfW USD5bn 0.625% Jan 26
-
LBBW EUR750m 0.375% Feb 31 bail-in senior social
-
UniCredit EUR1bn 0.325% Jan 26 / EUR1bn 0.85% Jan 2031
-
Credit Suisse Group EUR1.5bn 0.625% Jan 33 / €1.5bn FRN Jan 26
-
Banco BPM EUR400m 6.5% PNC5 AT1
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IADB USD4bn 1.125% Jan 31 sustainable development bond
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Italy EUR10bn 0.95% Mar 37
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KfW GBP1bn 0.125% Dec 26
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Land NRW EUR2bn 0.95% Jan 21
All International Bonds
Rank | Lead Manager | Amount $bn | No of issues | Share % |
---|---|---|---|---|
1 | JPMorgan | 28.16 | 118 | 8.09% |
2 | Citi | 27.35 | 87 | 7.86% |
3 | BofA Securities | 20.32 | 74 | 5.84% |
4 | BNP Paribas | 19.76 | 67 | 5.68% |
5 | HSBC | 19.56 | 72 | 5.62% |
Bookrunners of All Syndicated Loans EMEA
Rank | Lead Manager | Amount $bn | No of issues | Share % |
---|---|---|---|---|
1 | BNP Paribas | 60.87 | 123 | 14.06% |
2 | Credit Agricole CIB | 28.59 | 93 | 6.60% |
3 | Santander | 25.41 | 90 | 5.87% |
4 | JPMorgan | 23.88 | 61 | 5.52% |
5 | UniCredit | 21.51 | 103 | 4.97% |
Bookrunners of all EMEA ECM Issuance
Rank | Lead Manager | Amount $bn | No of issues | Share % |
---|---|---|---|---|
1 | Morgan Stanley | 0.94 | 4 | 13.47% |
2 | Goldman Sachs | 0.78 | 5 | 11.09% |
3 | Credit Suisse | 0.67 | 3 | 9.64% |
4 | HSBC | 0.61 | 3 | 8.77% |
5 | BofA Securities | 0.61 | 2 | 8.70% |