Japan

Société Générale is enjoying a record year in the Japanese debt markets, after selling its debut deal in Euroyen format late on Friday. The transaction received strong demand from investors, even though it was marketed at the same time as another total loss-absorbing (TLAC) eligible transaction from ING Groep.

UBS is re-balancing its corporate finance business to end its reliance on its Financial Institutions Group with impressive results, writes David Rothnie.

Representatives from the Loan Syndication and Trading Association (LSTA) and the CLO manager community returned from Japan this week following meetings with the Japanese Financial Services Agency, where they made a case for exempting broadly syndicated loan (BSL) CLOs from proposed risk retention rules.

Japanese anchor investor Norinchukin is directing issuers to print new issue euro CLOs within a week, according to market sources, leading to pressure on syndicate desks to place the mezzanine, weaker spreads — and tougher times for equity investors.

Japanese banks are unlikely to enjoy any let-up from razor-thin net interest margins in 2019. This is worrying for their long-term sustainability, but it’s potentially a bonanza for DCM specialists in Europe and the US.

Japanese regulators will implement risk retention rules for securitization at the end of March. The Financial Services Agency is leaning towards the 'eligible vertical interest' model as a solution to allow investors to access both European and US markets.

Korea National Oil Corp’s debut in the Japanese yen market on Wednesday was one to remember. The deal was the largest single-tranche Samurai bond on record in Asia, despite a rise in tensions between the two countries.

Japanese regulators are looking to implement risk retention requirements for investors that closely mirror European-style regulation, bringing them more in line with Europe but potentially distancing Japanese investors from US ABS markets.

Mitsubishi UFJ Financial Group has appointed Jason Mann as European head of financial institutions DCM, a role which will be based in a branch of the bank’s new subsidiary, established to prepare for Brexit.

Bank of America Merrill Lynch has appointed two senior bankers as co-presidents of Asia Pacific, succeeding Matthew Koder who took on a new position last year.

In this round-up, China’s foreign exchange reserves rebounded slightly for the second month in a row, Standard Chartered’s index for international RMB usage fell again, and China's consumer price index (CPI) inflation decelerated at the close of 2018.

Société Générale is strengthening its debt capital market capabilities in Asia Pacific by creating a new Japan team under Yohei Abo.