GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • n JP Morgan this week launched its innovative 'CBO of CBOs', Zais Investment Grade Ltd (Zing), to a warm reception from European investors. The $345m deal is a standard managed cashflow collateralised bond obligation, but instead of high yield and emerging market bonds and loans, it is backed by mezzanine tranches from 20 other CBOs.
  • There are many reasons behind the recent trend of South Africa's top companies relocating their primary stockmarket listings to the UK. Every company has its own motives. But all are agreed that the trend is based on purely commercial and strategic grounds. It has nothing to do with politics, or concern over the country's prospects.
  • Neither a pure emerging market nor a developed economy, South Africa is almost impossible to pigeon-hole as a sovereign borrower. And it has a story to tell to which most of the world wants to listen.
  • Europe's MTN market has always struggled to match the depth and breadth of its US counterpart, not least because of the lack of diversity among issuers in the market.
  • With European fund managers under pressure to increase their returns in the low yielding eurozone, the smarter investor is looking at the MTN market for opportunities to enhance yield.
  • FEW BANKERS DOUBT THAT THERE are good pockets of demand for European debt product in the US, but those pockets are sometimes expensive to pick. And the fact that US-targeted deals are generally not sold off an MTN platform is telling.
  • One of the attractions of the MTN markets for issuers is that they can be tailored to suit indivivual needs. Euroweek spoke to funding officials at five leading MTN issuers - KfW, the World Bank, LBW, DNIB and OKB - about how they access the MTN market.
  • The increasing internationalisation of the South African stockmarket is having a pronounced effect on local companies and investors - in terms of valuations, corporate governance requirements, shareholding structures, asset swaps between local and international investors, institutional performance measurement and the unbundling of corporate cross-holdings. As in many other markets around the world, corporate restructuring and shareholder value are the new buzzwords.
  • Since it swept to power in 1994, South Africa's ANC government has been far more business-friendly than anyone could have imagined. In economic and monetary policy, the emphasis has been on stability, fiscal strictness and no sudden changes - despite the increasingly pressing need, at a political level, to improve the country's socio-economic conditions for the majority of its people.
  • ONE THREAT to the role of Euro-MTNs in the international markets, particularly for US issuers, is a possible change to the treatment of swaps by US companies back into dollars by the US Financial Accounting Standards Board (FASB).
  • Last year's credit and liquidity crisis in the world's financial markets has knocked the development of the Eurorand market backwards. With credit concerns still a key factor among investors and with rand paper still yielding far more than other emerging market currencies, issuance has been dominated by vanilla bonds from top-rated names. Diversification of structures, issuers and the investor base has been put on the backburner.
  • South Africa's parastatals - the state-owned, infrastructure-related companies that occupy a key role in the country's economy - have long been popular, if infrequent, users of the international capital and credit markets.