Here’s a trend we’d like to encourage…
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Markit’s Gavan Nolan wrote this CDS report
It was business as usual today as the credit and equity markets resumed their rally from last year. The Markit iTraxx Europe index closed at 71.5bp, over 2bp tighter than the year-end mark and the tightest level since May 2008 (excluding roll effects). It was a similar story with the other headline indices, with the Markit iTraxx HiVol index breaking through the 100bp barrier for the first time in nearly two years and the Markit iTraxx Crossover hitting 415bp, its tightest level since May 2008. Read more
From Bloomberg on Monday afternoon:
Dubai’s Sheikh Mohammed bin Rashid Al Maktoum opened the world’s tallest tower today and renamed the building Burj Khalifa after Sheikh Khalifa bin Zayed Al Nahyan, president of the United Arab Emirates.
What is the `Tree of Truth’?
According to RBS, it is a Binary Recursive Tree Approach aimed at selecting explanatory variables and critical threshold levels that best discriminate between sovereign debt crisis and non-sovereign debt crisis states. Read more
Investment banks like these things — and when the latest deal league tables show Goldman Sachs being knocked off the top spot by Morgan Stanley we can treat it as bona fide news.
From MergerMarket, an FT sister company… Read more
You probably had better things to do over the festive period than plough through the 1,141 page IPO prospectus for Oleg Deripaska’s UC Rusal.
Which gives us the opportunity to highlight page 3 of the document. Read more
Behold, what looks to be the biggest monthly increase in delinquent CMBS in 2009 (so far).
With the holiday season finally over, it’s probably a good time to contemplate the period’s more excessive and illiquid market moves. Among them the rather sudden and acute sell-off in US and UK government bonds. Was it rational?
As the following charts depict, British government bonds ended 2009 with their worst monthly performance since the start of the year. Read more
In March 2009, FT Alphaville riffed on the theme of the generally poor financial and investment decisions made by professional athletes.
By the end of the year, another — although not unrelated — trend had emerged: that of the perils of listening to the financial advice of those paid to play sport. Read more
There’s been some consolidation in the world of FX electronic trading platforms on Monday.
According to a statement released by foreign-exchange platform FXall, Citigroup has reached an agreement with the company to sell it its LavaFX foreign-exchange electronic trading platform for an undisclosed sum. Read more
Live markets commentary from FT.com
Here’s something that might have escaped your radar during Christmas week — a mass downgrade of so-called `Scratch and Dent’ RMBS deals by ratings agency Fitch.
A Scratch and Dent mortgage is a funny thing. It’s basically an industry term for home loans which have some sort of defect — that is, the loan might have been made outside of lending guidelines, or with documents missing, or is simply non-performing. Read more
RBS has flown out of the traps on the first trading session of 2010:
A few days into the new year and a key observation that can already be made in the west is that it’s cold; Colder than usual, in many parts of the US and Europe.
Weather-affected commodities are consequently staging a bit of a rally. Read more
Comment, analysis and other offerings from Monday’s FT,
Clive Crook: Beware the crisis around the corner
The US economy is sickly, but the mood of impending doom has lifted, writes Crook. The response of US and other authorities to the emergency is unfinished business and needs continuing attention – but in 2010, if the crisis continues to ease, the danger is that politicians will relax and minds will wander from the need for new financial rules. Read more
Asian stocks, the dollar and oil prices rose while Treasuries fell on the first trading day of 2010, as China’s manufacturing expanded at the fastest pace in more than five years and the outlook for US job losses improved, reports Bloomberg.
Nikkei 225 up +98.67 (+0.94%) at 10,645
Topix down -6.00 (-0.92%) at 649.00
Hang Seng down -56.24 (-0.26%) at 21,816 Read more
Kraft is preparing to raise its £10.3bn hostile offer for Cadbury as the takeover battle for the UK confectionery group reaches its final stages. The US food group, which first approached Cadbury in August, has until Jan 19 to increase its offer, which values the company at about 740p per share. Kraft’s current offer is expected to fail because it has not won the support of enough shareholders and Cadbury’s board, which argues the company is worth about 800p per share. Cadbury’s shares closed last Thursday at 797.50p.
National Australia Bank is gearing up for a takeover of nationalised UK lender Northern Rock and has held a “beauty parade” of potential advisors on the deal, reports The Observer. NAB, which already owns Clydesdale and Yorkshire banks in the UK, has hosted presentations by Lazard, Citigroup, Credit Suisse and Morgan Stanley in preparation for opportunities emerging from the planned shake-up of the UK banking sector. NAB could also bid for hundreds of branches being sold by RBS and Lloyds, the report adds.
The City watchdog is using external experts to conduct supervisory reviews into the actions of some of the UK’s struggling banks, including RBS and HBOS, reports the FT. The FSA engaged PwC to review RBS, Ernst & Young to look at HBOS – now part of Lloyds Banking Group – and BDO Stoy Hayward to review Bradford & Bingley. The Times adds that the probe so far has revealed a litany of internal breakdowns and flawed controls that masked the full extent of their failings.
Brazilian lender Itau Unibanco is considering buying stakes in one of the British banks rescued by the UK government last year, reports the Sunday Times. The report cites Pedro Malan, who chairs Itau Unibanco’s international advisory board, saying that Itau, Brazil’s largest non-government lender, may bid for the UK government’s stakes in RBS and Lloyds Banking Group. However an Itau spokesman on Sunday played down the report, adds Reuters.
Japan Airlines ‘ share price surged as much as 39% to Y93 on Monday after the Japanese government agreed on Sunday to double a state-sponsored credit line to Y200bn ($2.1bn). The government asked the state-owned Development Bank of Japan to raise its commitment facility to JAL, after cabinet ministers met to discuss how Tokyo could further support the ailing airline.
Manchester United is exploring a £600m bond issue in efforts to refinance its £700m debt. JPMorgan and Deutsche Bank are advising the football club on its options, which include the issue of high-yield bonds. These would be used to refinance bank debt or payment-in-kind notes, which helped Malcolm Glazer, the US sports franchise owner, and his family take over the club in 2005 in a £790m leveraged buy-out.