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’Basel III blurs
Here’s a capital curio for investors in Credit Suisse’s Monday-announced CoCos issue.
It’s probably not a surprise that a transition from the Basel II to Basel III regulatory regimes might create some scope for capital confusion.
Credit Suisse’s $6.2bn Swiss finish
Credit Suisse says it just gave the latent CoCo market a $6.2bn shot in the arm.
On Monday morning the Swiss bank announced it would issue Chf 6bn ($6.2bn) of Contingent Convertible securities — or debt that will convert into equity once a certain trigger is reached.
Snap news
Breaking pre-market news on Thursday,
- Rumoured takeover target Smith & Nephew says CEO to retire in April; Olivier Bohuon of Pierre Fabre to get top job — statement.
- Credit Suisse misses profit forecasts;
Harbinger exits Inmarsat
Proving once again that lock-up arrangements with big investment banks aren’t worth the paper they’re written on, news reaches the FT Alphaville desk that Philip Falcone’s Harbinger Capital Partners is placing its remaining 14 per cent stake in Inmarsat.
Commerzbank’s complicated capital boost
Commerzbank mystery, solved.
From a Thursday morning statement:
Commerzbank plans measure to optimise its capital structure
Today, as a step in its capital management, Commerzbank AG has provided
Let there be light … pools
You’ve heard of dark pools, right?
Well meet their opposite. On Tuesday, Credit Suisse announced it was launching a ‘light pool’ aimed at institutional investors wary of the shadowy, murky dark.
Or,
[Wilmot's PMI tour] Postscript
Credit Suisse’s economists publish an excellent Global PMI chartbook, with details of all the different components, that is easy on the eye and highly informative.
It should be out later today. [here it is - ed.] But for me,
[Wilmot's PMI tour] BRIC by BRIC
So far the news from Asia is good.
Production in Japan and Korea looks set to bounce in the months ahead after a pretty poor run, while China looks likely to cool a bit after four steamy months.
After India and Russia,
[Wilmot's PMI tour] Taiwan supportive
Yet another relatively small share in our global industrial production framework, Taiwan’s PMI New Orders were also very supportive, increasing 5 points after moving sideways for three months. Together with Korea and Japan,
[Wilmot's PMI tour] China – No growth surprise, inflation fears persist
Chinese PMI New Orders rose marginally in November. The headline PMI index rose too and will likely make headlines.
Be warned, however, there is clear (residual) seasonality in these data. A simple procedure to adjust for that suggests PMI new orders actually fell 0.6 points,
[Wilmot's PMI tour] South Korea’s new orders jump
First stop of the day on the PMI odyssey is South Korea.
Like Japan, new orders and IP have been on a pretty steep downward slope since April.
But they jumped back to 50.1 in November (up nearly six points).
[Wilmot's PMI tour] The big three
Here in pictures is what the big three – China, the eurozone and the US (each of them making up about 20 per cent of global production) — look like going into their November PMIs.
First, China:
Now the Euro area:
[Wilmot's PMI tour] From rebound to expansion?
So far we haven’t said much about global demand, without which there would be no production.
That doesn’t mean we don’t think about the demand side of things. On the contrary, over the longer run global (goods) demand and production must by definition grow at roughly the same rate.
[Wilmot's PMI tour] Why PMI?
Why PMI?
Embarking on a global PMI odyssey may seem a little mad when Europe is in turmoil once again. But trust us, there’s method in our PMI madness….
As far as we are concerned, the cycle in global growth remains the single most important macro influence on equities,
[Wilmot's PMI tour] Guest editing for the day…
FT Alphaville is being taken over!
From midnight London time on Tuesday, Jonathan Wilmot, the chief global strategist at Credit Suisse’s investment banking division, will be in control of the site (again).
Around the world in 21 PMIs, with Jonathan Wilmot
And see Jonathan’s scene-setting Hell or Heaven in 2011? for more.
[NB: PMI schedule is subject to change]
Jonathan Wilmot: Hell or Heaven in 2011?
Jonathan Wilmot, global strategist at Credit Suisse Investment Bank, sets the scene for next Wednesday’s ‘Around the world in 21 PMIs’ guest editing day at FT Alhpaville.
Heaven or Hell in 2011?
Three questions loom large in our thinking about the coming year.
Enel Green Energy – A successful IPO?
What’s your description of a successful IPO?
Is it one where three quarters of the stock ended up in the hands of retail investors at the bottom end of a lowered price range?
Is it one where the heavily indebted issuer was trying to raise at least €3bn but only got €2.6bn?
According to one of the joint bookrunners on the Enel Green Energy IPO it is:
Deutsche Bank, the European flowmonster
Some more on Wednesday’s third-quarter figures from Deutsche Bank — in particular, the unexpectedly strong performance of its investment banking operations.
Huw van Steenis of Morgan Stanley says the figures showed the advantage of a being a flowmonster,
Snap news
Breaking pre-market news on Thursday,
- BAE Systems warns of a £150m hit related to Trinidad and Tobago offshore patrol vessel programme — statement.
- Credit Suisse Q3 net profit down 74 per cent — statement.
Just like a giant secured loan to commodity producers…
Last week was London Metal Exchange week.
And it turns out, the topic of debate, according to Société Générale’s cross-asset research analysts at least, was nothing other than the upcoming splurge of physically-backed commodity ETFs that’s about to hit the market.
CoCos can cost – your bonus
Here’s a data point for those skeptical of CoCo capital’s saving graces.
(CoCos, or contingent convertible capital, are a kind of convertible bond that automatically switch into equity once certain capital or bailout triggers are breached.)
Earlier this week Switzerland moved to make CoCos a key element of future bank capital,
That’s a big bowl of (Swiss bank) CoCos
Presenting the Credit Suisse cuckoo-for-CoCos roadshow…
[July 22 Q2 2010 earnings call transcript] We are encouraged by what seems to be an increased consensus among policymakers on contingent capital securities,
Snap news
Breaking, pre-market news on Monday,
- Sanofi launches $18,5bn Genzyme bid – AP.
- Switzerland says UBS, Credit Suisse Group must hold almost double the capital required under Basel III – Bloomberg.
What Volcker rule? Credit Suisse acquires stake in York Capital
Just out on the wires, from York flaks:
Credit Suisse announced today that its Asset Management division has agreed to acquire a minority interest in York Capital Management (“York”), a leading global hedge fund manager,
August in ‘busy’ shocker for global M&A
It’s beginning to look as if Credit Suisse were right about the upcoming rise of global M&A they recently predicted, though perhaps even they couldn’t have guessed how quickly it would come.
This is August,
The incredible restructured stress test
Analysts are down to their last gasps of stress-test commentary before we finally get the official results on Friday. Credit Suisse had a useful contribution on Thursday, tackling the queasy ‘everyone’s a winner!’ hints that politicians have been dropping.