Sale and leaseback transactions represent an expensive addiction the cost of which does not appear, even now, to be fully appreciated by the Board.
© The Financial Times Ltd 2014 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
- The Greek government
- One or two French banks
- The Finnish government
- Spanish banks, UK banks, hmm a few banks really
These are just some of the world-class institutions Joseph has managed to annoy with stuff he’s dug up over the years. He joined FT Alphaville way back in March 2010.
Joseph likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)
He doesn’t have a finance background.
But then so too has a consortium of highly strategic Chinese resources investors (Minmetals, Guoxin International Investment, Citic)…
Ah, spring: a season of renewal. The scent of flowers carried on a gentle breeze.
And the international financial community can go back to arguing all over again about whether a promise which Argentina made in a bond issued twenty years ago – to treat creditors equally – will end up making sovereign debt restructuring harder to achieve. Read more
There’s a familiar name on the latest Specially Designated Nationals List in the US sanctions against Russia…
TIMCHENKO, Gennady (a.k.a. TIMCHENKO, Gennadiy Nikolayevich; a.k.a. TIMCHENKO, Gennady Nikolayevich; a.k.a. TIMTCHENKO, Guennadi), Geneva, Switzerland; DOB 09 Nov 1952; POB Leninakan, Armenia; alt. POB Gyumri, Armenia; nationality Finland; alt. nationality Russia; alt. nationality Armenia (individual) [UKRAINE2]… Read more
Or, why investors might be less than sanguine about sanctions against Russia.
We could start with the OFZs.
Acting as a custodian should require a high-bar, including appropriate security safeguards that are independently audited and tested on a regular basis, adequate balance sheets and reserves as commercial entities, transparent and accountable customer disclosures, and clear policies to not use customer assets for proprietary trading or for margin loans in leveraged trading.
Notwithstanding the approval and publication by the Central Bank of Ireland of the prospectus dated 17 February 2014 in relation to the undermentioned proposed issue of securities, the Issuer hereby confirms that no such securities will be issued.
UKRAINE REPRESENTED BY THE MINISTER OF FINANCE OF UKRAINE Read more
We’re open to the idea Whatsapp is worth almost $40 a user. Really. You know, something like:
Okey-dokey. But we’re still far from sure we get to more than $40 a user back.
And, all that said — who told China? (Or Korea, or Japan)
Chart via Nomura. And so to the keiretsu effect. Read more
in exchange for an aggregate of 183,865,778 shares of Parent’s Class A common stock (valued at $12 billion based on the average closing price of the six trading days preceding February 18, 2014 of $65.2650 per share (“Specified Price”)) and $4 billion in cash… In addition, upon Closing, Parent will grant 45,966,444 restricted stock units to WhatsApp employees (valued at $3 billion based on the Specified Price). Read more
Moscow doesn’t send tanks into revolting former vassals any more. It sends dollars.
For anyone who decides to follow the money when it comes to Ukraine’s split between the EU and Russia, the consequences can sometimes be grimly surreal when it gets to the prosaic matters of bond finance. Read more
This post is just to flesh out a point in this great piece by John McDermott — so read that first.
But we think it’s an important point. An alternative title for this post: What’s under your gilt?
After all, it is the debt that has enabled Her Majesty’s government to turn so breezily confident that currency union with an independent Scotland “is not going to happen”, fully seven months before an independence referendum. Read more
*TURKEY’S CENTRAL BANK RAISES OVERNIGHT BORROWING RATE TO 8.00%
*TURKEY’S CENTRAL BANK RAISES OVERNIGHT LENDING RATE TO 12.00%
*TURKEY’S CENTRAL BANK RAISES BENCHMARK REPO RATE TO 10.00%
The overnight lending rate had been 7.75 per cent, the borrowing rate was 3.5 per cent and the repo rate 4.5 per cent. So — just a tad aggressive… Read more
Inflation had returned to the 2% target… and cost pressures were subdued. Members therefore saw no immediate need to raise Bank Rate even if the 7% unemployment threshold were to be reached in the near future. Moreover, it was likely that the headwinds to growth associated with the aftermath of the financial crisis would persist for some time yet and that inflationary pressures would remain contained…
Someone tell cable? Read more
The share price is down a fifth in 12 months. It’s cheaper than Lloyds (on price to tangible book), as a bank with Asia supposedly at its feet. The boardroom is a mess and last week’s “reorganisation” may not fend off an eventual cash call.
Still, after that excellent year for Standard Chartered — Citi’s analysts suggest it’s time for ANZ to buy it: Read more
Just to put an already-huge year-end move in Portuguese bond yields into some wider context…
Here’s a chart (via Reuters) of the five-year yield since August 2010 — to which levels it’s now, roughly, returned. Click to enlarge.
UK home-builders trying to move ahead of the political wind on foreign investors buying up London property?
In any case, though we missed this on Wednesday it seems part of the Zeitgeist — eleven of them agreed not to sell UK (read: London) new-builds abroad before they go on the domestic market from next year: Read more
Some are betting that Beijing will eventually endorse Bitcoin. This week Lightspeed Venture Partners of San Francisco and a China-based sister fund announced a $5m investment in BTCChina…
– Financial Times, November 22
One-year total return of the Athens stock index, to the end of October 2013: +50%
One-year return of the Bloomberg Greece Sovereign Bond Index, same period: +134%
One-year net return of Dromeus Capital’s Greek Advantage Fund: +107%
Yep — FT Alphaville hears that the first-year performance of Dromeus Capital’s Greece-focused fund would make it one of 2013′s best-performing, having already made a strong start at the beginning of the year.
It’s another indicator of how much both Greek equities, and the sovereign’s restructured debt, have recovered this year… Read more
DrHans - That's a direct attack on an Alphaville headline tradition! (Will take it under consideration, though.)Comment on: Taking the red pill, Greece edition
honeyoak - Corrected, it was a typo. And sorry, no, we don't trade debt.Comment on: Taking the red pill, Greece edition
Sorry if the humour doesn't work... this does show pretty strong dedication on S&P's part and criticism wasn't intended, so have tweaked the post. And Christopher, yes, did pick up the point that it's the EU jargon at fault, not S&P.Comment on: Credit ratings are weird, Crimea edition
Vic - True, but not sure precious metals are in the frame either. They seem to be looking at deeper markets first... which might make sense if they are aiming for a few big assets with bolt-ons later.Comment on: Mini-miners for sale?
outlaw - For obvious reasons of co-ordination it is handy to have a UN Security Council resolution behind sanctions, true... but it's not necessary. The recent EU asset freeze against members of the former Ukrainian government was approved at the EU council level for instance.Comment on: In Putin's Russia, risk prices you
Niki - fixedComment on: Buffett gets the better of everyone, version 4,762
no reservations - That's an interesting point. Isn't the smelting side of the market different to what happened in aluminium though?Comment on: When will I Cu again
"We and Goldman, Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc., as representatives of the several underwriters named below, intend to enter into an underwriting agreement with respect to the notes..."
http://www.sec.gov/Archives/edgar/data/1318605/000119312514069693/d678614d424b5.htmComment on: A Chinese wall made of battery packs
A.N. Other-Hedgie - Yes. It's quite funny given that it comes straight from the Ukrainian budget code... I think it's also interesting for adding *guarantees* to the debt to GDP definition. And when you count the potential effects of devaluation on the ratio.... post coming, anyway.Comment on: So long, Ukraine $1,984,838,000 5.00 per cent Notes due 2015
There's a revenue breakdown table here (or on p. 47)
But, Brutto - looks like warranties come under 'ancillary services'. Also seems these aren't broken out, within either 'AO website sales' or third-party sales. But go to p. 81 and there are some related figures...
"The Group had accrued income of £6.5 million, £10.1 million, £14.3 million and £17.9 million as atComment on: WTF, AO IPO PDF?
31 March 2011, 2012 and 2013 and 31 December 2013, respectively. Accrued income consisted primarily of expected future commission payments in respect of product protection plans sold by the Group as agent of D&G. Purchasers of product protection plans pay a fixed monthly fee to D&G on plans that are in force,
and the Group receives a cash commission on such monthly payments."