Confidence in the sovereign linker market has been shaken following the credit downgrade of Greece. Demand has soared on AAA rated bonds, but with demand vastly outweighing supply in this sector, investors are turning to the corporate market and direct infrastructure for protection against inflation.
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Best prospects for Islamic finance outside core markets
November 1, 2011Several emerging markets with large Muslim populations combine low bank penetration and a high return on assets with a relatively small market share for Islamic banking, and thus provide further opportunities for growth in the Islamic finance sector.
RBS taps into growing appetite for corporates
November 1, 2011As investors flock to the perceived safer ground of corporates at the expense of sovereigns or financials, RBS has been busy successfully utilising the private placement markets in a $1bn deal for caterer Compass Group and the Swiss franc issuance market for utility provider GTS Suez.
Islamic finance's full potential still to be unlocked
November 1, 2011Despite an impressive 12 months for Islamic finance, the view from the industry is that results could be even greater if hurdles concerning taxation, regulation, legal frameworks, market challenges and a lack of qualified scholars are tackled.
Citi's EMEA trading chief glad to be back in the game
November 1, 2011After spending well over a decade building out UBS's electronic trading business, Tim Wildenberg made the move to Citi in search of fresh challenges. He tells The Banker why he switched banks, and discusses the opportunities and priorities of his new role.
Sukuk appeal set to spread
November 1, 2011The most significant industry trend to date this year has been the resurgence of the Islamic bond (sukuk) market. After a brief setback in 2010, funds raised through global sukuk issues in 2011 stood at $44.7bn in September. But sukuk issuance is still dominated by sovereigns from Asian and Gulf markets and remains concentrated in certain sectors. Four industry experts look at what needs to be done to encourage participation from corporates and facilitate issuances in a wider range of currencies.
AAOIFI to look to develop Islamic finance standards
November 1, 2011With no single interpretation of Islamic law, differences in rulings between scholars over whether products are sharia-compliant has led to a lack of standardisation in the industry. Resolving this issue is key to bringing about greater efficiency, transparency and cohesion – ultimately helping to raise the curtain for more Islamic business, says AAOIFI deputy secretary general Khairul Nizam.
Debt capital market volume hits a new low
November 1, 2011In the third quarter of 2011, global debt capital market volume sank to its lowest level since 2008 and the height of the financial crisis. Any hope of a recovery by the end of the year rests with policymakers. Geraldine Lambe reports.
Is Nomura running out of time?
November 1, 2011With its acquisition of Lehman Brothers' non-US operations, Nomura made an audacious bid to join the global investment banking elite. Little did it know that its bold move would coincide with the worst economic and financial environment for the best part of a century. However, its senior management believe that if they hold their nerve, the gamble can still reap the rewards they originally expected.
High-yield bonds battered but still resilient
November 1, 2011Junk bonds have suffered badly since the start of June, with investors being quick to sell off what is one of the riskiest fixed-income asset classes. But bankers point to the market’s underlying strengths and insist it will only get bigger in the long term.