Strong business profit performance lies behind the upswing in the US economy, writes Yusuke Horiguchi.

This may be the year that the US pendulum swings away from excessive regulation towards balanced principles.

Last year, Wachovia took a significant gamble with its heavy investment in equities and advisory. Now it is beginning to pay off, as its head of corporate and investment banking explains to Kathryn Tully.

In January, underwriters and issuers were sure innovations in the US FIG hybrid market would prompt a flood of new issues in 2006. Five months on, that flood is a trickle after NAIC classification concerns significantly stalled the infant market, resulting in a stand-off. Kathryn Tully reports.
There are a lot of disgruntled bankers, issuers and investors in the US hybrid bond market right now.

US exchanges are taking advantage of improving relations with China and clinching significant business deals. Jim Kharouf reports.

The US has watched the rapid development of the covered bond market in Europe and elsewhere from afar. Now, with questions hanging over the country’s giant mortgage-backed securities providers and tempted by insatiable investor appetite, US issuers are about to dip their toes in the water. Michael Marray reports.

Foreign correspondent banks will be major losers as a result of further anti-money laundering regulation in the form of Section 312 of the USA Patriot Act, writes Michael Imeson.

On the surface, the latest annual results for the top five banks in the US seem to continue the trend established in previous years: strong pre-tax profit growth on the back of strong growth in consumer and commercial loans and good deposit growth.

Moody’s and Standard & Poor’s start 2006 facing charges of running a duopoly – and some tough questioning. Their only hope? To come up with a solution before the US government imposes one.

A fourth consecutive year of economic growth would be remarkable, but a US slowdown could spoil the run.