Europe's hybrid bonds: issuance to exceed EUR 22bn this year, highest since 2015
Europe’s hybrid bond market is on track for its highest annual issuance volume since 2015 after a slow start to the year as issuers have taken advantage of easy financing conditions and strong investor demand in the third quarter, says Scope Ratings.
Brexit: another extension of Article 50 looms as uncertainty weakens the UK economy
The UK will more likely request another extension to the deadline for negotiating a Brexit deal with the EU than exit without one, as the UK government plans to present new Brexit proposals to the EU after a Conservative Party conference this week.
Europe’s energy transition: TenneT privatisation, RTE capex plans show grid finance challenge ahead
The cost of Europe’s transition to renewable from fossil-fuelled electricity generation is mounting up fast for the companies responsible for transmitting power to customers, judging from several recent announcements of increased capital spending.
ECB deposit-rate tiering no panacea for bank profitability
A tiered system of remunerating reserves to mitigate the impact of lower rates on bank profits will have a limited effect. Euro Area banks have already incurred EUR 23.2bn in charges since the negative-rate began policy in 2014, EUR 7.5bn in 2018 alone.
Central banks’ sovereign debt holdings create new challenges for policy makers and investors
Major central banks today hold government debt worth more than USD 9trn, mostly a consequence of prolonged quantitative easing, which presents new and long-lasting challenges for sovereign borrowers and investors as much as for monetary-policy setters.
Greece needs to balance pro-growth policies and fiscal discipline to enhance debt sustainability
Greece’s new government is well placed to bolster the country’s economic recovery and reduce public debt, partly by seeking a new balance between growth-enhancing measures and large primary surpluses, says Scope Ratings.
Assessing leveraged loan CLO managers demands a multi-faceted analytical approach
CLOs own an estimated 45% of the global leveraged loan market. But not all managers can consistently outperform. In fact, there is significant dispersion in collateral pool performance and equity returns. Evaluating asset managers is therefore critical.