IFR Magazine – January 20, 2018

Contents

INTERNATIONAL FINANCING REVIEW

JANUARY 20 2018 ISSUE 2217

TOP NEWS 04

DERIVATIVES ”Devious” The CDS market is up in arms over a debt swap for US homebuilder

Hovnanian Enterprises that has already led to a lawsuit against Blackstone. 04

PEOPLE & MARKETS Mixed results Goldman Sachs marked its worst performance in fixed income trading

since the financial crisis but its best-ever quarter in debt underwriting last year. 04

EQUITIES Jumbo ECM bankers are circling one of the biggest Japanese listings on record after

SoftBank Group said it was mulling listing its local telecoms business. 05

LOANS Hammered Five UK banks are facing heavy losses on loans to Carillion, after the

British government’s refusal to support the company pushed it into liquidation. 06

Positive start 2018 is shaping up as a banner year for Argentinian ECM, with five deals in first quarter. 08

Feeling the squeeze Apollo Global Management falls short with US$1.47bn ADT IPO. 08

Opportunistic Country Garden taps Hong Kong surge. 09

Unprecedented China Merchants Bank tackles first Aussie LBO. 11

PEOPLE & Bumper year Fourth-quarter US investment banking revenues almost match 13

MARKETS^ those for fixed income, capping a good year.

Trading suffers The multi-year slide in fixed income trading gathered pace

again after a pause in 2016 due to a lack of volatility and disengaged clients. 14

Slashed Barclays is cutting about 100 jobs in its investment bank and has merged

treasury with investor relations. 15

Outsourced BBVA has signed an agreement with Sernova Financial, a swaps clearing facility. 20

Donuts Some Wall Street traders could get zero bonus after trading revenue tumbled. 21

New target China Banking Regulatory Commission will step up oversight of shadow banking. 22

BONDS Daring Clifden made move to take hold of £2bn of bonds serviced by Fortress. 23

SSAR Record book for Aussie sovereign. 28 Financials BPCE’s tight Samurai. 36

EMERGING Big deal Ecuador’s US$3bn 10-year bond was its largest dollar deal in years. 59

MARKETS^ Junk Issuers strike while high-yield is hot.^66 Middle East Formosa frolics in the Gulf.^70

LOANS With a bang Europe’s leveraged loan market starts year with €10bn of deals. 73

South Africa Steinhoff secures lifeline. 79 UK Melrose agrees £4.5bn loan. 80

EQUITIES Warm reception Americold prepares for expansion by issuing IPO. 89

China Xiaomi picks IPO sponsors. 90 US Biotechs cross over to retail. 98

STRUCTURED Sukuk Khazanah sells Islamic EBs. 100

EQUITY^ Russia Polyus brings first CB.^100 Thailand Indorama EBs raise US$200m.^101