Global Finance

A monthly publication providing news and analysis of global market and economy. Focuses on corporate finance, capital markets, and more.

Articles from Vol. 12, No. 6, June

Airports with Pizzazz
Of all the irritations that business travelers face, the airport wait seems most mundane-until you have a 12-hour layover or need to get a fax sent in a hurry.We canvassed the world's airports looking for appealing design, clever business services, and...
An Expanding Universe
European Monetary Union, new technology, and changing regulations in the United States and abroad are providing great opportunities to the custody business. Global Finance's Ernest McCrary moderated a roundtable of leading custodians who discussed these...
Behind the Boom in Equity Derivatives
COMPANIES ARE GAINING SUBSTANTIAL LEVERAGE THROUGH A HOST OF EQUITY OPTION STRATEGIES. Barring a severe downturn in financial markets worldwide, 1998 looks likely to become the greatest year yet for equity derivatives in corporate finance. Historically...
Bonds Are Back
Project finance fans everywhere breathed a sigh of relief in April as three bond issues scaled the issuance barricades erected by the Asian currency crisis. "Investors who had said,`Time out!' while they waited to see what would happen with the contagion...
Bonds That Act as Equity Options
Convertible bonds are swapped for the issuer's shares, but exchangeable bonds are swapped for shares in other companies-and are catching on big as a way for companies to unravel cross-shareholdings without dumping shares and roiling markets (see "Behind...
Calling the 21st Century: Competition, Consolidation, and Convergence
Lasers in the jungle. Flocks of tiny satellites in the sky. Fiber-optic cable on the Mediterranean Sea floor. A cell phone in the pocket of every adult in Scandinavia. The telecom revolution of the 1990s has astonished us all, and it relentlessly barrels...
Exchange-Traded Equity Options Come of Age
The story of the listed equity option-on its 25th anniversary-is one of initial distrust, ultimate triumph, perhaps vindication, with a few speed bumps along the way. On April 26 1973, US treasury secretary Robert Rubin, then a banker at Goldman Sachs,...
Filling the Hole in the Doughnut
Although it's still six months until the proposed launch date, Euroean Monetary Union already has wrought considerable change in Europe's bond markets. Spreads on the debt of the 11 governments scheduled to adopt the euro as their currencY on January...
Gems in Asia
It's been estimated that banks in emerging Asia require as much as $250 billion in new money.This staggering sum would allow the best of the banks to rid themselves of bad loans, raise their capital adequacy ratios to the 8% required by the Bank for...
Latin America's Grand Transformation
AFTER SEVEN YEARS OF REFORMS AND SETBACKS, THE REGION IS CHALKING UP IMPORTANT GAINS. ARE ITS NEXT MOVES THE RIGHT ONES? In the wake of the Asia crisis, Latin America is likely to turn in the fastest growth of any emerging market region this year-faster...
Optimism in Russia
Investors who have bemoaned the lack of legal enforcement at Russian companies may have a new reason for hope, and it comes from an unlikely source: The Federal Commission for the Securities Market (FedCom), Russia's market regulator. Despite a well-earned...
Pfandbrief Investor
Germany's Pfandbrief bond market is set to become Europe's Pfandbrief market. With the euro on the verge of replacing the Deutschemark and 10 other European currencies ^ issuers and marketmakers for Pfandbrief collateralized bonds are gearing up for...
Property Scavengers Decend on Japan
Is Japan's property market finally looking up? That's the conclusion some people are drawing from the way US and European institutions are diving into Japanese real estate. In the past six months a swarm of savvy foreigners, led by Goldman Sachs, Credit...
Raising Capital and Saving Fees
Last September SBC Warburg Dillon Read identified IDEC Pharmaceuticals as a growth company with a future equity capital-raising requirement and an undervalued stock price. In what the bank calls an undervalued share transaction (USp IDEC bought a call...
The Bank to Beat in Brazil
No bank plays a more central role in Brazil's ongoing transformation than Banco Bradesco. The country's largest private bank-and, in fact, the largest private bank in all of Latin America-the financial behemoth boasts $33.3 billion in assets (behind...
The Challenges of Globalization
In practice, globalization does not appear directly, but through a process that I call "continentalization." What I mean is that a number of building blocks make up the global economy-mainly the free trade zones NAFTA for North America, the European...
The New Spanish Empire
When Spain's second-largest bank, Banco Bilbao Vizcaya, landed its deal late in April to buy Brazil's fifth-largest, Banco Excel Economico, it was a major triumph. In the race among Spanish banks to become dominant players in Latin America, BBV has always...
The OCC Sets the Pace
It's celebration time also for the Options Clearing Corporation (OCC), founded at the same time as the CBOE, with the dedicated purpose of providing a safe, reliable, and guaranteed clearing mechanism that served as buyer for every seller and seller...
The Rescue of Renong
United Engineers Malaysia's clandestine purchase of a 32.6% stake in its moribund parent Renong has become a symbol of what outsiders say is wrong with the Asian nexus between business and politics. The dramatic gesture last November exemplified corporate...