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. 11, No. 2, February

All in the Family
At age 75, President Suharto shows no signs of slowing down. But two family members may be waiting in the wings--just in case. Indonesia may be heading for the end of a political era, but it is likely to be a long, drawnout affair. Now 75 years of age,...
A Rollor-Coaster Ride
Foreign portfolio investors are flocking to Indonesia's stock exchanges despite the uncertainty of key parliamentary and presidential elections later this year. Meanwhile, the locals stay on the sidelines. the sidelines Murray Vigden is not your typical...
Bond Deal of the Month: US West
In corporate fund-raisings, "reverse inquiry" is jargon for tranches that are custom-designed for a particular investor: A portfolio manager calls the underwriter or corporate treasurer and spells out the maturity, yield, or other terms that he would...
Complex Derivatives for a Placid Environment?
YES. Now THEY OFFER A FREE HEDGEBUT AT A PRICE. With many European interest rates tending toward convergence and currency markets seemingly range-bound, volatilities have been low for many months. So, you believe things will stay that way but want to...
Equity Is Driving Big M&A Deals
BACK IN STYLE AS A CHEAP CURRENCY, STOCK IS MAKING EVER LARGER DEALS POSSIBLE. BUT THERE ARE TRADE-OFFS... Behind the mammoth consolidations that are transforming such global industries as telecommunications, defense, banking, electricity, pharmaceuticals,...
Global IPO of the Month: China Eastern Airlines
The smooth landing of China Eastern Airlines' initial public offering early this month is good news for the mainland's two other large carriers, which are both waiting in the wings for overseas listings. China Eastern is the chief carrier between Hongkong...
Hot Deals
Some important deals in the international capital markets and in project finance are breaking new ground. In the two years following its 1994-1995 financial crisis, Mexico, with the aid of its investment bankers, has managed to repay its debts to the...
Look Who's Flexing Their Muscles in Big M&A Deals
Not content to take the crumbs of smaller deals or to offer discounted prices, accountants are competing-for business directly with investment bankers. For years accountants have picked up crumbs that have fallen from the tables of the investment banks....
Outward Bound
As Indonesia's economy opens to the world, the country's mammoth conglomerates have exports on their minds. In the United States and the United Kingdom, a surefire way to a price-earnings discount to the market is to package a company as a conglomerate....
Project Finance Woos the Capital Markets
With demand for third world infrastructure development a massive $200 billion yearly, project financiers are coming up with new ways to project financiers are coming up with new ways to pay. Building up the telephone, power, water, and transportation...
Removing a Risk: Hedging with NDFs and NDOs in Emerging Markets
Most developing countries' central banks require documentation to bring foreign exchange into the country. Some, Brazil among them, levy a tax-Brazil's is 7%-on such transactions. Emerging markets are also subject to convertibility risk, the possibility...
Risk Management Software That Works for Companies
Until recently, only global banks with multimillion-dollar systems could do value-at-risk analysis. It's been possible to do scenario analysis on derivatives portfolios with treasury workstations or even spreadsheets for several years now. But for more...
Soccer Clubs
When Alan Sugar bought a controlling stake in Tottenham Hotspur five years ago, he applied the management skills he had used to build up his Amstrad electronics' empire to turn around the London soccer club. But instead of being impressed by earnings...
Some Creative Salesmen Are at Your Door
Perusing this month's lineup of stories in Global Finance, we were struck by how many of them had to do with new and innovative products and services being pitched to finance executives in companies. In "Look Who's Flexing Their Muscles in Big M&A...
Survival of the Biggest
Since deregulation in 1988 the number of banks has mushroomed. New capital and reserve requirements are being introduced to shrink the industry. Mergers are the watchword of the day. If the size of an industry sector were the sole criterion, Indonesia...
This CFO Says the Company's Final Product Is Shares
Piotr Mroczkowski was promoted just two months ago from deputy CFO to chief financial officer of Elektrim. But as far as investors and analysts are concerned, he has been de facto CFO since joining the Warsaw-based conglomerate a decade ago. While his...
To Much of a Good Thing in Indonesia
A government-driven economic boom has meant good times for many Indonesians, including President Suharto's family. Now the danger of an overheated economy looms. Is a soft landing possible? The old and the new, wealth and poverty, reside uneasily together...
When Insurance Really Is a Total Risk Package
The battle between the capital markets and the insurance industry to provide risk transfer products to corporations is entering a new stage. For the first time, a major corporation is expecting to protect itself from currency losses through an innovative...
Where the Growth Is in Junk
As high-yield issuance builds toward an historic pace, it is being driven by a powerful new engine: "junky" companies in "junky" countries. In the first three weeks in January, $2.6 billion-better than one-third of the $6.4 billion of all new junk bondscame...
Why Foreign Companies Are Increasingly Turned off by the Czechs
DETERRING INVESTMENT IS THE ALMOST UNBRIDLED POWER OF THE DOMESTIC INVESTMENT FUNDS, WHICH CONTROL A VAST ARRAY OF CZECH COMPANIES. Foreign companies that wanted to do business in the Czech Republic, along with foreign investors who had an interest in...