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. 23, No. 4, April

Africa
The African Development Bank has used its own capital base to create a $1.5 billion trade finance facility that aims to fuel trade and investment in the region. African commercial lenders and central banks can tap the facility to boost liquidity, allowing...
All Change
Asia's economic powerhouses are shifting to a new economic model. The transition will be painful-but will also pay huge dividends.Asia has played a starring role in the story of globalization. The region has pulled in massive foreign investment and found...
Bankers Learn Lessons in Prudence
In Dubai and other financial centers around the Middle East, there are increasing signs that prudence and a focus on Islamic financing are paying off.Bankers in the Middle East say they have learned some lessons from the global financial crisis and die...
Brazil
Following Brazil's recent credit boom, banks are starting to face increased customer arrears. A research report from BB Investimentos, a division of Banco do Brasil, shows the default rate (arrears of 90 days or more) on all loans rose to 4.6% in January...
Britain Attempts to Solve Regulatory Puzzle
UNITED KINGDOMBritain's Financial Services Authority (FSA), much criticized for regulatory and supervisory failings that critics say have exacerbated the country's financial crisis, is to abandon its muchvaunted light-touch approach to regulation. FSA...
China's Premier Puts the Us on Notice
CHINA / UNITED STATESWen Jiabao, China's premier, has had a lot to say about US treasury bonds and the relative value of the yuan lately. Perhaps he misses his strategic economic dialogue with former treasury secretary Henry Paulson. The new team in...
Custodian Banks Tackle New Challenges in A Radically Changed Market
Change is sweeping the Nordic custody market. The global economic downturn has reduced local asset values and trading volumes, and neighboring countries in the Baltics and Central and Eastern Europe, where Nordic banks have a significant presence, are...
Dollar Stays Strong, but Yen Tumbles
The US dollar index, a measure of the value of the dollar against a basket of currencies, rose to a threeyear high in March, as investors continued to seek the safe haven of US treasury securities."The decline of the yen in recent weeks is the most dramatic...
Drug Mergers Ease M&A Drought
The need for bigger drugdevelopment pipelines and more diversified businesses with greater geographic reach is fueling a wave of mergers in the pharmaceutical industry that is providing investment bankers with some muchneeded underwriting fees. It is...
Global Custody
Global Finance presents its annual sponsored guide to the leading providers in the global custody market.Sub-CustodiansDEUTSCHE BANKCustody Assets:2008:euro1.272 trillion2007:euro1.609 trillionRatings:Moody's AaI, S&P A+, Fitch AAClient Profile:...
Governments Transform M&a Landscape
EUROPEThe cross-border M&A activity that has characterized financial services for the past few years has virtually ground to a halt as increasing government involvement radically reshapes the market. Nick Page, partner, PricewaterhouseCoopers, says...
ICE Begins Clearing Credit Default Swaps as Counterparty Risk Hits Record High
CORPORATE FINANCING FOCUSThe first central counterparty clearinghouse for credit default swaps (CDS) began operating on March 9, the same day that perceptions of default risk among the largest derivatives market makers in the over-the-counter market...
India
According to a consensus taken from a group of prominent Indian economists, including those representing the Prime Minister's Economic Advisory Council, J.P. Morgan India and S&P Asia Pacific, the Indian economy is likely to expand by 7% during the...
Local Heroes
Many businesses in Asia were well prepared for the credit crunch, having learned some important lessons in previous regional crises.As the subprime crisis rocked the foundations of the West's financial system, treasurers and bankers sitting in Asia sought...
NYSE Lists Carbon Allowances Fund
The calendar of planned initial public offerings in the US was bone dry last month, and the only issue of size on the international horizon was a scheduled $1 billion preferred securities offering by Mitsubishi UFJ Financial (MUFG). The preferred securities...
On A Knife Edge
Turkey is well positioned to weather a global downturn, but it still faces some tough economic challenges.There was a time not that long ago when even the slightest suggestion of an emerging market crisis would have investors in Turkey running for the...
Recession Proof
Saudi Arabia epitomizes the trend toward big spending on infrastructure by oil-rich nations that is keeping their economies afloat.The Middle East is not immune to the effects of the global economic slowdown, but the fallout is being felt less in the...
Risky Business
Risk managers are heading back to the drawing board after finding their systems were incapable of flagging up the perils that have brought the financial and corporate worlds to their knees.First developed more than a decade ago, the concept of enterprise...
Roth Brings Down Franc
SWITZERLANDJean-Pierre Roth, the low-key chairman of the Swiss National Bank, is not the type of person you would expect to shock the financial world. But that is exactly what he did on March 12 when he confirmed that the bank was "implementing its intention...
Running on Empty
Russia is facing some tough decisions as it adjusts to a far more challenging economic and political environment.Just over a decade after Russia's forced devaluation of the ruble and default on its debt - which followed a commodity price collapse in...
Safety Catch
The two most powerful forces in modern capitalism are, arguably, greed and fear. At present, fear is undeniably more prevalent, a fact that has sharply increased investors' concern for the safety of their assets. In their ceaseless search for safety,...
The World's Safest Banks Mid-2009
Global Finance selects the world's safest banks, the 50 institutions with the highest ratings from the leading credit ratings agencies.Such has been the turmoil in the world's banking industry that Global Finance is publishing a mid-year update of its...
World's Best Developed Markets Banks 2009
Global Finance unveils its annual list of the best banks in developed markets around the world.When Global Finance published its 2008 awards a year ago, the financial crisis was-with hindsight-still in its infancy, but already we noted that the prior...