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. 22, No. 10, November

Argentina Seeks End to Default Saga
ARGENTINAIn a major policy reversal, the Argentine government is reaching out to holdouts from its $100 billion debt workout in which bondholders received a 70% haircut in 2005. Some 25% of investors did not accept the deal's draconian terms. President...
A Very British Meltdown
The swiftness of Britain's transition from the cutting edge of innovation in banking and finance to representing the epitome of the global crisis has left many heads spinning. But in its dramatic demise lie lessons that financial institutions around...
Back to Basics
The core ethical principles of Islamic finance have protected the industry from the worst effects of the credit crunch.One segment of the financial markets has been watching the global credit crunch with interest. Islamic financing makes up a small percentage...
Banking on Innovation
Businesses are finding imaginative ways to circumvent the credit crunch. The solutions they adopt now could have profound implications for their future operations.For months this year, pessimists had been predicting a global financial meltdown. The gloomiest...
Beating the Bottlenecks
Dramatic growth in foreign exchange is highlighting tension in the trading systems.Volumes in the FX market are growing strongly. In April multibank FX trading portal FXaII reported that its first-quarter total volume had increased 39% year-on-year to...
Best Derivatives Providers 2008
BEST DERIVATIVES PROVIDERSGlobal Finance's fifth annual awards for the World's Best Derivatives Providers come against a backdrop of unprecedented change in financial markets. The long bull market came to an end last year. In its place is a bear market...
Bitter Medicine
The case for global regulation of the banking and finance industry has become much stronger as a result of the recent crisis. The prospect of creating a workable system, though, is as remote as ever.It's official: The freewheeling, Wild West world of...
Caught in the Crunch
Having sidestepped the worst effects of the credit crunch for more than a year, Latin America has finally been sucked into the downdraft.Latin American governments had recently argued that their structural reforms and prudent fiscal policies would shield...
Companies Cancel IPOs as Markets Tumble
There were only five initial public offerings in the US market in the third quarter, with no IPO activity after early August. In Europe, withdrawn IPOs were at the highest level in the past five years in the third quarter, with 51 issues worth a potential...
Confidence Declines as Exports Tumble
CHINAChina's central bank released three surveys-of banks, consumers and companies-in late September reflecting falling confidence in the country's economy. According to the survey of companies, export orders fell to their lowest level since China adjusted...
Credit Crunch and A Slowing Economy Crimp Worldwide Buyout Activity, Putting Strategic Buyers in Control
CORPORATE FINANCING FOCUSWorldwide announced mergers and acquisitions in the first three quarters of 2008 declined by 25% from the same period a year earlier, according to Thomson Reuters, reflecting the effects of the credit crunch and a slowing global...
Dollar Shoots Higher amid Financial Crisis
As the financial crisis shook Europe's banks last month, the European Central Bank joined in a coordinated half-point rate cut with the Federal Reserve, the Bank of England and other central banks, excluding the Bank of Japan. Analysts said the ECB's...
Frozen Credit Markets Unmoved by Rate Cuts
Credit markets remain stalled despite heroic efforts by global central banks, regulators and governments to restore confidence in the financial system.A lack of liquidity has made issuing new high-yield bonds almost impossible for companies. Kingman...
Fx Goes to Top of Class
Its resilience during the recent financial turmoil demonstrates foreign exchange's emergence as a bona fide asset class.Foreign exchange trading activity has continued to expand rapidly throughout the global financial crisis, although the first signs...
FX Update
Eurozone problems highlighted by US banking crisisThe successful passage of the US government's bank bailout legislation through Congress on Friday 3rd October was by no means the end of the trials and tribulations facing the US economy. However, just...
GDP Growth Surprises-On Low Side
CHINAFollowing years of double-digit growth in its gross domestic product, China's economic growth came in at a weakerthan-expected 9% in the third quarter. While the country is clearly feeling a draft as a result of the global economic slow-down, it...
Gf Survey Finds Companies Crimping Credit
GLOBALMuch of the coverage on the credit crunch has focused on the impact it is having on banks and capital markets, but in a series of surveys conducted throughout September and October, Global Finance surveyed 20,000 of its subscribers to gauge how...
Government Mobilizes Reserves to Boost Liquidity
BRAZILWhile Brazilian officials had touted the country's resilience to the global financial meltdown, they got a disturbing wake-up call in October as the São Paulo Stock Exchange (Bovespa) experienced widespread panic. The exchange's circuit breakers...
Hedged Currency Share Classes
Fund management revenue is highly correlated with Assets Under Management (AUM). Management fees are generally represented as a percent of AUM, sometimes augmented by performance-based incentive fees. Increasing AUM is key to increasing revenues.Investors...
Innovation Abounds
As foreign exchange establishes itself as a standalone asset class, the range of trading products available is expanding dramatically.Financial innovation is alive and well in the foreign exchange market, where new products continue to be introduced...
Rising Costs Force Indian Airlines to Pursue Alliances
INDIASteep losses are forcing a flurry of consolidation in India's airline industry. With combined losses this year alone of more than $440 million, Jet Airways and Kingfisher Airlines have embarked on an unprecedented alliance that will see them share...
Russia Bears Brunt of Global Sell-Off
RUSSIARussia continued to be buffet- ed by the global financial cri- sis, with the country's stock index plummeting nearly 70% from all-time highs posted in May, destroying roughly $1 tril- lion in shareholder value. After repeated efforts by the Kremlin...
Safe Harbor
Global custodians play a key role in helping their clients weather financial turmoil. Global Finance gathered a group of the industry's leading players to discuss the implications of-and opportunities presented by-recent events.GLOBAL FINANCE: Sovereign...
Sovereign Funds Eye Santiago Principles
GLOBALThe International Working Group (IWG) of 26 member countries of the International Monetary Fund last month released a statement of Generally Accepted Principles and Practices, or GAPP, for sovereign wealth funds. With some $3 trillion in assets,...
Sukuk Squeeze Triggers Debate
MIDDLE EASTA sudden slowdown in the issuance of sukuk, or Islamic bonds, could be the result of the global credit crunch, a ruling by a committee of Shariah scholars (see story, page 31), fears of a Middle East realestate bubble, falling oil prices,...
Supplying Solutions
At a recent roundtable in London, Global Finance brought together some of the pioneers in the rapidly growing supply chain finance business to discuss the growth of their industry and the impact of the credit crunch.GLOBAL FINAHCE: Let's start by explaining...
The Dollar Also Rises
These have been historic times, not only for the global financial system but for the foreign exchange market as well. The dollar, which had been falling almost ever since the euro was physically introduced in the form of coins and banknotes in 2002,...
The Us Dollar: King of Pain
Allow me to present you with a hypothetical scenario. A large country's regulators, financial institutions and households embrace a culture of risk taking that proves so destabilizing it brings the global financial system to its knees. This country's...
"Who's Who" in Foreign Exchange 2008
ILYA SOROKINpresident and CEOACTFOREXIlya Sorokin is president and CEO of ActForex, a New York-based provider of foreign exchange software and retail FX trading technology. The firm offers the Internet Currency Trading System (ICTS), a platform with...