IFR 08 1 2020 PDF room

AUGUST 2020 ISSUE 2344 www.ifre.com Rocket begins countdown to US$3.3bn IPO: deal set to be largest corporate listing this year China-to-US IPOs hit top gear: Li Auto raises US$1bn from Nasdaq float; others set to follow Delek to exterminate maturities: energy outfit readies US$2.25bn deal to fund gas field EQUITIES PEOPLE & MARKETS LOANS BONDS IAG seeks €2.75bn from rights issue as travel sell-off deepens 03 Synthetic CDO market grows despite rising defaults 04 Lenders eye £5bn debt deal as Asda sale resumes 06 A$15bn Aussie jumbo lures global funds down under 08 WANT A GLOBAL PERSPECTIVE ON THE SYNDICATED LOAN MARKET? FIND IT WITH LPC LPC is the premier global provider of information on the syndicated loan market Our first-tothe-market news and comprehensive real-time and historical data help industry players stay informed about market trends and facilitate trading and investment decisions LPC’s publications, end-of-day valuations, online news, analysis, and interactive databases are used every day by banks, asset managers, law firms, regulators, corporations and others to drive valuation, syndication, trading, research and portfolio management activities CONNECT TO THE GLOBAL SYNDICATED LOAN MARKET WITH LPC www.loanpricing.com lpc.info@tr.com Upfront A cautionary tale A multi-billion dollar settlement from Goldman Sachs and a 12-year prison sentence for Malaysia’s former prime minister provide just the latest dramatic developments in 1MDB’s capital markets misadventures Some readers of this magazine may remember early descriptions of 1MDB’s bond market activities IFR’s June 2012 edition carried the headline “Mystery over jumbo 1MDB deal”, and a piece questioning why a Malaysian sovereign fund had overpaid for a US$1.75bn bond by perhaps as much as 240bp (a cool US$420m of unnecessary interest over the 10-year term) Murky private placements and loans dressed as bonds were at the time sadly all too common in the Asian debt capital markets, where banks still compete tooth and nail to be top of the underwriting league table A US$1.75bn sole mandate took that to the next level, but could, perhaps, be explained by Goldman’s role helping 1MDB purchase a portfolio of power assets at the time The underthe-radar placement of another US$1.75bn bond issue in 2012, also arranged by Goldman, came with no such explanation When news of a US$3bn private placement leaked out in the run-up to the country’s general elections in May 2013 it was even clearer that something was seriously amiss The deal was so mispriced that IFR’s Jonathan Rogers calculated 'OLDMANûCOULDûHAVEûMADEû53MûBYûSIMPLYûmIPPINGûTHEû bonds to buyers at a market rate (He wasn’t far off: the US Department of Justice calculated Goldman pocketed about US$600m from its work on 1MDB’s bonds.) The fact that 1MDB was willing to offer those kinds of discounts to access the capital markets should have set alarm bells ringing immediately Explanations at the time were unconvincing 1MDB needed money quickly, conventional bookbuilds weren’t possible, and the bonds came with some complex structuring Even if all that was true, a genuine sovereign fund should never have been allowed to be so frivolous with taxpayers’ money, and in hindsight it’s clear the only “structuring” involved was making the proceeds disappear Those explanations have not got any more convincing even if Goldman was still advancing them long after the scandal broke Goldman’s role in this debacle has now cost it at least US$2.5bn, perhaps with more to come That settlement must now serve as a warning to others who may be tempted to bag AûNINE lGUREûSUMûONûWHATûSHOULDûHAVEûBEENûAûRUN OF THE MILLû bond issue Risk committees must ask why any client would be willing to pay so much for their services If it looks too good to be true, it almost certainly is „ OPINION INTERNATIONAL FINANCING REVIEW That lesson applies for the capital markets more broadly The arrangers and other intermediaries that bring a deal to market have a duty to act with integrity, promote transparency and ensure fair pricing They must act as gatekeepers, not look the other way when something doesn’t add up As for Goldman, there are still calls for the bank to face criminal charges in the US for its involvement in the scandal As executives – and shareholders – count the immense cost of their Malaysian misadventure, there may be more painful lessons yet to come Listing in la-la land Nine IPOs were completed in the US in the last week of July to raise proceeds of US$5bn Four were SPACs, but there was ALSOûTHEûLARGESTû#HINA TO 53ûmOATûINûMOREûTHANûTWOûYEARSûAû 53BNûTRADEûFROMû,Iû!UTO ûANDûTHEûlRSTû"RAZILIANûCOMPANYû to list in the US since the coronavirus hit (“edutech” company Vasta Platform) Away from the companies tapping into excitement around the cloud, medicine and electric vehicles was Vital Farms, an organic egg supplier It was the sleeper success of the week with an upsized deal that priced above guidance that had already been revised up The shares promptly traded up 63.5% on their debut And then came former Citigroup banker Michael Klein, who raised US$1.8bn in the most aggressively structured SPAC yet in the US – and his fourth to-date Far from slowing down for the summer, the next few weeks look similarly intense Rocket Companies is bookbuilding for what is likely to be the world’s largest non-SPAC IPO this year, with proceeds of up to US$3.3bn comfortably exceeding the US$2.9bn !MSTERDAMûmOATûOFû*$%û0EETSûANDûTHEû53BNûRAISEDûBYû Royalty Pharma in the US Li Auto is also set to be overshadowed within weeks as Chinese property listing service KE Holdings has started premarketing a US$1bn–$2bn NYSE listing And nine companies are again scheduled to price IPOs in the coming week, putting the US market well ahead of the rest of the world Given everything that is going on in the US and the rest of the world at the moment, some might think that all this is the clearest sign yet of utterly mad markets And yet with US IPO RETURNSûEXCEEDINGûûSOûFARûTHISûYEARûINVESTORSûAREûBENElTINGû from a market awash with central bank-induced liquidity At some point the market will turn, but as it stands the biggest losers look set to be European and Asian exchanges trying to argue that anywhere other than the US is the best place to list International Financing Review August 2020 Top news Synthetic CDO market grows 04 Delek looks to exterminate maturities 04 Asda sale resumes 06 Rocket begins countdown to IPO „ Equities Top mortgage lender in the US targets 25% of US$2trn market BY STEPHEN LACEY 3URGINGûRElNANCINGûACTIVITYû during the Covid-19 pandemic means mortgage originator ROCKET COMPANIES could be accused of top-ticking the market with its upcoming US$3.3bn IPO Yet as something of a cash cow while interest rates are low and/or falling, investors are rushing to embrace the investment opportunity Rocket, the parent of Quicken Loans, plans to sell 150m shares at US$20–$22 for a valuation of up to US$44bn The offering represents just a 7.5% stake but would be the largest corporate IPO globally this year, topping both the US$2.9bn offering by JDE PEET’S on its Euronext Amsterdam listing in May and the US$2.5bn raise by ROYALTY PHARMA on its Nasdaq listing in June The largest mortgage lender in the US undertook an extensive pre-marketing exercise that enabled it to launch publicly on Tuesday morning with a “half-covered” message Goldman Sachs, Morgan Stanley, Credit Suisse, JP Morgan, RBC Capital Markets, the joint books leading a 20-bank underwriting syndicate, are following with a seven-day virtual roadshow ahead of pricing after the market close on August “We still have a long way to go,” one banker involved in the underwriting told IFR shortly after launch “There were substantial indications at launch, but we didn’t ask for lRMûORDERSv SHOOTING FOR THE STARS Rocket is riding a boom in mortgage originations, mainly RElNANCING ûTHATûSAWûITûWRITEû US$72.3bn of loans in the second quarter New loans reached US$26bn in June to maintain sequential gains in every month this year These numbers leave with it a hefty 9.2% share of all US mortgage originations PennyMac Financial Services, the secondlargest private originator, has a 2.8% market share .OTûSATISlEDûWITHûTHAT û2OCKETû management said in the roadshow they believe they can eventually lift their share to 25% of what is a US$2trn market annually In the year ended June 30, Rocket pumped out net earnings and adjusted Ebitda of US$4.2bn and US$5.3bn on revenue of 53BNû2EmECTINGûTHEûRECENTû progress, net earnings were US$3.5bn–$3.6bn on revenue of 53BNnBNûINûTHEûlRSTûSIXû months of 2020, based on preliminary results Everyone, including management, acknowledges the good times will not last forever To that end, Rocket management did not provide guidance to analysts at the underwriting banks, leading to a wide dispersion of forecasts on both the buy-side and sell-side “The tricky part is what mortgage originations are in any given year, and what is Rocket’s market share,” said a second banker involved in the deal “Most investors agree that there will be a slowdown in 2021, before mortgage originations normalise in 2022.” “Rocket has the potential to re-rate how mortgage originators are valued,” the second banker said PennyMac, which relies more on wholesale channels, trades at just 7.8-times 2022 earnings Rocket views itself more as a best-in-breed market share China-to-US IPOs hit top gear „ Equities Li Auto blockbuster shows deals accelerating despite bilateral tensions BY FIONA LAU Sizeable IPOs from Chinese companies are gathering pace in the US, with electric vehicle maker LI AUTO wrapping up the largest China-to-US listing since 2018 and property listing service KE HOLDINGS starting pre-marketing for a US$1bn–$2bn NYSE IPO The moves underline the continuing appeal of the American stock market despite the passage of legislation by the US Senate that could force Alibaba Group Holding, Baidu and other Chinese companies to delist from US exchanges if they not comply with US regulatory and audit standards Li Auto, backed by Hong Konglisted Meituan Dianping, last Wednesday raised US$1.09bn from a Nasdaq IPO comprising 95m American depositary shares at US$11.50 each, above the US$8–$10 range The deal generated strong DEMANDûDESPITEûAûlNALûVALUATIONû of about US$9.9bn, more than double the US$4bn price tag the company achieved when it closed a US$550m pre-IPO round as recently as July The books were well covered with no price sensitivity, with large orders from global longonly funds and sovereign wealth funds, as well as hedge funds “US-listed EVs have traded well recently as investors expect a strong recovery in the global EV market Li Auto’s valuation looks rich but it’s still way below where its peers are trading,” said a banker on the deal Shares in Nio, another USlisted Chinese EV maker, hit a record US$16.44 on July 13 As of last Wednesday, the stock had risen 216% this year, valuing the company at US$15bn Shares in US-listed EV giant Tesla were up 258% in the year to-date US investors are also keen to look at new issues “I’m sympathetic to how tired everyone is, but the buyside is still lagging their benchmarks,” said a senior ECM banker “As long as that continues to be the case, they’re going to be forced to look at all the new issue product we put in front of them.” Those who bet on Li Auto were instantly rewarded as the International Financing Review August 2020 stock rocketed 43% on its trading debut last Thursday Alongside the IPO, Li Auto will raise US$380m from a private placement to investors including Meituan and TikTok owner ByteDance Goldman Sachs, Morgan Stanley, UBS and CICC were the bookrunners THEY KEEP COMING KE Holdings, which owns and operates realtor Lianjia and online service platform Beike, is the next big deal in the queue The company, which counts Tencent Holdings and SoftBank among its investors, is preMARKETINGûAû53BNnBNûmOAT XPENG MOTORS, another Chinese EV maker, is also planning to @ For daily news stories visit www.ifre.com Trafigura offers Covid premium 06 AT&T’s jumbo LM 07 Aussie benchmark lures investors 08 LIQUID FUEL BOOSTER Giving it some extra sex appeal, Rocket’s marketing effort positions the company as a disruptor of the mortgageorigination business “We think of speed as a weapon,” Rocket COO Robert Walters said in the online roadshow “No-one gets a mortgage because it’s fun They want to buy a home, or they want to lower their rate, or they want to take equity out of their home The entities that can get there the fastest are going to win.” Speed is achieved through ALGORITHMSûTHATûGUIDEûWORKmOWû in processing mortgages, from assessing consumer credit, property valuations and title – more than 100 steps in all The analogy, Walters says from the company’s headquarters in Detroit, is the assembly line Henry Ford pioneered in 1913 Rocket sells the bulk of originations into the secondary market through Fannie Mae/ Freddie Mac and MBS securities, but has retained servicing on the majority of loans in an effort to retain customers It held servicing rights to 1.8m mortgages with a US$343.6bn balance at March 31, and in 2019 had client retention of 63%, versus an industry average of 22% This is all a good thing for Rocket founder and chairman Daniel Gilbert In addition to the US$3.3bn he will harvest through the repurchase of stock from the proceeds of the IPO, 58-year-old Gilbert is being paid a US$3.9bn distribution He will continue to own 1.8bn shares worth some US$36bn, crystallising his status among the richest of the rich „ pre-market a US$700m US IPO in August while Chinese online wealth management company LUFAX is looking to launch a US$2bn–$5bn US IPO later this year The surge in US listings comes even as heightened political tensions between China and the US have prompted some Chinese issuers to rethink their IPO plans, and as an increasing number of US-listed Chinese companies consider a secondary listing in Hong Kong as a back-up plan Some are taking things a step further with plans to delist from the US, potentially with a view to re-listing closer to home Tencent Holdings last week offered to take search engine SOGOU private in a US$2.1bn buyout, while the founders of online travel giant TRIP.COM are seeking investors to support a possible delisting Despite all the negativity, the 53ûREMAINSûTHEûlRSTûCHOICEûFORû many Chinese issuers, especially from the capital-intensive technology sector Li Auto – much like Tesla – is likely to need to raise capital regularly to develop new models, while KE needs continuous investment to upgrade its platforms +%SûREVENUEûINûTHEûlRSTûTHREEû months of 2020 dropped 12.7% year-on-year to Rmb7.1bn (US$1.01bn), due to slow demand for housing transactions amid the coronavirus pandemic Tencent owns a 12.3% stake in KE, SoftBank 10.2%, and Hillhouse Capital 5.3% The company completed a US$2.4bn pre-IPO investment round in March that valued it about US$14bn As of June 30, it had more than 42,000 stores and 456,000 agents Goldman Sachs, Morgan Stanley, China Renaissance and JP Morgan are KE’s joint bookrunners „ consolidator along the lines of online broker Charles Schwab, insurer Progressive or Californian high net-worth bank First Republic, which trade at 15–18 times 2022 earnings Rocket is coming at a discount to these aspirational peers, but that still assumes further market share gains, according to both bankers IAG seeks €2.75bn as sell-off deepens „ Equities Travel stocks slump on virus fears BY LUCY RAITANO British Airways and Iberia owner IAG will launch a €2.75bn rights issue in September if shareholders approve the deal The airlines’ owner, which also has Vueling and Aer Lingus in its portfolio, has secured crucial backing from main shareholder Qatar Airways to cover its 25.1% pro-rata share while the rest has volume underwriting from Deutsche Bank, Goldman Sachs and Morgan Stanley Rothschild is advising IAG An EGM to approve the deal will be held on September IAG reported an operating loss OFûõBNûINûTHEûlRSTûHALFûOFûTHEû year on Friday, from a €1bn PROlTûINûTHEûlRSTûHALFûOFû û AFTERûPASSENGERûTRAFlCûFELLûBYû over 98% in the second quarter The news came in a tricky week for European travel and aerospace stocks, with shares plummeting amid rising concerns of an upsurge in coronavirus cases and new quarantine measures imposed on Britons arriving from Spain DROP IN ALTITUDE IAG shares were already down 14.5% since it was forced to OFlCIALLYûmAGûTHEûPOTENTIALû capital increase on July 24 after news of the deal leaked, and fell a further 7.3% by 2pm on Friday to trade around 167.7p each Although one banker involved in the IAG rights issue insisted that the leak was frustrating, a drop in THEûSHAREûPRICEûBEFOREûlXINGû underwriting terms does help to de-risk the trade for the banks Yet all stocks in the sector have suffered heavy falls, with Easyjet down 13.5% over the same period, Lufthansa 10.6% and Air-France KLM 11.8% Rolls-Royce is down 11%, with the aerospace engineer suffering International Financing Review August 2020 a second downgrade to junk from Moody’s last week and reportedly planning a £1.5bn rights issue IN IT FOR THE LONG HAUL In addition to rising coronavirus cases and quarantines hitting stocks in the short term, the International Air Transport Association predicted global passenger demand will not return to 2019 levels until 2023, making a wave of recapitalisations inevitable “There’s no question that the most expected primary raises are across the travel and leisure space,” said one banker “People are looking out at least two years and for the worst-case scenario.” IAG laid out its downside scenario as a 66% reduction in passengers for 2020, a slow recovery throughout 2021, as well as reduced revenue from cargo and an adverse near-term WORKINGûCAPITALûPROlLE “What’s happened here is an unprecedented event in aviation – worse than 9/11 and the lNANCIALûCRISIS vûSAIDû3TEPHENû Furlong, transport and logistics analyst at Davy In light of where stock prices have gone, other options like a convertible bond or 20% accelerated capital increase didn’t provide the capital structure and liquidity for the downside scenario as this rights issue has done, said Furlong Bankers echoed the idea that investors are keen to see companies prepare for the (latest) worst-case scenario “Looking at Rolls-Royce or IAG, if you can put the bear case out there and get investors comfortable on the discounted rights issue there is potentially a meaningful upside,” said one European syndicate banker away from both companies „ Top news Synthetic CDO market grows despite rising defaults „ People & Markets Tranche trading rockets during market turmoil BY CHRISTOPHER WHITTALL Sharp market swings and rising bankruptcies have failed to dampen activity in a complex breed of credit derivatives that enable investors to take leveraged bets on company defaults The net size of the market for tranches of synthetic collateralised debt obligations linked to credit indices has increased to a four-year high of US$141bn, according to the $4##û4HATûCOMESûAMIDûAûmURRYû of trading, with volumes of tranched credit-default swap indices rising 45% annually in THEûlRSTûHALFûOFûTHEûYEARûTOû US$96bn, according to IHS Markit Credit markets nose-dived in March amid fears that the spread of the novel coronavirus would trigger a wave of corporate bankruptcies Those moves REPORTEDLYûINmICTEDûHEAVYûLOSSESû ONûSOMEûlRMSûPROMINENTûINûTHISû COMPLEXûCORNERûOFûlNANCE ûFROMû  ,IKEûITSûPEERS û-OELISûALSOûSAIDûITû experienced an uptick in restructuring RETAINERSûANDûISûEXTREMELYûCONlDENTûABOUTû the longer-term contribution from the restructuring group “These are volatile, volatile times,” said Moelis CEO Ken Moelis “My sense is that the INACTIVITYûINûTHEû-!ûMARKETûHASûDElNITELYû bottomed,” Moelis told analysts “I sense a very strong desire to participate in M&A, especially for high-quality assets.” “My sense is that the inactivity in the M&A market has definitely bottomed I sense a very strong desire to participate in M&A, especially for high-quality assets” Moelis said there was an uptick in dialogue late in the second quarter, but that was hurt by the most recent spike in CovidûCASESûINûTHEû53û Even with the boost from restructuring, INDEPENDENTûlRMSûHAVEûOVERALLûHADûAû tougher quarter than bulge-bracket banks %VERCORESûADVISORYûFEESûFELLûûWHILEû 'REENHILLûREPORTEDûAûûDECLINEûTOûDUEûTOû THEû-!ûSLOWDOWNû4HEûBIGûlVEû53û INVESTMENTûBANKSûREPORTEDûANûAGGREGATEûû year-on-year rise in advisory revenues, despite the weak environment for deals Philip Scipio Please contact us if you have information about job moves: peoplemarkets@refinitiv.com Russian investment bank RENAISSANCE CAPITAL has hired Maria Radchenko to head its fixed income analysis Radchenko will be based in Moscow and report to Grigory Sedov, head of private clients and head of Russia and CIS distribution Radchenko will lead credit analysis and be tasked with providing fixed income ideas for institutional and private clients She joined from rival BCS Global Markets, where she was head of fixed income research and deputy head of research International Financing Review August 2020 Rob Ward has been appointed as head of project and ESG finance for Oceania at MUFG BANK The newly created ESG financing role for Oceania will help coordinate and develop MUFG’s products in the area, including ESG loans and bonds, renewables PF and emerging energy technologies Ward joined MUFG in 2012 and has led its advisory business in Oceania since 2016 MUFG last year said it would commit ¥20trn (US$188bn) to sustainability-related financing by 2030 13 Bellwether Bellwether: n From the practice of placing a bell around the neck of a castrated ram so that it might lead its flock #(2)34)!.û3%7).'û3)'.%$ off for the summer with an upbeat message for staff after Deutsche Bank posted a decent set of second-quarter earnings Sewing said the results served as a vindication of his strategy But a dive into the numbers tells a different story Revenues at the corporate bank, the cornerstone OFû3EWINGSûTURNAROUND ûROSEû ûBUTûTHEûKNOCKOUTû performance came from the investment bank, where REVENUESûLEAPTûûONûTHEûBACKûOFûTHATûOLDû$EUTSCHEû powerhouse, FICC – the lightning rod for so much criticism and a symbol of the free-wheeling image that Sewing is so desperate to shed Sewing should be applauded for his turnaround efforts, but don’t take credit for credit Sewing also pointed to the results of the bank’s “people survey” as further evidence he is steering the ship in the RIGHTûDIRECTIONûh7EûHAVEûSEENûTHEûHIGHESTûCOMMITMENTû SCOREûSINCEû ûANDûANûALL TIMEûHIGHûFORûENABLEMENT vûHEû said And if that’s not enough, Sewing said the survey showed staff “also support our strategy more and you are happier with your managers” Given that very few will have seen their manager since March, you wouldn’t expect anything less has become the latest bank to ALLOWûITSûSTAFFûTOûWORKûFROMûHOMEûUNTILûû"UTûIFû THEIRû,ONDON BASEDûCAPITALûMARKETSûSTAFFûAREûSTUCKûFORû something to do, they could always follow the lead of their US colleagues, who have set up RBCCM US Kids Club It’s a virtual summer camp at which staff volunteer TOûENTERTAINûEACHûOTHERSûCHILDRENûVIAû7EBEX ûWITHûTHEû Kids Club offering “story time” and “weekly sing-alongs” Could this also be a chance to raise some money for good causes? Bellwether is surely not alone in being willing to pay good money to watch Darrell Uden and Josh Critchley BELTINGûOUTûSOMEûTUNESûFROMû&ROZENûTOûBEMUSEDûTODDLERS managed to maintain its record for PAYINGûOUTûBILLIONSûINûDOLLARSûINûlNESûWITHOUTûACCEPTINGû guilt or liability – but keeping a straight face – after reaching a US$3.9bn settlement with the Malaysian GOVERNMENTûOVERûTHEûBANKSûROLEûINûTHEû-"$ûCORRUPTIONû scandal 7HILEûSOMEûBANKûBOSSESûMIGHTûCOUNTûTHEIRûLUCKYûSTARSû and head for the hills, Goldman’s boss David Solomon headed for the Hamptons, where he performed a live set at an open air gig as his alter ago DJ D-Sol But his fun was cut short when it emerged that New York’s health authorities are investigating the concert for rampant violations of social-distancing rules 3UFlCEûTOûSAY û3OLOMONûISûINûHOTûWATER ûWITHû.EWû9ORKû Governor Andrew Cuomo having a pop on Twitter A spokesperson for Solomon said: “The vast majority of the audience appeared to follow the rules, but he’s troubled that some violated them and put themselves and others at RISKvû7HICHûWASûPRETTYûMUCHûTHEûLINEû'OLDMANûUSEDûONû -"$ '/,$-!.û3!#(3û(!3 2/9!,û"!.+û/&û#!.!$! CONTINUING THE THEME of law-related levity, HSBC has appointed Egmont Schaefer and Pedro Urresti as co-heads of FIG corporate banking for Europe, according to a memo Apparently, all of Pedro’s direct reports are “under Uressti” „ Who’s moving where… „ HSBC has promoted Eric Bai and Alexander Paul to global co-heads of FIG investment banking coverage within its financial institutions group Bai is based in Hong Kong and Paul is in London and they will be responsible for leading event business and strategic coverage 14 of FIG clients Bai and Paul will report to Peter Enns, who has overall responsibility for FIG Egmont Schaefer and Pedro Urresti have also been appointed co-heads of FIG corporate banking for Europe „ DEUTSCHE BANK has hired Colin Parkhill as head of European ABS and CLO syndication Parkhill recently quit Lloyds, where he headed the European ABS syndicate desk Parkhill will join in the autumn and report to John O’Connell, global head of global credit trading syndication Parkhill replaces Jonathan McCormick, who will move to a senior client coverage role focusing on UK and Irish banks Parkhill has been replaced at Lloyds by Eve Marlborough, who previously worked in Lloyds’ securitised product group International Financing Review August 2020 „ Hiren Singharay has joined RSA CAPITAL LIMITED, a Dubai International Financial Centre based investment bank specialising in emerging markets, as a senior adviser Singharay has 40 years of experience in European and emerging markets and will be involved in developing and expanding the advisory and M&A business of RSA into Africa Singharay was previously head of syndications for Europe, Africa and South Asia for Standard Chartered, based in London He led syndication for the same region and Eastern Europe at Citibank before that People Markets & DeMare to head BofA global markets BANK OF AMERICA has named Jim DeMare as head of global markets, reporting to chief OPERATINGûOFlCERû4OMû-ONTAG DeMare was previously co-head of global lXED INCOME ûCURRENCIESûANDûCOMMODITIESû trading, and head of the commercial realestate bank He also co-chaired the global markets risk committee and is a member of the management committee $E-AREûJOINEDû-ERRILLû,YNCHûINûûFROMû Citigroup, ahead of Merrill’s merger with BofA Prior to Citi, he was a trader at Bear Stearns and Prudential Securities In a series of promotions, BofA named Bernie Mensah as head of International, which will exclude the Americas, reporting to Montag Mensah previously jointly led the bank’s FICC trading business globally In !PRILû ûHEûASSUMEDûADDITIONALûLEADERSHIPû responsibilities as the BofA’s EMEA president 3OOlANû:UBERI was named co-head global equities alongside Fab Gallo Philip Scipio Losada switches back to derivatives at MS Sam Losada has quit his role as head of equity capital markets for Europe, Middle East and Africa at BANK OF AMERICA to join MORGAN STANLEY as co-head of strategic equity solutions His co-head at Morgan Stanley is New York-based Serkan Savasoglu ,OSADAûHASûBEENûRUNNINGû"OF!Sû%-%!û %#-ûTEAMûSINCEû ûFORûTHEûlRSTûTWO AND A half years alongside James Fleming and on a sole basis for the past two years (EûJOINEDû"OF!ûINûûTOûBUILDûCORPORATEû equity derivatives before switching to a similar role on the debt side It was then a big jump to RUNû%#-ûANDû,OSADASûMOVEûTOû-ORGANû3TANLEYû capitalises on his strength in equity derivatives James Palmer ISûREPLACINGû,OSADAûONûANû INTERIMûBASISû0ALMERûHASûALMOSTûûYEARSûOFû ECM experience, although almost all of it has been in the US Palmer joined BofA in November, just a year after arriving at Credit Suisse as vicechairman of investment banking and capital markets in EMEA He spent the previous two decades in the US at UBS, ending his tenure there as head of ECM for the Americas Owen Wild UBS shakes up M&A, TMT, Australia leadership UBS has promoted its European M&A chief Nestor Paz-Galindo to co-head of mergers and acquisitions globally to replace Greg Peirce, who is moving to co-head global banking in Australasia The moves are part of a series of senior changes in the Swiss bank’s global banking division, according to a memo to staff seen by IFR 0AZ 'ALINDOûWILLûCO HEADû-!ûALONGSIDEû -ARC !NTHONYû(OURIHANû0AZ 'ALINDOûJOINEDû UBS four years ago from JP Morgan, where he spent 22 years as an M&A and corporate lNANCEûBANKERûINûAûNUMBERûOFûINDUSTRIESû and geographies UBS said he will start shifting to the role and take it up fully in  ûWHENû0EIRCEûMOVESûTOû!USTRALIA Peirce joined UBS as an intern in 2000 and headed general industrials and co-headed coverage and advisory for Australasia until HEûMOVEDûTOû(ONGû+ONGûINûûTOûHEADû -!ûFORû!SIA 0ACIlCû(EûHASûBEENûGLOBALûCO HEADûOFû-!ûSINCEû Philipp Beck WILLûSUCCEEDû0AZ 'ALINDOûASû head of EMEA M&A Beck joined UBS in 2002 and leads M&A for Germany, Austria and 3WITZERLAND In the Americas, $AVIDû$ESCOTEAUXûand Solon Kentas have been appointed co-heads of Americas M&A $ESCOTEAUXûJOINEDû5"3ûINûûFROMû ,AZARDû+ENTASûJOINEDû5"3ûINûûFROMû Deutsche Bank, and previously worked at HSBC as head of M&A for North America Jeff Rose will shift from his dual role as cohead of M&A to lead the Americas consumer products and retail team 3AMSONû,OûWILLûCONTINUEûASûHEADûOFû!SIAû M&A UBS also appointed *ASONû!UERBACHûas global co-head of technology, media and telecommunications, alongside Christian ,ESUEURû!UERBACHûJOINEDû5"3ûFROMû*EFFERIESû INû ... again MAKING PROGRESS: CREDIT SUISSE RETURN ON TANGIBLE EQUITY % 18 16 14 12 10 H1 2020 H1 2 019 H1 2 018 H1 2 017 -2 H1 2 016 H1 2 015 STILL MILLER TIME David Miller, current head of investment banking... year That is already more than 2 019 ’s total and puts NOTIONAL OUTSTANDING US$bn 500 400 300 200 Jun 19 Jun 20 Jun 17 Jun 18 Jun 15 Jun 16 Jun 13 Jun 14 Jun 11 Jun 12 10 0 Source: DTCC Note: quarterly... months of 2020 dropped 12 .7% year-on-year to Rmb7.1bn (US $1. 01bn), due to slow demand for housing transactions amid the coronavirus pandemic Tencent owns a 12 .3% stake in KE, SoftBank 10 .2%, and