The GlobalCapital Podcast
A weekly podcast from GlobalCapital, the capital markets news service based in London and New York, discussing its most interesting stories from around the world.
Every Friday, listen to lively discussion about the very latest themes, the most innovative and important bond and equity issues and syndicated loans and much more from the capital markets.
This podcast is for anyone working in - or who wants to work in - the capital markets from investment bankers, to funding and treasury officials, investors, lawyers, analysts, NGOs and lobbyists, regulators and policy makers, and analysts.
GlobalCapital has been the "voice of the markets" for over 35 years, covering bond, loan, equity and securitisation markets around the world.
We cover everything from public sector bond issuers, financial institutions, emerging markets and investment grade corporate bonds and loans to securitisation (including CLOs and ABS), regulation and market news as well as industry gossip.
GlobalCapital is written for capital markets professionals but the podcast is of value to anyone with an interest in the industry, whether you have been working in it for as long as we have, or are looking to make your first career move into it.
This podcast is a commute-sized slice of everything that's most interesting from the world's capital markets with the aim of helping you sound smarter in your morning meeting, or making you stand out from the crowd of other hopefuls when kick-starting your career.
And don't forget, you can #AskGC anything you like and we will select the best questions to answer on the show.
Contact us at podcast@globalcapital.com
The GlobalCapital Podcast
The meaning of a basis point
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◆ Greenium reappears in unlikely place ◆ US banks splash out ◆ Is that all I’m worth? ◆ Cantor is coming
A basis point might always be the same quantity, but is it a lot or a little? It depends whom you ask, and when. For supranational, sovereign and agency bond issuers in the dollar market, 1.7bp over Treasuries and 1.9bp over are two different things.
Records keep falling as SSAs price ever closer to Treasuries. Last week the International Finance Corp got to 1.7bp — and it was clearly because its $2bn green bond attracted green-mandated investors, more willing to tolerate spread norms being shaved. Could the first new issue to go through Treasuries be a green bond?
Across town, the big US banks, led by Goldman Sachs, have been pumping out huge bonds after their quarterly results. The usual big dollar issues have been replaced with bigger ones — and dropping whoppers in the euro market is also common now.
The banks are anything but miserly with new issue premiums, seemingly happy to pay 10bp-15bp — in fact their largesse makes life awkward for other issuers. But they’ve got their eyes on bigger prizes.
In Europe’s CLO market, investors are ever so stingy. Managers active for decades, with dozens of deals behind them, can woo bondholders and present their credentials till they’re blue in the face. Will investors give them credit for their experience with tighter pricing? A penny or two if they’re lucky.
Cantor, the New York broker-dealer led for over 30 years by Howard Lutnick till he took Trump’s shilling as commerce secretary, is not nickel and diming. The firm is moving into European investment banking, starting with equity capital markets, M&A and trading.
That takes wedge, and Cantor is dishing out plenty, hiring teams in Hamburg, Milan, Dubai and soon Stockholm. It’s a big if, but if the bet pays off, the returns will not be measured in basis points.
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