Tag Archives: Credit Suisse

Beam bonds soar on M&A news

NEW YORK, Jan 13,2014 (IFR) – Beam’s bonds ratcheted in by as much as 15 basis points on Monday after Japan’s Suntory Holdings made a USD16bn bid for the US spirits maker.

Beam’s 3.25% June 2023s were trading around 60p bid/55bp offered this morning, from around 70/65bp on Friday. Its 1.75% 2018s tightened to Treasuries plus 30bp mid-morning from around Treasuries plus 45bp at open.

 

The tightening is based on hopes that a successful bid from Suntory will trigger a change of control (CoC) covenant aimed at protecting investors against credit event risk.

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As Canadian M&A Soars on Oil, Goldman Sachs Becomes Top Adviser, edging out JPMorgan Chase, Royal Bank of Canada, Barclays and Citigroup

Mergers and Acquisitions Conference 2015 New York City

Mergers and Acquisitions Conference 2015 New York City

Goldman Sachs was the top investment banking adviser on Canadian mergers and acquisitions in 2014, as oil and gas and cross-border deals drove takeovers to a seven-year high.

According to Bloomberg, Canadian firms were involved in $229 billion worth of transactions through Dec. 29, the highest annual tally since 2007 and up 45 percent from last year, according to data compiled by Bloomberg.

Goldman advised on $61.6 billion worth of those deals, its highest ever in Canada, and narrowly edging out JPMorgan Chase, which advised on transactions valued at $61.3 billion. Royal Bank of Canada slipped to third spot after three consecutive years at No. 1, while Barclays and Citigroup rounded out the top five. The figures and rankings are based on announced date and subject to change as more deals are recorded.

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Americans Recover Home Equity at Record Pace: Mortgages

According to Bloomberg,

The number of Americans who owe more on their mortgages than their homes are worth fell at the fastest pace on record in the third quarter as prices rose, a sign supply shortages may ease as more owners are able to sell.

The percentage of homes with mortgages that had negative equity dropped to 21 percent from 23.8 percent in the second quarter, according to a report today from Seattle-based Zillow Inc. The share of owners with at least 20 percent equity climbed to 60.8 percent from 58.1 percent, making it easier for them to list properties and buy a new place.

“Home sales will pick up very nicely when people gain the equity they need to sell their house and have a down payment for the next one,” said Neal Soss, chief economist at Credit Suisse Group AG in New York. “There’s a magnifying effect on sales — people are able to list their home and sell it, and odds are they’re going to go on and buy another one.”

A shortage of inventory has forced homebuyers to compete, driving up prices and leaving some shoppers out of the market, said Thomas Lawler, a former Fannie Mae economist who now is a housing consultant. The number of homes for sale reached a low of 1.8 million in early 2013, the fewest in more than a decade, according to data from the National Association of Realtors.

“The pent-up demand from people who now have enough equity to sell their homes will help next year,” said Lawler, president of Lawler Economic & Housing Consulting LLC in Leesburg, Virginia. “We’ll see the effect during the spring selling season. Not a lot of people put their homes on the market during the holidays.”

Price Gains

While the supply of homes limited sales, it boosted price growth, said Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York. Shortages have caused buyers to compete for properties by raising the price they offer, she said. The median price of an existing home rose 12.8 percent last month, the Realtors’ group reported yesterday. In August, it jumped 13.4 percent, the fastest rate since the height of the real estate boom in 2005.

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U.S. Economy Expands at a 2.8% Rate on Inventories

Economy in U.S. Expands at a 2.8% Rate as Inventories Climb (Bloomberg)

Economy in U.S. Expands at a 2.8% Rate as Inventories Climb (Bloomberg)

According to Bloomberg, Household purchases and business spending on equipment slowed in the third quarter, even as a buildup in inventories unexpectedly boosted the pace of economic growth in the U.S.

The 2.8 percent annualized gain in gross domestic product followed a 2.5 percent increase in the prior three months, Commerce Department figures showed today in Washington. Final sales, which exclude unsold goods, rose 2 percent in the third quarter as consumer spending climbed at the slowest pace since 2011 and corporate investment fell.

The biggest gain in inventories since the beginning of 2012 risks holding back the economy this quarter as companies limit production. A 16-day partial shutdown of the federal government added to the headwinds that the Federal Reserve is trying to offset by maintaining $85 billion in monthly bond purchases intended to keep borrowing costs low.

“You’ve got this big jump in inventories, and that’s clearly in excess of what the flow of spending is,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina, who projected a 1.9 percent gain in final sales. “If you stockpile all this inventory but your sales don’t really change all that much, then what you’re going to do in the next quarter is cut back.”

Economists at Morgan Stanley, Credit Suisse, TD Securities USA LLC and HSBC Securities America were among those who said they might reduce their forecasts for GDP.

“Fourth-quarter growth appears to be on a trajectory for growth a bit below 1.5 percent at this point,” Morgan Stanley economists said in an e-mail to clients.

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Blackstone Group buys private equity unit

Blackstone Group buys private equity unit

NEW YORK (AP) — Private equity firm Blackstone said Monday that it has acquired a private equity unit called Strategic Partners from Swiss banking giant Credit Suisse.

Strategic Partners buys stakes in private equity funds. It has 29 investment professionals and $10 billion in assets under management. Blackstone has about 1,780 employees, according to its latest annual report. It has about $230 billion in assets under management.

Blackstone’s decision to buy Strategic Partners was first announced in April. The terms of the deal were not disclosed.

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Grosvenor poised to buy private equity unit from Credit Suisse

Grosvenor poised to buy private equity unit from Credit Suisse

Chicago-based Grosvenor Capital Management LP is in advanced talks to buy a private equity unit from Credit Suisse Group AG, a person familiar with the matter said on Wednesday.

The deal, to be valued at more than $200 million in cash and other considerations, could be announced as early as this week, the Wall Street Journal earlier reported.  The transaction, if completed, could roughly double Grosvenor’s size by assets, the Journal said.

Grosvenor’s chief executive is Michael Sacks, who is also vice chairman of World Business Chicago and the closest business advisor to Chicago Mayor Rahm Emanuel.

A Credit Suisse spokeswoman declined to comment while a Grosvenor representative was not immediately available for a comment.

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EU’s Barnier pushes for criminal sanctions for Libor abuse

(Reuters) – Europe’s top regulatory official intends to propose new rules that would criminalize the manipulation of benchmarks such as Libor, a spokesman for the EU commissioner in charge of financial reform said on Monday.

Michel Barnier wants to amend proposed market-abuse legislation that is designed to clamp down on insider trading and other wrongdoing to include the manipulation of a reference such as Libor, which is a basis for lending and derivatives contracts around the world.

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