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October 13, 2008

Past Issues

Commercial Paper

Lenders Shy After Lehman Bankruptcy

This is how brokers on the floor of the New York Stock Exchange described the onslaught of fear-driven selling that has sent stock prices lower at a shockingly rapid pace: 'Tuesday felt like the end of the world ... Wednesday it was better. I hope things stabilize.' Come Thursday, as the Dow plunged another 678 points, all bets were off.

Editorial

Don't Do That

So, we spend our days listening to everyone chime in about what we have to do to get out of this fiasco. I want to do my fair share of chipping in, too, in an attempt to solve the financial crisis, so what follows are a few suggestions of what not to do.

Financial Services

Financials Receive Large Capital Influx

Even as the maelstrom engulfing Wall Street continues to chip away at the banking industry, the financial services industry enjoyed a large influx of capital.

Global Investing

Emerging-Market Banks Lure PE

When Emerging Capital Partners announced that it purchased a minority stake in an African bank on Oct. 7, it marked the latest in a wave of private equity investments in emerging-market financial institutions.

Hedge Funds

Managerial Expertise

As markets gyrate, the performance of hedge fund managers gets closely scrutinized.

High Yield

High-Yield Storm Warning

IDD recently turned to Standard & Poor's managing director Diane Vazza to better understand the stress being felt by high-yield debt and how issuance in the high-yield market has dramatically slowed amid the credit crisis.

Investment Banking

A Reshuffling Of The Deck

Wall Street's debt and equity underwriting fell by some 40% in the third quarter, despite Treasury and Federal Reserve campaigns to shore up financial markets. Amid the chaos, Barclays Capital was a big winner, muscling its way into more prominent positions in debt and equity underwriting, while Goldman Sachs made its presence known even further in middle-market M&A.

Sperry Mitchell Finds Success In Europe

Sperry Mitchell, a husband-and-wife boutique formed by Paul Sperry and Beatrice Mitchell, has four letter-of-intent proposals from private equity firms, which, considering the frozen state of the credit markets, isn't an insignificant accomplishment. Yet, it's the selling of family-held businesses that has epitomized the strong cross-border interest the M&A boutique has garnered from European strategics this year.

Personnel File

Ex-Goldman Banker Takes Helm Of TARP

The US Treasury Department named Neel Kashkari Interim Assistant Treasury Secretary for Financial Stability. He will oversee the Office of Financial Stability, including the Troubled Asset Relief Program established under the Emergency Economic Stabilization Act of 2008.

Private Equity

You Own What?

During times of stress, when political rhetoric is at its highest pitch, regulators tend to take aim at conflicts of interest, whether perceived or real. Buyout funds, which are already on the fringe of where critics are tossing blame these days, might be susceptible considering their mandates have stretched alongside the growing market.

Roundtable

A Future For Islamic Finance?

Islamic finance had its start in the 1960s and 1970s with the influx of petrodollars into the Gulf region. The rapid development of Middle East markets--Saudi Arabia, Kuwait and the United Arab Emirates--has stoked interest in a type of finance that is based on the principles of Shari'a. Industry experts estimate that Islamic finance has enjoyed double-digit annual growth with nearly $1 trillion put to work in Shari'a structures. But the specialists on Wall Street who want to bring securitization to other parts of the world may have to consider that the collateral, or debt, repackaged into bonds has to meet strict guidelines that adhere to principles of Islam.

Week on the Street

CME, Citadel Team Up For CDS Clearing Facility

CME Group, the world's largest derivatives exchange, and hedge fund Citadel Investment Group said last Tuesday they have teamed up to create a central counterparty clearing facility for credit default swaps.

Hedge Funds Have Worst Month In A Decade

As expected, hedge funds experienced their worst month for returns in 10 years in September, according to hedge fund advisory firm Hennessee Group. Its flagship index, the Hennessee Hedge Fund Index, declined 6.2% last month.

BofA Posts Soft 3Q

Bank of America bumped up its third-quarter earnings announcement by two weeks, releasing results last Monday that failed to match analyst estimates while at the same time slashing its quarterly dividend in half.

Fed Cuts Rate, Shores Up CP Market

The Federal Reserve last Wednesday cut its federal funds rate by 50 basis points to 1.5%, the lowest level since August 2004. The move by the Fed came just a day after the US central bank unveiled a program aimed at alleviating the credit logjam in the US commercial paper market.

Securities in Registration

Securities In Registration

The below is a list of planned new offerings that have been registered with the SEC in the past month, but have not yet come to market. Deals that have been withdrawn are excluded. Outstanding shelf registrations are not listed here, but new shelf registrations are listed weekly in this section of the magazine. The listing is sorted by filing date. To add or delete listings, or to request corrections in this section, please contact Matthew Toole at (646) 822-7560.

Aftermarket Performance

Aftermarket Performance

Best and worst IPO performance for 2008, along with performance of recent stock offerings.

References

Top Financial/Legal Advisers

Thomson Reuters' league tables for 2008's third quarter.