Four-page application form for the Financial Times. Yup! I thought I'd finish in an hour or two.
But surprisingly, It takes me hours to fill in all the blank space and I'm still working on it while grabbing time to update this post - just wanted to set my mind free for a while.
Why does a four-page application take me so long to complete? Only four pages, aren't they? Well, starting from the second page, it asks the candidate to note down each full-time schooling since age 11.
I was trying hard to remember when I started my secondary school, what grades I obtained, what results I achieved, and what else I did at that time...
Then university degrees, professtional training, undergraduate diplomas, summer school course, and loads of stuff flooded into my application form, I found.
What's next? Employment and work experience. Okay, this will include all the work placements, training scheme, and freelance work in the UK - for my journalism's sake!
On top of that, I will have to fill in the things I did in Malta and India. I didn't forget them and I shall not. Obviously, I understand FT wants to study every each one of us – this is how the big brands choose the right candidate.
Before writing this post, I read David and Denae's latest updates, and there is no doubt that their writings are always natural, vivid and engaging. I enjoy that.
I told myself why not take a shot and write likewise?
Wednesday 29 December 2010
Monday 27 December 2010
Harrow magistrates court to be axed
Harrow's Magistrates Court is to be axed in the new year, according to the borough's local papers.
The court, in Rosslyn Crescent, is one of 10 courts in London and 142 in England and Wales to be chopped off. The move aims to cut public spending.
It is also a mockery to the government's pledge of so-called localism.
Local politicians and residents were furious about the government's plan. Bob Blackman, MP for Harrow East said he was angry with the whole process and was not happy, to put it mildly.
The court's Bench chairman Nigel Orton said the decision will be very disappointing news for all in Harrow.
He told the Harrow Observer: "The bench believed justice is best served by keeping open courts, so people can see their local court in operation and have confidence in the criminal justice system."
On top of that, local councillors argued the closure will not save money after they had looked into the proposal.
But the senior presiding judge for England Goldring Djanogly backed the plan by saying: "Access to justice is not just about access to buildings. It is about the type of justice delivered, decent facilities for victims and witnesses and efficient use of the system.
"We are closing the worst courts in the estate – so we can concentrate our limited resources on the best ones."
The court, in Rosslyn Crescent, is one of 10 courts in London and 142 in England and Wales to be chopped off. The move aims to cut public spending.
It is also a mockery to the government's pledge of so-called localism.
Local politicians and residents were furious about the government's plan. Bob Blackman, MP for Harrow East said he was angry with the whole process and was not happy, to put it mildly.
The court's Bench chairman Nigel Orton said the decision will be very disappointing news for all in Harrow.
He told the Harrow Observer: "The bench believed justice is best served by keeping open courts, so people can see their local court in operation and have confidence in the criminal justice system."
On top of that, local councillors argued the closure will not save money after they had looked into the proposal.
But the senior presiding judge for England Goldring Djanogly backed the plan by saying: "Access to justice is not just about access to buildings. It is about the type of justice delivered, decent facilities for victims and witnesses and efficient use of the system.
"We are closing the worst courts in the estate – so we can concentrate our limited resources on the best ones."
Sunday 26 December 2010
For the new year - about writing
I've been writing on this blog for long. I mainly update news stories and some of my course work at College.
So far, it hasn't been personal or light-hearted, it has been a blog for rigid writing - formal news writing, mainly.
Having discussed this on the phone with my dad, a trusted friend with whom I can share many things freely, I've decided to have a go at writing about new stuff.
In the coming new year, I shall read more, think more, and of course, write more. I shall write about anything that interests me, and comment on issues that affect people's day-to-day life.
I should write just like friends chatting in the pub, and apparently writing should not be limited in a rigid way.
Friends have already suggested this to me. Also, I have come across many fascinating blogs, and I realise the authors have put a lot of work into it – I would like to do the same.
I think one gets a feeling of satisfaction from great blogging.
So far, it hasn't been personal or light-hearted, it has been a blog for rigid writing - formal news writing, mainly.
Having discussed this on the phone with my dad, a trusted friend with whom I can share many things freely, I've decided to have a go at writing about new stuff.
In the coming new year, I shall read more, think more, and of course, write more. I shall write about anything that interests me, and comment on issues that affect people's day-to-day life.
I should write just like friends chatting in the pub, and apparently writing should not be limited in a rigid way.
Friends have already suggested this to me. Also, I have come across many fascinating blogs, and I realise the authors have put a lot of work into it – I would like to do the same.
I think one gets a feeling of satisfaction from great blogging.
Friday 10 December 2010
Local business promotion story
By Yixiang Zeng
A business forum was bringing community together through fantatic food and cheerful music yesterday afternoon on Edgware high street.
More than one hundred local residents turned out on the Station Road to celebrate the Music and Food Festival organised by the newly-formed Edgware Business Forum, which aims to promote local businesses.
The event started with a carol concert by the Edgware School children in front of the St Margaret's Church on the Station Road, and then followed by a range of musical groups in different venues along the high street with the offer of free food and drinks provided by the local restaurants.
Forum vice-chairman Peter Dresner, of Peter Adams Furniture shop, said: “The idea is trying to really weaken the awareness of what Edgware is to offer. So during event like this, we offer different things in different places on the road, people will be aware what actually is being offered here.
“People have intended to go to the major malls while they're parking there. It's disappointing we have shops within Edgware that people don't know, and we encourage people realise these shops on the high street.
“It's really great we have children and families coming and enjoy the food and the music, and bring the community together”
Among the cheering crowd enjoyed yesterday's event was Maddy Cordell, a resident from Park Grove in Edgware.
She told The HA1: “In recent times, it seemd to be more events going on like this, it was really great to bring all of these people together and it was a shame for those who didn't join in. Event like this will improve our community spirit.”
The Edgware Safer Neighbourhoods police team also helped organise the event, with Sergeant Dan Reid dressed as Father Christmas and even handed out posters prior to the event.
He said: “We are here to support our local businesses within the community and encourage people to shopping on the station road.
“The event reduces anti-social behaviours and gives youngsters opportunity to perform. It gets people working together to make this area a better place.”
Votorantim dives in for Swiss franc first
Issue: Daily News - 10 November 2010
By Euroweek Reporter
Banco Votorantim brought its debut Swiss franc deal to market on Wednesday morning, a Sfr250m three year.
Sole bookrunner Deutsche Bank priced the deal 204bp over swaps, beating Votorantim’s dollar funding costs in the three year tenor. The issuer is the first Brazilian issuer to do a Swiss franc deal since 1995.
A syndicate banker from Deutsche said that Latin America generally, and Brazil in particular, has a great macro story.
He also highlighted Votorantim’s business model and defensive ownership — the bank is 50% owned by Banco do Brasil, a state-owned entity, and 50% owned by the Votorantim conglomerate.
The issue went almost entirely to retail investors. The bond was fully placed, but not oversubscribed, although it is already performing in the aftermarket — it has tightened around 2bp since pricing on Wednesday morning.
Because absolute yields are so low in the Swiss franc market, investors are looking further down the credit curve or at longer maturities, creating opportunities for EM issues in what some consider a conservative market.
Deutsche took Votorantim on a three day roadshow last week.
Because the deal hit Sfr250m, it is eligible for the Liquid Swiss Index, the benchmark for many asset managers in the market.
Banco Votorantim: The Votorantim Group is one of the largest privately-held industrial conglomerate groups in Latin America.
Swiss franc: The franc (German: Franken, French and Romansh: franc, Italian: franco; code: CHF) is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia.
Swaps: In finance, a swap is a derivative in which counterparties exchange certain benefits of one party's financial instrument for those of the other party's financial instrument.
The benefits in question depend on the type of financial instruments involved. For example, in the case of a swap involving two bonds, the benefits in question can be the periodic interest (or coupon) payments associated with the bonds.
Specifically, the two counterparties agree to exchange one stream of cash flows against another stream. These streams are called the legs of the swap.
The swap agreement defines the dates when the cash flows are to be paid and the way they are calculated.Usually at the time when the contract is initiated at least one of these series of cash flows is determined by a random or uncertain variable such as an interest rate, foreign exchange rate, equity price or commodity price.
The cash flows are calculated over a notional principal amount, which is usually not exchanged between counterparties. Consequently, swaps can be in cash or collateral.
Derivative: a word or thing that has been developed or produced from another word or thing.
Collateral: Property or sth valuable that you promise to gvie to sb if you cannot oay back money that you borrow.
Tenor : The length of time until the maturity date is often referred to as the term or tenor or maturity of a bond
Issuer: is the entity (company or govt.) who borrows an amount of money (issuing the bond) and pays the interest.
Syndicate： The most common process of issuing bonds is through underwriting.
In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors.
Aftermarket: The period immediately after the market listing of shares issued via an Initial Public Offering (IPO), when investors can trade in the stock for the first time.
Yield: to produce or provide sth, for example, a profit, result or crop
Maturities: Maturity: (of an insurance plicy, etc.)the time when money you have invested is ready to be paid
EM: emerging market
Liquid Swiss Index: Credit Suisse is a leading global financial services company, offering clients financial advice in all aspects of private banking, investment banking and asset management.
Credit Suisse First Boston launched the Liquid Swiss Index (LSI) at the end
Benchmark: Something which can be measured and used as a standard that other things can be compared with
Asset managers: Asset management refers to the professional management of investments such as stocks and bonds, along with real estate.
Dealer: a person whose business is buying and selling a particular product
Roadshow: a travelling show arranged by a radio or television programme, or by a magazine, company or political party
Yield curve: In finance, the yield curve is the relation between the interest rate (or cost of borrowing) and the time to maturity of the debt for a given borrower in a given currency.
For example, the U.S. dollar interest rates paid on U.S. Treasury securities for various maturities are closely watched by many traders, and are commonly plotted on a graph such as the one on the right which is informally called "the yield curve." More formal mathematical descriptions of this relation are often called the term structure of interest rates.
By Euroweek Reporter
Banco Votorantim brought its debut Swiss franc deal to market on Wednesday morning, a Sfr250m three year.
Sole bookrunner Deutsche Bank priced the deal 204bp over swaps, beating Votorantim’s dollar funding costs in the three year tenor. The issuer is the first Brazilian issuer to do a Swiss franc deal since 1995.
A syndicate banker from Deutsche said that Latin America generally, and Brazil in particular, has a great macro story.
He also highlighted Votorantim’s business model and defensive ownership — the bank is 50% owned by Banco do Brasil, a state-owned entity, and 50% owned by the Votorantim conglomerate.
The issue went almost entirely to retail investors. The bond was fully placed, but not oversubscribed, although it is already performing in the aftermarket — it has tightened around 2bp since pricing on Wednesday morning.
Because absolute yields are so low in the Swiss franc market, investors are looking further down the credit curve or at longer maturities, creating opportunities for EM issues in what some consider a conservative market.
Deutsche took Votorantim on a three day roadshow last week.
Because the deal hit Sfr250m, it is eligible for the Liquid Swiss Index, the benchmark for many asset managers in the market.
Banco Votorantim: The Votorantim Group is one of the largest privately-held industrial conglomerate groups in Latin America.
Swiss franc: The franc (German: Franken, French and Romansh: franc, Italian: franco; code: CHF) is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia.
Swaps: In finance, a swap is a derivative in which counterparties exchange certain benefits of one party's financial instrument for those of the other party's financial instrument.
The benefits in question depend on the type of financial instruments involved. For example, in the case of a swap involving two bonds, the benefits in question can be the periodic interest (or coupon) payments associated with the bonds.
Specifically, the two counterparties agree to exchange one stream of cash flows against another stream. These streams are called the legs of the swap.
The swap agreement defines the dates when the cash flows are to be paid and the way they are calculated.Usually at the time when the contract is initiated at least one of these series of cash flows is determined by a random or uncertain variable such as an interest rate, foreign exchange rate, equity price or commodity price.
The cash flows are calculated over a notional principal amount, which is usually not exchanged between counterparties. Consequently, swaps can be in cash or collateral.
Derivative: a word or thing that has been developed or produced from another word or thing.
Collateral: Property or sth valuable that you promise to gvie to sb if you cannot oay back money that you borrow.
Tenor : The length of time until the maturity date is often referred to as the term or tenor or maturity of a bond
Issuer: is the entity (company or govt.) who borrows an amount of money (issuing the bond) and pays the interest.
Syndicate： The most common process of issuing bonds is through underwriting.
In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors.
Aftermarket: The period immediately after the market listing of shares issued via an Initial Public Offering (IPO), when investors can trade in the stock for the first time.
Yield: to produce or provide sth, for example, a profit, result or crop
Maturities: Maturity: (of an insurance plicy, etc.)the time when money you have invested is ready to be paid
EM: emerging market
Liquid Swiss Index: Credit Suisse is a leading global financial services company, offering clients financial advice in all aspects of private banking, investment banking and asset management.
Credit Suisse First Boston launched the Liquid Swiss Index (LSI) at the end
Benchmark: Something which can be measured and used as a standard that other things can be compared with
Asset managers: Asset management refers to the professional management of investments such as stocks and bonds, along with real estate.
Dealer: a person whose business is buying and selling a particular product
Roadshow: a travelling show arranged by a radio or television programme, or by a magazine, company or political party
Yield curve: In finance, the yield curve is the relation between the interest rate (or cost of borrowing) and the time to maturity of the debt for a given borrower in a given currency.
For example, the U.S. dollar interest rates paid on U.S. Treasury securities for various maturities are closely watched by many traders, and are commonly plotted on a graph such as the one on the right which is informally called "the yield curve." More formal mathematical descriptions of this relation are often called the term structure of interest rates.
Banca Popolare di Vicenza taps MTNs for Eu155m
Issue: Daily News - 3 November 2010
By Euroweek Reporter
Italy’s Banca Popolare di Vicenza sold a Eu155m floating rate note on Tuesday — its largest private placed bond since 2005 and its first outing in the market since March.
The three year note, dealt through Royal Bank of Scotland and sold at par, pays a coupon of 200bp over six month Euribor for the first two years, stepping down to 40bp over for the remainder.
Banca Popolare di Vicenza sold a Eu500m two year floating rate note in the public market late in September. That paid 155bp over three month Euribor and was sold at par.
"The 200bp coupon would be a decent premium on the two year FRN issued in September,” said Dietmar Tzschentke, bank credit analyst at UniCredit in Munich.
“That steps down to plus 40bp in May 2013 — the investor is betting that Euribor will go up in two years time to compensate for the step down in spread."
Aside from the Eu500m public deal sold late in September, this is the bank’s first outing in the European bond markets since March, when it sold a Eu120m floating rate private placement due 2012, according to Dealogic. That deal paid a coupon of 80bp over three month Euribor and was issued at 99.8.
It is also the issuer’s largest private placement since September 2005, when it sold a Eu300m two year floating rate note via HSBC, according to Dealogic. That note paid a coupon of 10bp over three month Euribor and was issued at 99.951.
Italian banks are less affected by sovereign debt fears than those of other Southern European countries such as Spain and Portugal, which should help their ability to issue debt, said analysts.
"As with all the Italian banks — Banca Populare di Vicenza's ability to issue in the capital markets will be less impacted by sovereign headline risk and volatility than Irish, Portuguese or Spanish banks, for example," said Tzschentke.
Floating rate notes (FRNs): are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a spread. The spread is a rate that remains constant.
Almost all FRNs have quarterly coupons, i.e. they pay out interest every three months, though counter examples do exist.
At the beginning of each coupon period, the coupon is calculated by taking the fixing of the reference rate for that day and adding the spread. A typical coupon would look like 3 months USD LIBOR +0.20%.
Par: The value that a share in a company had originally Banca Popolare di Vicenza: Banca Popolare di Vicenza (BPVI) was established in 1866.
For more than 140 years the Bank has been offering retail and corporate banking services. Its headquarters are located in Vicenza, in Italy.
Premium: an extra payment added to the basic rate
UniCredit: UniCredit is a major international financial institution with strong roots in 22 European countries and an international network present in approximately 50 markets, with 9,578 branches and more than 162,000 employees.
In the CEE region, UniCredit operates the largest international banking network with around 4,000 branches and outlets.
The Group operates in the following countries: Austria Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine.
History
The group's origins date back over five centuries to the establishment of Rolo Banca in 1473, when Monte di Pietà, a public institute providing secured loans, was created in Bologna.
More recently, the UniCredit is the result of the merger of nine of Italy's largest banks and the subsequent combination with the German HVB Group and the Italian Capitalia Group.
Euribor: The Euro Interbank Offered Rate ‘EURIBOR®’, which is the money market reference rate for the euro.
European Bond Market: A public market (more details see another page)
Dealogic: provides a platform for investment banking and capital markets professionals globally to help improve strategy, competitiveness, and execution.
The platform incorporates technology, data, analytics and consulting to help investment banks better understand their clients and the competitive landscape so they can allocate resources and execute deals more effectively.
History
Dealogic was established in the UK in 1983 by Simon Hessel, Peter Ogden and Philip Hulme. In 1991 the Group acquired the assets of a US capital markets communications business headed up by Tom Fleming which provided the Group with an established customer base in the US securities industry.
Through carefully managed growth Dealogic now employs over 400 people and has offices in London, New York, Hong Kong, Tokyo and Sydney.
Due: When a sum of money is due, it must be paid immediately
Sovereign debt: A sovereign bond is a bond issued by a national government.
The term usually refers to bonds issued in foreign currencies, while bonds issued by national governments in the country's own currency are referred to as government bonds.
The total amount owed to the holders of the sovereign bonds is called sovereign debt.
Medium-term notes (MTNs): are debt securities with maturities that range from 9 months to 30 years or longer.
Tap: to choose sb to do a particular job
By Euroweek Reporter
Italy’s Banca Popolare di Vicenza sold a Eu155m floating rate note on Tuesday — its largest private placed bond since 2005 and its first outing in the market since March.
The three year note, dealt through Royal Bank of Scotland and sold at par, pays a coupon of 200bp over six month Euribor for the first two years, stepping down to 40bp over for the remainder.
Banca Popolare di Vicenza sold a Eu500m two year floating rate note in the public market late in September. That paid 155bp over three month Euribor and was sold at par.
"The 200bp coupon would be a decent premium on the two year FRN issued in September,” said Dietmar Tzschentke, bank credit analyst at UniCredit in Munich.
“That steps down to plus 40bp in May 2013 — the investor is betting that Euribor will go up in two years time to compensate for the step down in spread."
Aside from the Eu500m public deal sold late in September, this is the bank’s first outing in the European bond markets since March, when it sold a Eu120m floating rate private placement due 2012, according to Dealogic. That deal paid a coupon of 80bp over three month Euribor and was issued at 99.8.
It is also the issuer’s largest private placement since September 2005, when it sold a Eu300m two year floating rate note via HSBC, according to Dealogic. That note paid a coupon of 10bp over three month Euribor and was issued at 99.951.
Italian banks are less affected by sovereign debt fears than those of other Southern European countries such as Spain and Portugal, which should help their ability to issue debt, said analysts.
"As with all the Italian banks — Banca Populare di Vicenza's ability to issue in the capital markets will be less impacted by sovereign headline risk and volatility than Irish, Portuguese or Spanish banks, for example," said Tzschentke.
Floating rate notes (FRNs): are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a spread. The spread is a rate that remains constant.
Almost all FRNs have quarterly coupons, i.e. they pay out interest every three months, though counter examples do exist.
At the beginning of each coupon period, the coupon is calculated by taking the fixing of the reference rate for that day and adding the spread. A typical coupon would look like 3 months USD LIBOR +0.20%.
Par: The value that a share in a company had originally Banca Popolare di Vicenza: Banca Popolare di Vicenza (BPVI) was established in 1866.
For more than 140 years the Bank has been offering retail and corporate banking services. Its headquarters are located in Vicenza, in Italy.
Premium: an extra payment added to the basic rate
UniCredit: UniCredit is a major international financial institution with strong roots in 22 European countries and an international network present in approximately 50 markets, with 9,578 branches and more than 162,000 employees.
In the CEE region, UniCredit operates the largest international banking network with around 4,000 branches and outlets.
The Group operates in the following countries: Austria Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine.
History
The group's origins date back over five centuries to the establishment of Rolo Banca in 1473, when Monte di Pietà, a public institute providing secured loans, was created in Bologna.
More recently, the UniCredit is the result of the merger of nine of Italy's largest banks and the subsequent combination with the German HVB Group and the Italian Capitalia Group.
Euribor: The Euro Interbank Offered Rate ‘EURIBOR®’, which is the money market reference rate for the euro.
European Bond Market: A public market (more details see another page)
Dealogic: provides a platform for investment banking and capital markets professionals globally to help improve strategy, competitiveness, and execution.
The platform incorporates technology, data, analytics and consulting to help investment banks better understand their clients and the competitive landscape so they can allocate resources and execute deals more effectively.
History
Dealogic was established in the UK in 1983 by Simon Hessel, Peter Ogden and Philip Hulme. In 1991 the Group acquired the assets of a US capital markets communications business headed up by Tom Fleming which provided the Group with an established customer base in the US securities industry.
Through carefully managed growth Dealogic now employs over 400 people and has offices in London, New York, Hong Kong, Tokyo and Sydney.
Due: When a sum of money is due, it must be paid immediately
Sovereign debt: A sovereign bond is a bond issued by a national government.
The term usually refers to bonds issued in foreign currencies, while bonds issued by national governments in the country's own currency are referred to as government bonds.
The total amount owed to the holders of the sovereign bonds is called sovereign debt.
Medium-term notes (MTNs): are debt securities with maturities that range from 9 months to 30 years or longer.
Tap: to choose sb to do a particular job
Saturday 4 December 2010
QNB takes $1.5bn bond from $6bn book
I am trying to analyse some financial news articles here.
By Euroweek Reporter
Qatar National Bank sold its debut $1.5bn five year Reg S only deal on Tuesday, with lead managers Barclays Capital, BNP Paribas, JPMorgan, QNB Capital and Standard Chartered building a book of $6bn for the note.
“The book wasn’t just quantity, it was quality,” said one bookrunner on the deal. “Many orders came in with a note attached making it clear the investors wanted a full allocation.”
QNB, rated Aa3/A+/A+, is the largest bank in Qatar. At the end of March, it had total assets of Qr183bn ($50bn), about 46% of the country’s banking assets.
“The deal is the largest ever trade in Reg S-only format from the Ceemea region,” said the bookrunner. “There’s a lot of cash out there but investors want to put it to work in blue-chip names, and investors like the Qatar credit story in general.”
The Qatari government owns half of the bank through its investment arm, Qatar Investment Authority, giving the institution a high probability of support from the state. The remaining 50% is publicly traded.
The deal was priced at 99.017 with a 3.125% coupon, and was trading on Wednesday (midday) around re-offer.
Investors used the Qatari sovereign rather than other banks in the region as the comparable issuer. The deal was priced with around a 25bp premium to where the lead managers calculated a new Qatar sovereign deal would price.
“It’s spectacular for QNB to be able to raise this volume of interest with a spread this tight in this kind of market where investors are being shown so many new deals,” said the bookrunner.
Moody’s said that the bank has good earnings power, strong efficiency levels and solid capitalisation.
Although it has historically been heavily dependent on business related to government and semi-government agencies, management has in recent years addressed this issue by focusing on the development of its private sector business, added Moody’s. The bank is also expanding its operations geographically, although this is at an early stage.
Challenges for the institution include funding and credit concentrations, and the increased competition that is putting pressure on the interest rate margins of all Qatari banks.
Qatar National Bank: Qatar National Bank (QNB), established in 1964 as the country’s first Qatari-owned commercial bank, has an ownership structure split between the Qatar Investment Authority (50%) and the private sector (50%).
Reg S: Regulation S is a "safe harbor" that defines when an offering of securities will be deemed to come to rest abroad and therefore not be subject to the registration obligations imposed under Section 5 of the 1933 Act.
The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor.
Lead manager (Reuters): The bank awarded the mandate by a borrower to arrange the raising of money via a bond, a loan or a share issue.
The lead manager negotiates with the borrower or issuer, assesses market conditions and puts together the syndicate, which lends the money or underwrites the issue.
Also called syndicate manager, managing underwriter or lead underwriter.
Underwriter (Reuter): In a general sense, an underwriter is a person or company that assumes financial risk.
In financial markets an underwriter is a financial institution closely involved in the pricing and distribution of a new issue of a security.
In exchange for a fee, the underwriter guarantees to the company issuing the securities that it will receive a set price for a set volume of securities.
If there is insufficient demand the underwriter may have to sell them at a loss or retain them.
Underwriter (FT): A financial institution that underwrites a share issue, that arranges to sell shares to investors and agrees to buy any shares that are not bought by them.
Underwrite (FT):To guarantee against financial risk by assuming that risk, as financial institutions do when they offer (underwrite) an insurance policy, or when they buy a new securities issue from the issuer for re-sale to the public.
A new securities issue is normally underwritten by a group of investment banks (called the underwriting group or syndicate).
One bank, appointed by the group as lead manager, signs the underwriting agreement that specifies all the details of the issuer-underwriter relationship (including pricing), and handles other arrangements including distribution of the issue through dealers or other investment banks (the selling group).
The fee the underwriter earns is the spread (the underwriting spread) between the price it pays the issuer for the stock, and the price at which it re-sells the stock to the public (the issue or public offering price), either directly or through dealers.
Barclays Capital: In 1986 it became the first British bank to have its shares listed on the Tokyo and New York stock exchanges.
BNP Paribas: May 2000 witnessed the birth of France's premier bank, a new European leader in financial services. The creation of the BNP Paribas Group, led by Michel Pébereau then Chairman and CEO of BNP, was at that time the largest bank merger ever implemented in France.
JPMorgan: In 1799, The Manhattan Company, the firm's earliest predecessor institution, is chartered.
QNB Capital: QNB Capital LLC is wholly owned by QNB and authorised by the Qatar Financial Centre Regulatory Authority.
Standard Chartered: Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.
Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods between Europe, Asia and Africa.
Book: record
Note: a piece of paper money.
Bookrunner: Primary issuance is arranged by bookrunners who arrange the bond issue, have the direct contact with investors and act as advisors to the bond issuer in terms of timing and price of the bond issue.
Aa3/A+/A+: In investment, the bond credit rating assesses the credit worthiness of a corporation's debt issues.
Blue-chip: According to New York Stock Exchange, a blue-chip stock is stock in a company with a national reputation for quality, reliability and the ability to operate profitably in good times and bad.
The Qatar credit story: The story of managing its credit (assets, money in bank etc).
Coupon: The coupon or coupon rate of a bond is the amount of interest paid per year expressed as a percentage of the face value of the bond. It is the interest rate that a bond issuer will pay to a bondholder.
The Qatari sovereign: focus on "autonomous"
bp: A basis point is a unit equal to 1/100th of a percentage point. Put another way: 1 bp = 0.01%
For example, if a report says there has been a "1% increase" from a 10% interest rate, this could refer to an increase either from 10% to 10.1% (relative, 1% of 10%), or from 10% to 11% (absolute, 1% plus 10%).
If, however, the report says there has been a "10 basis point increase" from a 10% interest rate, then we know that the interest rate of 10% (the "basis", if you will) has increased by 0.10% (the absolute change) to a 10.1% rate.
Premium: An extra payment added to the basic rate.
Moody's Corporation (NYSE: MCO) is the holding company for Moody's Investors Service, a Credit rating agency which performs international financial research and analysis on commercial and government entities.
The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. The company has a 40% share in the world credit rating market, as does its main rival, Standard & Poor's.
The interest rate margins: An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender.
For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.
Interests rates are fundamental to a capitalist society. Interest rates are normally expressed as a percentage rate over the period of one year.
Interest rates targets are also a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.
Dealer: A person whose business is buying and selling a particular product.
By Euroweek Reporter
Qatar National Bank sold its debut $1.5bn five year Reg S only deal on Tuesday, with lead managers Barclays Capital, BNP Paribas, JPMorgan, QNB Capital and Standard Chartered building a book of $6bn for the note.
“The book wasn’t just quantity, it was quality,” said one bookrunner on the deal. “Many orders came in with a note attached making it clear the investors wanted a full allocation.”
QNB, rated Aa3/A+/A+, is the largest bank in Qatar. At the end of March, it had total assets of Qr183bn ($50bn), about 46% of the country’s banking assets.
“The deal is the largest ever trade in Reg S-only format from the Ceemea region,” said the bookrunner. “There’s a lot of cash out there but investors want to put it to work in blue-chip names, and investors like the Qatar credit story in general.”
The Qatari government owns half of the bank through its investment arm, Qatar Investment Authority, giving the institution a high probability of support from the state. The remaining 50% is publicly traded.
The deal was priced at 99.017 with a 3.125% coupon, and was trading on Wednesday (midday) around re-offer.
Investors used the Qatari sovereign rather than other banks in the region as the comparable issuer. The deal was priced with around a 25bp premium to where the lead managers calculated a new Qatar sovereign deal would price.
“It’s spectacular for QNB to be able to raise this volume of interest with a spread this tight in this kind of market where investors are being shown so many new deals,” said the bookrunner.
Moody’s said that the bank has good earnings power, strong efficiency levels and solid capitalisation.
Although it has historically been heavily dependent on business related to government and semi-government agencies, management has in recent years addressed this issue by focusing on the development of its private sector business, added Moody’s. The bank is also expanding its operations geographically, although this is at an early stage.
Challenges for the institution include funding and credit concentrations, and the increased competition that is putting pressure on the interest rate margins of all Qatari banks.
Qatar National Bank: Qatar National Bank (QNB), established in 1964 as the country’s first Qatari-owned commercial bank, has an ownership structure split between the Qatar Investment Authority (50%) and the private sector (50%).
Reg S: Regulation S is a "safe harbor" that defines when an offering of securities will be deemed to come to rest abroad and therefore not be subject to the registration obligations imposed under Section 5 of the 1933 Act.
The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor.
Lead manager (Reuters): The bank awarded the mandate by a borrower to arrange the raising of money via a bond, a loan or a share issue.
The lead manager negotiates with the borrower or issuer, assesses market conditions and puts together the syndicate, which lends the money or underwrites the issue.
Also called syndicate manager, managing underwriter or lead underwriter.
Underwriter (Reuter): In a general sense, an underwriter is a person or company that assumes financial risk.
In financial markets an underwriter is a financial institution closely involved in the pricing and distribution of a new issue of a security.
In exchange for a fee, the underwriter guarantees to the company issuing the securities that it will receive a set price for a set volume of securities.
If there is insufficient demand the underwriter may have to sell them at a loss or retain them.
Underwriter (FT): A financial institution that underwrites a share issue, that arranges to sell shares to investors and agrees to buy any shares that are not bought by them.
Underwrite (FT):To guarantee against financial risk by assuming that risk, as financial institutions do when they offer (underwrite) an insurance policy, or when they buy a new securities issue from the issuer for re-sale to the public.
A new securities issue is normally underwritten by a group of investment banks (called the underwriting group or syndicate).
One bank, appointed by the group as lead manager, signs the underwriting agreement that specifies all the details of the issuer-underwriter relationship (including pricing), and handles other arrangements including distribution of the issue through dealers or other investment banks (the selling group).
The fee the underwriter earns is the spread (the underwriting spread) between the price it pays the issuer for the stock, and the price at which it re-sells the stock to the public (the issue or public offering price), either directly or through dealers.
Barclays Capital: In 1986 it became the first British bank to have its shares listed on the Tokyo and New York stock exchanges.
BNP Paribas: May 2000 witnessed the birth of France's premier bank, a new European leader in financial services. The creation of the BNP Paribas Group, led by Michel Pébereau then Chairman and CEO of BNP, was at that time the largest bank merger ever implemented in France.
JPMorgan: In 1799, The Manhattan Company, the firm's earliest predecessor institution, is chartered.
QNB Capital: QNB Capital LLC is wholly owned by QNB and authorised by the Qatar Financial Centre Regulatory Authority.
Standard Chartered: Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.
Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods between Europe, Asia and Africa.
Book: record
Note: a piece of paper money.
Bookrunner: Primary issuance is arranged by bookrunners who arrange the bond issue, have the direct contact with investors and act as advisors to the bond issuer in terms of timing and price of the bond issue.
Aa3/A+/A+: In investment, the bond credit rating assesses the credit worthiness of a corporation's debt issues.
Blue-chip: According to New York Stock Exchange, a blue-chip stock is stock in a company with a national reputation for quality, reliability and the ability to operate profitably in good times and bad.
The Qatar credit story: The story of managing its credit (assets, money in bank etc).
Coupon: The coupon or coupon rate of a bond is the amount of interest paid per year expressed as a percentage of the face value of the bond. It is the interest rate that a bond issuer will pay to a bondholder.
The Qatari sovereign: focus on "autonomous"
bp: A basis point is a unit equal to 1/100th of a percentage point. Put another way: 1 bp = 0.01%
For example, if a report says there has been a "1% increase" from a 10% interest rate, this could refer to an increase either from 10% to 10.1% (relative, 1% of 10%), or from 10% to 11% (absolute, 1% plus 10%).
If, however, the report says there has been a "10 basis point increase" from a 10% interest rate, then we know that the interest rate of 10% (the "basis", if you will) has increased by 0.10% (the absolute change) to a 10.1% rate.
Premium: An extra payment added to the basic rate.
Moody's Corporation (NYSE: MCO) is the holding company for Moody's Investors Service, a Credit rating agency which performs international financial research and analysis on commercial and government entities.
The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. The company has a 40% share in the world credit rating market, as does its main rival, Standard & Poor's.
The interest rate margins: An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender.
For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.
Interests rates are fundamental to a capitalist society. Interest rates are normally expressed as a percentage rate over the period of one year.
Interest rates targets are also a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.
Dealer: A person whose business is buying and selling a particular product.
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