This page contains a Flash digital edition of a book.
ifre.com


July 2010 | ifr special report | 5 GERMAN CORPORATE FUNDING ROUNDTABLE


this year of unrated and sub investment- grade bonds; I think it is probably close to €20bn so far.


So, yes, I think there is a trend towards further disintermediation, especially when we look at the next couple of months. There are signs that banks will start to look again at loan pricing so maybe the bond market will be more stable, in terms of liquidity and the willingness of investors to look at corporate credits.


Mathias Noack: But isn’t this trend basically what we have been promoting to our clients on the debt origination side for a long time? We went out to our corporate clients and explained to them: “Don’t only rely on loan financing, look at other funding opportunities”. Now being a loan banker one might say that I’m a little bit disappointed about the volumes we’ve seen in the loan market. But in principle from a banking perspective in general I think what we are seeing is exactly what we have been going after for quite some time now.


Matthias Gaab: I think what the current environment suggests is a strong bifurcation in the loan market. Borrowers that have access to the bond market will tap those markets for funding and rely on the loan market only for whatever unfunded volume, i.e. back-up lines they need. Especially if you bear in mind the fact that if you look at the CDS market, the senior financials index trades wider than corporates, so


German DCM — H1 2010 1/1/2010–30/6/2010


Bookrunner


1 UniCredit Group 2 Deutsche Bank 3 DZ Bank


6 JP Morgan 7 Nord/LB


8 Barclays Capital


Proceeds Mkt. No. of (US$m) share issues 22,879.0 21,491.0 12,005.3


12.3 11.6 6.5


4HSBC 8,976.8 4.8 5 UBS


8,579.1 7,829.1 7,685.0 7,649.7


7,530.6


4.6 4.2 4.1 4.1


9 Commerzbank 7,546.5 4.1 10 BNP Paribas


13 Credit Suisse


6,018.4 5,630.4


4.1


11 WestLB 6,300.9 3.4 12 LBBW


14 Bank of America Merrill Lynch 5,590.8 15 Goldman Sachs 16 Morgan Stanley


17 RBC Capital Markets


20 Societe Generale Total


Source: Thomson Reuters


5,357.4 4,719.4 4,620.7


18 Bayerische Landesbank Giro 4,113.1 19 RBS


3,872.4 3,099.1


3.2 3.0 3.0 2.9 2.5 2.5 2.2 2.1 1.7


54 66 53 24 25 15 38 24 21 29 35 22 20 9


11 16 47 16 26 6


185,561.8 100.0 396


Marc Mueller, Deutsche Bank; Matthias Gaab, Deutsche Bank; Mathias Noack, UniCredit Group; Johannes Heinloth, BayernLB


you wonder how long this will support the loan business anyway. Bifurcation in the other direction basically means that those names who do not have access to the capital markets for whatever reason, because they are not big enough or they don’t have the reporting standards etc, will continue to rely on the loan market. That will basically mean that they will need to adjust to whatever the banks are in a position to provide to them with in terms of volume and price.


From the banks’ perspective, this will basically mean that the assets they have


German DCM — 2009 1/1/2009–31/12/2009


Bookrunner


1 Deutsche Bank 2 UniCredit Group


Proceeds Mkt. No. of (US$m) share issues 47,466.2 37,410.0


12.2 114 9.7


3 Commerzbank 26,679.5 6.9 4HSBC 22,614.3 5.8 5 JP Morgan 6 DZ Bank


7 BNP Paribas


8 Barclays Capital 9 RBS


10 LBBW 11 Citigroup


12 Morgan Stanley 13 Credit Suisse


14 Societe Generale 15 Nord/LB


22,282.1 21,934.1 21,534.3 18,244.0 17,855.2 17,758.3 13,478.3 13,142.4 12,520.0 10,089.1 9,835.2


16 Bayerische Landesbank Giro 9,107.7 17 RBC Capital Markets 18 Credit Agricole CIB 19 UBS


7,389.6 7,357.6 7,026.0


Source: Thomson Reuters


5.8 5.7 5.6 4.7 4.6 4.6 3.5 3.4 3.2 2.6 2.5 2.4 1.9 1.9 1.8


20 WestLB 6,396.8 1.7 Total


81 73 70 50 67 52 60 52 53 30 37 34 24 44 24 40 12 23 28


387,725.7 100.0 574


on their books, in terms of funded assets, will be probably more geared over time to the mid-cap segment rather than to the large-cap segment. We can always talk about the billions of loans we have to large-cap German corporates, but none of this is drawn. So basically you don’t have it on the balance sheet, it’s a potential commitment that is not going to be drawn.


Johannes Heinloth: I’m a loan banker and I fully agree with what Matthias just said. I’m not saying that the €8bn Telefonica


German DCM — 2008 1/1/2008–31/12/2008


Bookrunner


1 Deutsche Bank 2 UniCredit Group 3 Barclays Capital


Proceeds Mkt. No. of (US$m) share issues 60,599.4 18.1 121 29,622.3 8.8 75 24,292.2 7.2 80


4HSBC 21,229.1 6.3 51 5 Commerzbank 18,395.7 5.5 50 6 RBS


7 BNP Paribas 8 Credit Suisse


9Morgan Stanley 10 JP Morgan 11 Citigroup


12 Goldman Sachs


17,202.4 5.1 52 16,410.9 4.9 41 15,291.1 4.6 43 12,672.1 3.8 32 12,380.6 3.7 33 11,162.0 3.3 23 10,553.3 3.2 17


13 Bank of America Merrill Lynch 10,493.2 3.1 20 14 DZ Bank 15 UBS


16 RBC Capital Markets 17 Societe Generale 18 LBBW


9,206.7 2.7 32 7,717.6 2.3 27 7,687.8 2.3 36 6,884.0 2.1 17 6,250.6 1.9 18


19 Bayerische Landesbank Giro 4,863.3 1.5 19 20 Nomura Total


Source: Thomson Reuters


4,374.4 1.3 5 335,457.8 100.0 582


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16
Produced with Yudu - www.yudu.com