Specialist
Former senior executive at BCA Marketplace Ltd
Agenda
- UK DCMs (debt capital markets) – evolution and risks
- Issuance, rating and client demand dynamics for ABS (asset-backed securities) and bonds, including green bond requirements
- Developments in acquisition and bridge financing
- 3-5-year outlook for fixed income trading electrification, touching on auctioning processes
Questions
1.
How has the UK DCM [debt capital markets] landscape changed from 2019-20 up to where we are now?
2.
Why was there such a big resurgence in risk assets in 2021?
3.
How might Q4 2022 and 2023 play out for UK DCMs?
4.
What has the inflationary impact been on bond performance and markets?
5.
What percentage of current DCMs debt is fixed vs floating?
6.
Do you think there’s an incentive as a corporate to issue a lot of debt and lock in some lower fixed rates before the base rates jump up?
7.
How might a more normal rate environment ricochet across DCMs?
8.
How efficient do you think current market pricing is?
9.
How might corporate issuance trends evolve on bonds and loans?
10.
What are the dynamics with big issuers such as Diageo?
11.
How have you seen coupon and yield structures evolving at bond issuance in 2022?
12.
Could you outline the demand for new bonds in the market?
13.
Are more corporate debt issuances having or needing to become linked to green bonds or have some green element in them?
14.
How has the utilisation of DCMs vs private issuances or placements changed?
15.
How open are primary markets at the moment?
16.
Have you seen corporate funding mixes evolve post-coronavirus?
17.
Do you think the hybrid issuance trend you mentioned will be sustainable?
18.
What currency mixes are common for corporates?
19.
Can you see a continued demand for buy-out operator financing going forward?
20.
Pimco bought Morrisons for almost USD 0.80 on the pound. Can you see large haircuts such as this one going forward?
21.
What are you seeing in the ABS [asset-backed securities] market across RMBSs [residential mortgage-backed security], CDOs [collateralised debt obligation], auto loans, credit cards, student loans and SSAs [sovereigns, supranationals and agencies] debt?
22.
As rates are increasing, some people will potentially be at risk and defaulting on their mortgage, especially with higher energy prices. Might you expect some divestment from RMBSs?
23.
What percentage of ABSs coming to market are triple or double A?
24.
To confirm, you expect volumes to remain how they’ve been through H1 2022?
25.
Do you think there are any risks to ABS security ratings, given the current macro outlook?
26.
Could you see a rush to triple and double A rated securities? Do you think there will always be liquidity in this market?
27.
Have you seen any structural trends or any leading indicators of risk appearing in the ABS market, whether that’s at the higher or lower tranches?
28.
Could we see less demand in the SSA market while returning to marginal, or will it be the opposite as investors are in an uncertain environment? They know that the US government has access to the federal reserve so can pay its dues.
29.
How might fixed income electronification impact the DCM space? Will it improve efficiency and liquidity in the market?
30.
Can you see any regulatory issues or increased regulatory scrutiny cropping up within UK DCM?
31.
Is there anything that we haven’t covered around UK DCMs that you’d like to highlight?
