Chillin' out till it needs to be funded
Even as banks enjoyed the spree on the bourses and the pre-election equity juggernaut moves to within 5% of the S&P 500, the weekend was relatively quiet except for a big deal week in Asia on the back of fund injections into AIA from its promoters with Wednesday and Thursday seeing amazing deals in the Asian Debt and Equity markets. Chinese Banks dominated local currency debt issues with more than $409 B raised int he week by the Top 10 and apart from StanChart everyone in the list was Chinese. High Yield debt also saw 25 issues and 80 Corporate grade debt issues in the week including Thai issuer Kasikorn Bank raising Dollar Debt at just 235 bp over UST and tier 2 funding for Malaysian biggie Maybank($800M0. Siam Bank raised more than $2 B last week in ECB borrowings and Bangkok Bank follows this week. UBS and Goldman Sachs shared the spoils in Equity Capital Markets in Asia with more than 7% share for the week.
While Citi and StanChart ran the Thai Bank issue, HSBC remained int he lead in the region dominating all debt league tables running 75 deals to no. 2 JP Morgan which managed only 54 deals in the 203 Bond Deals this week
That put together makes more than $25 B for HSBC as of Septemebr 14 from Asia (Dealogic) . According to half yearly reviews Asian region has seenmore than $8 B in Fees including M&A markets in Asia which is a respectable value despite the bad year everyone’s been having. HSBC has been betting on Transaction Banking/Trade Finance in the area for a long time and is long ont he Yuan and Rupee. It has recently switched its house views on the Euro to a bullish 2012