"Such favourable terms could conceivably arise through a spontaneous and self-confirming bout of optimism – the condition in which Greece’s greatest fear would no longer be “fear itself”, in the famous words of America’s greatest salesman of financial optimism, President Franklin Roosevelt. More realistically, we are past the point of self-confirming optimism."
"Low interest rates should instead be put in place through Europe-wide guarantees on Greece’s debt service. In effect, Greece would be enabled to finance its debts on German and French borrowing terms, as those countries and the rest of the eurozone stand behind Greek debt servicing. German Chancellor Angela Merkel has so far resisted this kind of solution, while Axel Weber, former Bundesbank President, recently hinted at such an approach."
"Most regions including the US and Asia saw a fall in volumes, but Europe, which had previously lagged behind the pace of recovery elsewhere, saw gains. Deals there rose 19.9 per cent from the first quarter to $209bn. However, global M&A for the first half overall rose 27.7 per cent from the same period in 2010, to $1,141.5bn."
"At least 720 companies, including Groupon, the online coupon group, Zynga, the social networking games developer, and Beijing Jingneng Clean Energy, have announced plans this quarter to raise more than $67bn through IPOs. That is the largest number of deals in a quarter since 794 IPOs were announced during the final three months of 2007, according to Bloomberg."
"European banks are now valued at about 0.8 times their book value, according to Citi, against almost 2 times for non-financial groups. Relative to the broader stock market, banks have only been cheaper once in the last 30 years: at the March 2009 trough."
"The rebound has been led by non-financial issuers, such as industrial companies. John Atkins at Leveraged Commentary & Data said the $136.8bn in non-financial CP from US companies was the most outstanding since the first quarter of 2009. European banks have also been significant borrowers in the market. Of the $610bn in US financial CP, $254bn is issued by foreign entities."
"Barred from borrowing money, Chinese local governments have created arms-length financing vehicles in record numbers to circumvent rules. The national audit office said there were 6,576 such vehicles, holding debts of Rmb4,971bn but previous estimates put the total debt load at closer to Rmb14,000bn."
"Not surprisingly, China has been a big driver of growth in both categories. Chinese companies led the pack in dollar issue with $16.5bn raised since January, compared with $15.5bn raised in the whole of 2010. Meanwhile, Agricultural Bank of China and Bank of China are among those that have raised a total of $94.5bn in renminbi-denominated bonds so far this year."