Today is Tuesday, May 31, 2022, and here’s your weekly selection of essential intelligence on financial markets and the global economy from S&P Global Market Intelligence. Subscribe to be notified of each new Insight Weekly.
In this edition, we take a close look at the bond issuance of Asia-Pacific banks. Bond issuance remains subdued as rising interest rates across the world and concerns over the negative impacts of China's COVID-19 lockdown measures create uncertainties for both issuers and investors. But looking ahead, analysts expect some improvement in bank bond issuance in the region. In India, several banks plan to raise funds in the bond market, seeking to take advantage of still-low interest rates before the central bank embarks on a policy tightening cycle.
The global insurance industry disclosed roughly $1.3 billion in collective losses and reserve charges related to the Russia-Ukraine war in the first quarter, according to an S&P Global Market Intelligence analysis. Insurers and reinsurers in Europe were hit particularly hard, with some signaling that losses may impact future earnings as the situation escalates.
After soaring in 2021, the market for special purpose acquisition companies is falling back to earth in 2022. SPAC mergers, which bring private companies into public markets without a traditional IPO, have declined in value from a record 2021 and fewer new SPACs are coming to market, according to S&P Global Market Intelligence data. Some investment banks have pulled back on their SPAC businesses and private investment in public equity financing for SPACs has slowed, experts say.
- In Focus: Asian Banks' Bond Issuance
-
Asia bank bond issuance stays tepid in April amid rate hikes, China lockdowns
Mitsubishi UFJ Financial and Japan Bank for International Cooperation were the only bond issuers among Asia-Pacific banks in April, raising an aggregate $3.50 billion, according to S&P Global Market Intelligence.
—Read the full article from S&P Global Market Intelligence
Indian banks to raise bond funds to lock in low rates before window closes
Indian banks are looking to raise funds through the bond market in the next few months to capitalize on low interest rates, even as most banks meet capital requirements.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Financials
-
US banks pull back on bond purchases as funding outlook shifts
Interest rates have continued to rise in the second quarter, but banks appear to have held off on securities deployment as loans have continued to grow and deposits have leveled off.
—Read the full article from S&P Global Market Intelligence
US bank margins fall in Q1 despite increase in rates
The Fed kicked off highly anticipated rate hikes in mid-March and long-term rates rose notably ahead of the move, but the banking industry's aggregate, taxable equivalent net interest margin dipped in the first quarter.
—Read the full article from S&P Global Market Intelligence
European i-banks edge out US peers as volatile markets boost Q1 trading revenues
Market volatility fueled double-digit income growth in fixed-income, currency and commodities for global investment banks in the first quarter of 2022.
—Read the full article from S&P Global Market Intelligence
Combined Q1 profit of 3 biggest Mexican banks jumps 40.8% YOY
Combined net profit for Grupo Financiero BBVA México, Grupo Financiero Banorte and Grupo Financiero Inbursa increased 40.8% year over year to 34.24 billion pesos.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Insurance
-
Global insurers take $1.3B in losses from Russia-Ukraine war in Q1
Swiss Re experienced the largest war-related impact with a $283 million reserve hit for potential claims. Hannover Re established a "precautionary reserve" of more than $160 million for claims related to the Ukraine-Russia war.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Private Equity
-
Global private equity deal value inches up in April
A total of 1,611 private equity deals were announced globally in April, down 22.2% from the same month in 2021, according to S&P Global Market Intelligence data.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Fintech
-
Venture capitalists shift to funding APAC digital lending companies in Q1
Funding for firms in the digital lending space, which was negatively impacted by the pandemic, increased to 52 deals in the first quarter, up from 38 from the first quarter of last year, S&P Global Market Intelligence data shows.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Credit and Markets
-
SPAC boom fizzles as market retreats, threat of new regulation looms
A previously euphoric corner of the financial world has turned more humdrum as investors lose their appetite for risk and eye potentially stricter rules for special purpose acquisition companies.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Technology, Media and Telecommunications
-
Meta, Snap look to lead Big Tech into metaverse
Making the metaverse work will require more widespread adoption of augmented and virtual reality, and Meta, along with Snap, is positioned to lead the way, analysts said. Other Big Tech companies are likely to follow.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: ESG
-
No guaranteed fix for woeful C-suite diversity stats at PE portfolio companies
The issue is front and center for firms and their investors, but it is unclear whether efforts to redress the balance will be effective.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Energy and Utilities
-
A decade into tariffs, US solar manufacturing is still deep in Asia's shadow
Washington has been unwilling to provide targeted incentives for solar manufacturing, relying instead on import tariffs that have raised panel prices while leaving the country dependent on factories in Southeast Asia.
—Read the full article from S&P Global Market Intelligence
Australia power plant pipeline includes 50 GW of wind, solar resources
Australia's power generation mix, now nearly two-thirds coal and natural gas, is undergoing a dramatic transformation, with nearly 50 GW of wind and solar resources under development.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Metals and Mining
-
Ukraine war intensifies shipping challenges amid looming graphite supply crunch
Shipping constraints, first triggered by the COVID-19 pandemic and now exacerbated by the war in Ukraine, have stymied developers and suppliers aiming to feed the world's growing hunger for graphite.
—Read the full article from S&P Global Market Intelligence
-
- The Week in M&A
-
Siemens Energy launches €4B takeover bid for wind unit Siemens Gamesa
Deal Profile: Boston-based Brookline Bancorp to acquire NY-based PCSB Financial in $313M deal
Deal Profile: Massachusetts-based Cambridge Trust, Northmark Bank to merge in all-stock deal
Deal Tracker: Europe's media, telecom M&A falls 18.2% YOY in April
-
The Big Number
Trending
—Read more on S&P Global Market Intelligence and follow @karinrives on Twitter
Seek & Prosper
Essential Intelligence from S&P Global — a powerful combination of data, technology, and expertise — helps you push past the expected and renders the status quo obsolete. Because a better, more prosperous future is yours for the seeking.
Additional Insights from S&P Global Market Intelligence
Check out other weekly newsletters highlighting our exclusive features and analysis:
ESG Insider: News and insights into environmental, social and governance developments driving change in business and investment decisions. Click here to subscribe.
Policy Intel: Explore exclusive news and research on policy and regulatory developments in the U.S. and around the globe. Click here to subscribe.
Private Equity Pulse: Need-to-know investments. Sharp insight. Private Equity Pulse offers our top picks of global private equity news stories. Click here to subscribe.
NEXT: Stay up to date on how technology is reshaping the future of industries across global markets. Click here to subscribe.
Written and compiled by Louis Bacani