Neil's Feed
Aug 28, 2013

Breakingviews-Loss of prime broking diversity could hurt

(The authors are Reuters Breakingviews columnists. The
opinions expressed are their own.)

By Dominic Elliott and Neil Unmack

LONDON, Aug 28 (Reuters Breakingviews) – Bank reform is
having unintended consequences for hedge funds. The result could
be bigger fund blowups that are harder to manage.

Aug 23, 2013

Breakingviews-Bank capital reform means French gain and UK pain

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Neil Unmack

LONDON, Aug 23 (Reuters Breakingviews) – Sometimes it’s
better to be based in Paris than London. On Aug. 20, Reuters
reported that Societe Generale (SOGN.PA: Quote, Profile, Research) will issue a funky kind
of hybrid bond designed to satisfy new capital standards, a
month after UK peer Barclays (BARC.L: Quote, Profile, Research) announced 2 billion pounds
of similar instruments. Yet the French bank will be doing so on
much more attractive terms.

Aug 19, 2013

Breakingviews-Moody’s U-turn raises bar for choosing hybrids

(The author is a Reuters Breakingviews columnist. The
opinions expressed are his own.)

By Neil Unmack

LONDON, Aug 19 (Reuters Breakingviews) – Moody’s (MCO.N: Quote, Profile, Research) is
exposing the shaky foundations underpinning the hottest product
in European corporate finance. The rating agency has decreed
that “hybrid” debt is still debt, even if it resembles equity.
This may sound like a statement of the obvious. But companies
and investors need to digest it.

Aug 16, 2013
via Breakingviews

Dear UK chancellor: why Help to Buy was wrong

Photo

By Neil Unmack and George Hay

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

It is 2020, and the Bank of England’s new governor needs to have a word with the Chancellor of the Exchequer about the UK housing market.

Aug 2, 2013
via Breakingviews

Berlusconi verdict weakens Italian reform drive

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Berlusconi’s conviction leaves Italy’s government weaker, but not broken. The media mogul-cum-politician lost his final appeal on his conviction for tax fraud, which will exacerbate tensions within Rome’s ruling coalition of the centre left and right. Yet neither party wants to face their electorate for now. That means a crisis isn’t imminent – but the prospect of a political consensus that would allow serious reform is now more remote.

Jul 30, 2013

Breakingviews- Barclays shows what CoCos can and can’t do

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.) (Updates to add “potentially” in final
sentence.)

By Neil Unmack

LONDON, July 30 (Reuters Breakingviews) – Barclays’ (BARC.L: Quote, Profile, Research)
latest “CoCo” issue is going to be a tough sell. This may not be
the first occasion the UK bank has issued so-called contingent
convertible bonds. But the 2 billion pounds of securities to be
offered are unusual, and will need to be generously priced.

Jul 16, 2013

Euro zone weakened by banks’ sovereign-debt feast

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Neil Unmack

LONDON, July 16 (Reuters Breakingviews) – The euro zone
crisis has been anaesthetised. Peripheral government bonds are
impervious to rating cuts or even political crises. One reason
is that sovereign debt is being increasingly swallowed up by
domestic investors and banks. The snag is that domestication
stifles lending and discourages reform. Bondholders shouldn’t
assume it makes debt safer.

Jul 10, 2013
via Breakingviews

Higher volatility is the new normal in credit

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Higher volatility is the new normal in credit. For investors, it means the return of real winners and losers.

Jul 2, 2013
via Breakingviews

Cyprus bond swap is good publicity, bad economics

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The creditor banks of Cyprus “voluntarily” exchanged 1 billion euros worth of sovereign debt at cheap rates. That lowers the bailout bill for the euro zone, but the burden fell unevenly on the country’s banks. Exchanging all creditors’ debt would have been fairer – but messier.

Jul 2, 2013

Breakingviews- Cyprus bond swap is good publicity, bad economics

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Neil Unmack

LONDON, July 2 (Reuters Breakingviews) – The creditor banks
of Cyprus “voluntarily” exchanged 1 billion euros worth of
sovereign debt at cheap rates. That lowers the bailout bill for
the euro zone, but the burden fell unevenly on the country’s
banks. Exchanging all creditors’ debt would have been fairer -
but messier.