insto - Australian financial markets

In early July, key participants in Australia’s syndicated loans market gathered for a roundtable in the Sydney offices of law firm Blake Dawson. Here is an edited transcript of the discussion, moderated by Insto editor Lachlan Colquhoun.

"Never waste a good crisis" is advice usually attributed to Machiavelli, but German Chancellor Angela Merkel and her finance minister Wolfgang Schaeuble appear to have adopted it as a mantra. One would assume the German financial services regulator, Bafin, would have anticipated the likely market reaction to Germany's  ban on naked short-selling of German-listed securities and CDS transactions. Was it moralising desperation as claimed by commentators, or is there another explanation for this precipitate action?

The Australian labour market has posted another solid performance, with employment rising by 19,600 net jobs in March and the jobless rate unchanged at 5.3 percent. The trend for part-time workers coming back to full employment seems to be continuing, with full time employment up by 30,100 and part-time down by 10,600. CommSec economist Craig James noted that the results showed a 0.6 percent fall in hours worked, after a 2.2 percent increase in February.

Building products group Alesco is reported to be attracting private equity interest after speculation that the company had postponed a decision on the sale of its Marathon tyres division due to a PE approach. Carlyle Group and TPG are believed to be looking for listed assets in the sector, with Carlyle showing interst in the Loscam pallet hire business.

NAB is reportedly looking at a capital raising of up to $3 billion to fund acquisitions, such as its bid for AXA Asia Pacific and possibly a portfolio of RBS branches in the UK.

German building and construction giant Bilfinger Berger says as many as four possible buyers are looking at its Australian unit, which could mean the asset is headed for a trade sale rather than an IPO, worth a possible A$1.5 billion.

Crises create challenges, but also opportunities, and Insto’s 2009 Banker of the Year Mike Smith has made the most of finding opportunities in turbulent times and positioning his institution for exciting growth.

• Russell Investments has secured the services of Greg Liddell as head of investment consulting for Australia. Liddell brings more than 20 years’ experience in the investment and uperannuation sector working across the spectrum of issues facing investors. He joins from Queensland Investment Corporation (QIC) where he spent five years overseeing QIC’s implemented equities program. This program invested up to $17 billion in local and global assets managed in a multi-manager framework.
   

Bank of America-Merrill Lynch is making positive noises about hiring in Australia as it battles to repair its battered reputation in the local employment market, says efinancial careers editor Simon Mortlock

Merrill has begun a recruitment drive in Asia Pacific because sentiment surrounding the bank has “turned a corner”, according Jayanti Bajpai, co-head of APAC global corporate and investment banking.

Positive data and a fall in bond yields boosted markets on Friday.

The US S&P500 stock index gained 1.44 per cent on Friday to end the week 3.6 per cent higher.

Treasuries bounced back on Friday following strong buying of mortgage backed securities by Asian investors.

Data was positive. The US GDP annual decline of 5.7 per cent in Q1 was less than the expected 6.1 per cent estimate.

New CEO for ANZ Australia: ANZ started the week by announcing the appointment of Graham Hodges as acting chief executive officer Australia, following a decision by Brian Hartzer to leave ANZ to pursue his career in internationalbanking. Hodges recently commenced in the role of deputy CEO, based in Melbourne, having formerly been managing director, ANZ National Bank in New Zealand. Hodges will act in the role, effective immediately, until a replacement for Hartzer is identified.