|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||42.22 - 42.22|
|52 Week Range||37.30 - 58.81|
|Beta (5Y Monthly)||1.56|
|PE Ratio (TTM)||6.82|
|Forward Dividend & Yield||8.76 (20.76%)|
|Ex-Dividend Date||May 28, 2019|
|1y Target Est||N/A|
(Bloomberg) -- A senior trader at Natixis SA in New York is leaving the French lender after he was suspended late last year amid an internal probe into some of his transactions, according to people familiar with the matter.Jean-Baptiste Jacquet, a Natixis veteran who oversees some of the firm’s U.S. derivatives businesses, stopped coming to work last year pending the probe, Bloomberg reported in November. Officials at the Paris-based bank have been reviewing whether he acted improperly in how he recorded trades and managed his portfolio of transactions, people familiar with the matter said then.Chief Executive Officer Francois Riahi has been trying to reassure investors and regulators that he has a handle on the bank’s controls after a series of incidents since 2018 dragged down the firm’s shares. The CEO has since hired a new global head of risk from JPMorgan Chase & Co. and a batch of senior traders in Asia, while creating a new role to specifically oversee risks in the U.S.Jacquet didn’t respond to requests for comment. Daniel Wilson, a spokesman for Natixis in Paris, declined to comment on the trader’s departure or on whether the probe had concluded.In a Nov. 26 statement, the bank described Jacquet’s suspension as “a purely internal procedure” that was “by no means” related to a trading loss and that had “no impact whatsoever on Natixis’ clients or businesses.”To contact the reporters on this story: Donal Griffin in London at email@example.com;Viren Vaghela in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Keith Campbell, Dale CroftsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Natixis SA is seeing money returning to its H2O Asset Management affiliate after concern over some of the boutique’s thinly traded bonds sent investors fleeing.“One has to say the promise of liquidity was kept, despite the massive outflows,” Jean Raby, chief executive officer of Natixis Investment Managers International SA, said in an interview in Davos. “Since then, there have been flows that have been coming back to H20 and performance has been good.”H2O, one of the biggest buyers of debt tied to a German financier’s portfolio of companies, marked down about 350 million euros ($388 million) of bonds in its Multibonds fund from near or above par to between 25% and 50% of their face value, fund filings dated June 28 and published in August show.“We’ve announced some measures that could enhance our risk controls both on the level of the group as a whole and within the affiliates,” Raby said. “What happened in H20 did not have any impact on the rest of our business, and since then, business has been very good.”To contact the reporters on this story: Farah Elbahrawy in Dubai at firstname.lastname@example.org;Francine Lacqua in London at email@example.comTo contact the editors responsible for this story: Stefania Bianchi at firstname.lastname@example.org, Shaji MathewFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Pension funds are the ocean liners of global markets. In the U.S. alone, state and local retirement funds have $4.57 trillion in assets. Across the developed world, the pool of money is close to $30 trillion. That means any change in their investment allocation, no matter how incremental, can create a seismic shift in certain corners of finance.The hedge-fund industry, for example, swelled over the past two decades in no small part because of eager pension managers. Local officials banked on star investors delivering outsized gains to help the retirement funds meet their lofty annual return benchmarks, which in some cases exceeded 7%. According to data from Pew Charitable Trusts, U.S. state pension funds had a 26% allocation to alternative investments in 2016, up from just 11% in 2006.Of course, with more hedge funds came fewer ways for them to profit — and pensions took notice. In September 2014, the California Public Employees’ Retirement System rocked Wall Street by announcing that it would divest the entire $4 billion it had across 24 hedge funds and six hedge funds of funds. In 2016, New Jersey’s pension fund cut its $9 billion hedge-fund allocation in half and New York City’s retirement fund for civil employees exited its $1.5 billion portfolio. More than 4,000 hedge funds have been liquidated in the past five years. With even some of the most well-known managers calling it quits, hedge funds are clearly in retreat.The market for private debt and direct lending is trending in precisely the opposite direction. Managers are raising money hand over fist, as they have in each of the past few years. Assets in private-credit strategies now total more than $800 billion — doubling from 2012 and up from less than $100 billion in 2005. By and large, it’s been simply too hard to pass up yields that sometimes crack double digits when typical junk bonds offer just 5%.Not surprisingly, public pension funds want in on the action. An overwhelming majority of private-credit investors expect them to pour money into the asset class in the next three years. While that may sound like good news for the industry in the short-term, it could be an early indication that it’s game over for the booming market as we know it.Bloomberg News’s Fola Akinnibi and Kelsey Butler talked to Al Alaimo, who oversees credit investments for Arizona’s $41 billion State Retirement System. He’s aiming to boost direct lending to 17% of the portfolio from about 13.6%. They also noted that the Ohio Police & Fire Pension Fund and the Teachers’ Retirement System of the State of Illinois are increasing their private-debt exposure. More broadly, 281 U.S. public pensions were involved with private credit in 2019, up from 186 in 2015, according to Preqin data. And they’ve increased their median allocation to 2.9% from 2.1%.Now, that’s far from a huge stake. And pensions are something of an ideal candidate to invest in illiquid private debt, given that they have long time horizons and aren’t vulnerable to investor withdrawals, in contrast to Neil Woodford’s flagship fund and Natixis SA’s H2O Asset Management.That doesn’t mean that they can’t get into trouble, though. As I wrote in August, Alabama’s pension funds got caught up in the bankruptcy of luxury movie and dining chain iPic Entertainment Inc. The state’s pensioners now own and operate the theaters, for better or worse. Marc Green, the pension’s chief investment officer, recently told The Wall Street Journal that working through distressed investments has paid off before and iPic may yet be a winner for the Retirement Systems of Alabama.It’s worth heeding the lesson from the struggles of hedge funds: What worked before might not continue to work in the future, especially if more money is chasing the same strategy. “We wish there were fewer people in the marketplace,” Alaimo said about private debt.Of course, that’s true for any market. But it’s especially risky for private credit and direct lending because handing all the power to borrowers gives them an opening to lower yields and weaken creditor protections. If that sounds familiar, it’s because that’s also what happened in the leveraged-loan market as investors flocked to the floating-rate securities during the Federal Reserve’s tightening cycle. For now, looser covenants aren’t necessarily deal-breakers, but without some balance, they could lead to steeper losses in an economic slowdown. A survey of more than 60 private-credit managers by the industry trade group Alternative Credit Council revealed expectations for the market to further expand and deliver strong returns. Curiously, just 23% said they expected recovery rates to be lower than historical averages over the next three years, while 42% predict they’ll be higher. That might be the case if the economy ramps back up, or slows down but avoids an actual recession. But it seems naive to think private debt will fare better than before when managers are fighting one another for deals and sitting on hundreds of billions of dollars, just waiting for a chance to invest. That dynamic isn’t likely to change soon, especially now that pension-fund behemoths are setting their sights squarely on private debt. For those that have been in the market for years, like the Arizona retirement system, it just means keeping tabs on existing managers to make sure they don’t veer into weaker deals.For those trying to catch what might be the back end of the wave, it’s not so simple. Without proper caution and foresight, they might find themselves quickly navigating troubled waters.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.
The Securities and Exchange Commission approved applications for several asset-management companies to operate active exchange-traded funds without disclosing their holdings each day. It levels the playing field for ETFs relative to mutual funds.
(Bloomberg Opinion) -- China’s small bank problem may be about to get a lot bigger. The slowing economy is exposing vulnerabilities built up by years of aggressive lending — and Beijing’s plans to preserve stability by merging weak lenders with each other could end up creating an even worse headache.The country’s hundreds of rural commercial and city lenders account for 27% of banking assets, but their influence is far larger than this because of their web of connections to the wider system. Small banks are significant players in the interbank market, relying on larger lenders for funding. They are active in selling wealth management products, through which companies raise financing and individual savers seek returns. And their bonds are widely held by insurance companies.Cracks in the sector emerged in May when the government seized Baoshang Bank Co., its first takeover of a lender in more than two decades. An orchestrated rescue of Bank of Jinzhou Co. followed in July, involving state-owned financial institutions that included Industrial & Commercial Bank of China Ltd. And the following month, local media reported that Shandong province’s government would become the largest shareholder in Hengfeng Bank Co. Authorities are considering a sweeping package of measures to shore up smaller lenders, including merging those with less than 100 billion yuan ($14 billion) of assets and making them accountable to local governments, Bloomberg News reported earlier this month. Consolidation makes sense: China has more than 3,000 small banks, many of which are struggling to cope with rising bad loans and a government crackdown on shadow banking. Bigger banks attract more deposits, aren’t so dependent on interest income, and have the luxury of prime clients that don’t fail, such as state companies.Disruption stemming from the tremors at smaller banks has shown the need for action. Spreads on negotiable certificates of deposits spiked after the Baoshang rescue — another key funding source for many lenders. Authorities have injected liquidity into other institutions, and tamped down speculation that some were on the brink of insolvency in an effort to prevent runs. Small banks have always been weaker than their larger counterparts, but the divide has widened since 2015 as liquidity tightened, according to analysts at Natixis SA. City commercial banks are particularly vulnerable, given a thinner deposit base than rural lenders. The devil will be in the details. The danger for Beijing is that mergers will be poorly executed and fail to impose root-and-branch changes on lenders’ culture and risk-management practices. The result could be a plethora of small, weak banks stapled together into one too-big-to-fail toxic institution. The banking regulator’s ability to monitor large mergers, particularly on the country’s peripheries, is uncertain. Jinzhou is headquartered in the northeast rustbelt province of Liaoning while Baoshang is based in Inner Mongolia, Bloomberg Intelligence analyst Matthew Phan notes.Addressing ownership and lines of accountability will also be crucial. Baoshang was part of Xiao Jianhua’s Tomorrow Group, an investment conglomerate that was under investigation in China — feeding speculation that the bank’s downfall stemmed from loans made to connected companies.Part of Beijing’s solution should be to take the stronger players public. There were 15 city or rural commercial banks awaiting approval to list as of Nov. 1, according to Michael Chang of CGS-CIMB Research. Only 35 currently trade in either Hong Kong or on the mainland exchanges of Shanghai and Shenzhen.Selling shares is no panacea — after all, Jinzhou trades in Hong Kong. Still, listing does expose companies to the scrutiny and discipline of public markets. Listed banks tend to be better run and more profitable. Shenzhen-listed Bank of Ningbo Co., for instance, has posted higher net income gains and lower nonperforming loans than many of its peers.Forced mergers may well be necessary, but the evolution of China’s approach is more suggestive of policy being made on the fly than of a carefully thought-out strategy. After the Baoshang takeover spooked markets, authorities kept themselves at one remove and leaned on state-owned companies to act as rescuers. This is now Plan C. The price of failure could be huge. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Natixis and other ratings that are associated with the same analytical unit. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
Moody's Investors Service says that the conversion of the Class A1 and Class A2 Notes into yen-denominated notes on 11 November 2019 (the Note Conversion) will not, in and of itself and as of this time, result in the downgrade or withdrawal of the current ratings of the notes issued by Liberty Series 2019-1. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS.
Moody's does not rate the EUR 100,000,000 Class B Asset-Backed Fixed Rate Notes due October 2054. The assets supporting the Class A Notes consist of French prime residential home loans backed by first economic lien mortgages or equivalent third-party eligible guarantees "prêt cautionné", hereafter called "caution-loans". The rating of the Class A Notes is based on an analysis of the characteristics of the underlying pool of home loans, sector wide and originator specific performance data, protection provided by credit enhancement, the roles of external counterparties and the structural integrity of the transaction.
Moody's Investors Service ("Moody's") today upgraded the standalone Baseline Credit Assessment (BCA) of Credit Foncier de France (CFF) to ba1 from b1. The rating agency also affirmed CFF's Adjusted BCA of baa1, its long- and short-term deposit ratings of A1 and Prime-1 respectively, its senior unsecured MTN rating of (P)A1, its long- and short-term Counterparty Risk ratings (CRRs) and Counterparty Risk (CR) assessments of Aa3/Prime-1 and Aa3(cr)/Prime-1 (cr), respectively, and Entenial's Baa2 backed subordinated rating.
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Moody's does not rate the EUR [100,000,000] Class B Asset-Backed Fixed Rate Notes due October 2054. The assets supporting the Class A Notes consist of French prime residential home loans backed by first economic lien mortgages or equivalent third-party eligible guarantees "prêt cautionné", hereafter called "caution-loans". The rating of the Class A Notes is based on an analysis of the characteristics of the underlying pool of home loans, sector wide and originator specific performance data, protection provided by credit enhancement, the roles of external counterparties and the structural integrity of the transaction.
This transaction represents a repackaging of a bond issued by Caisse Regionale de Credit Agricole Mutuel du Morbihan (CRCAM du Morbihan) (senior unsecured MTN rating: (P)Aa3, upgraded to (P)Aa3 from (P)A1 on 19 September 2019), with the swap counterparty providing an asset swap. Moody's explained that the rating action taken today is the result of the rating action on Credit Agricole S.A., Credit Agricole Corporate and Investment Bank (CACIB) and the Caisses Regionales de Credit Agricole Mutuel (CRCAMs), on which the long-term deposit and senior unsecured debt ratings - where applicable - were upgraded to Aa3 from A1 on 19 September 2019.
This transaction represents a repackaging of a of a bond issued by Caisse Regionale de Credit Agricole Mutuel de Normandie (CRCAM de Normandie) (senior unsecured MTN rating: (P)Aa3, upgraded to (P)Aa3 from (P)A1 on 19 September 2019), with the swap counterparty providing an asset swap. Moody's explained that the rating action taken today is the result of the rating action on Credit Agricole S.A., Credit Agricole Corporate and Investment Bank (CACIB) and the Caisses Regionales de Credit Agricole Mutuel (CRCAMs), on which the long-term deposit and senior unsecured debt ratings -where applicable - were upgraded to Aa3 from A1 on 19 September 2019.
(Bloomberg) -- Emmanuel Macron is courting France’s big institutional investors in a bid to make the country more attractive to tech money -- and see Paris become the seat of a European Nasdaq index.In Paris on Tuesday, the French president is set to announce a multi-billion euro pledge by banks and insurers, including Axa SA, Natixis SA, Aviva Plc and Allianz SE, to invest in France’s tech companies, his office told reporters. The French daily, La Lettre A, said the commitment may amount to 5 billion euros ($5.5 billion) over three years, a report his office declined to confirm.It’s part of a broader push by Macron’s government to attract more investment for innovation. Other measures include eased regulations and tax cuts. His long-term goal is the creation of a European version of the tech-heavy Nasdaq index, if possible based in Paris, his office said.There’s still a long way to go for that to happen. In the first half of this year, France’s four growth equity operations raised 580 million euros, Data compiled by EY show. That compares with five operations in Germany reaching 1.13 billion euros in the same period and seven operations in the U.K. that amounted to 2.39 billion euros.Apart from attracting more growth equity funds, to see such an index in Paris, Macron has to create smoother exit options, a tech-friendly stock exchange and harmonized Europe-wide regulations.Investors have pledged to either inject more money in existing venture capital funds such as Idinvest and Partech, in a ‘fund of funds’ created by state-backed investor BpiFrance, or to create their own fund, an official in Macron’s office said, declining to be named in accordance with Elysee Palace rules.Innovation companies raised about 2.79 billion euros in the first half this year in France, compared to 1.95 billion euros over 2018, according to the EY data. France is catching up to the U.K., the region’s leader, which had 5.3 billion euros of venture capital and growth equity in the period.French and foreign investors and company leaders will mix Tuesday evening as Macron hosts one of his trademark tech diners. Companies invited include Founders Fund, Accel and Lightspeed Venture Partners, and also sovereign funds for Saudi Arabia, Singapore, Qatar, Kuwait and South Korea.To contact the reporter on this story: Helene Fouquet in Paris at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, Caroline Alexander, Richard BravoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Rating Action: Moody's assigns definitive ratings to nine CMBS classes of NCMS 2019- FAME. Global Credit Research- 05 Sep 2019. $193.3 million of structured securities affected.
Moody's Investors Service has assigned an A3 rating to The Black Belt Energy Gas District (the Issuer) Gas Prepay Revenue Bonds (Project No. 5), 2019 Series B-1, 2019 Series B-2, 2019 Series B-3 and 2019 Series B-4 (the Bonds).
Moody's approach to rating this transaction involved an application of Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS, Moody's Approach to Rating Structured Finance Interest Only (IO) Securities, and Moody's Approach to Rating Repackaged Securities. The structure's credit enhancement is quantified by the maximum deterioration in property value that the securities are able to withstand under various stress scenarios without causing an increase in the expected loss for various rating levels.