Tag Archives: Investment Management & Fund Operators (TRBC level 4)

Cerved Italia confirmed talks of the sale of its debt collection arm | Instant News


FILE PHOTO: New 100 euro banknotes seen in secret vault inside the Bank of Italy, in Rome 21 May 2019. Image taken 21 May 2019 REUTERS / Yara Nardi

(Reuters) – Italian credit group Cerved Group SPA confirmed talks of selling its debt collection arm in a statement on Sunday.

The confirmation came a day after Reuters reported on the company’s continued discussions with US investment firm Centerbridge for a deal.

“Cerved Group SpA confirms that negotiations are ongoing with private equity firms for the sale of a subsidiary of Cerved Credit Management Group Srl,” the statement said.

The company did not name the private equity firms involved in the talks.

Two sources told Reuters on Saturday that Cerved was in further talks with Centerbridge to confirm the sale of its long-awaited debt collection unit which is worth some 400 million euros ($ 475 million).

Centerbridge is a pioneer in discussions and could reach an agreement in the coming weeks, possibly paving the way for a full takeover of Milan-listed Cerved which has been on the radar screens of some heavyweights buying funds in recent years, the sources said.

($ 1 = 0.8391 euros)

Reporting by Aishwarya Nair in Bengaluru; Edited by Frances Kerry

.



image source

The fund holds the biggest bets against the Brazilian real in more than 3 months – CFTC data | Instant News


BRASILIA, March 5 (Reuters) – Funds and speculators in US futures markets collected their biggest bets against the Brazilian real in more than three months, data showed on Friday, as the latest currency slump prompted this year’s first central bank intervention.

The latest Commodity Futures Trading Commission data on Friday showed that funds increased their net short positions by 5,114 contracts to 21,051 contracts in the week to March 2, the biggest net short since the week ended November 22 last year.

Shortening a financial asset means betting effectively that its value will fall.

Rather than rebounding from 30% against the dollar last year, the real has fallen a further 8.7% so far this year.

The most recent decline over the period captured in the latest CFTC data pushed the central bank into six rounds of direct dollar selling intervention on the spot market between last Thursday and Tuesday, worth more than $ 5 billion.

Apart from the Libyan Dinar and the Sudanese Pound, which both suffered massive devaluations, the real currency is the world’s worst performing currency against the dollar this year, Refinitiv data show.

The central bank is widely expected to raise interest rates for the first time since 2015 sooner than later to fight inflation and a worsening fiscal outlook.

But with the economy likely to shrink in the first quarter due to the second wave of the devastating COVID-19 virus engulfing the country, higher levels could not come at a worse time.

In addition, rising US bond yields draw cash from emerging market assets, leaving currencies as they are actually exposed.

($ 1 = 5.70 reais)

Reporting by Jamie McGeever Editing by David Gregorio

.



image source

The German city asked Berlin to cover the losses of Greensill Bank | Instant News


FRANKFURT (Reuters) – The German city of Osnabrueck is concerned about losing the 14 million euros ($ 17 million) it invested with Greensill Bank after the country’s financial regulator warned this week of “imminent risks” for lenders.

FILE PHOTO: Greensill Bank logo photographed in downtown Bremen, Germany, July 3, 2019. REUTERS / Fabian Bimmer / File Photo

Osnabrueck is Germany’s third municipal authority to disclose this week that it faces possible losses from a Bremen-based bank and a local finance official has asked the German government to step in.

“I ask the federal government to bear the damages incurred by the city government,” said the official, Thomas Fillep, in a statement.

A Greensill Capital spokesman declined to comment on Osnabrueck and investors similar to Greensill Bank, or the amount of unsecured funds held by lenders.

German regulator BaFin warned on Wednesday about the risk that Greensill Bank would become over-indebted and imposed a moratorium on any divestments or payments.

BaFin’s move was another blow to bank owner Greensill Capital, who said on Tuesday it was in talks to sell most of its business after losing support from two Swiss asset managers.

Founded by Lex Greensill, a former Citigroup and Morgan Stanley banker, Greensill Capital is the largest provider of non-bank supply chain finance. He said his technology-based approach provided $ 143 billion in financing in 2019 across 10 million customers and suppliers.

German deposit protection schemes protect individuals but do not protect institutional investors. Greensill Bank has about 500 million euros in unsecured funds, such as those from Osnabrueck and other cities, said someone with knowledge of the matter.

Like the cities of Monheim am Rhein and Bad Duerrheim in Germany which have announced similar concerns about Greensill Bank, Osnabrueck is attracted to lenders because it helps them avoid paying negative interest rates on deposits elsewhere.

Osnabrueck, which has a population of 170,000, chose Greensill Bank because its excellent credit rating means the city can consider it a very safe investment, said local Fillep officials.

He criticized BaFin for not notifying cities when concerns about the bank surfaced last year, saying Osnabrueck would reduce his involvement if he became aware.

BaFin said in a statement that it was acting firmly in 2020 at Greensill Bank, taking various enforcement actions including the installation of special monitors. However, BaFin said informing the public would violate confidentiality laws.

The German finance ministry declined to comment. Germany’s credit rating agency Scope did not immediately respond to a request for comment.

The parliamentary finance committee has put the Greensill Bank case on the agenda for a meeting later this month.

Osnabrueck began investing in time deposits with Greensill Bank last year and currently has nearly 14 million euros with maturities between April 2021 and March 2022. His most recent investment was 11.5 million euros in November.

Osnabrueck tried to withdraw funds after the credit downgrade but was unable to do so, the city government said.

($ 1 = 0.8382 euros)

Reporting by Tom Sims and Christian Kraemer; Edited by Hans Seidenstuecker and David Clarke

.



image source

The German city asked Berlin to cover the losses of Greensill Bank | Instant News


FRANKFURT (Reuters) – The German city of Osnabrueck is concerned about losing the 14 million euros ($ 17 million) it invested with Greensill Bank after the country’s financial regulator warned this week of “imminent risks” for lenders.

FILE PHOTO: Greensill Bank logo photographed in downtown Bremen, Germany, July 3, 2019. REUTERS / Fabian Bimmer / File Photo

Osnabrueck is Germany’s third municipal authority to disclose this week that it faces possible losses from a Bremen-based bank and a local finance official has asked the German government to step in.

“I ask the federal government to bear the damages incurred by the city government,” said the official, Thomas Fillep, in a statement.

A Greensill Capital spokesman declined to comment on Osnabrueck and investors similar to Greensill Bank, or the amount of unsecured funds held by lenders.

German regulator BaFin warned on Wednesday about the risk that Greensill Bank would become over-indebted and imposed a moratorium on any divestments or payments.

BaFin’s move was another blow to bank owner Greensill Capital, who said on Tuesday it was in talks to sell most of its business after losing support from two Swiss asset managers.

Founded by Lex Greensill, a former Citigroup and Morgan Stanley banker, Greensill Capital is the largest provider of non-bank supply chain finance. He said his technology-based approach provided $ 143 billion in financing in 2019 across 10 million customers and suppliers.

German deposit protection schemes protect individuals but do not protect institutional investors. Greensill Bank has about 500 million euros in unsecured funds, such as those from Osnabrueck and other cities, said someone with knowledge of the matter.

Like the cities of Monheim am Rhein and Bad Duerrheim in Germany which have announced similar concerns about Greensill Bank, Osnabrueck is attracted to lenders because it helps them avoid paying negative interest rates on deposits elsewhere.

Osnabrueck, which has a population of 170,000, chose Greensill Bank because its excellent credit rating means the city can consider it a very safe investment, said local Fillep officials.

He criticized BaFin for not notifying cities when concerns about the bank surfaced last year, saying Osnabrueck would reduce his involvement if he became aware.

BaFin said in a statement that it was acting firmly in 2020 at Greensill Bank, taking various enforcement actions including the installation of special monitors. However, BaFin said informing the public would violate confidentiality laws.

The German finance ministry declined to comment. Germany’s credit rating agency Scope did not immediately respond to a request for comment.

The parliamentary finance committee has put the Greensill Bank case on the agenda for a meeting later this month.

Osnabrueck began investing in time deposits with Greensill Bank last year and currently has nearly 14 million euros with maturities between April 2021 and March 2022. His most recent investment was 11.5 million euros in November.

Osnabrueck tried to withdraw funds after the credit downgrade but was unable to do so, the city government said.

($ 1 = 0.8382 euros)

Reporting by Tom Sims and Christian Kraemer; Edited by Hans Seidenstuecker and David Clarke

.



image source

GAM Switzerland closes a fund linked to Greensill Capital | Instant News


FILE PHOTOS: Greensill Bank pictured in the center of Bremen, Germany, July 3, 2019. REUTERS / Fabian Bimmer

(Reuters) – Swiss asset manager GAM Holding will suspend funds linked to Softbank-backed financing group Greensill Capital a day after Credit Suisse closed its funds linked to British firms.

GAM said it took the decision to close down GAM’s $ 842 million Greensill Supply Chain Finance Fund because of “market developments and the resulting media coverage” associated with supply chain finance.

Greensill did not immediately respond to a request for comment.

Specialized lenders, who provide financing to help companies spread the cost of their supply bills, rely on investors to buy their assets and the GAM and Credit Suisse movements are depriving them of their funding sources.

The Wall Street Journal reported on Monday that Greensill had appointed Grant Thornton to look into possible restructuring, while the Financial Times said the company was seeking bankruptcy protection in Australia. Greensill has declined to comment on the report.

Credit Suisse’s asset management arm said on Monday it was stopping redemption of the $ 10 billion fund supporting the company’s London-based lending operations over concerns about their ability to accurately assess them.

GAM said on Tuesday that the Greensill supply chain fund consisted only of investment grade assets and they had no “valuation problem”.

“We therefore anticipate an orderly liquidation and return of client assets under normal circumstances,” said Peter Sanderson, GAM chief executive.

($ 1 = 0.7183 pounds)

Reporting by Rachel Armstrong; Edited by Simon Jessop and Carmel Crimmins

.



image source