- A + A TOKYO/SYDNEY/LONDON (Oct 3): Governments and companies around the world are facing unprecedented costs to refinance bonds, a burden that’s set to deepen fissures in debt markets and expose more vulnerabilities among weaker borrowers. A corporate treasurer or finance minister looking to issue new notes now would likely have to pay interest that’s about 156 basis points higher on average than the coupons on existing securities, after that gap surged to a record in recent days. That all adds up to about US$1.01 trillion in additional costs if all those securities were refinanced, according to calculations using a Bloomberg index tracking some US$65 trillion of government and corporate debt across currencies. That broad benchmark of global debt lost 6.8% last quarter, its second-worst drop after a record slide in the previous three months, data stretching back to 1999 show. Monday brought little relief, with spreads on Asian high-grade dollar bonds little … [Read more...] about A US$1 tril burden looms for world borrowers refinancing debt
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Share to Twitter Share to Linkedin Travis Meyer, CEO at Thynk Capital Holdings , is a serial entrepreneur and finance expert, passionate about the empowerment of entrepreneurs. To accommodate for the financial demands of a growing business, companies generally have two options with regards to capital generation: equity or debt financing. Equity refers to raising capital through the sale of company shares, whereas debt financing is the generation of capital by loaning funds that are then paid back with interest over a period of time. Which one is cheaper? The answer depends entirely on your business and how well it performs. Here, we will look into the pros and cons of both, so you can decide which option is best for you and your business. The Pros And Cons Of Raising Equity Equity financing can come in the form of corporate investors, venture capitalists, angel investors, crowdfunding or listing on an exchange with an IPO. One of the … [Read more...] about What’s Cheaper: Raising Debt Or Surrendering Equity?
Share to Twitter Share to Linkedin The past few years have been unsettling for Andrew Beal , the publicity-shy billionaire banker from Plano, Tex. who has a penchant for high-stakes poker. Like other smart money men, Beal is leery of asset prices fueled by central bank intervention. So Beal hasn't been making many loans recently and instead has built up a sizable war chest of capital--enough to make more than $20 billion in fresh loans. "There has not been anything to invest in. It's the craziest environment, a world flooded with money," says Beal. "It's hard to sit by and pick your nose when you want to be doing deals." But with West Texas crude prices now down by 50%, to $50 a barrel, and many U.S. oil and gas companies scrambling for cash, Beal has been quietly building an oil and gas lending team at his Texas bank, and though he has yet to close on his first deal, he expects to pull the trigger soon. "We are trying to get real active in the oil patch," … [Read more...] about The Billionaire Banker Ready To Bet On Oil
Share to Twitter Share to Linkedin Rich Kinder, 2012. (By Matt Hawthorne, for Forbes.) After 18 years at the helm of the pipeline giant that bears his name, Richard Kinder is stepping down this summer from his CEO position. To commemorate the occasion, Kinder agreed to sit down for a kind of exit interview. We discussed his legacy, the importance of learning from history, and his thoughts on where the energy industry stands today. This Q&A has been edited for length and clarity. Q: That bust of Winston Churchill is in a prominent position on your desk. What's he mean to you? I've always had that bust. In my view he's a real leader. Probably the greatest person of the 20th century in in terms of the direct contributions of one individual. If he had not been in the place he was in May 1940 I think other leadership might have struck a separate peace with Hitler and the whole world of history would be different. Without the U.K. we … [Read more...] about The Interview: Billionaire Rich Kinder On Leadership, Legacy And Energy Security
- A + A SINGAPORE (Oct 3): Malaysia's largest asset manager, Permodalan Nasional Bhd (PNB), plans to add infrastructure assets into its portfolio from next year to diversify its exposure and navigate the current high inflationary environment, its top executive said. PNB, which managed RM336.7 billion of assets in 2021, has the majority of its portfolio invested in public equities, both local and international, besides private investments and real estate, among others. "It's great as an asset class as it further diversifies our portfolio and improves the risk return characteristics of the portfolio," PNB's group chief executive officer Ahmad Zulqarnain Onn told Reuters in an interview during a visit to Singapore. "People are starting to look at how to protect their portfolios against the deterioration of value coming from inflation," Zulqarnain said, adding that globally, funds were under allocated to infrastructure as an asset class. The move by the state-owned … [Read more...] about PNB to add infrastructure assets in diversification drive
Share to Twitter Share to Linkedin By Feruza Djamalova, co-founder and senior business immigration lawyer of Sobirovs Law Firm . Entrepreneurs are a powerful force driving innovation and economic growth. They take risks, create jobs and are the backbone of the Canadian economy. Thousands of entrepreneurs, startups and business owners enter the Canadian market every year. As business immigration lawyers, we work with entrepreneurs from all around the world and observe their strenuous journey to create and operate a business in Canada. During this journey, they face many unique obstacles that I call "the four challenges of immigrant entrepreneurs” in Canada. In this two-part article, I'll walk you through these challenges and provide some suggestions on how to overcome them. It is important to note that I will focus on a very specific type of entrepreneurs—entrepreneurs and investors seeking to establish small and medium businesses in Canada … [Read more...] about Part 1: Four Challenges Of Immigrant Entrepreneurs In Canada And How To Overcome Them
Share to Twitter Share to Linkedin Dreamers and visionaries launch companies and disrupt industries. Well-run, enduring businesses need execution, efficiency and resiliency. The personality types most apt to accomplish each are often polar opposites. Elon Musk seized headlines and re-ignited an old debate when he joined the long list of entrepreneurs questioning the value of the MBA . Since I am a business school professor, you may think that I would disagree. I do, but not for the expected reasons. Musk’s point holds for corporate culture, but collapses at the function level, especially IT. The problem with Corporate America is not the MBA, it’s entrenched functional expertise. Too many big company employees are specialists still stuck in status quo silos. Technology, not technologists, will drive the future of the business. That’s exactly why CIOs, in particular, need more MBAs on their teams. Competencies, not credentials Well-trained … [Read more...] about CIOs, Ignore Elon Musk. Here’s Why MBAs Are Invaluable To Your Teams.
British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng visit Berkeley Modular, in Northfleet, Kent, Britain, September 23, 2022. REUTERS/Dylan Martinez/Pool BIRMINGHAM, England – British Prime Minister Liz Truss was forced on Monday into a humiliating U-turn, reversing plans to cut the highest rate of income tax that helped to spark a rebellion in her party and turmoil in financial markets. Truss, and her finance minister, Kwasi Kwarteng, announced a new “growth plan” on Sept. 23 that would cut taxes and regulation, funded by vast government borrowing to snap the economy out of years of stagnant growth. But the plan triggered a crisis of investor confidence in the government, hammering the value of the pound and government bond prices and jolting global markets to such an extent that the Bank of England had to intervene with a 65 billion pound ($73 billion) programme to shore up the markets. While the removal of the top rate of tax only made up around … [Read more...] about UK’s Truss forced into humiliating tax U-turn
Share to Twitter Share to Linkedin Andy Techmanski (center) briefs a Whitefish crew on the ground in Puerto Rico. Courtesy Whitefish Though Puerto Rico canceled his controversial contract last weekend, Whitefish Energy CEO Andy Techmanski is still working to restore the island’s power — and his reputation. Just days after Hurricane Maria devastated Puerto Rico, Andy Techmanski, the CEO of Whitefish Energy, arrived and offered his assistance to the Puerto Rico Electric Power Authority (PREPA) to help repair the island’s devasted power grid. He first connected with PREPA after Hurricane Irma’s glancing blow a few weeks prior had knocked out power to parts of the island. Then Maria completed the devastation. Techmanski was ready to get to work. After two decades building power transmission systems across the U.S., U.K., Middle East and western Canada with the likes of Quanta Field Services, Techmanski launched Whitefish three years ago … [Read more...] about Is That $300 Million Puerto Rico Power Contract ‘Whitefishgate’ Or Just a Red Herring?
This article first appeared in The Edge Malaysia Weekly, on September 26, 2022 - October 02, 2022. - A + A COASTAL Contracts Bhd’s foray into Mexico is bearing fruit. In February last year, the oil and gas (O&G) outfit bagged its first onshore gas sweetening plant in Mexico, known as the Perdiz Plant, via its 50% joint venture Coastoil Dynamic SA de CV (CDSA) for the Ixachi gas field from Pemex — the state-owned petroleum company — worth RM258.7 million. The project includes engineering, procurement and construction (EPC) of a plant with a capacity of 80 million standard cu ft per day (MMSCFD), as well as 32 months of operation and maintenance contract. Nine months later, the company bagged another contract in the Ixachi field to build the second gas sweetening plant — dubbed the EMC Papan Plant — worth a whopping RM4.5 billion, with a 10-year operation and maintenance contract. The plan is estimated to have a capacity of 300MMSCFD. Now, the group … [Read more...] about Coastal Contracts banks on Mexico