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◆ Data centres: crunch time for Europe's capital markets

◆ How AI is changing capital markets work...

◆ ... and hiring

It is no secret that data centre financing will be an increasingly important part of the capital markets in the years ahead. But this week we discuss why it is such a vital test for the EU's capital markets and the bloc's overall competitiveness as we contrast the progress in data centre securitization between the Europe and the US.

We also take a close look at the changes AI is making to how people in the capital markets do their jobs. Despite all the talk of distributed ledger technology and digital bonds, the most senior debt capital markets bankers believe AI will be the biggest disrupter to tehir world of the choices offered in GlobalCapital's recent survey (they also say DLT is the most overhyped of the options). We discuss exactly how AI is being used in the markets and assess its potential.

These stories, along with the survey of the heads of DCM are just some of the features in our Review 2025 | Outlook 2026 special report, which is free to read. It contains outlook pieces based on surveys of all of the major markets that GlobalCapital covers as well as interviews with some of the markets' biggest bond issuers and stories about the biggest themes that will affect capital markets in 2026.

Read it here: Review 2025 | Outlook 2026

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◆ Simplification plans boggle bank boffins

◆ Hungry, hungry hyperscalers to push utilities into bond market

◆ A loan in the sand: private credit jostles for place in Middle East debt markets

On last week's episode we discussed how the ECB was preparing to recommend simplifications to the way EU banks are regulated, in order to make them more competitive and to drive growth. This week it made its recommendations but they seem far from simple and contain suggestions to abolish the most subordinated layer of bank capital altogether — additional tier one.

We delve into what the ECB said, experts' reactions to the news and discuss what changes will follow.

The demand for data centres and their thirst for energy is likely to lead to another bumper year for Europe's corporate bond market. But it won't just be the big US tech companies bringing deals. Utility companies are also expected to raise cash for capex as they power up their grids to feed the big data beasts.

Finally, with private credit seemingly spreading its tentacles into so many debt markets, we take a look at how it is gaining a foothold in the Middle East, where the need to raise capital is ballooning, and assess the threat it poses to public markets.

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◆ Private credit and equity to come under oversight for first time...

◆ ... as Bank of England eases burden on banks...

◆ ... amid global shift to lighten up on lenders, with ECB expected next

Alternative asset managers will finally come under the Bank of England's scrutiny, the central bank and regulator said this week. We discuss in detail how that will work and what the implications for the ballooning sector may be.

Two days before it announced its plans, the BoE also lightened the regulatory load on the banks under its supervision — for the first time in a decade. We examine the relief on offer and whether it will affect the issuance of subordinated debt.

We also consider the changes in their global context, with the EU and the US also looking to make their banks more competitive and better able to drive economic growth. We look at what the ECB might be about to reveal next week.

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◆ UK government guns for growth but did it miss?

◆ French fancy: FIG in favour again

◆ Pandas and Wontons with the AIIB

After months of speculation, the UK government delivered its Autumn Budget this week. The country may have felt like it has been through the worst of times but are we about to enter the best of times? We pick through the policies to see how they will affect capital markets from IPOs to retail investment.

In the immediate future, market participants are tipping sterling bonds to appear from corporate issuers. We discuss the pipeline of deals to come.

We also discuss another country where there has been plenty of political intrigue and economic strife: France. A number of French banks recently came to the bond market with successful new issues. We examine what that tells us about investors' and issuers' view on French risk.

This episode of the GlobalCapital Podcast is sponsored by the Asian Infrastructure Investment Bank. In a special interview, we spoke to the bank's head of funding, Darren Stipe about its role in the Panda bond market, and it's creation of the nascent Wonton market.

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◆ Are investment bank bonuses going up this year, and when does everyone get paid?

◆ How the UK government's 'binary' Budget is affecting bank bond issuers

◆ Legal pressure builds on MDBs to reassess climate impact

The UK government's Budget announcement next week has been the source of rabid speculation for months. The uncertainty is affecting how banks in particular approach the sterling bond market to fund themselves. We explain the dynamics in play.

Meanwhile, an NGO in the US is applying pressure to multilateral development banks to change the way they assess energy project financing to consider environmental factors. We explain why the legal opinion the campaign has generated matters, what it says and how MDBs may react to it.

Finally, we investigate investment bank bonuses. We explain how the whole process works from initial discussions within a bank to when the cash and shares are paid and also discuss some of the shenanigans that go on at this time of year. We also share what our columnist Craig Coben had to say this week about how to successfully argue for better compensation.

UK Budget a ‘binary event’ for sterling FIG issuance

Law scholars shine spotlight on MDBs’ climate loopholes

Bonus time: who is expecting what and when

‘Please sir, I want some more’: why Oliver Twist will never make MD

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◆ Private credit, banks or securitization — which one is regulated too lightly?

◆ How AI capex will affect Europe's bond market

◆ What do defence bonds achieve?

Two senior UK bankers were in the House of Lords this week pleading for lighter regulation in the face of competition from private credit and their US rivals. One, Michael Roberts, the CEO of HSBC Bank plc and its CEO of corporate and institutional banking, even implied that securitization may be too lightly regulated as part of his argument. We discuss what he meant by that and debate whether private credit is a systemic risk that should face tougher standards

Bpifrance issued the first bond to carry the European Defence Bond label in the public sector bond market this week. The new label is finding its feet, so we question what it achieves, what it is missing and how it might catch on.

Finally, we gasped at the staggering amount of capex that big US tech firms want to do to fund AI spending. Some of it will be done in the European bond market through Reverse Yankee issuance. Market participants worry that this is bad news for European issuers. We examine why and whether they are right to fret.

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◆ Why Europe's corporate bond market is on a roll

◆ Reverse Yankees, hot hybrids and huge size with more to come

◆ Europe's stock exchanges' attempts to drum up more IPOs

Market participants had expected this week to be a busy one for euro and sterling investment grade corporate bond issuance. But the volume of business that was done exceeded all expectations.

With jumbo deals from the likes of Alphabet to successful offerings from less common credits like Brisbane Airport, benchmark issuance this week was almost four times the volume of the weekly average for the rest of this year. We examined why and discussed the factors that will keep the deal spree going deep into November.

Within that sector were also some notable hybrid deals in euros for US companies. We inspected these and divulged what is driving this market.

We also looked into what different European stock exchanges, and their regulators, are doing to boost not just the supply of public stock listings but also the demand.

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◆ Pause clauses could add to disaster arsenal

◆ KfW CEO Stefan Wintels on bond digitisation

◆ What ESG backlash? Banks ramp up green bond issuance

As Hurricane Melissa ripped through the Carribbean this week, the bond market had a part to play in helping Jamaica fund its recovery from the storm. That came in the form of a catastrophe bond, which we explain in detail, but we also discuss how sovereign debt could be tweaked in future to help stricken countries get by.

German promotional bank and leading bond issuer (not to mention recent GlobalCapital Podcast sponsor) KfW is an important player in the European economy and in global capital markets. Its CEO, Stefan Wintels, joined us to discuss the bank's role in the German economy as the country ramps up infrastructure and defence spending, Germany's green transition, and the digitisation of the bond market.

We also delved into why Europe's banks have recently boosted their issuance of green and other labelled bonds.