YouSaid · the spoken record

Michael O'Neill

lines on the record: 12
first: 2020-02-07
most recent: 2020-02-07
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Look, I tell them that it is sort of never too early to start building relationships, and that's not necessarily the job of the quote unquote senior bankers or senior salespeople. If you start investing in that process early in your career, you can have a very robust set of relationships, five, 10, 15, 20, 25 years later. And so at the end of the day, this is a client business, it's a relationship business. I'd urge even first-year analysts to start practicing their relationship building skills, get after it early.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Twists and turns. Like any career on Wall Street, luck and timing was an important factor. I signed up to join one group in 1995. And when I arrived at the firm in 1996, I was told that I was entering a different group, a group at the time called the Bank Loan Group, which was really the first place the firm ever tried to make a loan or become a lender. We didn't even have a leverage finance group at the time. And so that was a very long time ago, if you think about where the firm is now. Ultimately, the group I was part of merged with another group and renamed itself Leverage Finance. And so that's where that business sort of began back in the mid to late 90s. And I bounced over to the securities division, worked on a trading floor for a large number of years understanding investors and the entire sales and trading framework, worked on a syndicate desk, and then bounced back to the investment banking division to sort of run our leverage finance and then credit finance businesses sent over to London just over a decade ago to help”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Right now, today, Spot, it's coronavirus that is obviously impacting sentiment. That is the sort of fear element markets gyrape between fear and greed. We've got some elements of fear creeping into global capital markets right now. Definitely some sort of pause inclination on behalf of some clients with respect to market access, but not across the board. We've seen some good opportunities in the equity markets for clients to come to market and raise equity against this backdrop. And even today, notwithstanding the tape, equity markets are sharply higher. So it feels like there's very, very good momentum in global assets, whether it be credit or equity, notwithstanding the outlook, which is, I'd say, reasonably uncertain, particularly with respect to that health risk away from that geopolitical, which is dominated headlines for last number of months. There aren't a ton of looming issues. U.S. election will start to weigh on people as they start to figure out how to position based on which way the candidates on the Democratic side.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“So rates are low. Probably will stay that way for a while, at least it seems so now. Brexit's resolved. U.S.-China seems to be on pause a little bit. Economic fundamentals are decent, if not super strong. So what other risks are weighing on the minds of our clients?”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“There's a different perspective on debt tolerance, I would say, on either side of the Atlantic, where U.S. equity investors in particular have evidenced a higher degree of comfort with levered balance sheets than necessarily European equity investors. And while those investors are themselves global in nature now, there are some differences between the two markets. So a lot of the European corporates historically slightly less levered than some of their US counterparts. But given really what the all-in level and cost of financing is, we're seeing more of our clients willing to take on debt, particularly if they see attractive opportunities to finance or grow their business.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Look, I think European corporates are muddling along. The general growth backdrop is marginally positive, but at the same time reasonably stable. And our clients are sort of taking care of business. They're prudently refinancing and terming out their capital structures. They're looking at strategic growth opportunities. We see a number of clients thinking about M&A opportunities so they can drive some organic growth. And when you dovetail that with the sort of positive financing backdrop, it makes some of those transactions more achievable. So I think they're reasonably stable and trying to figure out how they can drive growth either organically or inorganically.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Well, look, I think the driver for the all in yields is a function of underlying rates, which is being driven by the ECB policy. And I think the weakness and the relative weakness in the European economy is a big contributor to the rates picture, but also credit spreads remain very tight as well. Technicals are very strong. There remains a global search for yield, and liquidity is pouring into yield asset classes globally and definitely in Europe as well.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Sure. So, I mean, draw the comparison when I cite the non-IG stats for Europe up five and tenfold for high yield in loans. U.S. market's up twofold. So also substantial year-over-year increase, but much more pronounced in Europe. I guess the most sort of staggering reality of the non-investgrade European credit markets right now is just the all-in yields. So you have the tightest ever high yield bond deals pricing now in Europe at sub 1%. That's the all-in yield you earn for investing in non-investment grade European corporate credit. Even if you move down to single B territory in non-IG, we have deals pricing less than 2%. We had a sovereign just recently price a 10-year transaction at a negative yield. So the story on yields remains very much front center for people, but just the all-in levels, particularly when you move into the leverage finance space, are a bit eye-popping.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“I think across the board, almost all of our investing clients are buying a notable buyer is the CSPP program of the ECB. They're probably up to something like $200 billion. We think they own sort of called 5% of the entire investment grade market in Europe. They've been a pretty savvy buyer. We observe they're sort of a better buyer on weaker or down days, but they've been putting substantial amounts of money to work, buying up a relatively substantial portion of the new issue supply. But participating in those transactions alongside all of our other investing clients. So they are one big buyer, but lots of our clients are active.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Look, listen, year to date, new issue volumes have exploded in Europe. We had the biggest day ever for IG issuance in Europe. We had the biggest week ever for IG issuance of Sira, nearly $100 billion equivalent, which is an absolutely staggering amount of issuance in Europe for one week. If you move to non-investment grade credit markets, the loan market in non-IG space is up tenfold on a comparable year-to-date period, and the high-yield bond market's up almost five-fold. So explosive levels of new issuance across the entire credit spectrum coming out of Europe year to date.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“Sure. So leading up to Brexit, obviously an environment of uncertainty, you had people perhaps pausing or reconsidering how aggressively they were interested in making a particular investment that would have an exposure to the UK economy or to certain types of businesses which have a supply chain linkage. You can think of big industries like autos where there's a structural relationship between the countries in the continental Europe and the UK. And depending on what the result is in terms of the trade agreement, there remains some uncertainty in the sort of efficiency of supply chain and pricing mechanisms is still something that people have to think long and hard about.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT
“I'd say the biggest reaction at this point in the developments of the Brexit situation is really relief. We've been living with multiple years of significant uncertainty, not knowing whether it would happen or not, on what basis and when. And a lot of work and preparation has gone into this ultimate decision. Now we know that Brexit will occur, but exactly how it will occur and what will unfold from here remains actually a bit uncertainty for our clients.”
2020-02-07 · Goldman Sachs Exchanges · After Brexit, What’s Next for Business in Europe? · IDENTIFIED FROM THE TRANSCRIPT