VTB Capital representatives participated in the 6th annual “Russian Finance Forum,” held on November 26-27, 2014, in Moscow. Topics discussed included current trends in the banking industry, the situation in the debt and equity markets, as well as the forecast of finance market development.
On the opening day of the forum, Andrey Solovyev, Global Head of DCM at VTB Capital, spoke at the session “Capital markets.” During the discussion, participants shared their opinions on the current market situation, the outlook for 2015, as well as their forecast of the debt and equity capital market costs. “Major Eurobond placements can potentially be expected in the first quarter of 2015 at the earliest,” noted Andrey Solovyev. “Investors are gauging how the market conditions will evolve and currently are not ready to invest into new sizeable issues.” He also added that internal debt market is quite promising, as many issuers are willing to offer high rates on bond placements in accordance with the market environment.
Trends and development potential of the Russian bond market were the main focus of discussion during the second day of the forum. Speaking at the session “Debt capital market conditions: what’s next,” Alexey Konochkin, Head of LDCM at VTB Capital, examined the industry’s outlook for 2015. According to Konochkin, due to economic conditions, there is likely to be an increase in demand for the internal debt capital market next year. He also noted that one of the most recent trends is infrastructure companies actively participating in debt placements on the account of state support for projects in this industry.
Investment ideas and strategies in the bond markets were discussed at the session with the participation of Petr Grishin, Head of Macro Research at VTB Capital. Representatives of leading international and Russian banks debated on the availability of new funding sources in current market conditions, consequences of the key rate increase by Central Bank of Russia, as well as possible US rate growth influence on the Russian market.
Each year the “Russian Finance Forum,” organized by Vedomosti newspaper, is attended by representatives of leading international and Russian banks, as well as investment and consulting companies.
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