Two recent financial deals have a common underlying theme.
The US government last week sold the last of its shares in Citigroup for $10.5 billion. The Obama administration had been forced to inject capital into the US bank when it was hit by huge losses in the midst of the financial crisis. The US government has now exited at an estimated profit of $12 billion.
Canadian aluminium maker Novelis this week said it would raise $2.5 billion of financing from the bond market on Friday. Of this amount, $1.7 billion will go as dividend to Hindalco, which bought Novelis in 2007 through a leveraged deal. Hindalco could use the money to pay back some of the money it borrowed to fund its ambitious acquisition.
The US has still many financial battles ahead and Hindalco needs to lower its leverage further.
But these two deals show that patience can win—even in a volatile world.