Alexander Knaster Quotes

101 Alexander Knaster Quotes

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[In December 1996 on CSFB and Credit Suisse Moscow merging operations.] We are merging because our corporate clients around the world want to see as few people as possible to talk about the broadest range of products. In some areas we found we were competing with our sister company.
Alexander Knaster

[In December 1996 on how he describes CSFB – A] universal bank, combining investment banking, commercial banking, corporate lending, trade finance, loan syndication and account management.
Alexander Knaster

[In December 1996] Russia is a volatile market, you have major news every day. One day it's the election, the next the IMF is freezing payments. You have to have a fundamental belief in the market and not base your long-term strategy on CNN reports
Alexander Knaster

[In 1997 on the US stock market diving 7%] I’m not even sure we had any damage. If we did, it was insignificant.
Alexander Knaster

[In January 1997] LukOil has a market capitalization of just $7 billion, yet it has reserves greater than any other oil company in the world. It has a credible expansion strategy, a $5 billion joint venture with Atlantic Richfield (Arco) and transparent financial statements. Yet it still trades on an 80% discount to western companies when it should be a lot closer. The risks in Russia are lower now.
Alexander Knaster

[In January 1997] In fixed income, the busiest and fastest-growing activity we have is our ratings advisory service.
Alexander Knaster

[In March 1997 on overseas companies setting up business in Russia.] By far the biggest management problem is attracting and keeping high-quality personnel who speak the language, have financial experience and want to live here.
Alexander Knaster

[In April 1997] Capital raising in 1997 will largely be done through debt.
Alexander Knaster

[In April 1997 – Most difficulties/issues] Have been resolved or will be resolved shortly.
Alexander Knaster

[In April 1997] We were the only foreign bank with an 'S' account needed for trading GKOs, which enabled us to attract significant foreign funds. [An 'S' account is a special account into which foreigners investing in Russian fixed-income debt must place their funds. Of the 22 banks the Russian central bank permits to hold 'S' accounts, only CSFB is foreign.]
Alexander Knaster



[In April 1997] We haven't wavered in our commitment to the market despite its volatility. Our fundamental decision is that Russia's market is growing and will continue to grow.
Alexander Knaster

[In July 1997 on the lack of regulation in Russia worrying some international investors.] There are some counterfeit issues and some issuers who do not intend to pay investors with cash but with barter as they have been used to doing. This can cause complications. [After proper regulation.] Then eventually there will be a normal promissory note market.
Alexander Knaster

[In July 1997] The Veksels market is about to really evolve because of the problem of nonpayment.
Alexander Knaster

[In July 1997] Obviously, the bigger, stronger and more financially sound the company issuing, the better the investment.
Alexander Knaster

[In October 1997] The reason so few equity deals have been completed is that many companies do not have GAAP accounts, which means they cannot do level 3 ADR offerings. When Russian companies list on the NYSE, their shares will be open to all institutions. Then, large issues can take place.
Alexander Knaster

[In December 1997 on the temporary end of the Eurobond dream will have little direct impact on balance sheets.] I don't think too many companies made their budgets incorporating a Eurobond issue. The first ones only came out this summer. There are probably only ten more corporates at most that are in a situation to do it, and would need a decent market.
Alexander Knaster

[In April 1998 on completing more than $10 billion worth of corporate finance transactions over the previous 12 months.] This has clearly confirmed our position as the leading intermediary of western capital into the Russian market. I would call this raising money for Russia.
Alexander Knaster

[In June 1998] The [Russian] government took the line that they are not taking new borrowings at expensive rates.
Alexander Knaster

[In July 1998] The name of the game is replacing GKO debt which is expensive and short term with anything, so long as it's cheaper and less short term.
Alexander Knaster

[In July 1998] Russia is relatively underleveraged, but the problem is that the biggest part of the debt... requires constant redemption.
Alexander Knaster



[In July 1998] If you devalue the rouble then the banks have to make huge payments, and it will destroy the banking system.
Alexander Knaster

[In September 1998 on moving from CSFB to Alfa Bank] I had two goals when I opted to move: to increase Alfa’s share of merchant banking, with a focus on advice to foreign strategic investors; and to grow it’s depositor base. These will now take second place to reassuring restive depositors, and to rationalizing the bank.
Alexander Knaster

[On describing his move in September 1998 from CSFB to Alfa Bank.] Courageous.
Alexander Knaster

[In September 1998] The sovereign financial situation is fine, the key is to hold the course and not panic. [Some say this was said four days before the government defaulted.]
Alexander Knaster

[In 1999] Money is tight. But we’re not asking for debt reduction.
Alexander Knaster

[In April 1999 on how the bank survived as one of the few to survive last August’s events.] A reduced presence in the short-term government debt market was crucial. We liquidated the bulk of our holdings in government securities before the crisis. Equally important, the bank had terminated most of its forward contracts on the rouble/dollar exchange rate long before the currency devalued. We did not see our business as being to provide insurance policies against the rouble to sophisticated western investors. Finally, a smaller retail network than many of its competitors meant the bank could better withstand the run on its deposits.
Alexander Knaster

[In June 1999] Our bread-and-butter client might be a factory with 700 employees for whom we do payroll and deal with distributors. And we had no significant repayment problems after the crisis.
Alexander Knaster

[In June 1999] In Russia you've got to be in a lot of different businesses because you don't know which one will be the most advantageous six months from now. But for now commercial banking is strategically our most important area.
Alexander Knaster

[In June 1999 on harsh conditions being the best spur to rapid growth.] Having no sources of funding other than deposits makes expansion like riding a bicycle. Either we keep adding clients or we fall over.
Alexander Knaster

[In December 1999] Virtually every direct equity investment is a turnaround situation, even if the company is doing well by Russian standards.
Alexander Knaster



[In 2000] While we can attract the very best Russian talent, there are still problems. These guys are very clever and know the theory, but they lack the hands-on experience. So we still have a lot of foreigners as they not only know the ‘what’ but also the ‘how’ of banking.
Alexander Knaster

[In February 2000 on Alfa Bank planning a Eurobond.] One of the factors which limits our development is the impossibility of attracting funding except through clients’ deposits. That is why we shall undoubtedly enter international capital markets. I think in September we shall have clear answers to these questions. The previous Eurobond was issued through Goldman Sachs, and we are very satisfied with their work.
Alexander Knaster

[In February 2013 on the US having an unlimited money printing machine.] And it’s got more importantly an unrestricted – especially in the current administration printing press.
Alexander Knaster

We can’t carry on with Dudley. Nor Dupree.
Alexander Knaster

[In August 2000 on Alfa Bank becoming the first Russian corporate to fully repay its Eurobonds.] It is even more important as Alfa Bank was the only Russian bank that did not default on its Eurobonds.
Alexander Knaster

[In February 2001] I was chiefly concerned with survival when I joined Alfa Bank from Credit Credit Suisse First Boston in the summer of 1998. Now, the focus is on quality and efficiency, growth and market share.
Alexander Knaster

[In July 2001] Sberbank is one of the biggest gridlocks in the Russian banking system. [When he was CEO of Alfa bank which had 4% of all deposits as the second largest retail bank after Sberbank compared to Sberbank which had 87% of the nation’s ruble deposits and 70% of its hard currency.]
Alexander Knaster

[In April 2002 on profit at Alfa Bank increasing from $77 million in 2000 to $85 million in 2001.] Alfa Bank's performance in 2001 continues the trend of strong underlying growth in our business. The 2001 profit figure does not fully reflect the tremendous growth of over 50% in virtually every sector of the banking business. In 2001, we spent over $30m on information technology and new product development, which will only yield results starting in 2003.
Alexander Knaster

[In April 2002] Rising confidence in the bank has resulted in a sharp increase in the level of deposits, and these funds have been used to lend to the real sector, enabling us to increase our net interest income more than four times from $27m in 2000 to $11 im in 2001.
Alexander Knaster

[In May 2002 on Alfa Bank] Business levels were up by over 50% in almost every business area in 2001.
Alexander Knaster



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