HSBC brings callables back into focus
Real money investors dominated the allocation of HSBC’s €1.5bn 10 year non-call five tier two deal, which was priced on Tuesday off a book of €3.5bn. Bankers involved in and away from the deal said it was encouraging to see callable tier two bonds — rather than bullets — back in the market, as investors look to shorten the duration of their exposures, to guard against rising rates.
Real money investors took most of the deal, with fund managers taking 71% and insurers and pension funds buying 22%. Banks bought 4%, private banks 2% and others 1%.
Some 30% of the deal was sold into the UK and Ireland, while France bought 25%, Germany and Austria
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