Banks pile into €4bn Spain linker as new IFRS rule encourages hedgers

Spain this week built an €18.5bn order book for an inflation linked bond, its largest since its inaugural trade in the format in 2014, with much of the demand generated by bank treasuries attracted to the deal by new accounting standards that have eased hedging requirements. But while demand might have increased, bankers will still have to persuade borrowers of the merits of inflation-linked issuance, writes Burhan Khadbai.

  • By Burhan Khadbai
  • 13 Sep 2018
When International Financial Reporting Standard (IFRS 9) became effective at the start of the year, replacing International Accounting Standards 39 (IAS 39), it made it easier for bank treasuries to hedge inflation linked bonds. This has created more demand from bank treasuries for linker paper in the SSA ...

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European Sovereign Bonds

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Barclays 14,544.75 18 10.40%
2 JPMorgan 13,122.11 20 9.38%
3 Citi 12,168.30 20 8.70%
4 HSBC 10,850.10 15 7.76%
5 NatWest Markets 9,080.61 8 6.49%

Dollar Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 34,885.75 94 12.11%
2 JPMorgan 26,042.73 65 9.04%
3 HSBC 25,202.58 59 8.75%
4 Bank of America Merrill Lynch 22,291.68 66 7.74%
5 Deutsche Bank 19,993.80 31 6.94%

Bookrunners of Euro Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 33,318.06 81 8.63%
2 Barclays 29,485.51 52 7.64%
3 HSBC 26,952.63 95 6.98%
4 UniCredit 26,134.28 69 6.77%
5 BNP Paribas 24,865.12 56 6.44%

Bookrunners of Global SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 69,085.54 386 7.10%
2 Citi 66,101.70 243 6.79%
3 HSBC 62,345.52 237 6.40%
4 Barclays 54,023.54 198 5.55%
5 Deutsche Bank 45,779.29 142 4.70%