Libor cut-off raises the risk of AT1 extensions, says JP Morgan

Analysts at JP Morgan believe that investors are underestimating the risk that banks will decide against calling their additional tier one instruments in the coming years, because of confusion around the reset rates that could apply past the scheduled end of Libor.

  • By Tyler Davies
  • 09 Jan 2019

The UK’s Financial Conduct Authority has said that it will stop supporting Libor from January 2022, facilitating the transition towards a new reference rate.

This will have a knock-on impact for the global AT1 market, as these perpetual debt instruments can switch to referencing Libor-derived interest rates if ...

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Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 2,273.18 10 6.97%
2 UniCredit 1,963.45 12 6.02%
3 SG Corporate & Investment Banking 1,891.30 9 5.80%
4 LBBW 1,875.05 11 5.75%
5 Barclays 1,854.12 9 5.68%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 8,201.44 15 10.04%
2 Citi 7,855.38 24 9.61%
3 Wells Fargo Securities 5,887.91 6 7.21%
4 JPMorgan 5,473.47 21 6.70%
5 Morgan Stanley 4,949.43 16 6.06%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Wells Fargo Securities 5,887.91 6 13.67%
2 Citi 5,738.91 19 13.33%
3 JPMorgan 5,372.59 20 12.48%
4 Morgan Stanley 4,639.07 13 10.77%
5 BNP Paribas 2,991.66 6 6.95%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 LBBW 1,441.13 6 8.73%
2 Credit Agricole CIB 1,378.34 5 8.35%
3 SG Corporate & Investment Banking 1,372.68 5 8.31%
4 Natixis 1,277.72 4 7.74%
5 Barclays 1,252.42 5 7.58%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 131.18 2 10.67%
1 Bank of America Merrill Lynch 131.18 2 10.67%
3 UniCredit 127.02 2 10.33%
4 BNP Paribas 123.62 2 10.05%
5 UBS 87.50 1 7.12%