Popular LBBW tier two hints at renewed demand for bullet format

By Tyler Davies
29 Apr 2019

LBBW did not have to pay a premium to launch a tier two in 10 year bullet format on Monday. A banker on the deal said that other issuers could follow suit, eschewing call options to take advantage of a renewed thirst for duration among investors.

LBBW hired ABN Amro, Banca IMI, HSBC, LBBW and UBS to arrange the sale of its tier two, which had its size capped at €500m from the outset.

Banks tend to structure tier two deals as 10 year bonds with call options after the first five years.

But ...

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