New issue premiums need recalibrating after the summer, say FIG bankers
Issuers are set to gravitate towards selling higher yielding regulatory debt in the post-summer issuance window, so that they can attract investors and compensate for low overall interest rates. But FIG bankers are unsure what concessions will be needed to get deals away.
Market participants are beginning to prepare for the latter half of August, which is when most expect euro-denominated bank bond supply will resume following the summer break.
Several bankers have told GlobalCapital that they expect that issuers will lean on instruments that comply with the minimum requirement for own-funds and