Banks turn to tier two in search for relative value

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By David Freitas
02 Jun 2020

OP Corporate Bank and Standard Chartered were looking to add to a flurry of recent tier two issuance on Tuesday. The asset class has found itself in a sweet spot in terms of its regulatory and financial value during the coronavirus pandemic.

OP Corporate Bank launched €1bn of 10 year non-call five tier twos at 200bp over mid-swaps, backed by €1.9bn of demand.

Concurrently, Standard Chartered was able to set a spread of 280bp over mid-swaps on its €1bn 10.25 non-call five tier two, supported by over €5.25bn of ...

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