HSBC restores AT1 hopes ahead of hectic Q4 for capital

HSBC Canada Square office London
By Nathan Collins
11 Sep 2014

Less than a week after mounting concerns that investors were turning away from additional tier one debt, HSBC’s standout trade on Wednesday showed that AT1, a crucial element of banks’ post-crisis capital structures, was firmly back in play. With $30bn of demand across the UK bank’s euro and dollar tranches, the stage is set for more lenders to issue the product, writes Nathan Collins.

“That was what the AT1 market needed after some negative performances,” said one FIG syndicate head away from the deal. “Having a deal out there that goes well and performs well in trading is good for the market. It’s a great deal.”


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