Banks are always in someone’s sights, sometimes even their owner's. But look to the bond market, not the newspapers, for whether they are in real trouble
◆ Size and execution the main attractions of dollars, but it costs more ◆ Well progressed UK banks weigh taking a chip off the table ◆ Dollar covered bonds unlikely
◆ Regulator starts collecting data on hedging and accounting of capital instruments ◆ Is AT1 debt or equity? ◆ BNP Paribas’s reclassification of future dollar AT1 provides an example
◆ ‘Novelty’ release reflects overlaps in bank capital requirements and market feedback ◆ New recommendations focus on RAC tier twos ◆ High level of standardisation achieved in the EU
◆ German lender to optimise funding and find investors beyond Germany ◆ Conducive market for credit issuance ◆ Non-preferred bonds outperform preferred paper
