Europe

Erste Abwicklungsanstalt (EAA) is considering a return to the euro market in the fourth quarter to complete its funding programme.

Credit Suisse is bringing its disparate markets and investment banking operations into one division, it announced on Thursday, as new chief executive Thomas Gottstein draws out a fresh structure for the bank. The bank is aiming to create savings to be invested elsewhere, but did not give much detail about where cuts would be made.

After reaching a provisional agreement with member states, the European Commission is expected to open a consultation to amend the liquidity coverage ratio (LCR) for banks during the fourth quarter. The revision is expected to improve the efficiency of covered bond funding as issuers will now be able to count the same 30 day liquidity held within their covered bond programme towards the LCR too.

The Co-operative Bank has said that its future could be in ‘significant doubt’ if it fails to make headway on plans to raise £550m ($719.46m) for its minimum requirements for own funds and eligible liabilities (MREL) by 2022. The UK lender is hoping to get going in the second half of this year.

The European Financial Stability Facility finished its €5bn Q3 funding programme on Wednesday with a €1bn tap of an October 2026 line in an auction. The European Investment Bank was also in the market on Thursday adding to a Climate Awareness Bond.

Banks will have a very small window for issuing debt in the rest of 2020, with fears over rising coronavirus infections and US politics expected to bring volatility back into the market, deal arrangers have warned.

This week's funding scorecard looks at the progress of Europe's supranationals and agencies at the end of July.

Independent firms were the big winners of the 2008 financial meltdown. But they will find the Covid-19 crisis tougher to navigate, as they grapple with a unique set of challenges, writes David Rothnie.

Zalando, the German e-commerce company, issued a debut €1bn dual-tranche convertible bond on Wednesday night, extending a busy week for the European market with more deals on the way.

German real estate firm ADO Properties has sold a €400m five year high yield bond, its first since an audacious merger with competitors Adler Real Estate and Consus.

Nestor Paz-Galindo has become global co-head of M&A at UBS, replacing Greg Peirce, with Philipp Beck succeeding him as head of M&A for Europe, the Middle East and Africa.

Anis Lahlou is chief investment officer at Aperture Investors in London. He believes that asset managers must change the way they charge fees to their investors, by only charging them for market-beating performance.