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  • Foreign duo mandate Aussie dollar deals

    Foreign duo mandate Aussie dollar deals

    A pair of foreign banks mandated senior unsecured Australian dollar transactions on Monday: Sumitomo Mitsui Banking Corp is out with initial price thoughts through its Sydney branch, while the Canadian Imperial Bank of Commerce is preparing a Kangaroo benchmark.

  • Covered bond redemptions boost supply hopes

    Covered bond redemptions boost supply hopes

    Strong market conditions and tight spreads should encourage a few covered bond issuers to consider returning to the market in June, and though balance sheet optimisation is likely to remain the biggest driver of primary market activity, a surge in covered bond redemptions will play a critical role.

  • Markets 'good enough' for FIG pipeline to carry on building

    Markets 'good enough' for FIG pipeline to carry on building

    Deal arrangers said on Monday that banks would not be dissuaded from bringing new bond deals to the market, though spread levels have started showing their first signs of weakness following an extraordinarily strong month in May.

  • Crisis Talk — with Thor Tellefsen, head of funding at DNB

    Crisis Talk — with Thor Tellefsen, head of funding at DNB

    DNB entered 2020 better capitalised than ever, and having taken the opportunity to get ahead with its regulatory funding at the end of last year, it was also better financed than ever. Even so, following the regulator's decision to delay implementation of MREL target by one year, DNB could return to the covered bond market in the latter half of 2020.

  • Direct Line blows out in sterling with rare tier two

    Direct Line blows out in sterling with rare tier two

    Direct Line was about 15 times subscribed for a new tier two on Friday, allowing it to tighten its pricing by 75bp. The deal from the UK company adds to a recent run of subordinated insurance supply in sterling.

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  • MEPs target AT1 coupons in CRR amendments

    MEPs target AT1 coupons in CRR amendments

    MEPs proposed a series of amendments to the Capital Requirements Regulation (CRR) this week, including a couple that could compel banks to stop paying additional tier one (AT1) coupons during the coronavirus pandemic.



Regulatory Capital

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Senior Debt

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Covered Bonds

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MTNs & CP

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Comment

Covid-19 Crisis

  • BBVA brings Covid-19 bonds to European credit markets, others to follow

    Senior Debt

    BBVA brings Covid-19 bonds to European credit markets, others to follow

    BBVA surprised market participants by becoming the first bank to issue a Covid-19 response bond in Europe this week. There will be follow-on deals as the format catches on in credit markets — high grade corporates are looking to do deals too — but it is unlikely to be exploited as widely as it has been in the SSA market. David Freitas and Mike Turner report.

    28 May 2020
  • Phoenix Group swaps old for new but lacks plan transparency

    Regulatory Capital

    Phoenix Group swaps old for new but lacks plan transparency

    Insurance company Phoenix Group Holdings launched a tier two in the dollar market on Thursday in a refinancing exercise, making use of favourable conditions across the board with a "well received" trade. But the issuance raised some concerns regarding the company’s plans to deleverage after its acquisition of ReAssure.

    28 May 2020
  • Citi sustainability: grey heads and millennials

    SRI / Green Bonds

    Citi sustainability: grey heads and millennials

    Citigroup’s new architecture to make its banking, capital markets and advisory (BCMA) group a fitter competitor in sustainability and ESG issues emphasises two channels of communication, according to Manuel Falcó, co-head of BCMA, through the most senior rainmakers and a cadre of younger enthusiasts.

    28 May 2020
  • Lloyds extends AT1, blaming coronavirus

    Regulatory Capital

    Lloyds extends AT1, blaming coronavirus

    Lloyds Banking Group has become the latest financial institution to extend the life of an additional tier one capital instrument (AT1), after arguing on Friday that it would be "uneconomic" for it to refinance its €750m 6.375% notes amid the stress of the coronavirus pandemic.

    22 May 2020
  • Lloyds mass tender offers to hit UK covered bond liquidity

    Covered Bonds

    Lloyds mass tender offers to hit UK covered bond liquidity

    Lloyds Bank decided to tender some of its covered bonds in three major currencies this week in what it called a “prudent approach” towards its liquidity base. The move could prompt more issuance in the asset class this year in an effort to refinance some of the tendered securities, but it could also decrease liquidity at the short end of the curve, given the cheaper refinancing alternatives open to banks.

    22 May 2020

In Depth

  • Bank of Ireland reopens AT1 market with wall-crossed trade

    Bank of Ireland this week issued the first additional tier one (AT1) capital instrument since the start of the coronavirus pandemic, minimising the execution risk by borrowing from the ECM playbook and wall-crossing the deal ahead of launch.

  • Will European banks be able to benefit from IFRS 9 relief?

    European lenders are debating whether it is worth them taking advantage of new IFRS 9 transitional rules, with some market participants suggesting they will largely ignore any capital benefit gained through these sorts of relief measures.