FIG

Latest News

  • Covered bonds on fire as KHFC and SG enjoy extraordinary execution

    Covered bonds on fire as KHFC and SG enjoy extraordinary execution

    Korean Housing Finance Corporation (KHFC) issued its first €1bn-sized covered bond on Wednesday and priced the deal inside fair value. At the same time, Société Générale issued a €1bn 10 year green covered bond flat to its curve with eye-catching demand.

  • FIG investors turn to insurance sub debt for value

    FIG investors turn to insurance sub debt for value

    Low yields have driven financial institution bond investors to put money into higher yielding instruments. The latest wheeze is insurance companies' restricted tier one (RT1) bonds, which investors think offer value. Issuance is set to rise as issuers look to replace grandfathered products.

  • Vakifbank goes for intraday dollars

    Vakifbank goes for intraday dollars

    Turkey's Vakifbank has released initial price guidance for a dollar benchmark, with the intention of printing the deal later on Wednesday.

  • Plunging yields are bad news for covered bonds — make no mistake

    Plunging yields are bad news for covered bonds — make no mistake

    Demand for covered bonds has surged higher in recent weeks, even though yields in the asset class have plunged lower. But issuers should not get too excited, as the balance of power is sure to tilt back in the favour of investors if yields carry on falling.

  • CRH enjoys stellar reception in covereds despite plunging yields

    CRH enjoys stellar reception in covereds despite plunging yields

    Caisse de Refinancement de l’Habitat (CRH) managed to attract demand of more than €6bn for its two part eight and 15 year transactions issue on Tuesday, with the bonds pricing tighter than where BPCE recently issued similar deals and with considerably more demand — despite a 22bp plunge in yields and with consistent demand from the European Central Bank.

  • NAB prices inside CBA and with more demand for its Sonia first

    NAB prices inside CBA and with more demand for its Sonia first

    National Australia Bank attracted healthy demand for its £1bn five year Sonia-linked covered bond issued on Tuesday, pricing the deal much tighter than where Commonwealth Bank of Australia issued two weeks ago with more demand and at an equivalent cost of euro funding.



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2020 Outlook

  • AT1 market peaks as yields verge on record lows

    Regulatory Capital

    AT1 market peaks as yields verge on record lows

    European banks no longer really have to think about building up layers of additional tier one debt. All of the focus has shifted to managing and refreshing this capital layer, and taking full advantage of a ferocious hunt for yield. Tyler Davies reports

    13 Dec 2019
  • Banks contemplate multiple futures ahead of MREL swell

    Senior Debt

    Banks contemplate multiple futures ahead of MREL swell

    European banks are about as close as they can be to having clarity on their minimum requirements for own funds and eligible liabilities (MREL). Now it’s up to them to figure out what impact the new bond standard will have on their funding plans, annual profits and business models. Tyler Davies reports

    13 Dec 2019
  • Green capital: a new  frontier for banks

    Regulatory Capital

    Green capital: a new frontier for banks

    Banks and insurance companies are finally straining to turn capital markets greener. With many having realised there are savings to be had in issuing green senior bonds, the idea of them embracing sustainable capital instruments seems to be just around the corner. David Freitas reports

    13 Dec 2019
  • Riveting year ahead for covered bonds in QE-warped market

    Covered Bonds

    Riveting year ahead for covered bonds in QE-warped market

    Covered bonds performed well in 2019, but yields finished in negative territory and spreads ended at their tightest for the year. The implication is that, despite higher than expected ECB covered bond purchases and a renewal of its ultra-cheap TLTRO facility, investors will struggle to match 2019’s returns in 2020, writes Bill Thornhill.

    13 Dec 2019
  • 2019 bond deals of the  year: financial institutions

    FIG

    2019 bond deals of the year: financial institutions

    Reflecting on 2019, market participants may be surprised to see how things panned out. They went into the year expecting to ride out the end of QE and instead got a new purchase programme, funding scheme and rate cuts from the European Central Bank. This backdrop has given banks and insurers another good opportunity to move towards meeting their regulatory debt requirements, while testing new lows for their costs of funding and capital. GlobalCapital wanted to reward the deals that achieved stand-out results for issuers, in terms of pricing, execution and timing. The winners are presented here.

    13 Dec 2019
  • The GlobalCapital debt capital markets survey: banks expect to make money and hire

    Sub-Sovereigns

    The GlobalCapital debt capital markets survey: banks expect to make money and hire

    Markets go into 2020 fretting about a global recession and an escalation of tradetensions between the US and China, according to 25 heads of debt capital markets in the EMEA market, in Toby Fildes’ annual outlook survey. Respondents are mildly pessimistic on spreads and fees in the primary markets as well. But on the plus side, bankers are feeling hopeful about sustainability-themed bonds and almost unanimously believe issuance will top $270bn.

    13 Dec 2019
  • Covered bonds grapple with QE-distorted world

    Covered Bonds

    Covered bonds grapple with QE-distorted world

    Navigating the covered bond market will not be without its challenges in 2020. The Targeted Longer Term Refinancing Operation (TLTRO), European Central Bank deposit tiering and the Covered Bond Purchase Programme have collectively distorted the market, but added to this concoction is the impact of negative interest rates. Against this backdrop issuers, investors and investment bankers gathered in Munich in November to discuss the outlook for covered bonds. It is likely that new issue premiums will gradually tighten, but the path is unlikely to be smooth. January is typically the busiest month, but in 2019, issuers that funded this early paid the highest spreads. And, with the ECB expected to buy in the region of €4.5bn covered bonds a month, issuers will not feel compelled to move early. But the ECB monetary policy has unwelcome implications. Covered bonds have begun to lose value against government bonds, and this will extend if the ECB is unable to loosen restrictions on government bond purchases.

    14 Jan 2020

In Depth

  • Sterling gloom ahead for SSAs despite tumbling records

    Public sector borrowers have been ripping up new issuance records in the sterling market since 2017. But that rich run could all be about to end with underlying spreads making the market unattractive versus euros and dollars. However, that will not deter bank borrowers who are set to party on in pounds, write Burhan Khadbai and David Freitas.

  • Wide-open market helps Italian banks make headway on capital, funding

    Italian banks took over the financial institutions bond market this week, enjoying a much lower cost of funding and capital than they have been accustomed to in recent years. The sector will look to make good use of favourable issuance windows in 2020, as it moves inch by inch towards a more positive outlook.

Bookrunners of Global FIG

Rank Lead Manager Amount $bn No of issues Share %
1 15.41 37 8.49%
2 14.28 51 7.87%
3 13.73 51 7.56%
4 9.49 41 5.23%
5 9.18 34 5.06%

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $bn No of issues Share %
1 2.72 13 6.42%
2 2.44 11 5.76%
3 2.36 18 5.58%
4 2.30 9 5.43%
5 2.29 8 5.40%