FIG - Article Archive


  • UBS investment bank restructuring to cost $100m

    UBS is reorganising its investment bank, targeting annual savings of $90m, it revealed on Tuesday, alongside a dismal set of third quarter results for underwriting and advisory.

    • 22 Oct 2019
  • Rabobank breaks through fair value with seven year green senior

    Coöperatieve Rabobank shrugged off a little price sensitivity on Tuesday to launch a green non-preferred senior bond at a spread that FIG bankers considered to be up to 5bp lower than fair value.

    • 22 Oct 2019
  • RBC beefs up TLAC buffer with sterling senior

    Royal Bank of Canada (RBC) was able to raise £400m of senior funding as though it was on 'autopilot' in the sterling market on Tuesday. It is the third Canadian issuer in a month to seek funding in this currency counting as total loss absorbing capacity (TLAC).

    • 22 Oct 2019
  • DKB to market and sell Blue Social Pfandbrief

    Deutsche Kreditbank (DKB) has mandated leads for a roadshow ahead of a planned €500m Blue Social Pfandbrief that will finance public water and waste management facilities, to be issued under the bank’s existing social bond framework.

    • 22 Oct 2019
  • Muthoot navigates NBFC volatility for $450m debut

    Muthoot Finance raised $450m from its maiden dollar bond on Monday, after showing investors the difference between its operations and that of other beleaguered Indian non-banking financial companies (NBFCs).

    • 22 Oct 2019
  • Bonds news in brief: Huarong Leasing, Jiangsu LGFVs price deals

    China Huarong Financial Leasing Co and two local government financing vehicles (LGFVs) based in the coastal province of Jiangsu came to the offshore bond market to raise $300m each.

    • 22 Oct 2019
  • LBBW readies debut AT1 as banks adapt to new rules changes

    Landesbank Baden-Württemberg (LBBW) announced on Monday it will run investor meetings this week to discuss its debut sale of additional tier one (AT1) capital. Changes in regulation are prompting issuers to seek new deals in the asset class to optimise their capital layers.

    • 21 Oct 2019
  • BPM returns to market for senior bond

    Banco BPM extended the run of recent Italian bank bond supply on Monday, launching a preferred senior bond. The deal was launched at 200bp over mid-swaps and did not offer a new issue premium to investors, according to a banker on the deal.

    • 21 Oct 2019
  • CIBC enjoys ‘brilliant’ Sonia debut after favorable basis move

    Canadian Imperial Bank Commerce was quick to take advantage of a favourable swing in the sterling-dollar basis swap, to issue its debut Sonia-linked covered bond on Monday, pricing the deal flat to fair value and tighter than where it could have printed in dollars or euros. The scale of demand would have allowed for a much larger deal suggesting good potential for follow-on supply.

    • 21 Oct 2019
  • Negative rates as ‘new normal’ to push European banks towards charging customers

    The decision by the European Central Bank to lower its deposit rate to -0.5% last month has prompted the eurozone’s banks to look at passing some of the pain of negative interest rates on to their customers

    • 20 Oct 2019
  • Green New Deal’s first test in Europe is imminent

    The idea of the Green New Deal, a package of policies addressing environmental, social and economic needs together, is spreading around the world and is likely to be on show first in Europe

    • 20 Oct 2019
  • Central banks ‘need new mindset’ to handle climate change

    The increasingly obvious threat of climate change is leading central banks into new territory, as they begin to analyse the risks it poses to the financial system. It is stretching them intellectually and posing new questions about how they interpret their mandates, and whether they can lead society or must travel at its pace.

    • 19 Oct 2019
  • Estonia rejects new EU agency to fight financial crime

    Estonia’s finance minister tells GlobalMarkets why he does not believe that the EU should set up its own anti-money laundering agency but should instead focus on more effective cooperation and faster information-sharing

    • 19 Oct 2019
  • Banks sign responsibility code but remain deep in fossil fuels

    The World Bank’s chief economist says globalisation has been wrongly blamed for fuelling the rise in inequality but says that unless policymakers cooperate, there is a danger it could turn into a new era of deglobalisation that would hurt the poorest

    • 19 Oct 2019
  • Credito Emiliano offers more Italian euro FIG supply

    Credito Emiliano continued an Italian bank bond spree on Friday, choosing a quiet day to market a debut non-preferred senior bond. The deal comes one day after Banca del Mezzogiorno priced a social bond.

    • 18 Oct 2019
  • Ukraine’s central bank pledges to stand firm on Privatbank

    The National Bank of Ukraine is embroiled in around 600 lawsuits over the nationalisation of Privatbank against its former owner Ihor Kolomoisky. The governor of the NBU tells GlobalMarkets that if Kolomoisky wins, it would cross a red line for the IMF’s continued involvement with the country

    • 18 Oct 2019
  • Bond news in brief: H&H, Yibin, CCB tap dollars

    Health and Happiness International Holdings, Yibin Emerging Industry Investment Group Co and CCB International were among those which priced dollar bonds on Thursday.

    • 18 Oct 2019
  • Avic squeezes perp tight, nabs $200m

    Avic International Leasing Co followed the success of Chinese National Travel Service Group Corp's bond this week, raising $200m from its own aggressively-priced perpetual note on Thursday.

    • 18 Oct 2019
  • Citic Securities raises $700m from well-bid bond

    Citic Securities Co returned to the offshore market with a $700m dual-tranche transaction. The deal included a five year bond, a rarity from a Chinese securities house in recent years.

    • 18 Oct 2019
  • Make hay while positive yields shine

    The recent bond market sell-off has provided an opportune window for issuers to bring positive yielding deals, boosting demand for SSAs and covered bonds. It’s difficult to imagine this move will prove anything other than temporary, suggesting hesitant issuers should seize the opportunity before it disappears.

    • 17 Oct 2019
  • HSBC’s UK plan intact despite global equities review

    HSBC’s plan to develop its UK equities and corporate broking business remains intact, despite its decision to review its global equities business.

    • 17 Oct 2019
  • Game over for smaller FIG issuers this year

    Argenta Spaarbank’s trade this week was a warning to smaller banks about the importance of good pricing and roadshows in selling bonds. But even for those issuers willing to heed those lessons, it may already be too late to issue debt, writes David Freitas.

    • 17 Oct 2019
  • BofA Corp goes green in dollars

    Bank of America became the first big US bank to emerge from third quarter earnings blackout and tap the dollar bond market this week.

    • 17 Oct 2019
  • Bond underwriting outweighs IPO slump at Morgan Stanley

    Morgan Stanley posted fee growth in underwriting and advisory in its third quarter results on Thursday, leaving Goldman Sachs the outlier among the five big US banks in seeing revenues fall in investment banking.

    • 17 Oct 2019
  • Solomon still planning a culture change at Goldman

    A year on from being appointed chief executive, David Solomon is calling for patience in remodelling Goldman Sachs around new growth avenues. But there is much to admire on his first anniversary, writes David Rothnie.

    • 17 Oct 2019
  • The Old Lady needs to lead on Libor

    The Bank of England should extend Libor beyond its set date of 2021 — or risk financial institutions setting their own rules.

    • 17 Oct 2019
  • Libor end in doubt as market players highlight litigation risk

    Libor may be extended beyond the cut-off date of 2021, sources told GlobalCapital this week, as the market braces for litigation over more than $1tr of Libor-linked mortgages. Tom Brown reports.

    • 17 Oct 2019
  • ING Poland looks to euros after green covereds

    ING Poland has issued its first covered bond, a deal secured on green assets denominated in zloty. The issuer plans to return early next year with its first euro denominated green covered bond in benchmark size, said chief executive Boda Miroslaw,

    • 17 Oct 2019
  • NordLB's first renewable energy covered

    NordLB Luxembourg Covered Bond Bank has mandated joint leads for a roadshow to market the first renewable energy covered bond to be issued under the country’s new lettres de gage énergies renouvelables legal framework. A trade is expected to follow soon.

    • 17 Oct 2019
  • ‘Role model’ AMAG stars in quiet Swiss market

    Switzerland’s largest private and commercial vehicle leasing company starred in an otherwise quiet market for Swiss franc issuance this week.

    • 17 Oct 2019
  • Covered bond trio pounce on higher yields

    Three covered bond issuers took advantage of a rise in yields, following what seemed a breakthrough in Brexit negotiations, to issue transactions that would not have been well received two weeks ago. Banca Popolare dell’Alto Adige’s debut and Sparkasse Hannover’s sub-benchmark deals delivered positive returns, while demand for a slightly negative-yielding benchmark from Sparebanken Sør Boligkreditt was boosted by its green credentials.

    • 17 Oct 2019
  • La Mondiale RT1 a blowout but pricing debated

    La Mondiale gave investors a rare chance to put money in restricted tier one (RT1) ranks this week. The bond was oversubscribed by more than 10 times but the insurance company paid a hefty premium to do the deal, according to one source away from it. However, one of the leads disagreed and said the bond was priced “probably inside fair value”.

    • 17 Oct 2019
  • IBK mixes fixed, floating for $600m bond return

    Industrial Bank of Korea (IBK) raised $600m on Wednesday from a combination of fixed and floating rate notes.

    • 17 Oct 2019
  • Europe to fix focus on SMEs in revamped CMU project

    Finland’s finance minister tells GlobalMarkets that SMEs should be a priority for the new EU Commission, while a a high level EU expert group has suggested the EU could set up a fund to support SMEs and mid-cap companies through the costly process of launching an initial public offering

    • 17 Oct 2019
  • Nationwide seeks to replace Libor with Sonia

    Nationwide Building Society announced a consent solicitation on Wednesday with plans to convert two floating rate covered bonds to pay coupons based on Sonia rather than Libor, and is considering doing the same on all of its Libor-based bonds. The UK issuer followed Lloyds, which won plaudits from Moody’s for undertaking a similar exercise on a covered bond earlier this month.

    • 16 Oct 2019
  • SG, Mariner bring new impact securitization structure

    Société Générale has engaged in a $3.4bn synthetic securitization and pledged to reinvest some of the freed-up capital to increase its ‘positive impact finance’ lending. The investor, New York hedge fund Mariner Investment Group, has given it a financial incentive to go even further.

    • 16 Oct 2019
  • Citi awakens sterling market with senior

    Citigroup launched a senior unsecured bond in the sterling market on Wednesday, just as the UK government appeared to be making some progress over its Brexit deal with the EU.

    • 16 Oct 2019
  • Covered bond syndication at its trickiest this year

    Covered bonds issued in October have had a distinctly mixed reception — as depicted by the wide dispersion of scores on GC Covered Bond Marker. Bankers say the outlook is complex as investors are more cautious and it’s not fully clear how the European Central Bank’s (ECB) deposit tiering will really play out in conjunction with its asset purchases, its Targeted Longer-Term Refinancing Operations (TLTRO) and negative interest rates.

    • 16 Oct 2019
  • BPCE and Banca Farmafactoring tap into euro senior demand

    BPCE and Banca Farmafactoring launched senior deals this week, with both issuers enjoying healthy receptions to their offerings. BPCE’s non-preferred mandate drew over €2.75bn of orders and the Italian issuer saw its preferred bond attract €850m at the spread level.

    • 16 Oct 2019
  • Argenta trade a reminder investors ‘selective’ about bank bonds

    The postponement of Argenta Spaarbank’s non-preferred senior bond on Tuesday was a reminder that investors are not taking a shine to everything sent their way in the market. The large volume of trades this year has prompted investors to become “selective” about what they buy, analysts at Rabobank said.

    • 16 Oct 2019
  • CCB nets $1.55bn from euro, dollar bonds

    China Construction Bank returned to the international bond market on Tuesday, turning to dollar and euro investors with two separately-executed deals worth a combined $1.551 billion.

    • 16 Oct 2019
  • Going gets tough for Europe’s capital markets union

    The new European Commission has its work cut out if it wants to re-launch efforts to create a single market for capital in Europe. The easy wins were banked by the previous administration while Brexit complicates an already highly complex initiative

    • 15 Oct 2019
  • ECB deposit rate tiering won't hit covered bonds

    The European Central Bank’s (ECB) decision to introduce tiered deposit rates means that €800bn of cash held at the central bank will pay a higher interest rate than most covered bonds. This is not bad news for spreads — it just sounds like it is.

    • 15 Oct 2019
  • Covered bonds to escape tiered deposit widening effect

    The European Central Bank’s decision to introduce deposit tiering should have meant less demand for negative yielding covered bonds. However, there has been little evidence of sustained selling and bank analysts are optimistic that demand will hold up.

    • 15 Oct 2019
  • Argenta and SMFG find contrasting demand in senior

    Argenta Spaarbank and Sumitomo Mitsui Financial Group were both marketing senior bonds on Tuesday, making use of the favourable backdrop in the primary market. While Sumitomo was quick to build demand for its bond, Argenta struggled to gather enough demand volume to move the spread from price thoughts.

    • 15 Oct 2019
  • Caffil to issue first green public sector covered bond

    Caisse Francaise de Financement Local (Caffil) has mandated leads for a roadshow to present its new green covered bond framework that, unlike its peers, is secured on public sector assets.

    • 14 Oct 2019
  • UBI Banca finds senior success in return to euro market

    UBI Banca launched a €500m non-preferred senior bond this week, supported by orders of €1.4bn at peak, but it had to pay a new issue premium, according to a FIG banker.

    • 14 Oct 2019
  • Positive yield drives LBP covered bond demand

    La Banque Postale (LBP) took advantage of a rare rise in yields to issue a positive yielding covered bond on Monday. Its tiny return was enough to ensure success and stood in contrast to the negative-yielding deals issued last week that could have been hit by European Central Bank’s deposit tiering, said bankers.

    • 14 Oct 2019
  • Investors keen on Créd Ag green senior bond

    Crédit Agricole launched a non-preferred senior bond on Monday in green format, attracting investors who put in over €2.3bn of orders at guidance.

    • 14 Oct 2019
  • Italy's Alto Adige prepares for debut covered bond

    Debut Italian covered bond issuer Banca Popolare dell’Alto Adige, which is based in South Tyrol and is more commonly known as Volksbank, has mandated leads for a roadshow ahead of a planned deal.

    • 11 Oct 2019
  • RBC hires Boardman to lead FI solutions

    Richard Boardman has joined RBC Capital Markets to help the bank provide capital and asset-liability management (ALM) solutions to financial institutions.

    • 11 Oct 2019
  • ICBC pushes pricing limits with new dollar FRN

    Industrial and Commercial Bank of China raised $1bn from two Libor-linked floating rate notes (FRNs) at record tight levels, a day after its peer Bank of China paid up to issue Asia’s first dollar floater tied to a new benchmark.

    • 11 Oct 2019
  • CMU gets a makeover — EU proposes revamp and policy shift

    A report commissioned by European Union member states suggests rebranding the Capital Markets Union (CMU) a “Savings and Sustainable Investment Union”. Specific proposals include all large sovereign borrowers issuing green bonds, facilitating IPO access for smaller companies, and a group of select countries readying to harmonise insolvency rules.

    • 10 Oct 2019
  • Canadian banks plug away at TLAC as Yankees dominate dollar market

    Yankee banks took advantage of a strong market backdrop this week ahead of US third quarter earnings season, with Canadian banks leading the charge.

    • 10 Oct 2019
  • CMU is dead, long live the CMU

    The branding may be on the way out, but there are plenty of reasons to be encouraged about the potential for real progress in the next phase of the Capital Markets Union.

    • 10 Oct 2019
  • Credit Suisse spying affair shows European banking has a succession crisis

    One of the lessons from the Credit Suisse spy scandal is that there is a dearth of talent capable of leading Europe’s banks through their most challenging period. A succession crisis looms, writes David Rothnie.

    • 10 Oct 2019
  • GCC banks make Swiss franc comeback

    Middle Eastern banks returned to the Swiss franc market this week after an absence of almost five months with trades from two Gulf banks providing some respite for yield-starved investors.

    • 10 Oct 2019
  • Pfandbrief duo hit covered bond sentiment

    Pfandbriefe issued by Deutsche Pfandbriefbank on Wednesday and Hypo Tirol on Thursday struggled to find enough demand. Though spreads are not expected to widen, the deals showed investors are more discerning as uncertainty builds ahead of the European Central Bank (ECB) asset purchases, which are due to commence in November.

    • 10 Oct 2019
  • Italian trio tune up as FIG market prepares for reporting season

    Lesser-known Italian financial institutions have moved to the front of the pipeline in the financial institutions bond market, as larger and more frequent funders begin slipping into blackout periods ahead of reporting third quarter earnings.

    • 10 Oct 2019
  • European Commission approves Greek ‘Hercules’ NPL securitization scheme

    The European Commission has approved Greek plans to set up a scheme called Hercules to enable the country’s banks to cut their non-performing loan (NPL) exposures.

    • 10 Oct 2019
  • Bank of China pioneers Asia’s first Sofr-linked bond

    Bank of China broke new ground for Asia this week with the region’s first floating rate bond linked to the secured overnight financing rate (Sofr). But a host of challenges around payment calculations and liquidity mean other issuers will be slower to embrace this new benchmark. Addison Gong reports.

    • 10 Oct 2019
  • European rules on internal MREL are ‘not okay’, says UniCredit’s Mustier

    Jean Pierre Mustier, chief executive of UniCredit, said on Thursday that European banks were being put at a disadvantage by minimum requirements for own funds and eligible liabilities (MREL), as it overburdens subsidiaries of cross-border banking groups.

    • 10 Oct 2019
  • SMFG back in Aussie dollars

    Japanese Sumitomo Mitsui Financial Group (SMFG), the holding company for SMBC, returned to Australian dollars on Wednesday after two years away from the currency.

    • 10 Oct 2019
  • Italy's Nexi switches to unsecured capital structure with €825m deal

    Nexi, the Italian payments company, is marketing a dual-tranche refinancing bond, its first issue since it floated on the Milan Stock Exchange in April. With Advent, Bain Capital and Clessidra now mid-way through realising their investments, the company is changing its approach to the debt markets, switching to unsecured bonds and giving up callability.

    • 09 Oct 2019
  • RLB Noe takes advantage of ‘really quiet’ window for rare senior offering

    Raiffeisenlandesbank Niederösterreich-Wien (RLB Noe Wien) found the euro primary market to be quiet but bullish this week, allowing it to launch a new senior unsecured bond at what lead managers saw as a fair pricing level.

    • 09 Oct 2019
  • Moody’s gives thumbs up to Lloyds’ covered conversion

    Moody’s said on Wednesday that investors’ approval of Lloyds Bank’s request to convert the interest basis on a covered bond from Libor to Sonia was credit positive for the issuer and bodes well for the rest of covered bond and structured finance markets, which must transition to Sonia before 2022.

    • 09 Oct 2019
  • Bank capital investors start Q4 on tenterhooks after ‘super’ year

    Bank capital securities have enjoyed a tremendous performance in 2019, leaving specialist fund managers a little nervous about protecting their returns as the year draws to a close.

    • 09 Oct 2019
  • Banca Farmafactoring eyes ‘better access’ to markets after first credit rating

    Banca Farmafactoring, an Italian financial institution with a specialism in factoring services, is preparing its first rated offering of debt in the capital markets after spying an opportunity to take advantage of ‘favourable’ conditions for issuance.

    • 09 Oct 2019
  • Hypo Tirol set for Pfandbrief supply

    Hypo Tyrol Bank mandated leads on Wednesday for a €500m seven year, to be launched on Thursday.

    • 09 Oct 2019
  • IADB supports Lat Am green covereds, despite woes

    The Inter-American Development Bank has published a report promoting the use of covered bonds as a funding tool for green developments in Latin America and the Caribbean. But it remains to be seen whether risk-averse covered bond investors are ready to take the plunge into emerging markets — particularly given regulatory hurdles in the swaps market.

    • 09 Oct 2019
  • Shinhan Bank goes for green with debut euro bond

    South Korea's Shinhan Bank has taken its first step into the euro bond market, raising €500m of green funding on the back of €650m of demand.

    • 08 Oct 2019
  • Santander CB proves popular with curve-building five year

    Santander Consumer Bank was more than three times subscribed for a tightly priced €500m five year preferred senior bond this week — its second offering in the asset class.

    • 08 Oct 2019
  • Serra: bank equities insulated from ECB APP bubble

    Davide Serra, founder and chief executive of Algebris Investments, presented a bullish case for financials on Tuesday, on the basis that their equity prices have been less manipulated by central bank asset purchase programmes than institutions in other sectors. But he thought that the European Central Bank (ECB) will end up buying banks’ senior unsecured bonds.

    • 08 Oct 2019
  • NIBC and Axa find tight covered bond pricing

    NIBC Bank and Axa SFH issued two tightly priced 10 year covered bonds on Tuesday. The French deal was initially slow to build, in contrast to the Dutch conditional pass through (CPT), which got an extra boost because of its positive yield.

    • 08 Oct 2019
  • Fullerton India visits Lion City for S$150m

    Fullerton India Credit Co raised S$150m ($108.6m) in the Singapore market, straying from its usual fundraising efforts in the rupee market.

    • 08 Oct 2019
  • Cerberus securitizes repurchased Metro Bank mortgage book

    Cerberus is marketing a new UK RMBS partly backed by the portfolio it repurchased from Metro Bank this summer, with the senior notes pre-placed and the rest of the stack handled by Bank of America’s trading desk.

    • 07 Oct 2019
  • Axa lines up with 10 year French covered bond

    AXA Home Loan SFH has mandated leads for a 10 year deal that is expected to be launched in the near future.

    • 07 Oct 2019
  • UK covered bonds find modest support

    UK covered bonds in euros have been modestly supported in the secondary market, as investors view spreads as relatively generous compared to the rest of Europe, and because some say the UK's chance of leaving the European Union at the end of October without reaching an agreement has receded. However ‘the risk of a no-deal exit remains high,’ Standard and Poor’s warned on Monday.

    • 07 Oct 2019
  • Bank of Ireland lands tier two at second attempt

    Bank of Ireland was more than three times subscribed for a €300m tier two bond this week, nailing its second attempt at the deal after returning to the market with a wider spread for investors.

    • 07 Oct 2019
  • RLB Noe Wien mandates as reporting season looms over primary

    Raiffeisenlandesbank Niederösterreich-Wien (RLB Noe Wien) is looking to raise new senior unsecured funding, as bankers begin predicting a quieter period for supply in the euro market.

    • 07 Oct 2019
  • Portuguese banks to issue up to €9bn of MREL debt, says Fitch

    Fitch Ratings said on Monday that it expected Portuguese banks would issue up to €9bn of senior debt for the minimum requirements for own funds and eligible liabilities (MREL) in the coming years, as they work concurrently on cleaning up the asset sides of their balance sheets.

    • 07 Oct 2019
  • Cast your vote on the latest covered bonds

    Please take a few minutes to cast your confidential vote 20 recently issued euro covered bonds - including those from Erste Group, Virgin Money and Liberbank.

    • 07 Oct 2019
  • ESRB’s covered concerns ‘unfounded’, say analysts

    The European Systemic Risk Board is concerned that covered bonds could be fuelling financial imbalances — a claim that some analysts find tenuous. They do, however, agree that house prices are overvalued, particularly in some Nordic countries where the ESRB has identified a risk of financial contagion.

    • 04 Oct 2019
  • FRN bonanza sweeps MTN market

    Corporate, FIG and SSA issuers placed floating rate notes this week, pegged to Euribor, Sonia and Libor. With so many issuers coming to market, bankers are interested to see which other borrowers 'take advantage of the liquidity'.

    • 04 Oct 2019
  • Quarles: stablecoins, market fragmentation threaten stability

    Randal Quarles, the head of global regulator the Financial Stability Board, warned on Thursday that cryptocurrencies and increasing fragmentation of financial markets carried the greatest threats to market stability.

    • 03 Oct 2019
  • Supervisor sceptical about greening insurer capital requirements

    The European Insurance and Occupational Pensions Authority (EIOPA) has told the European Commission that capital requirements for insurers should not be tweaked to encourage sustainability, nor calculated using a longer time frame to better incorporate the effects of climate change. Instead, it suggests analysis, stress tests and disclosure of risks.

    • 03 Oct 2019
  • Sky high MREL costs cast shadow over Metro Bank’s future

    Metro Bank could be forced to overhaul its strategy for growth after agreeing to pay an exorbitant rate on a new senior bond this week, in desperation to meet a looming set of regulatory requirements. Tyler Davies reports.

    • 03 Oct 2019
  • People moves in brief

    MUFG hires derivs head from HSBC — ex-Stan Chart chief to chair ICG — DCM banker goes to sustainable finance centre

    • 03 Oct 2019
  • Norwegian covered bond trio going green

    Sparebanken Sør Boligkreditt will become the fourth Norwegian bank to issue a green covered bond after mandating leads for a roadshow on Thursday. It follows the first green covered bond by Norway’s SR Boligkreditt and a vanilla deal from Møre Boligkreditt issued this week.

    • 03 Oct 2019
  • BFCM prints ‘largest ever Samurai’ on yen visit

    Banque Fédérative du Crédit Mutuel returned for its annual visit to the yen market this week to sell its largest ever Samurai.

    • 03 Oct 2019
  • Santander hits green with blowout pref senior

    Banco Santander hit screens this week to sell its first green bond. The deal attracted orders more than five times its €1bn size.

    • 03 Oct 2019
  • Crunch time for bank capital

    Metro Bank joined Deutsche Bank this week in demonstrating how regulatory debt capital issues drive fears over business sustainability. Will regulators get cold feet and pull back?

    • 03 Oct 2019
  • High margin cap markets businesses are key to Commerz plan

    Commerzbank has come through a period of intense scrutiny with a no-nonsense strategy that reflects its culture. A dash of investment banking ambition is thrown in, writes David Rothnie.

    • 03 Oct 2019
  • Sør Boligkreditt to become fourth Norwegian green covered bond issuer

    Sparebanken Sør Boligkreditt will become the fourth Norwegian bank to issue a green covered bond and has mandated leads for a roadshow following publication of its green and sustainability framework.

    • 03 Oct 2019
  • FIG issuers hit pause as secondaries begin to widen

    The financial institutions bond market has absorbed an enormous volume of supply over the past month, putting a strain on trading levels for outstanding securities. FIG bankers nonetheless expect that spreads could start to tighten once more in the coming weeks, amid a calmer flow of new issuance.

    • 03 Oct 2019
  • Covered bonds to improve as real money exits

    Covered bond market conditions are now improving as the new quarter ushers in a fresh wave of investor cash. With supply expected to fall and the European Central Bank (ECB) likely to step up purchases, spreads should tighten. But investors believe that as real money buyers are inclined to protect their profits, they will gradually retreat from this market.

    • 02 Oct 2019
  • Credit Suisse swaps into higher yielding dollar rates for op risk

    Credit Suisse has found one way to deal with low interest rates in Europe: switch into another currency. The Swiss bank has conjured up an extra Sfr250m ($250m) of net interest income (NII) per year from changing how it hedges the capital to meet its operational risk.

    • 02 Oct 2019
  • Russian Railways toots horn for EM Swissies

    Swiss investors’ thirst for yield was quenched in some style at the end of last week, when Russian Railways printed the largest Swiss franc transaction of the year from an emerging market borrower.

    • 02 Oct 2019
  • AIB revives Irish sub debt market despite Brexit noise

    Allied Irish Banks was met with a strong response for an additional tier one (AT1) in the euro market on Wednesday, just a month after its national peer Bank of Ireland had to pull a subordinated bond amid fears about the impact of the UK’s departure from the EU.

    • 02 Oct 2019
  • Swedbank and UniCredit keep euro senior taps flowing

    Swedbank and UniCredit got away with paying small new issue premiums for senior bonds this week, after utilising an extremely favourable backdrop for issuers in the euro market.

    • 02 Oct 2019
  • Covered bond investors demand more, more Møre

    Investor demand for Møre Boligkreditt’s five year covered bond issued on Wednesday was well in excess of the deal size — even though the negative yield of minus 0.269% means they are bound to lose money if they hold it to maturity.

    • 02 Oct 2019
  • Metro faces ‘astronomical’ interest costs after second attempt at MREL debut

    Metro Bank came back to the sterling market on Wednesday to make a second effort at selling non-preferred senior debt, raising the pricing on its offer by 200bp to 9.5%. Market participants suggested the transaction was already a ‘done deal’, but warned that the interest costs would weigh very heavily on the bank’s profit and loss statement.

    • 02 Oct 2019
  • HSBC’s Enns heads to Asia as Guyett seeks rebalancing

    HSBC is reorganising its corporate finance coverage and sending the co-head of the business, Peter Enns, to Asia as part of a global revamp under Greg Guyett, the bank’s new global banking boss.

    • 01 Oct 2019
  • Investors swell to SR Boligkreditt’s inaugural green covered bond

    SR Boligkreditt attracted robust demand for its first green covered bond on Tuesday, enabling the bonds to be priced with a minimal concession.

    • 01 Oct 2019
  • MPS attracts strongest covered demand of 2019

    A Banca Monte Dei Paschi di Siena (MPS) €1bn seven year issued on Tuesday was the most oversubscribed covered bond of its size issued this year and, with 300 investor orders, attracted the most granular order book of the year by a wide margin.

    • 01 Oct 2019
  • CRH makes strong covered bond return after long break

    Caisse de Refinancement de l'Habitat (CRH) returned to the covered bond market after a six year absence with a transaction that resonated well with the market, according to the bank’s chief executive, Marc Nocart.

    • 01 Oct 2019
  • Hannover Re adds to insurance bond flurry with unusual tier two

    Hannover Re has added to a string of recent new issuance from European insurers, opting for an unusual maturity structure for its tier two this week.

    • 01 Oct 2019
  • AIB follows Nationwide with flexible first call option for new AT1

    AIB Group is set to sell a new additional tier one (AT1) with a six month call period ahead of the first payment reset date. This feature was pioneered by Nationwide Building Society, and looks as though it could become the norm in the AT1 market.

    • 01 Oct 2019
  • Sovcombank 'struggles' over line as fears grow of EM bubble bursting

    Sovcombank printed a tier two bond on Monday at the wide end of guidance and the lowest end of the expected size range, which an investor said was a sign that the deal was “struggling” over the line. But a lead manager on the note pointed to healthy trading on Tuesday and its debut status and said that the issuer had simply taken sensible decisions after an in-depth price discovery process.

    • 01 Oct 2019
  • No evidence of Thiam involvement in spying, says CS

    An investigation initiated by Credit Suisse has found no indication that chief executive Tidjane Thiam approved the observation of its former employee Iqbal Khan. Chief operating officer Pierre-Olivier Bouée has resigned after he declared that he alone requested the surveillance.

    • 01 Oct 2019
  • Metro mulls public and private MREL options as Fitch cuts debt rating

    Fitch Ratings has downgraded Metro Bank a month after giving the UK lender its first rating. It expressed concern about Metro’s recent failure to raise debt for looming regulatory requirements, but the bank is insisting that it still has plenty of options on the table — including looking at solutions in the private market.

    • 01 Oct 2019