FIG - Article Archive

  • The end of the road for roadshows

    The shock of the Covid-19 coronavirus outbreak has forced some rapid thinking among capital markets participants. Almost the first impact has been travel.

    • 27 Feb 2020
  • Covid-19 threatens more than the global economy

    Market participants should be braced for political volatility as the world comes close to experiencing a pandemic.

    • 27 Feb 2020
  • Primary markets shut as coronavirus wreaks havoc in rates, equities

    The worsening of the Covid-19 outbreak has battered equity prices and sent investors scurrying for the safety of core government bonds. Most primary markets are all but shuttered, and investors are praying for central banks to provide a glimmer of hope.

    • 27 Feb 2020
  • BoE ‘turbo charges’ post-Libor transition with plans for index and ramped-up haircuts

    The Bank of England turned up the heat on Libor this week with plans to publish a compounded Sonia index and averages in a move that will drive the transition to the new risk-free rate with a simpler coupon calculation methodology. It will also increase haircuts on Libor-linked collateral which is intended to accelerate the switch out of Libor FRNs maturing after 2021.

    • 27 Feb 2020
  • Corbat’s chief of staff moves to Europe

    Citi has reshuffled positions in its Europe, Middle East and Africa business, including forming a new position for crisis and climate risk and naming a new head for European businesses.

    • 27 Feb 2020
  • World Bank’s Malpass lambasts ECB

    The head of the World Bank has launched an outspoken attack on the European Central Bank’s monetary policy, saying its mass purchases of long-dated sovereign bonds was distorting markets and failed to provide short-term finance.

    • 27 Feb 2020
  • UBS goes for ‘one firm’ approach to improve IB

    Sergio Ermotti’s call for improvement in UBS’s investment bank could be undermined by the arrival of his successor as chief executive, writes David Rothnie.

    • 27 Feb 2020
  • Covered bonds expected to reopen FIG, when time is right

    Financial markets weakened further on Thursday, as the economic impact of the Covid-19 coronavirus epidemic scotched any chance of primary market activity, said bankers. A period of stability is necessary before new issuance can restart, they said, at which point covered bonds will be the product of choice.

    • 27 Feb 2020
  • Hamburg Commercial to skip Milan meetings on T2 roadshow

    Hamburg Commercial Bank will no longer visit Milan on the roadshow for its new tier two bond, with parts of northern Italy having been locked down to contain the spread of Covid-19. But issuers and investors are still managing to get on with their business amid the mounting chaos.

    • 27 Feb 2020
  • Stan Chart and HSBC brace for double whammy of Covid-19, HK protests

    HSBC and Standard Chartered are expecting lower profits and higher loan impairments this year due to the Covid-19 coronavirus outbreak and an economic downturn in Hong Kong.

    • 27 Feb 2020
  • Perps flood market as investors grab for yield

    Perpetual tenors were in favour this week as four borrowers from Greater China sealed perps in a yield-hungry environment.

    • 27 Feb 2020
  • BOC makes Covid-19 linked bonds international

    Bank of China (BOC) took Covid-19 linked bonds offshore on Thursday with a dual-currency two-year transaction, which was offered through its Macau branch.

    • 27 Feb 2020
  • Market lacks confidence in European bank resolution, says S&P

    Inconsistent laws and a lack of faith in untested resolution tools have “stretched the credibility” of the bank failure framework in Europe, according to analysts at S&P.

    • 26 Feb 2020
  • Virus vol keeps bank bond market on lockdown

    Banks are delaying their plans to raise funding in the euro market, as credit spreads drifted wider on news about the spread of the Covid-19 coronavirus.

    • 26 Feb 2020
  • MTN volumes flag but non-core soars

    MTN deal volumes year-to-date have slumped by nearly a third year on year, falling from $51.6bn in 2019 to $35bn this year. The fall has been particularly pronounced in core currency deals, with deals from other currencies forming a larger proportion of the market.

    • 26 Feb 2020
  • Metro launches new strategy, plans to issue more MREL

    Metro Bank is looking to become a more profitable institution after launching a review of its strategy this week, but the lender still faces the challenge of having to raise a further £500m of debt to meet its capital needs.

    • 26 Feb 2020
  • Bank of England lays out plans to publish compounded Sonia averages and index

    The Bank of England has said it intends to publish compounded Sonia averages and a Sonia index using a ‘shift’ calculation method by the end of July, subject to feedback on a series of questions it has asked sterling market participants. This follows the first deal using that method from the European Bank for Reconstruction and Development Bank last week.

    • 26 Feb 2020
  • BoCom's HK arm bags $500m AT1

    Bank of Communications’ Basel III-compliant additional tier one bond issuance went as expected on Tuesday, despite a dip in investor sentiment due to the rapid spread of the coronavirus.

    • 26 Feb 2020
  • Tech boutique offers tool to spot greenwash

    Investors who have been longing for the EU Taxonomy of Sustainable Economic Activities to tell them what is green are now realising that its arrival could make life tricky. From the end of next year, they will have to start reporting how sustainable all their portfolios are. It could prove an enormous headache. But a tiny company has developed a tool it claims can cut out a lot of the worries investors face in working out how to comply.

    • 26 Feb 2020
  • EU MREL: too complicated by half

    The Single Resolution Board is planning to add another level of intricacy to the minimum requirement for own funds and eligible liabilities (MREL), just as it seemed as though they couldn’t get any more complicated.

    • 25 Feb 2020
  • UK covered bonds offer value over peers, say traders

    UK covered bonds looked cheap, said traders on Tuesday, especially relative to Canadian and Australian alternatives. Their views followed a report from Moody’s which said on Monday that UK banks’ credit fundamentals were resilient and their covered bond ratings well protected.

    • 25 Feb 2020
  • Generali launches framework for green insurance-linked securities

    Assicurazioni Generali, the Italian insurance company, has launched a framework to show how insurance-linked securities can be structured to contribute towards investments in green assets.

    • 25 Feb 2020
  • Santander UK targets capital optimisation with T2 tender offer

    Santander UK is looking to buy back part of a subordinated bond issued in 2013 in a bid to “optimise its regulatory capital structure”.

    • 25 Feb 2020
  • BoCom Leasing floats dual-tranche trade

    Bank of Communications Financial Leasing Co (BoCom Leasing) found strong support from investors for its $800m dual-tranche floating-rate deal on Monday, thanks to its status as a defensive credit in a volatile market.

    • 25 Feb 2020
  • Changing of the guard at Daiwa Europe

    Daiwa Capital Markets Europe is changing its senior bond market leadership.

    • 24 Feb 2020
  • Carnival keeps covereds calm as coronavirus fears spread

    Covered bonds were steady on Monday, with spreads reacting stoically in the face of mounting volatility in the credit and equity markets, which were hit by fears over the spread of the Covid-19 coronavirus. But with key covered bond investors only expected to return to their desks on Wednesday, following Germany’s carnival season, market participants remain braced for a delayed reaction in the asset class.

    • 24 Feb 2020
  • Regulator to launch climate "stress tests" for Aussie banks

    The Australian Prudential Regulation Authority (APRA) outlined plans to develop and impose "vulnerability assessments", or stress tests, to evaluate the resilience of Australian banks to the effects of climate change.

    • 24 Feb 2020
  • ING hit by weaker sentiment on return to AT1 market

    ING was praised for pricing a coupon of 4.875% in what was the only financial institution trade of the week in the euro market. The lender had to brave much tougher market conditions in its second attempt at this bond issue, having pulled its first attempt amid news of its chief executive jumping ship.

    • 24 Feb 2020
  • Credit markets suffer coronavirus ‘wake-up call’

    Credit spreads lurched wider at the beginning of the week, with investors reacting to reports of further cases of the Covid-19 coronavirus outside of China. The reaction fell short of panic, but bankers said that some issuers were moving to delay their plans for bond deals.

    • 24 Feb 2020
  • Italian payments firm moves ahead with IPO plans

    SIA, the state-controlled Italian payments company, is pushing ahead with plans for a listing in Milan this year, according to sources, if the Covid-19 coronavirus does not destroy sentiment for Italian equities.

    • 24 Feb 2020
  • Bond investors are playing with fire

    Asia’s bond market has had an undeniably stellar start to 2020. Despite the spread of the novel coronavirus, now named Covid-19, investors are continuing to buy bonds at remarkably tight prices as issuance accelerates. But the non-stop enthusiasm raises a serious question — are market participants too positive?

    • 24 Feb 2020
  • FIG pipeline grows as Santander UK makes use of Friday window

    Santander UK took advantage of improving sentiment in the euro market to launch a new senior bond from its holding company on Friday, while Hamburg Commercial Bank announced its intention to raise tier two capital.

    • 21 Feb 2020
  • DBS sets new record with AT1

    DBS Group Holdings raised $1bn from a record setting bank capital transaction on Thursday. With the order book more than five times subscribed, the Singaporean bank was able to seal its trade at the lowest coupon ever.

    • 21 Feb 2020
  • Top banks culled 1,700 equities jobs last year

    Twelve of the largest global investment banks reduced their headcounts in equities by 10% last year, leading to one of the “steepest declines in years” in the number of investment bank employees, according to analytics firm CRISIL Coalition.

    • 21 Feb 2020
  • Superlatives fly as Swiss funds cry for bonds

    Intense demand in the Swiss franc bond market for any asset with a positive yield — or even anything yielding more than the penal negative rates on cash — gave a varied group of issuers this week execution that pushed the boundaries — bigger, faster and tighter.

    • 20 Feb 2020
  • JP Morgan wrestles preferred crown from BofA

    JP Morgan grabbed the record for the lowest yielding preferred security issue this week, as investors continued to pour cash into the asset class.

    • 20 Feb 2020
  • CEO drama unlikely to dent ING AT1 demand

    ING left its investors bemused on Wednesday, when it decided to pull the additional tier one (AT1) bond it was marketing on the basis of undisclosed information it had received. After the news of its chief executive’s move to UBS quickly became public, the door was left open for the bank to complete the trade.

    • 20 Feb 2020
  • ECB is revving the engine but the handbrake is on

    Europe’s capital markets are back in super-demand mode.

    • 20 Feb 2020
  • Intesa fires starting gun on new phase of Italian bank consolidation

    Intesa Sanpaolo took the market by surprise when it launched a takeover bid for UBI Banca this week. A successful deal could set off a long overdue wave of mergers and acquisitions within the Italian banking sector, which ECM bankers are hoping will be financed through a slew of new rights issues. Tyler Davies and Sam Kerr report.

    • 20 Feb 2020
  • HSBC’s restructuring: is it enough though?

    HSBC’s corporate finance staff have survived its restructuring largely unscathed, but the more ambitious among them will see the bank’s plans as a missed opportunity, writes David Rothnie. And with no answer yet on the identity of the next full-time CEO, the uncertainty is not over.

    • 20 Feb 2020
  • Trio gets strong reception in senior

    Three banks seized a favourable backdrop in the bond market to sell senior bonds this week, finding a warm welcome for maturities from three to six years.

    • 20 Feb 2020
  • Sonia gets makeover as EBRD shifts new structure

    The European Bank for Reconstruction and Development this week became the first borrower to deviate from the standardised coupon calculation method for Sonia-linked floating rates. While investors backed the new structure, with the deal receiving a huge order book from a large number of accounts, there are some market participants who believe the disruption was unnecessary, writes Burhan Khadbai.

    • 20 Feb 2020
  • BNPP sets AT1 record as Asia piles into dollars

    BNP Paribas this week set a new record low for an additional tier one (AT1) coupon issued from a European bank in the dollar market, raising $1.75bn amid heady demand for the product. Iceland’s Arion Bank was also in the market, chipping in with a $100m deal ahead of beneficial domestic tax changes.

    • 20 Feb 2020
  • UBS cuts Spanish business as Orcel legacy hangs heavy

    UBS has made several senior staff in Spain redundant, including Madrid-based DCM managing director Daniel Vazquez Villanueva, GlobalCapital understands. The cuts came as part of a general redundancy round last year, but revenues from the region have been hurt by a hard stop in business from Santander after it decided not to hire former UBS investment banking boss Andrea Orcel as chief executive.

    • 20 Feb 2020
  • Santander draws demand away from Créd Ag

    Santander went up against Crédit Agricole with a 12 year covered bond on Thursday. Although the Spanish lender announced its deal after the French bank, a generous start ensured Santander sucked demand from the French deal, which was also hurt by a lower than expected European Central Bank order. Santander also issued a deeply negative yielding five year that attracted excellent demand.

    • 20 Feb 2020
  • UBS plumps for an outsider to replace Ermotti

    A lack of credible internal candidates and a desire for stability across its divisions led UBS to cast the net wider to find a successor to chief executive Sergio Ermotti. It has appointed ING CEO Ralph Hamers.

    • 20 Feb 2020
  • Luminor mandates first Baltic covered bond

    Luminor Bank has mandated leads for the first covered bond from the Baltic region.

    • 20 Feb 2020
  • BPCE diversifies funding with sterling senior

    BPCE raised senior bond funding in sterling on Thursday, making use of constructive conditions in the currency. The lender launched its deal at a spread that, on an after-swap basis, was roughly in line with where it could have landed in euros.

    • 20 Feb 2020
  • Intesa splits AT1 needs with dual-trancher in euros

    Intesa Sanpaolo chose to split an additional tier one (AT1) deal into two tranches on Thursday, with one eye on the secondary performance of the bonds and the other on the maturity profile of its debt capital stock.

    • 20 Feb 2020
  • GlobalCapital Bond Awards 2020: the poll is open

    The poll to determine GlobalCapital's Bond Awards 2020 is open. Over the next three weeks, market participants are invited to choose the firms and individuals who have performed most impressively in the past year.

    • 20 Feb 2020
  • Huarong mixes fixed, floating notes for $1.8bn

    China Huarong Asset Management Co courted investors with a four-tranche deal this week, mixing fixed and floating rate tranches.

    • 20 Feb 2020
  • Greater China issues slew of international bonds

    Chinese corporations bombarded investors with new bond options on Wednesday, allowing three issuers to raise $625m between then. Hong Kong-based asset manager ESR Cayman joined the fray in Singapore, grabbing S$225m ($161.55m).

    • 20 Feb 2020
  • ING delays AT1 as Arion aims for new record

    ING Groep postponed the sale of an additional tier one after clocking up $11bn of demand in the dollar market on Wednesday. At the same time, Arion Bank was looking to launch a $100m deal in the same format — the lowest volume on record in dollars.

    • 19 Feb 2020
  • Créd Ag SFH takes advantage of quiet covered bond market

    Crédit Agricole SFH took advantage of a quiet market, mandating lead managers on Wednesday for a mortgage backed covered bond with a rare 12 year tenor. The prospective deal emerged after S&P published an upbeat report on the French covered bond market.

    • 19 Feb 2020
  • JP Morgan appoints new heads of IB, DCM, ECM, M&A

    JP Morgan has promoted a whole new layer of leadership in its investment bank, reaching down to debt capital markets, equity capital markets and M&A. At the top of the tree, Carlos Hernandez has moved from being head of global investment banking to executive chair and has appointed new co-heads of global investment banking.

    • 18 Feb 2020
  • Low covered bond yields reach ‘critical’ levels

    Traders told GlobalCapital this week that low yield levels were ‘starting to become a problem’ for covered bond buyers, following a sustained rally in rates, adding that it was extremely hard to find offers on bonds in many parts of the market.

    • 18 Feb 2020
  • BNPP moves in for lowest ever dollar AT1 coupon

    BNP Paribas was guiding investors towards a coupon in the 4.75% area for a new additional tier one (AT1) on Tuesday, as it looked to price its deal at the lowest level ever acheived by a European bank in the dollar market.

    • 18 Feb 2020
  • IFIS hits senior market amid Italian bank bond rally

    Banca IFIS sold a senior bond this week, as Italian bank bond spreads rallied following Intesa Sanpaolo’s takeover bid for UBI Banca.

    • 18 Feb 2020
  • Italian assets fly as Intesa launches shock bid for UBI

    Intesa Sanpaolo caught the market by surprise when it launched a takeover bid for UBI Banca on Monday night. The announcement sent credit and equity valuations surging higher, with investors pinning their hopes on consolidation in the Italian banking sector.

    • 18 Feb 2020
  • Books over $4.8bn for Riyad Bank sukuk

    Riyad Bank has tightened price guidance on its 10 year non-call five tier two bond, with order books at over $4.8bn for the note.

    • 18 Feb 2020
  • Transition periods are key in minimising MREL impact, says EBA

    Regulators are helping those banks most at risk of failing to meet their minimum requirements for own funds and eligible liabilities (MREL) by giving them extra time to prepare, a report from the European Banking Authority said this week.

    • 18 Feb 2020
  • ICBC looks Down Under for A$500m

    Industrial and Commercial Bank of China turned to the Australian debt market on Monday to raise A$500m ($336m) through its Sydney branch.

    • 18 Feb 2020
  • Aoyuan, Huarong Leasing score with short tenor bonds

    China Aoyuan Group and China Huarong Financial Leasing Co this week raised a combined $388m from bonds that will mature in less than one year, taking advantage of a regulatory loophole to tap the market with short-dated deals.

    • 18 Feb 2020
  • HSBC plans to slim down rates, derivs, equities in Europe

    HSBC’s new strategic plan involves numerous changes to its investment banking division, including shifting resources to Asia and the Middle East, reducing the scale of many operations in the European markets business, and combining product functions with commercial banking.

    • 18 Feb 2020
  • European Commission opens MiFID II consultation

    The European Commission has opened a public consultation on MiFIR/MiFID II, as it takes stock of two years of the sweeping regulations.

    • 17 Feb 2020
  • SR closes covered gap to Spabol

    SR Boligkreditt issued a euro covered bond on Monday and, for the first time in its history, was able to price in line with Sparebank 1 Boligkreditt (Spabol). However, its hopes of issuing more than its usual €500m size were dashed.

    • 17 Feb 2020
  • Soc Gen pivots to pref senior, offers small premium

    Société Générale was two times subscribed for a new €1.25bn preferred senior bond on Monday, showing that investors still have plenty of appetite for the lower-yielding asset class.

    • 17 Feb 2020
  • SCB Norway offers ‘real rarity’ in euro market

    Santander Consumer Bank AS was well supported for a rare offering of preferred senior debt at the beginning of the week, as market participants suggested that spreads on Norwegian bank bonds could have room to tighten further.

    • 17 Feb 2020
  • First senior NPL ABS of recent years tempts five new investors

    The first fully public syndicated sale of senior ABS backed by Italian non-performing loans in recent years has tempted five new investors to buy into the NPL asset class. Ten buyers were allocated bonds in the landmark deal, Futura 2019.

    • 14 Feb 2020
  • Rose to prune NatWest Markets, take secateurs to rates

    Royal Bank of Scotland — or NatWest Group, as it plans to rebrand itself later this year — is set to cut back risk-weighted assets in the investment bank, particularly in rates. The bank also committed to stricter lending and underwriting criteria for fossil fuel companies.

    • 14 Feb 2020
  • JP Morgan seizes ‘supportive market' to raise senior debt

    JP Morgan was the only financial institution tapping the euro market for senior paper on Friday, looking to make use of the sentiment rebound after some indigestion on Thursday.

    • 14 Feb 2020
  • Veteran debt banker leaves HSBC

    One of the most prominent debt bankers at HSBC has left the firm, as the reorganisation of senior management under interim CEO Noel Quinn continues.

    • 14 Feb 2020
  • AT1 success for DB but shareholders will have to wait

    Deutsche Bank’s ability to issue a new additional tier one bond illustrates the lesson of investing in European banks over recent years: bet on bonds, not equity.

    • 13 Feb 2020
  • People moves in brief

    HSBC hires Lahham for MENA corporate finance — Lisanti broadens markets role at Citi — Muscatt joins BMO

    • 13 Feb 2020
  • Staley’s Epstein links mar Barclays’ solid CIB results

    Barclays posted another strong set of returns from the corporate and investment bank (CIB) on Thursday, but the disclosure that UK regulators are investigating chief executive Jes Staley’s relationship with the late sex offender Jeffrey Epstein was described as a “red flag”.

    • 13 Feb 2020
  • BofA picks up holdco baton with $5bn deal

    Bank of America signalled the last hurrah of post-earnings supply by Wall Street heavyweights when it hit the market on Monday with a $5bn bond.

    • 13 Feb 2020
  • Investors urge Deutsche not to ‘do a Santander’

    Deutsche Bank secured a remarkable comeback this week with its first additional tier one transaction in nearly six years. But investors are now asking themselves whether the German lender’s next move in the asset class will be to extend the life of one of its outstanding bonds, writes Tyler Davies.

    • 13 Feb 2020
  • Pfandbrief duo show ECB crowding out effect

    Covered bonds issued this week by Berlin Hyp and Deutsche Hypo would have struggled without demand from the European Central Bank, suggesting the central bank is crowding out investor demand from the private sector.

    • 13 Feb 2020
  • UK fiscal splurge cemented as ‘last Mohican’ is ousted

    The ousting of Sajid Javid as the UK's chancellor of the exchequer has been interpreted in financial markets as a power grab by prime minister Boris Johnson. Javid's removal is likely to strengthen the government’s bias towards populist economics, “rewriting the Treasury’s fiscal rules”, according to one investor.

    • 13 Feb 2020
  • Investors flock to ING Belgium’s covered bond

    A broad and diversified group of investors placed large orders for ING Belgium’s €1.25bn 10 year covered bond issued on Thursday, lapping up its positive reoffer yield and the convincing spread pick-up, as well as the rarity and strength of the name. The resounding response stood in contrast to two tightly priced negative yielding Pfandbriefe issued earlier this week.

    • 13 Feb 2020
  • Thiam quits Credit Suisse on fixed income high

    Credit Suisse has reported a strong end to last year for fixed income sales and trading, in chief executive Tidjane Thiam’s last week in the job.

    • 13 Feb 2020
  • Arion readies debut AT1 ahead of tax changes in Iceland

    Arion Bank showed its eagerness to issue additional tier one (AT1) capital on Thursday as Icelandic banks get ready to benefit from a change in the national tax treatment of the instruments.

    • 13 Feb 2020
  • Italian banks extend record breaking run

    Italian banks have been piling into the primary bond market in the first quarter, capitalising on an incredible rally in the sector as investors look for new sources of value.

    • 13 Feb 2020
  • ING Belgium to make rare covered bond return

    ING Belgium has mandated lead managers for its first covered bond since September 2018 and its fifth since the programme’s inception in 2013. The prospective deal may just avoid being issued with a negative yield, but it’s a close call.

    • 12 Feb 2020
  • Nordic duo relishes ‘impressive’ reception in senior market

    Nordic banks Länsförsäkringar Bank (LF Bank) and Landsbankinn were able to offer “attractive value” in the preferred senior market this week, amid a general hunt for yield among credit investors.

    • 12 Feb 2020
  • Hunt for yield hits new high as Piraeus lands second tier two

    Piraeus Bank took advantage of the recent hunt for yield in the euro market this week, pricing a new tier two with a yield of 5.5% on Wednesday. The €500m bond was eight times subscribed, which is testament to the prevailing hunt for yield in the bond market.

    • 12 Feb 2020
  • UniCredit blows out in AT1 as it backs new P2 composition

    UniCredit was greeted with more than €7bn of demand for a new additional tier one in the euro market on Wednesday, as the bank appeared to take its first steps towards including subordinated debt as part of its stack of Pillar 2 capital.

    • 12 Feb 2020
  • BNPP offers small NIP on non-pref deal

    BNP Paribas launched a non-preferred senior bond at 73bp over mid-swaps this week, which included a small new issue concession to give room for a bit of secondary market performance for investors.

    • 12 Feb 2020
  • Skipton returns to RMBS after four year break

    Skipton Building Society is bringing a prime sterling RMBS with joint arrangers JP Morgan and Lloyds. The issuer last brought a deal in 2016, pausing the programme in light of the UK government’s Term Funding Scheme (TFS).

    • 12 Feb 2020
  • Covered bond technicals to win the day

    Some recent covered bond issues would have barely have made it over the line without the European Central Bank’s help. Meanwhile, valuations are elevated. But the market still looks attractive compared with unsecured credit, a leading investor told GlobalCapital on Wednesday.

    • 12 Feb 2020
  • Virgin Money lines up euro holdco debut

    Virgin Money is getting ready to launch its first sale of euro-denominated debt from its holding company, as the UK challenger bank looks to meet a 2022 deadline for the minimum requirements for own funds and eligible liabilities (MREL).

    • 12 Feb 2020
  • Hoist shores up capital with AT1 offer

    Hoist Finance is marketing an additional tier one, part of the debt purchaser’s journey back to capital health following a regulatory judgement that wiped 3.7 percentage points off its core equity tier one ratio. The deal follows a landmark non-performing loan securitization called Marathon, which saw CarVal Investors take risk off the Swedish firm’s balance sheet.

    • 12 Feb 2020
  • FIG bonds: pessimism has been banned

    The yields on bank bonds have reached their lowest ever levels in recent weeks, thanks to meagre issuance and accommodative central bank policy. These conditions mean investors can see the silver linings, but not the clouds — and there are plenty — behind them.

    • 11 Feb 2020
  • Sustainability: more stick, less carrot

    Sustainable finance players are enthusiastic about regulation, which they expect to bring clarity and order to the market. It may — though when the new EU rules are implemented they are likely to irk participants more than they expect. But what would be really effective are direct actions that bypass finance.

    • 11 Feb 2020
  • BMO hires Muscatt for SSA and covered trading

    Luis Muscatt, formerly of NatWest Markets, has joined BMO Capital Markets as a covered bond and SSA trader.

    • 11 Feb 2020
  • Deutsche Hypo's Pfandbrief shows covered bonds are more in balance

    Deutsche Hypo was unable to tighten pricing as much as it had hoped for a seven year Pfandbrief it issued on Tuesday. Demand was sufficient to cover the deal, excluding the European Central Bank's order, but only just enough, giving investors more power to resist spread cuts.

    • 11 Feb 2020
  • Banco BPM squeezes tight on MREL senior debut

    Banco BPM tightened pricing by nearly 30bp for its debut non-preferred senior bond on Tuesday, with investors backing Italian credits as a source of value compared with other assets in the euro area.

    • 11 Feb 2020
  • Sterling the ‘golden currency’ for Santander non-pref senior

    Banco Santander was the only financial issuer in the sterling market on Tuesday, tapping the currency for a non-preferred senior bond. Sterling has made a 'rocket start to 2020', according to FIG market participants.

    • 11 Feb 2020
  • ECB frontloads covered bond purchases

    In January the European Central Bank bought more covered bonds as a proportion of net asset purchases than at any time in the past five years. That should stand it in good stead for the lean months ahead when supply will fall but redemptions will be even higher.

    • 11 Feb 2020
  • Handelsbanken and LBBW grab ‘copy-paste’ results in busy bail-in market

    The euro market had no trouble digesting a pair of similar trades from Landesbank Baden-Württemberg (LBBW) and Svenska Handelsbanken this week, with both banks printing non-preferred senior bonds at 58bp and paying a small new issue premium to investors.

    • 11 Feb 2020