• Sberbank releases talk for new LPN

    Sberbank has released price guidance on its dollar benchmark five year senior unsecured loan participation notes in the low 5% region. The notes will be 144a/RegS.

    • 31 Jan 2012
  • BNZ opens door for Kiwi peers

    Bank of New Zealand convinced over 117 investors to participate in a three times oversubscribed trade on Monday. The surge of demand for the three year deal took leads by surprise, and market participants expect other non-European names to take advantage of investors’ hunger for the short end.

    • 31 Jan 2012
  • Intesa returns to senior with 18 months, yield over 4%

    Intesa Sanpaolo this morning launched an 18 month fixed rate senior unsecured deal, becoming the first Italian bank to tap the market in 2012.

    • 31 Jan 2012
  • Arkle returns to yen

    The provisional capital structure for Lloyds Banking Group’s Arkle 2012-1 RMBS includes a three year yen tranche, following the example of Santander UK’s Holmes 2012-1. Before this year, the only UK deal to offer yen had been Arkle 2010-2.

    • 31 Jan 2012
  • How long-term is the LTRO?

    Moody's reckons the ECB's long term refinancing operation is credit negative for Europe's banks. It's hard to square this with the relief it is providing the sector, but the agency is right to warn of the dangers of relying on central bank funding.

    • 31 Jan 2012
  • Wholesale profits fall 17% but Santander points to LatAm strengths

    A sharp decline in equities and corporate finance revenues contributed to a 17.1% fall in profits in Santander’s wholesale banking franchise in 2011 compared to the year before, the bank reported on Tuesday.

    • 31 Jan 2012
  • Proposed Russian LPN tax could derail Eurobond train

    A new withholding tax suggested by Russia's deputy finance minister Sergei Shatalov in a letter to the Russian Federal Tax Service could make Eurobond issuance much less attractive to Russian companies.

    • 31 Jan 2012
  • BPCE tightens French curve with premium-free 10 year

    BPCE opened the long end of the market for French issuers on Monday, setting a strong benchmark with an aggressively priced €750m 10 year deal.

    • 31 Jan 2012
  • Canada a model for others, says FSB

    Canada’s regulatory regime has been given a glowing review in the Financial Stability Board’s peer review, which says the country’s financial system should be a model for others.

    • 31 Jan 2012
  • Fortis Cashes holders tender 63%

    BNP Paribas on Monday evening completed a tender offer for €3bn of Fortis Bank convertible and subordinated hybrid equity-linked securities (Cashes) with a high acceptance rate that belied a protest from a bondholder group last week.

    • 31 Jan 2012
  • Heavily oversubscribed SVB prices tight

    Sparebanken Vest Boligkreditt (SVB) uncovered €1.6bn of demand in one hour and priced the tightest Norwegian deal this year on Tuesday. Meanwhile, Erste Bank is looking to issue a new 10-year.

    • 31 Jan 2012
  • Barclays creates €7bn collateral from Italian mortgage book

    Barclays has structured a €7bn securitisation of Italian mortgages, using the Mercurio Mortgage Finance programme. The deal will be retained, giving Barclays an extra slug of eligible collateral for the ECB’s LTRO facility, ahead of the second tender at the end of February 28.

    • 31 Jan 2012
  • FirstRand taps dollar rich banks for loan

    US and Japanese banks made up the bulk of the club for South Africa’s FirstRand $300m two year plus one loan signed on Friday.

    • 30 Jan 2012
  • Rabobank's Storming RMBS success

    Rabobank's Obvion managed to almost double the size of its Storm 2012-1 RMBS, while tightening pricing on the short tranche by 10bp. The success of the trade surpassed expectations of market participants. Though covered bonds would be cheaper, the RMBS financing is isolated enough to protect the bank's top senior rating.

    • 30 Jan 2012
  • Italian insurers set to raise €2.2bn in four-way tie-up

    Mediobanca will provide the lead underwriting role in a €1.1bn capital increase for Italian insurer Fondiaria-Sai scheduled for May in what will be one of several steps to a four-way industry merger led by Unipol.

    • 30 Jan 2012
  • Macro, liquidity, biggest banking banana skins: CSFI

    Macro-economics, credit risk and liquidity top worries on the banking sector, according to the Centre for the Study of Financial Innovation’s 2012 banana skins survey.

    • 30 Jan 2012
  • Clashes over Cashes as bondholders fight BNPP (Updated)

    BNP Paribas held firm on Friday amid a bondholder rebellion as investors spurned a cash tender offer it made earlier in the week for €3bn of Fortis Bank convertible and hybrid equity-linked securities (Cashes).

    • 30 Jan 2012
  • BNZ flies after maturity switch

    Bank of New Zealand returned to the market on Monday with a long three year benchmark, after postponing a five year trade earlier this month. The change of maturity and capped deal size yielded a far more positive result, with over 100 accounts contributing to the most oversubscribed order book of the year.

    • 30 Jan 2012
  • Dealers back Federated stance on money fund changes

    Commercial paper (CP) dealers have backed a warning from Federated Investors that proposed new rules could destroy the US money fund industry.

    • 30 Jan 2012
  • BofE, Chancellor must work together on crisis management: Financial Services Bill

    The UK government wants the Treasury and the Bank of England to better co-ordinate when a bank fails, it said in its draft financial services bill published on Friday.

    • 30 Jan 2012
  • BPCE launches ‘expensive’ 10 year

    France’s BPCE on Monday launched a 10 year senior transaction, offering the deal just 25bp over where bankers said the issuer’s five year bonds were trading.

    • 30 Jan 2012
  • Senior stampede adds value to covered bonds

    The ECB's Long Term Refinancing Operation could increase the bid for covered bonds through its restorative effect on the senior unsecured market.

    • 30 Jan 2012
  • Aegon inks €2bn five year after denomination switch

    Aegon, the A3/A-/A rated Dutch insurance firm, has switched the denomination of its revolving credit facility, signing a new €2bn five year syndicated loan to replace an outstanding $3bn line due in September.

    • 30 Jan 2012
  • Covered fiscal strength indices win investor backing

    Barclays Capital’s new fiscal strength covered bond indices, which adjust the market value weighted exposure of country risk based on fiscal strength, have won the support of investors polled by The Cover.

    • 30 Jan 2012
  • Citi’s Davidson joins RBS as hybrid head

    Royal Bank of Scotland has hired Citi’s AJ Davidson to head its hybrid capital team.

    • 30 Jan 2012
  • Euro FIG: 27 Jan

    • 27 Jan 2012
  • DnB NOR Samurai success as euro market digests supply

    As the euro market digested trades from Lloyds and Swedbank, DnB NOR Bank on Friday priced a ¥65bn ($844m) five year samurai at 140bp over yen swaps, beating its target size by ¥25bn.

    • 27 Jan 2012
  • Funds to step in where banks fear to tread, says Creighton

    A reduction in bank lending in the wake of regulatory pressure is providing a springboard for fund managers looking for a stronger presence as emerging market lenders, according to David Creighton, CEO of Cordiant Capital, an investment manager.

    • 27 Jan 2012
  • Morning Wrap, January 27: BPI buyback may spur others

    Portugal’s Banco BPI has launched the second covered bond tender of the year, offering a slim premium for its first covered buyback, though rising fears of a Portuguese default could provide an added incentive for investors.

    • 27 Jan 2012
  • Obvion rides rally to Storm success

    Obvion managed to almost double the size of its Storm 2012-1 RMBS, while tightening pricing on the short tranche by 10bp. The success of the trade surpassed expectations of market participants, whether involved in the deal or not, and sets a strong tone for the clutch of ABS mandates announced this week (see separate story).

    • 27 Jan 2012
  • FIG markets back to pre-crisis days as Lloyds TSB triumphs

    With investors scrabbling for bank paper after a powerful secondary rally and a slowdown in new issues since the year’s initial rush, bankers are urging financial issuers to seize a compelling opportunity to raise new debt. A €1.5bn Lloyds TSB senior deal that attracted almost €4.5bn of orders in just 90 minutes on Thursday morning underlined the point.

    • 27 Jan 2012
  • Nykredit Bank

    • 27 Jan 2012
  • UniCredit’s new €25bn programme not public

    Suggestions that UniCredit plans to raise a €25bn covered bond to take advantage of investor demand are misleading, a member of its treasury team told EuroWeek.

    • 27 Jan 2012
  • Swedbank Mortgage CP casualty of new streamlined funding plan

    Swedbank Mortgage will no longer issue euro commercial paper after the bank decided to streamline its funding programmes. The cancellation of the programme, to be finalised in the next two weeks, follows its decision to print all wholesale funding, other than covered bonds, via parent firm Swedbank.

    • 27 Jan 2012
  • HSBC sells Thailand retail arm to local bank Ayudhya

    HSBC is selling its retail division in Thailand to Bank of Ayudhya, one of the country’s biggest lenders.

    • 27 Jan 2012
  • FSB: Swiss Cocos under scrutiny for global use

    The Swiss approach to the use of contingent capital instruments is likely to be a benchmark for other regimes, judging by the outcome of a peer review of Switzerland’s financial system by the Financial Stability Board, a global body that coordinates regulatory work across the world.

    • 27 Jan 2012
  • Analysts dash ABS liquidity hopes

    Hopes that ABS might be deemed eligible for inclusion into bank liquidity buffers may be misplaced, according to notes by analysts from JP Morgan and Bank of America Merrill Lynch published this week.

    • 27 Jan 2012
  • Non-Eurozone issuers keep up supply as continent goes quiet

    With many European bank issuers either in blackout or happily ensconced in the ECB’s generous bosom, this week’s four benchmark deals all came from outside the Eurozone, continuing the year’s predominant trend in the covered bond market.

    • 27 Jan 2012
  • Swedbank

    • 27 Jan 2012
  • Aegon returns to dollar retail market for capital trade

    Capital and liquidity are not luxuries, Aegon said this week after it returned to the US dollar retail market following a five year absence with a tier two issue.

    • 27 Jan 2012
  • Euro covered: 27 Jan

    • 27 Jan 2012
  • Bonds Tables 1239

    • 27 Jan 2012
  • ABN AMRO extends Swiss curve to five years on return

    A recent secondary market rally and investors’ renewed appetite for senior unsecured risk encouraged ABN Amro Bank to move further along the maturity curve this week when it priced its second Swiss franc trade of the month. Its Sfr185m 2.5% five year bullet followed a Sfr250m 1.5% two year note on January 11.

    • 27 Jan 2012
  • Sberbank/Troika tie-up brings new CIB force

    Bankers warned this week that the merger of Russia’s Sberbank and Troika Dialog would put foreign banks operating in the country on the back foot. The two firms, which closed their $1bn-plus merger this week, creating the country’s largest universal banking institution, have made confident claims for the future of the combined corporate and investment banking operation.

    • 27 Jan 2012
  • Outrights ponder €3bn Fortis Cashes tender

    BNP Paribas on Thursday launched a tender offer for €3bn of convertible and subordinated hybrid equity-linked securities (Cashes) issued by Fortis Bank, in a deal that unwinds a complex arrangement underlying the 2009 restructuring of the Dutch lender. The go-ahead for the transaction depends on the bank getting a 50% acceptance rate, which is no certainty given some outright investors’ hesitation to sell, according to one equity-linked specialist away from the deal.

    • 27 Jan 2012
  • Nykredit dives into short end

    Denmark’s Nykredit said "extremely strong" market conditions pushed it to launch a two year floater on January 20, a deal bankers saw as an encouraging sign that the senior unsecured market is opening for a broader range of issuers.

    • 27 Jan 2012
  • Almunia gives nod to state aid

    The European Commission on Tuesday gave its clearest signal yet that it will be tolerant of banks that resort to government funds to reach the European Banking Authority’s 9% core capital ratio, which is required by the end of June.

    • 27 Jan 2012
  • Bookrunners of all international bonds — 2012 (January 25, 2012)

    • 27 Jan 2012
  • KBC risks Fitch wrath in tweaking deal docs

    KBC Bank has amended deal documents in Irish RMBS deals Phoenix Funding 2 and 3, to avoid triggering counterparty replacement provisions — exactly what Fitch warned issuers to avoid at the beginning of the year.

    • 27 Jan 2012
  • Govt support still here for UK banks: S&P

    Despite the government’s efforts to cut taxpayer support for banks, the UK’s biggest lenders are still likely to benefit from implicit government support for at least two more years — but not when it comes to subordinated debt, Standard & Poor’s said on Friday.

    • 27 Jan 2012
  • Eurozone supply scarcity sets market on fire

    At first glance, issuance of all covered bonds appears to be little changed this year from the last. But look a bit closer and it becomes clear that the market has been starved of publicly syndicated Eurozone benchmarks.

    • 27 Jan 2012
  • Bookrunners of all global bonds (Asia Pacific) — 2012 (January 25, 2012)

    • 27 Jan 2012
  • Bookrunners of Asia Pacific bonds in $, € and ¥ — last 12 months rolling

    • 27 Jan 2012
  • Markit Data 1239

    • 27 Jan 2012
  • Daniels sees conditions ideal for boutiques as markets take over from bank funding

    The move away from a reliance on bank funding will be one of the most important changes in the market over the next few years, according to Eric Daniels, former CEO of Lloyds Banking Group and who was hired this week by boutique advisory firm StormHarbour as a principal and senior adviser.

    • 27 Jan 2012
  • Commerz turns to synthetic securitisation to plug capital hole

    Commerzbank has launched a synthetic securitisation of its Mittelstand loan portfolio, aiming to sell €160m of equity risk and €30m of mezzanine risk as part of frantic efforts by the bank to fill its €2.3bn capital hole.

    • 27 Jan 2012
  • BPI covered buyback heralds LM trend

    Portugal’s Banco BPI launched the second covered bond tender of the year on Thursday and market participants expect more to follow ahead of the European Central Bank’s second Long Term Refinancing Operation in February.

    • 27 Jan 2012
  • S&P upgrade sends Granite triple-Bs flying

    Granite triple-Bs have been bid over 60 cash price this week — a rise of at least four points on the week, coming on the back of a 10 point rally since the beginning of the year. Part of the action has been driven by Standard & Poor’s, which upgraded the bonds from BB with negative watch to BBB-.

    • 27 Jan 2012
  • Gaping window attracts few issuers

    Issuers could hardly hope for a better backdrop to bring benchmark deals. Bond yields are falling and investors are looking to put cash to work across a swathe of asset classes to capitalise on the rally, as seen most emphatically in the senior unsecured market this week. Yet Norway’s Sparebank Vest Boligkreditt remains the only obvious candidate for a deal next week.

    • 27 Jan 2012
  • Hungry investors rush to Lloyds and Swedbank

    Lloyds and Swedbank capitalised on strong investor demand following a drop in primary supply this week, both bringing five year deals which achieved impressive levels of oversubscription.

    • 27 Jan 2012
  • Swiss Re issues new-style subordinated perp

    Swiss Re this week followed in the footsteps of Zürcher Kantonalbank, launching a debut new-style subordinated perpetual convertible note on Thursday, a Sfr200m minimum 7.25% non-call five year.

    • 27 Jan 2012
  • Bookrunners of Asia Pacific (ex-Japan)bonds in $, € and ¥ — last 12 months rolling

    • 27 Jan 2012
  • Bashes over Cashes as bondholders fight BNPP

    BNP Paribas was facing a bondholder rebellion on Friday as owners of 43% of the €3bn of Fortis Bank convertible and hybrid equity-linked securities (Cashes) formed a group to push for a higher price on the offer. The bank made no formal response but pointed out in a FAQ document on Friday that it reserved the right to proceed even if a 50% acceptance threshold is not reached.

    • 27 Jan 2012
  • Philippine banks line up for sub debt after Land Bank’s success

    Philippine banks are lining up to issue local currency bonds to bolster their capital levels, redeem outstanding debt and fund expansion plans, taking advantage of the strong outlook for the economy and readying themselves for an upsurge in domestic lending.

    • 27 Jan 2012
  • Mizuho Securities loses three Asian MDs as Armenio goes

    Mizuho Securities Asia has lost three managing directors, including its chief operating officer, in the last month, according to EuroWeek’s sister publication AsiamoneyPlus.

    • 27 Jan 2012
  • Commerz in DK bonus fight

    The announcement of a €400m minimum bonus pool at a Dresdner Kleinwort internal town hall meeting in August 2008 is at the heart of a four-week court case that began this week at London’s Royal Courts of Justice.

    • 27 Jan 2012
  • Tight repo leads to fears of failed trades

    The secondary market in covered bonds is in danger of breaking, and though it is not there yet, there are concerns over ‘forced delivery squeezes’ in the repo market which may lead to failed trades. Though it has always been the intention of the European Central Bank to improve liquidity, there are some who now say that it is not doing enough. Covered bonds could risk becoming almost like a private placement market if the current situation persists.

    • 27 Jan 2012
  • CASA, UniCredit target €5.1bn buybacks as capital generation tops agenda for FIG

    Crédit Agricole and UniCredit offered to buy back up to €5.1bn of subordinated debt this week, highlighting the fact that despite January being a crucial month for funding, capital remains top of the agenda for Europe’s largest financial institutions.

    • 27 Jan 2012
  • Lloyds TSB Bank

    • 27 Jan 2012
  • Pipeline heats up as risk rally takes hold

    Three new ABS mandates hit the market in the second half of the week — auto deals from Socram Banque and Société Générale, and a new Arkle RMBS from Lloyds Banking Group. A constructive market backdrop, along with a blowout deal from Obvion’s Storm (see separate stories) flushed issuers out.

    • 27 Jan 2012
  • Roundtable: Oz issuers discuss market’s future

    Australian issuers have priced over €11bn across five currencies thus far in 2012, ensuring that despite a steep drop in euro benchmark issuance the global covered bond market retains its record breaking pace.

    • 27 Jan 2012
  • BTA brushes off vote loss to pursue restructuring

    BTA Bank is to seek a restructuring of its debt despite GDR holders’ refusal to consent to the move on Thursday. The 82% state-owned Kazakh bank, which on January 3 failed to make scheduled payments on its $2bn senior bonds, as well as on previously restructured discount debt and subordinated bonds, views the lost vote as no obstacle to negotiations, chairman Anvar Saidenov said.

    • 27 Jan 2012
  • Sberbank heads out on road, set to join Russian pipeline

    Sberbank began a non-deal roadshow in the UK and the US on Monday, arranged by Barclays Capital, BNP Paribas, Citi and Troika Dialog. The bank, which has just closed a merger with Troika (see page 54), plans to enter the Eurobond market in the second half of this year, according to analysts at Alfa Bank.

    • 27 Jan 2012
  • Swedbank bucks short-end trend with five year placement

    Swedbank cut through the recent MTN trend for short dated unsecured notes with a Skr1.95bn ($288.8m) five year floater via Handelsbanken on Monday. It also sold its first public senior unsecured bond since early 2010 (see separate story in Credit News: Financial Institutions section).

    • 27 Jan 2012
  • BNPP tenders for €3bn Fortis Cashes in Ageas unwind

    BNP Paribas on Thursday launched a tender offer for €3bn of convertible and subordinated hybrid equity-linked securities (Cashes) issued by Fortis Bank, in a deal that unwinds a complex arrangement underlying the 2009 restructuring of the Dutch lender.

    • 26 Jan 2012
  • Morning Wrap January 26

    The primary market remained closed on Wednesday, and in the absence of supply, secondary spreads rapidly tightened – suggesting issuers have every reason to bide their time.

    • 26 Jan 2012
  • Outrights ponder €3bn Fortis Cashes tender

    BNP Paribas on Thursday launched a tender offer for €3bn of convertible and subordinated hybrid equity-linked securities (Cashes) issued by Fortis Bank, in a deal that unwinds a complex arrangement underlying the 2009 restructuring of the Dutch lender. Go-ahead for the transaction depends on the bank getting a 50% acceptance rate which is no certainty given some outright investors’ hesitation to sell, according to one equity-linked specialist away from the deal.

    • 26 Jan 2012
  • Swiss Re issues pioneering new style subordinated perp

    Swiss Re has followed in the footsteps of Zürcher Kantonalbank by launching its debut new style subordinated perpetual convertible note on Thursday morning, a Sfr200m minimum 7.25% non-call five year.

    • 26 Jan 2012
  • BPI tenders ahead of LTRO — more to come

    Portugal’s Banco BPI launched the second covered bond tender of the year on Thursday and market participants expect more to follow ahead of the second Long Term Refinancing Operation in February.

    • 26 Jan 2012
  • Supply scarcity sets market on fire

    A year on year comparison reveals that the covered bond market is starved of Eurozone supply, particularly in short maturities and noticeably from Germany. Though a new issuer has applied for a Pfandbrief licence, the picture is not likely to change soon and, despite the precarious sovereign backdrop, bankers say spreads could tighten by another 50bp-100bp.

    • 26 Jan 2012
  • Swedbank retains private senior focus as short term funding streamlined

    The bulk of Swedbank’s senior unsecured funding will remain privately placed, despite the firm opening books on its first public deal since early 2010 (see separate story).

    • 26 Jan 2012
  • Swiss Cocos under scrutiny for global use: FSB

    The Financial Stability Board has commended Switzerland for its bank regulation reforms, saying the use of contingent capital (Coco) there will influence the instruments' role at the global level.

    • 26 Jan 2012
  • Lloyds dazzles with €4bn book, Swedbank follows

    Lloyds TSB tapped an ebullient senior unsecured market on Thursday, taking advantage of consistent tightening in secondary markets and CDS to print a €1.5bn five year after two weeks without any primary euro-denominated supply. Swedbank quickly followed suit, pricing a €1bn deal of the same maturity.

    • 26 Jan 2012
  • All benchmarks

    • 26 Jan 2012
  • SocGen on the road with German autos

    Société Générale is roadshowing a German auto ABS from one of its subsidiaries, Bank Deutsches Kraftfahrzeuggewerbe (BDK) — the French bank’s first public ABS since before the crisis.

    • 26 Jan 2012
  • ABN Amro edges further along Swissie maturity curve

    Recent rallies in the secondary market and investors’ renewed trust in senior unsecured risk encouraged ABN Amro Bank to move further along the maturity curve when launching its second Swiss franc trade of the month – a Sfr100m minimum 2.5% five year bullet.

    • 26 Jan 2012
  • Storm boosts size in booming market

    Lead managers Rabobank and Société Générale are aiming to increase the size of Storm 2012-1, a Dutch RMBS from Rabo subsidiary Obvion. The leads set the spread on Wednesday, fixing a level of 110bp for the ‘A1’s and 155bp for the ‘A2’s. This is already 10bp tighter than initial guidance on the ‘A1’ tranche.

    • 26 Jan 2012
  • Morning Wrap January 25: Secondary market leads

    With as many as three benchmarks pricing in different time zones and currencies in the last 48 hours, it is evident that the covered bond sector has evolved from its parochial roots to a truly global market. However as far as the Eurozone is concerned, issuance has been pitiful. This is in part owed to the cheap three year financing provided by the ECB, but also because many issuers are in blackout. As a result there are few offers and spreads look set to tighten.

    • 25 Jan 2012
  • Bankers wait out results season as secondary market heats up

    Despite consistent tightening in the cash market, banks are unable or unwilling to launch new senior unsecured deals, with many in blackout and others waiting for spreads to come in even further, said bankers on Wednesday.

    • 25 Jan 2012
  • FirstRand to close by Friday

    South Africa’s FirstRand Bank will sign a $200m two year syndicated deal by the end of the week, said a banker with knowledge of the deal. The loan carries a one year extension option.

    • 25 Jan 2012
  • Aegon’s non-cumulative tier two hits $500m

    US retail accounts provided the bulk of demand for Aegon’s $500m issue on Tuesday, showing that there is a buyer base for non-cumulative tier two paper.

    • 25 Jan 2012
  • All covered bonds

    • 25 Jan 2012
  • Light supply and tighter spreads raise Spanish prospects

    With many French and Scandinavian issuers in blackout, the European covered bond pipeline is light on potential candidates for primary supply. Dwindling issuance is forcing investors to look at the secondary market for paper and has contributed to some spread tightening, particularly for Spanish Cédulas, making the prospect of a publicly sold deal from a Spanish national champion not quite so far fetched.

    • 25 Jan 2012
  • What the Coeur case means for covered bonds

    French courts threw out contractual rights when they ruled to protect the owners of the Coeur Défense tower from their creditors. But the answer to this isn’t self-righteous indignation. It’s to beware of any market that’s never seen a default.

    • 25 Jan 2012
  • UniCredit eyes more core with buyback

    As its blockbuster rights issue approaches its close, UniCredit is targeting a further increase to its core capital with a below par buyback of up to €3bn of tier one and tier two securities.

    • 25 Jan 2012
  • New programme is for repo, says UniCredit

    Suggestions that UniCredit plans to raise a €25bn covered bond to take advantage of current investor demand are misleading, a source close to the bank’s treasury has told The Cover.

    • 25 Jan 2012
  • Storm tests tighter

    Rabobank and Société Générale, lead managers on Obvion’s Storm 2012-1 Dutch RMBS, are looking at levels for the ‘A1’ notes 5bp-10bp inside the initial 120bp guidance, released on Tuesday.

    • 25 Jan 2012
  • Sparebank pulls in strong book for rare seven year

    Sparebank 1 Boligkreddit convinced over 110 accounts to participate in the first publically syndicated seven year covered bond in almost six months.

    • 25 Jan 2012
  • Commerz delays bonuses as EBA capital deadline looms

    Commerzbank has decided to postpone this year’s round of bonuses until July, and will deliver these payments mostly in shares, well placed bankers told EuroWeek on Wednesday.

    • 25 Jan 2012
  • Aegon taps dollar retail for tier two

    Dutch insurer Aegon is out with the year’s second insurance capital issue, taking orders from US retail investors for a 30 non-call 5.5 year tier two deal that has non-cumulative coupons.

    • 24 Jan 2012
  • LTRO could spark covered buybacks

    Portuguese and Irish issuers could follow National Bank of Greece and tender covered bonds ahead of the next ECB Long Term Refinancing Operation in February. Even if participation is half that of NBG’s recent buyback operation, the capital increase could make a compelling argument.

    • 24 Jan 2012
  • Room for banks as senior spreads tighten

    Banks previously turned off the senior unsecured market by prohibitive spreads are starting to consider issuance again as secondary market levels tighten, said bankers on Tuesday.

    • 24 Jan 2012
  • US funds snap up Bank of Montreal five year

    Bank of Montreal (BMO) seized on robust US demand for Canadian covered bonds, printing $2bn of five year notes on Monday. The deal brings total US dollar issuance this month to $6bn from three deals, a record for January.

    • 24 Jan 2012
  • A$ market’s show of strength for Westpac

    Westpac Banking Corporation priced its first Aussie dollar covered bond on Monday night, following in the wake of Commonwealth Bank of Australia. It mimicked CBA’s choice of tenor and dual fixed rate and floating rate format — but issued slightly less and at a tighter spread.

    • 24 Jan 2012
  • Défense-ive finance: what the Coeur case means for covered bonds

    French courts threw out contractual rights when they ruled to protect the owners of the Coeur Défense tower from their creditors. But the answer to this isn’t self-righteous indignation. It’s to beware of any market that’s never seen a default.

    • 24 Jan 2012
  • Almunia gives nod to state support for EBA capital ratio

    The European Commission on Tuesday gave its clearest signal yet that it will be tolerant of banks that resort to government funds to reach the European Banking Authority's 9% core capital ratio, which is required by the end of June.

    • 24 Jan 2012
  • Structured covered eligible for LCR, but not ABS

    Structured covered bonds which use SPVs will remain eligible for bank liquidity buffers, analysts said on Monday. This follows confirmation that ABS will not be eligible for inclusion in the liquidity buffers as it is not issued by a credit institution, the analysts said. They were responding to reports last week, prompted by the latest draft of CRD IV, released by the Danish presidency on January 9, that ABS could be included.

    • 24 Jan 2012
  • Sparebank sails with seven year benchmark

    Sparebank 1 Boligkreditt priced a €1.25bn seven year trade on Tuesday at the tight end of guidance, taking year to date Norwegian supply to over €4bn.

    • 24 Jan 2012
  • Morning Wrap: January 24: covered bonds go global

    The Bank of Montreal, Westpac have both priced dollar and Aussie dollar deals while Sparebank 1 is poised to price a euro benchmark. The three deals in three currencies come at a time of dormant Eurozone issuance and illustrate the increasingly global nature of the market.

    • 24 Jan 2012
  • Storm firms up at last year’s levels

    Leads Rabobank and Société Générale have published price guidance for Storm 2012-1, a new Dutch RMBS from Rabo subsidiary Obvion.

    • 24 Jan 2012
  • KBC risks Fitch wrath in tweaking deal docs

    KBC Bank has amended deal documents in Irish RMBS deals Phoenix Funding 2 and 3, to avoid triggering counterparty replacement provisions — exactly what Fitch warned issuers to avoid at the beginning of the year.

    • 24 Jan 2012
  • Morning Wrap: January 23

    Westpac has mandated Deutsche Bank and Westpac to arrange a series of investor meetings in Europe and will visit Frankfurt, Oslo, Helsinki, Duesseldorf, Munich, Zurich, Vienna, the Netherlands, Paris and London. The borrower is also planning an A$ benchmark following the Commmonwealth Bank of Australia’s success. But scope for eurozone issuance this week is expected to be limited as many banks enter blackout.

    • 23 Jan 2012
  • Baloise launches early to avoid Swissie wave

    Swiss insurer Baloise has got in ahead of a likely flurry of other borrowers by launching its first Swiss franc deal in six months on Monday morning — a Sfr150m minimum seven year senior unsecured bullet.

    • 23 Jan 2012
  • Sberbank and Troika tie up merger

    Russia’s Sberbank and Troika Dialog have closed their $1bn-plus merger in a deal that will create the country’s largest universal banking institution.

    • 23 Jan 2012
  • Obvion’s first Dutch deal out

    Obvion has launched the first Dutch RMBS of the year, Storm 2012-1, following an extensive European roadshow. Lead managers Rabobank and Société Générale are offering a €150m two year ‘A1’ tranche and a €550m five year ‘A2’, and the deal is this week’s business.

    • 23 Jan 2012
  • Nykredit success shows depth of short end liquidity

    Liquidity in the senior unsecured FIG market is concentrated in the short end of the curve, helping even second tier banks such as Denmark’s Nykredit — which last Friday printed a two year FRN — access the capital markets.

    • 23 Jan 2012
  • Vickers and European capital rules are compatible, says Barnier

    Capital rules proposed by the UK’s Independent Commission on Banking would not conflict with a single rule book for banks in Europe, Michel Barnier, European Commissioner for internal market and services, said on Monday.

    • 23 Jan 2012
  • Analysts dash ABS liquidity hopes

    Hopes that ABS might be deemed eligible for inclusion into bank liquidity buffers may be misplaced, according to notes by analysts from JP Morgan and Bank of America Merrill Lynch on Monday morning.

    • 23 Jan 2012
  • Sberbank adds to Russia pipeline

    Sberbank is beginning a non-deal roadshow in the UK and the US today, arranged by Barclays Capital, BNP Paribas, Citi and Troika Dialog. The bank, which has just closed a merger with Troika (see separate story), plans to enter the Eurobond market in the second half of this year, according to analysts at Alfa Bank.

    • 23 Jan 2012
  • Australia and Canada take up European slack

    Lingering concerns about the depth of the 144A market have been allayed after Bank of Nova Scotia’s $2.5bn deal on Friday on the back of more than $5bn orders took this January’s supply beyond last year’s almost record levels.

    • 23 Jan 2012
  • Primary momentum still there despite blackout

    As eurozone issuers slip into blackout, Australian, Nordic and Canadian names have taken over primary market supply. Westpac is planning trades in euros and Australian dollars, while Sparebank 1 Boligkreditt began taking indications of interest on a seven year trade this Monday morning.

    • 23 Jan 2012
  • BNZ flops as Aussie banks fill euro demand

    While Australian banks got a multi-currency array of public and private covered bonds away this week after their trio of inaugural euro benchmarks last week, a further sale in the currency by one issuer’s New Zealand subsidiary flopped. Despite Bank of New Zealand’s significant over-collateralisation and ultra-low loan to value ratio, its quintet of lead managers had to postpone its expected deal.

    • 20 Jan 2012
  • Global financial institutions

    • 20 Jan 2012
  • Market news in brief - January 20, 2012

    • 20 Jan 2012
  • Bye and Bothamley step up as HSBC shuffles senior syndicate

    HSBC has promoted PJ Bye to global head of public sector debt syndicate and Adam Bothamley to head of EMEA debt syndicate.

    • 20 Jan 2012
  • StanChart finds buyers but tier twos will stay scarce

    Standard Chartered enjoyed strong demand for a $1bn tier two issue this week that achieved a slim spread to its senior paper but bankers don’t expect much more issuance in the format. While the UK-headquartered bank had a specific motivation for issuing this week, bankers said that tier two issuance would remain light until there is greater clarity on European capital rules.

    • 20 Jan 2012
  • Bumper numbers expected as market looks to February LTRO

    Market participants expect banks to take up even more funding in the European Central Bank’s second long term refinancing operation (LTRO), scheduled for February 29, than they did in the first in late 2011, when some €489bn was sought and allocated.

    • 20 Jan 2012
  • Euro demand erupts for £2.2bn Holmes

    A sizeable new euro bid for UK RMBS emerged this week as Santander UK’s £2.2bn-equivalent Holmes 2012-1 provided the sector’s first issue of the year. The deal also featured the product’s first yen tranche in more than a year, alongside larger dollar and sterling pieces.

    • 20 Jan 2012
  • Santander funds cheaper in RMBS than covered

    A sizeable new euro bid for UK RMBS emerged this week as Santander UK’s £2.2bn-equivalent Holmes 2012-1 provided the sector’s first issue of the year. The deal raised funding at levels considerably tighter than where it could have issued in covered bonds.

    • 20 Jan 2012
  • Emerging Europe fears push Vienna 2.0 forward, national policies under spotlight

    Concerns about the effect of bank deleveraging on lending in emerging Europe have prompted the second incarnation of the Vienna Initiative to take a step forward. However, some observers have branded the efforts a “damp squib” for not matching up to what the first initiative provided.

    • 20 Jan 2012
  • Copycat sterling floaters find solid bank bid at short end

    Barclays Bank, Nationwide and National Australia Bank all tapped the sterling market with three year floating rate covered bonds this week. The unusual format gives issuers another way of raising funding, though some bankers questioned the amount of liquidity now left for this sort of deal.

    • 20 Jan 2012
  • Banrisul looks for tier two as four debutants join pipeline

    Four debut issuers joined the LatAm pipeline this week including the year’s first high yield candidate, encouraged by a stronger global market tone and surging investor demand for the region.

    • 20 Jan 2012
  • NBG covered bond buyback a success despite ‘challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 20 Jan 2012
  • CDOs return to bring leverage back to ABS

    Belgian investment firm NJR Invest has structured a CDO of European RMBS — the first CDO of ABS since the crisis. The structure is designed to fund NJR’s portfolio of triple-A ABS through long term repo, and give NJR the flexibility to roll over the funding where necessary.

    • 20 Jan 2012
  • Nomura plugs fixed income, seeks Bhattal replacement

    Nomura has filled the vacancy at the top of its global fixed income operation following the recent departure of Tarun Jotwani, who had run the business alongside his role as overall head of global markets. Taking over responsibility for fixed income is Steve Ashley, who left RBS to join the Japanese bank in May 2010 as global head of rates.

    • 20 Jan 2012
  • DNB continues Scandi assault on sterling

    DNB Bank tapped into demand from sterling investors for £400m on Thursday morning following three deals in the currency last week from fellow Scandinavian institution Svenska Handelsbanken

    • 20 Jan 2012
  • Wall St beasts wade into $ as Main St sleeps

    Wall Street’s big guns wasted no time after emerging from earnings blackout this week before bombarding the dollar market with bonds.

    • 20 Jan 2012
  • Arran opens year with double-sized $1.2bn print

    The first European ABS of the year, Royal Bank of Scotland’s Arran Cards Funding 2012-1, closed at more than double the announced minimum, printing $1.2bn on January 13 after announcing $500m two days before.

    • 20 Jan 2012
  • Markit Data 1238

    • 20 Jan 2012
  • Von Sponeck quits Goldman

    Goldman Sachs’ managing director in emerging markets financing, Alex von Sponeck, has decided to leave the firm, EuroWeek understands.

    • 20 Jan 2012
  • UBS re-opens dollar market as Nordic procession continues

    In stark contrast to the sudden burst and then abrupt stop in covered bond supply from Eurozone names, Nordic and Swiss issuers have brought a steady succession of successful trades. Terra Boligkreditt sold its third ever transaction this week, and UBS made its first foray into a new currency, restarting the dormant dollar market.

    • 20 Jan 2012
  • Westpac latest Aussie to print covered MTNs

    Westpac became the latest Australian bank to print its first covered bond private placements this week as the new jurisdiction for the asset class gets dealers and investors hot under the collar. Norwegian krone investors have been big buyers of the product so far.

    • 20 Jan 2012
  • Coeur Défense court decision cuts out creditor security after three year fight

    The Versailles Court of Appeal ruled on Thursday that the owner of the Coeur Défense tower in Paris would be protected from its creditors — bondholders in the Windermere XII FCT CMBS. The ruling closes a three year legal battle between the borrower and bondholders, and undermines the whole basis of secured lending against French assets.

    • 20 Jan 2012
  • ING behind schedule with strategy to exit state aid in 2012

    ING Bank is to push back a €3bn repayment of state support that it had been planning to make in the next four months — but the bank said it nonetheless hoped to return the funds by the end of the year.

    • 20 Jan 2012
  • Goldman beats expectations but suffers with the rest

    Fourth quarter profits at Goldman Sachs beat expectations this week but its results still followed the pattern of its US peer group, revealing the impact of macroeconomic volatility and lower client activity in the fourth quarter of 2011.

    • 20 Jan 2012
  • European FIG

    • 20 Jan 2012
  • Nykredit taps FRN demand as senior tightens

    Nykredit says “extremely strong” market conditions pushed it to launch a two year floater on Friday, a deal bankers saw as an encouraging sign that the senior unsecured market is opening for a broader range of issuers.

    • 20 Jan 2012
  • Lloyds goes long and large for sixth sterling

    Lloyds launched the sixth sterling deal of 2012 on Friday; the longest dated transaction so far this year and one of the most oversubscribed sterling trades in months. Year to date supply in the currency has already surpassed lower bound estimates for total 2012 issuance, with a raft of UK names yet to come to market.

    • 20 Jan 2012
  • RBS backs S&P call for lower-rated ABS

    Royal Bank of Scotland has endorsed S&P’s heavily criticised idea that the ABS market should start looking below triple-A ratings — and that this could be a source of strength, rather than weakness.

    • 20 Jan 2012
  • Bank CP issuers push out maturities as downgrades ignored

    Bank issuers of commercial paper have been lengthening their maturity profiles after money market funds shrugged off last week’s Standard & Poor’s Eurozone sovereign downgrades. Many have begun pushing for longer tenors by making their levels less attractive at the very short end, said dealers.

    • 20 Jan 2012
  • ICMA calls on EBA to allow tier two Coco

    The International Capital Market Association went on the offensive over the European Banking Authority’s contingent capital instrument this week, calling for a tier two structure

    • 20 Jan 2012
  • ECM the big faller as Citi IB revenues down 45%

    Equity underwriting was dealt a severe blow at Citi in the fourth quarter of 2011, as the bank suffered from the same client torpor that was reflected in its rivals’ results announcements over the last week. Citi’s fourth quarter results on Tuesday showed investment banking revenues slumping 45% year on year, with equity underwriting down 78%.

    • 20 Jan 2012
  • SMEs next in S&P firing line, with triple-As to be hardest hit

    Standard & Poor’s is asking for comment on its plans to change SME CLO rating criteria — which could lower ratings by an average of four notches.

    • 20 Jan 2012
  • Home and away for Westpac

    After a spree of issuance by Australian banks in foreign currencies, Westpac announced plans on Friday to issue its first Australian dollar covered bond, while Bank of New Zealand raised NZ$225m ($180m) through a domestic private placement.

    • 20 Jan 2012
  • Banco BPI tender disappoints after drawing only 7% take-up

    Banco BPI purchased just €149.3m of the €2.17bn it could have bought in its tender offer for the Douro Mortgages Portuguese RMBS.

    • 20 Jan 2012
  • New European HY, subordinated FIG MTF to launch in February

    Vega-Chi has announced the launch of a multilateral trading facility (MTF) dedicated to European high yield bonds and subordinated financial bonds, due to begin on February 7.

    • 20 Jan 2012
  • Morning Wrap: January 20

    After three floating rate sterling covered bonds in a week, demand may be approaching exhaustion, for now at least. Lloyds has therefore decided to move to the other end of the curve, mandating BNP Paribas, Lloyds, RBS, Santander and UBS for a sterling deal with at least a 10 year maturity that will be launched on Friday. The transaction comes amidst an appreciably more positive credit backdrop, suggesting Eurozone issuers might be tempted to return next week.

    • 20 Jan 2012
  • Standard Chartered Plc

    • 20 Jan 2012
  • ZKB issues landmark Basel III compliant tier one perp

    Zürcher Kantonalbank issued the first ever Basel III compliant tier one security this week, a Sfr590m 3.5% perpetual non-call 5-1/2 year deal, helped by the quick-moving Swiss regulator.

    • 20 Jan 2012
  • Banks spurn buoyant senior market

    Even after a rally of almost 70bp in senior CDS and some secondary market tightening, the newly reopened senior debt market is still too expensive for many banks, FIG bankers said this week. Supply evaporated as a result, with a £400m eight year from DNB (see separate story) the week’s only new issue after a flood of some €20bn of senior unsecured in the first two weeks of the year.

    • 20 Jan 2012
  • UBS oversubscribed as European demand leads

    On Thursday UBS issued its debut dollar deal and the first Yankee covered bond of 2012. The $1.5bn three-year priced in line with guidance on an order book just shy of $2bn. Initial indications suggest the deal relied more heavily on international demand than previous US dollar benchmarks.

    • 20 Jan 2012
  • No surprise as BTA Bank misses coupon payment

    Kazakhstan’s BTA Bank was on Wednesday carried further along the path to a second restructuring in as many years when the grace period for its $165m coupon payment on its senior $2bn 2018s expired. The 2018s were part of a restructuring package agreed in 2010.

    • 20 Jan 2012
  • Aussie invasion begins as ANZ takes covered to Swiss

    Australia and New Zealand Banking Group on Monday initiated what bankers tip to be an Australian-dominated covered bond scene in Switzerland in the next few weeks. ANZ issued a blow-out Sfr725m dual tranche deal — the first under new Australian legislation and the largest new franc covered bond in recent years.

    • 20 Jan 2012
  • Tobin leaves BofA Merrill

    Bank of America Merrill Lynch’s FIG syndicate specialist left the bank this week, EuroWeek can reveal. Anthony Tobin resigned on Wednesday for personal reasons.

    • 20 Jan 2012
  • Morning Wrap January 19

    Although the secondary market remains firm with all recently issued deals performing well and new ones likely to be readily absorbed, eurozone borrowers remain noticeable by their absence.

    • 19 Jan 2012
  • Goldman beats expectations but suffers from grim year-end markets

    Following the pattern of JP Morgan at the end of last week and Citi earlier this week, Goldman Sachs’ results on Wednesday revealed the impact of macroeconomic volatility and lower client activity in the fourth quarter of 2011.

    • 19 Jan 2012
  • Commerz makes capital progress

    Commerzbank on Thursday reiterated that it would not need additional state aid to meet a 9% European Banking Authority core capital target by the end of June and again indicated that it would meet the requirement without tapping shareholders.

    • 19 Jan 2012
  • CBA covered bond rewrites records but reprices curves

    Commonwealth Bank of Australia raised A$3.5bn ($3.64bn) this week from the first covered bond ever sold by a domestic bank in Australian dollars. Not only was it the largest ever covered bond in that currency from any institution, but it was also the largest bond of any type sold in Australian dollars — giving a clear demonstration of the funding potential for domestic banks using the product.

    • 19 Jan 2012
  • Santander grabs LTRO bid, funds well inside covered

    Santander UK’s Holmes 2012-1, the first UK RMBS of the year, has raised £2.2bn-equivalent and established three year euros as a new sweet spot — a sharp contrast to the dollar-denominated issues of 2011. While the three year dollar tranche stayed at $500m, sized to demand, the three year euro tranche ballooned during bookbuilding on Tuesday.

    • 19 Jan 2012
  • Henderson’s structured head Irvine promoted

    Jim Irvine has been promoted to head of fixed income at Henderson Global Investors, leaving behind the structured credit and advisory business he had built up since 2006.

    • 19 Jan 2012
  • Blow to Singapore as HK inks renminbi tie-up with London

    Hong Kong looks set to retain its hold on offshore renminbi business in spite of an agreement this week between the region’s regulators and the UK to set up a co-operative forum.

    • 19 Jan 2012
  • NAB chooses floater for sterling debut

    National Australia Bank issued its first sterling covered bond on Thursday, choosing the same three year floating format that worked for Barclays and Nationwide earlier this week.

    • 19 Jan 2012
  • StanChart success but tier twos will stay scarce

    Standard Chartered’s $1bn tier two issue has been hailed as a success by market participants, but they say regulatory dynamics mean that further similar supply will be light.

    • 19 Jan 2012
  • Madan Menon is new Asia Pacific banking head at RBS

    RBS has picked Madan Menon as head of its newly-created Asia Pacific international banking division, part of a reorganisation of its wholesale businesses.

    • 19 Jan 2012
  • Investors sell BNI shares on Indo upgrade

    An undisclosed institutional shareholder raised Rp802.8bn ($88.5m) after selling a stake in Indonesia lender Bank Negara on Wednesday, taking quick advantage of Moody’s upgrade of the country earlier that day (see page 4).

    • 19 Jan 2012
  • RBS aircraft lease sale finally takes flight

    Royal Bank of Scotland Group (RBS) has agreed to sell its aircraft leasing business, RBS Aviation Capital, to Sumitomo Mitsui Financial Group (SMFG) and trading company Sumitomo Corp. The deal was announced on Tuesday, after two years of negotiations over the sale of the business.

    • 19 Jan 2012
  • Morgan Stanley, BofA Q4 numbers add to gloom

    Morgan Stanley and Bank of America Merrill Lynch’s fourth quarter results further highlighted the weak market conditions at the end of last year, as both banks reported slumping investment banking revenues on Thursday, citing market instability as a hindrance to activity.

    • 19 Jan 2012
  • Holmes grabs £2.2bn as euro demand steps up

    Santander UK’s Holmes 2012-1, the first UK RMBS of the year, has raised £2.2bn-equivalent and established three year euros as a new sweet spot — a sharp contrast to the dollar-denominated issues of 2011.

    • 19 Jan 2012
  • Asia View: Aussie issuers should stick closer to home

    Commonwealth Bank of Australia’s ground-breaking Aussie dollar covered bond deal is the story that everyone was waiting for. Its success disproves the conventional wisdom that euros and dollars are the only really liquid markets.

    • 19 Jan 2012
  • RCBC raises $200m for bond buying

    Philippine bank Rizal Commercial Banking Corp (RCBC) sold $200m of five year dollar bonds on Wednesday, its first fundraising exercise under a $1bn MTN programme. The lender will use the proceeds to invest in other international debt issues.

    • 19 Jan 2012
  • NAB and UBS in debut currency deals, LTSB next

    The non-eurozone, no-euro theme in the covered bond market continued on Thursday with the announcement of two debut currency benchmarks, one of which was priced. After the successes of Barclays and Nationwide, National Australia Bank issued its first sterling dea, Lloyds mandated for another sterling deal and UBS is set to bring its first dollar deal.

    • 19 Jan 2012
  • Eurohypo downgrade priced in

    Moody's looks set to downgrade Eurohypo's Pfandbriefe below triple A, not that it should matter. The rating move is already discounted, and with German supply in such short supply, its outstandng bonds are set to remain well supported. Moreover, with more ECB cheap money coming, Pfandbrief issuers have very little incentive to pay up and go to the public market.

    • 19 Jan 2012
  • Shinhan deal draws firm Asian, US support

    South Korean Shinhan Bank raised $700m from the sale of 5-1/2 year bonds this week, a deal that was more than seven times covered despite its aggressive pricing. It tightened in the secondary market on Thursday.

    • 19 Jan 2012
  • DnB continues Scandi assault on sterling

    DnB NOR Bank launched an eight year sterling transaction on Thursday morning, following three deals in the currency last week from fellow Scandinavian institution Svenska Handelsbanken. Bankers were encouraged by the renewed interest in the sterling FIG market, which one said had been "moribund" since the onset of the financial crisis.

    • 19 Jan 2012
  • French ABS future hangs on Coeur conclusion

    French structured finance lawyers and bankers will get a final decision on the fate of the Coeur Défense office block in Paris on Thursday afternoon — a decision which could undermine the whole basis of secured lending in France.

    • 19 Jan 2012
  • Aussie issuers should stick closer to home

    Commonwealth Bank of Australia’s ground-breaking Aussie dollar covered bond deal is the story that everyone was waiting for. Its success disproves the conventional wisdom that euros and dollars are the only really liquid markets.

    • 19 Jan 2012
  • ZKB to price landmark Basel III-compliant T1 perp

    Zürcher Kantonalbank is in the Swiss franc market with the first ever Basel III-compliant tier-one subordinated bond — a perpetual 3.5% non-call 5-1/2 year.

    • 18 Jan 2012
  • Terra ends five month wait and secures €500m

    Terra Boligkreditt successfully raised €500m of five year funding on Wednesday morning, nearly five months after it first mandated for a deal. German and Nordic investors looked past the bond’s Aa2 rating from Moody’s, allowing the issuer to price inside guidance on the back of an oversubscribed book.

    • 18 Jan 2012
  • IB down 45% at Citi as grim picture continues

    Citi’s fourth quarter results on Tuesday painted a grim picture of the state of the market at the end of last year. Investment banking revenues slumped 45% year on year, with equity underwriting suffering a particular blow — down 78% — reflecting the poor market conditions.

    • 18 Jan 2012
  • Bumper numbers expected as market looks ahead to February LTRO

    Market participants expect banks to take up even more funding in the European Central Bank’s second long term refinancing operation (LTRO), scheduled for February 29, than they did in the first such operation in late 2011, when some €489bn was sought and allocated.

    • 18 Jan 2012
  • All benchmarks

    • 18 Jan 2012
  • StanChart tops $2.5bn for tier two

    Standard Chartered has generated more than $2.5bn of demand for an old style tier two issue that will be priced on Wednesday afternoon at 390bp over US Treasuries — and which has impressed with the strength of demand.

    • 18 Jan 2012
  • Yen tranche for Holmes as books swell to £2.36bn

    JP Morgan has added a ¥20bn three year yen tranche to Santander UK’s Holmes 2012-1 RMBS – the first yen tranche in a UK RMBS since Lloyds Banking Group’s Arkle deal in October 2010.

    • 18 Jan 2012
  • RBS backs S&P over lower-rated ABS

    Royal Bank of Scotland has endorsed S&P’s heavily criticised idea that the ABS market should start looking below triple-A ratings — and that this could be a source of strength, rather than weakness.

    • 18 Jan 2012
  • Secondary supported, funding window open

    Secondary market activity has slowed from the brisk pace in the first two weeks of the year but the market remains well supported, particularly in the short end where offers out to three years have started to disappear. Better buying has also been reported in peripheral credits, leading participants to speculate that primary supply might be forthcoming. With the exception of ANZ’s 10-year, the long end is also performing well.

    • 18 Jan 2012
  • New European HY, subordinated FIG MTF to launch in February

    Vega-Chi has announced the launch of a multilateral trading facility (MTF) dedicated to European high yield bonds and subordinated financial bonds, due to begin on February 7.

    • 18 Jan 2012
  • Rizal will sell dollar bonds to buy dollar bonds

    Philippine bank Rizal Commercial Banking Corp (RCBC) plans to issue five year dollar bonds this week, its first fund raising exercise under a $1bn MTN programme. Rizal will use the proceeds to invest in other international debt issues.

    • 18 Jan 2012
  • Morning wrap January 18

    Norway’s Terra Boligkreditt has mandated leads Commerzbank, Nordea, UBS and UniCredit for a euro offering, possibly due this week. The borrower finished a roadshow in early September, but decided to not issue because of volatile markets. Terra is targeting a €500m deal.

    • 18 Jan 2012
  • Senior tightens but volumes down as blackouts bite

    With many issuers unable to print because they are in blackout, volumes are down in the senior unsecured market despite an increasingly positive market backdrop.

    • 18 Jan 2012
  • No let up in hunt for capital as funding slumps

    There has been no let up in banks' pursuit of capital this week, despite a slowdown in the funding markets. Standard Chartered is in the market on Wednesday with a Reg S tier two issue in dollars, while Zurcher Kantonalbank is out with what it is billing as the first full Basel III compliant hybrid tier one on Thursday.

    • 18 Jan 2012
  • Dollars absent from covered restart

    Year to date covered bond issuance in all currencies has reached €32.3bn, according to Dealogic data. Issuers have launched successful trades in euros, sterling, Norwegian, Danish and Swedish kroner/kronor, Swiss francs and Australia dollars. But US dollar denominated supply, the largest market after euros, has been non-existent.

    • 18 Jan 2012
  • ICMA lays out EBA coco objections in letter to Enria

    The International Capital Markets Association has gone on the offensive over the European Banking Authority’s contingent capital instrument, setting out its members’ objections to the structure in a letter to the EBA’s chair Andrea Enria.

    • 18 Jan 2012
  • Akbank asks for pricing guidance

    Akbank has sent out preliminary requests for guidance from its banking group to judge where terms should sit for its annual one year revolving credit facility, bankers said.

    • 17 Jan 2012
  • Finland’s bank governor leads EC ring-fencing group

    The Bank of Finland governor will lead a European Commission working group to consider splitting up retail and wholesale banking on the continent, after the UK government endorsed similar proposals in December.

    • 17 Jan 2012
  • Aussie dollar covered comes of age with CBA

    Commonwealth Bank of Australia has priced the first covered bond for a domestic bank in the home currency. Not only is it the largest covered bond in that currency by a considerable margin, but it is also the largest ever funding exercise undertaken by any financial institution in the local currency. The deal size sends a strong signal that these bonds are eligible for liquidity buffer purposes. Ostensibly pricing 20bp wider than its senior bonds but 45bp inside where it would fund a covered bond in euros, the spread has clearly set a new paradigm.

    • 17 Jan 2012
  • Aiming lower: sovereign moves could ease ABS pressure

    ABS issuers could aim for lower ratings, dropping their fixation on hitting triple-A, Standard & Poor’s suggested last week. Now, thanks to other rating actions, the agency may have a point.

    • 17 Jan 2012
  • Aabar buys UniCredit rights, stake up to 6.5%

    Aabar Investments, the Abu Dhabi investment fund, on Tuesday belatedly but wholeheartedly gave its support to UniCredit’s rights issue, saying that it would raise its stake in the bank from 5% to 6.5%.

    • 17 Jan 2012
  • NBG buyback hits 45% despite ‘unique challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 17 Jan 2012
  • Rating threat could sink covered lifeboat for drowning peripherals

    Covered bonds will be a key weapon in the year ahead as peripheral banks steel themselves for an almighty financing battle, reports Bill Thornhill.

    • 17 Jan 2012
  • Bankers frustrated by senior slowdown

    FIG bond investors are flush with cash to put to work but Standard & Poor’s sovereign downgrades have made issuers nervous and the dearth of public deals in the senior unsecured market has left bankers frustrated.

    • 17 Jan 2012
  • CBA eyes market ahead of domestic covered bond

    Commonwealth Bank of Australia is closely watching the market this week before selling the first Australian dollar denominated covered bond from one of the country’s banks. But bankers are cautious about pushing ahead with the deal, after downgrades of European sovereigns over the weekend spooked investors.

    • 17 Jan 2012
  • Nomura plugs fixed income hole, will look for Bhattal replacement

    Nomura has filled the vacancy at the top of its global fixed income operation following the recent departure of Tarun Jotwani, who had run the business alongside his role as overall head of global markets. Taking over responsibility for fixed income is Steve Ashley, who left RBS to join the Japanese bank in May 2010 as global head of rates.

    • 17 Jan 2012
  • Contrasting fortunes for CBA and BNZ

    With the euro pipeline looking light on clear candidates, the Australian market came to life on Tuesday. Commonwealth Bank of Australia’s A$3.5bn five year covered bond, the first from an Australian issuer, is the largest ever Australian dollar FIG transaction. Bank of New Zealand, however, found a very different reception for its euro offering and decided to postpone issuance.

    • 17 Jan 2012
  • Covered bonds reach new continents

    In a difficult year, when even Europe’s chosen investment instrument, the covered bond, struggled, new markets continued to grow. Canadian banks sold big trades with ease, US dollar supply reached record levels and covered bonds reached a new continent. All exciting developments with implications for 2012 and beyond. Steven Gilmore reports.

    • 17 Jan 2012
  • The Goldman Sachs Nordic Covered Bond Roundtable

    Euroweek and The Cover, in association with Goldman Sachs, brought issuers, investors, a head of FIG syndicate and a head of covered bond origination together to discuss the state of the Nordic covered bond market.

    • 17 Jan 2012
  • Core market goes from feast to famine and back again

    Singled out for special treatment by European regulatory initiatives, covered bonds were the funding tool of choice for the region’s banks in 2011. But an escalating Eurozone crisis meant the record-breaking market entered 2012 relying on state support. Steven Gilmore reports.

    • 17 Jan 2012
  • The trillion euro question

    As banks look ahead to the second long term refinancing operation from the ECB next month, recycling that cash into high yielding sovereign paper seems like an obvious strategy. But that does not mean they should.

    • 17 Jan 2012
  • CDOs are back as NJR innovates

    Belgian investment firm NJR Invest has structured a CDO of European RMBS — the first CDO of ABS since the crisis. However, the deal appears to be structured to obtain repo funding for NJR’s asset portfolio, rather than as an arbitrage or leverage mechanism.

    • 17 Jan 2012
  • SMEs next in S&P firing line

    Standard & Poor’s is asking for comment on its plans to change SME CLO rating criteria — which could lower ratings by an average of four notches.

    • 17 Jan 2012
  • BPI tender disappoints with 7% takeup

    Banco BPI purchased just €149.3m of the €2.17bn it could have bought in its tender offer for the Douro Mortgages Portuguese RMBS.

    • 17 Jan 2012
  • Emerging Europe fears push Vienna II forward

    Concerns about the effect of bank deleveraging on emerging Europe have prompted the second incarnation of the Vienna Initiative to take a step forward. Public sector officials from the supranational European Bank Coordination Initiative, otherwise known as the Vienna Initiative, met on Monday to discuss organising national polices.

    • 17 Jan 2012
  • Aussie issuers should stick closer to home

    Commonwealth Bank of Australia’s ground-breaking Aussie dollar covered bond deal is the story that everyone was waiting for. Its success disproves the conventional wisdom that euros and dollars are the only really liquid markets.

    • 17 Jan 2012
  • UK floaters broaden investor interest

    Nationwide printed £650m of three year floating rate notes to demand on Monday, the second UK covered floater in that maturity in as many working days. Barclays and Nationwide’s covered FRNs highlight the growing demand for UK covered bonds and the broadening range of investors wanting a piece of the market.

    • 17 Jan 2012
  • High covered bond take-up in NBG buyback despite ‘unique challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 17 Jan 2012
  • Morning Wrap January 17

    Commonwealth Bank of Australia looks set to become the first bank in the country to issue a covered bond in the home currency. The deal is also set to become the largest FIG bond ever sold in Australia.

    • 17 Jan 2012
  • ANZ makes big splash in Swissies

    Australia and New Zealand Banking Group issued the first Swiss franc covered bond under the new Australian legislation on Monday — a Sfr725m dual tranche note — which was also the largest new issue in recent years for this asset class.

    • 17 Jan 2012
  • Asian issuance prospects still slim

    Banks across Asia have long considered selling covered bonds, but so far only Australian, New Zealand and South Korean banks have tapped the market. That is unlikely to change soon as not enough Asian issuers fit the bill.

    • 16 Jan 2012
  • VTB picks veteran Abboud for Middle East push

    VTB Capital has appointed Makram Abboud as chief executive officer for the Middle East and Africa as it looks to expand its emerging markets investment banking platform. Based in London and Dubai, Abboud’s responsibilities will also include running the Russian firm’s origination and distribution group alongside a co-head who is yet to be appointed.

    • 16 Jan 2012
  • Holmes price thoughts ‘leave nothing to chance’

    Lead managers Barclays Capital, Deutsche Bank, JP Morgan and Santander GBM have published initial price thoughts for the Holmes 2012-1 RMBS, with official guidance due on Tuesday and pricing Wednesday or Thursday. Levels look wide of recent primary UK RMBS, despite the positive start to the year in credit and equity markets.

    • 16 Jan 2012
  • CBA sells first privately placed covered bond

    Commonwealth Bank of Australia (CBA) has sold its first privately placed covered bond, joining ANZ Bank and National Australia Bank (NAB) in taking advantage of an October 2011 change in Australian banking law.

    • 16 Jan 2012
  • Secondary spreads steady after S&P cuts

    Covered bond spreads have survived sweeping sovereign downgrades by Standard & Poor’s on Friday. Only French issuer Dexia was reported wider on Monday morning, while the LTRO cash injection has ensured short dated Spanish and French paper remains highly sought after.

    • 16 Jan 2012
  • Asian issuers unlikely to follow Aussie covered bonds soon

    Banks from across Asia have long considered selling covered bonds, but so far only Australian, New Zealand and South Korean borrowers have tapped the market. That is not likely to change anytime soon, Ted Packmohr, a covered bond analyst, told EuroWeek Asia. Investors may be ready to move away from a heavy supply of European names — but there are just not enough Asian issuers that fit the bill.

    • 16 Jan 2012
  • JP Morgan Q4 numbers offer glimpse of dire year-end markets

    JP Morgan on Friday gave the first glimpse of how dire markets in the fourth quarter hit investment banks, when it released results described by CEO Jamie Dimon as “modestly disappointing”.

    • 16 Jan 2012
  • Nationwide follows Barclays with three year FRN

    Nationwide has kept up the flow of sterling issuance since the start of 2012, following Barclays and RBS with a three year covered bond priced at 165bp over three-month Libor on Monday. As with Barclays’ three year last week, the deal’s floating rate format makes heavy participation from bank treasuries — some of which will be awash with cheap ECB cash — highly likely.

    • 16 Jan 2012
  • Senior pauses for breath as market digests sovereign downgrades

    Bankers said on Monday morning that they were confident the senior FIG market would weather the sovereign downgrade storm, saying that issuance plans were likely to have been put on hold temporarily rather than derailed altogether. After Standard & Poor's raft of sovereign downgrades at the end of last week, most recent new issues were trading inside reoffer on Monday morning.

    • 16 Jan 2012
  • CBA opens books on Aussie inaugural

    Commonwealth Bank of Australia opened books on the first Australian dollar transaction from a domestic bank on Monday, while Bank of New Zealand began taking indications of interest for that jurisdiction’s first trade of 2012.

    • 16 Jan 2012
  • Arran opens year with double-sized print

    The first European ABS of the year, Royal Bank of Scotland’s Arran Cards Funding 2012-1, closed at more than doubled the announced minimum, printing $1.2bn on Friday after announcing $500m two days before.

    • 16 Jan 2012
  • CBA sells first privately placed covered bond

    Commonwealth Bank of Australia (CBA) has sold its first privately placed covered bond, joining ANZ Bank and National Australia Bank (NAB) in taking advantage of an October 2011 change in Australian banking law.

    • 16 Jan 2012
  • Post- CAM recap for Sabadell

    Spain’s Banco de Sabadell on Monday moved ahead with its previously-announced plan to raise up to €1bn from shareholders to top up its capital following its acquisition in December of troubled Caja Ahorros Mediterraneo (CAM).

    • 16 Jan 2012
  • Bonds Tables 1237

    • 13 Jan 2012
  • Svenska Handelsbanken

    • 13 Jan 2012
  • Colombia, BBVA Peru pay as investors get premium-savvy

    New issue premiums mirrored last week’s elevated levels in the Latin American FIG and sovereign bond sectors this week as investors demanded substantial concessions from Colombia and BBVA Banco Continental.

    • 13 Jan 2012
  • LTRO fails to reshape funding mix in ABS

    ABS bankers say there has been little direct effect from the European Central Bank’s three year LTRO operations, despite the tightening seen in other credit markets.

    • 13 Jan 2012
  • Emirates Islamic Bank opens way for Gulf sukuk

    Dubai-based Emirates Islamic Bank on Tuesday set down a strong marker for Middle East sukuk issuance in 2012, as it hit the market with a tightly priced $500m benchmark deal. The dollar denominated five year transaction came in at 350bp over mid-swaps, with a profit rate of 4.718%.

    • 13 Jan 2012
  • Bookrunners of all global bonds (Americas) — 2012 (January 11, 2012)

    • 13 Jan 2012
  • DnB NOR Bank

    • 13 Jan 2012
  • ING

    • 13 Jan 2012
  • UniCredit rallies after rights drop as value shines through

    Bookrunners for UniCredit’s €7.5bn rights issue were adamant on Monday that despite a 65% fall in the value of the rights, and a 13% slump in the stock, that the prices would stabilise as the cheap valuation came to the fore. On Tuesday morning their confidence appeared justified — the shares rallied and the rights soared 77% to close the gap to their implied price. Trading throughout the rest of the week was also solid.

    • 13 Jan 2012
  • Curve steepening brings short-end back into play

    Investors have devoured nearly €11bn of long dated covered bonds issued since the start of the year, but this week investors began to show fatigue towards deals with elongated maturities.

    • 13 Jan 2012
  • Bookrunners of all international bonds — 2012 (January 11, 2012)

    • 13 Jan 2012
  • Zurich Insurance Co

    • 13 Jan 2012
  • Barclays Bank

    • 13 Jan 2012
  • First Gulf acts fast to seize sukuk window

    Abu Dhabi-based First Gulf Bank on Wednesday afternoon issued its $500m sukuk at 287.5bp over mid-swaps, in line with earlier price talk. The five year deal came with a profit rate of 4.046% and was the second benchmark sukuk from the bank in six months.

    • 13 Jan 2012
  • Crédit Mutuel Arkea

    • 13 Jan 2012
  • UBS

    • 13 Jan 2012
  • MTNs stay short as syndicated deals steal long-dated show

    MTN bankers were this week waiting for a pause in the roaring start to the year in the public bond markets to give private placement issuers a chance of selling mid- and long-dated notes. However money market fund buying supported short-dated issuance this week.

    • 13 Jan 2012
  • Bank finance on a high after LTRO but investors fear the comedown

    Investors this week warned the European FIG bond market not to get carried away with its impressive start to 2012, cautioning that many of the challenges that plagued the sector in the final months of last year remained.

    • 13 Jan 2012
  • Banco do Brasil delivers Basel-proof hybrid

    Banco do Brasil attracted almost a six times oversubscription on Thursday for a ground-breaking $1bn perpetual tier one deal that has been thoroughly future-proofed to comply with Brazil’s anticipated implementation of Basel III legislation later this year.

    • 13 Jan 2012
  • Hybrid hopes rise on temp write-down talk for CRR I

    The future of European hybrid capital brightened this week when the European Council opened the door to temporary write-down features for tier one securities under incoming CRD IV and CRR I rules.

    • 13 Jan 2012
  • Euro-denominated covered bonds: 13 January

    • 13 Jan 2012
  • Santander UK pipped at the post as RBS races ahead to open market with credit card ABS

    Royal Bank of Scotland launched a credit card ABS on Wednesday to price Friday, hitting the market ahead of Santander UK’s hotly anticipated market opening RMBS, Holmes 2012-1. Dutch issuers are also close behind, with Rabobank subsidiary Obvion launching an extensive roadshow.

    • 13 Jan 2012
  • Markit Data 1237

    • 13 Jan 2012
  • Tamweel completes strong week for sukuks with $300m deal

    Tamweel, the Dubai-based mortgage company, was given a warm welcome in the Islamic finance market on Thursday when it sold a $300m tranche of a $1bn sukuk programme.

    • 13 Jan 2012
  • People Moves in Brief, January 13, 2012

    • 13 Jan 2012
  • It’s a shut-out: BTA Bank leaves investors fuming over restructuring

    Kazakhstan’s BTA Bank once again raised hackles in the investor community this week as it indicated that it wouldn’t make scheduled payments on its senior and subordinated bonds and called for a full debt restructuring. Many London-based funds that own BTA bonds and equity are now angry that they might be shut out of a key vote on the bank’s future.

    • 13 Jan 2012
  • Global financial institutions: 13 January

    • 13 Jan 2012
  • Investors fear comedown after LTRO high

    Investors this week warned the European FIG bond market not to get carried away with its impressive start to 2012, cautioning that many of the challenges that plagued the sector in the final months of last year remained.

    • 13 Jan 2012
  • CP buyers relax as maturities lengthen

    Investors have begun to "look through the noise" surrounding European banks and seek longer dated commercial paper (CP), dealers said this week. Maturities have lengthened as credit concerns have retreated following the European Central Bank’s long term refinancing operation, said some.

    • 13 Jan 2012
  • DCM is spared the axe at RBS as sweeping changes spell the end of ECM, broking, M&A

    Royal Bank of Scotland is expected to cut about 3,500 jobs in wholesale banking this year, as it pulls out of cash equities, corporate broking, equity capital markets and mergers and acquisitions advice. But debt capital markets businesses appear to have been spared from the cuts.

    • 13 Jan 2012
  • FIG fiesta defies doom-laden outlook

    A raft of senior unsecured bank debt this week defied analysts’ gloomy 2012 forecasts for the sector, but left some investors and bankers fretting over the new supply’s pace and performance.

    • 13 Jan 2012
  • Lloyds hires 22-year Citi veteran Moore for trading

    Lloyds Bank Corporate Markets has hired Richard Moore as head of trading, after a reorganisation in September that left the position vacant. Moore will join on March 1, subject to FSA approval.

    • 13 Jan 2012
  • Widening sweep of FSB’s SIFI regulations to swallow up insurers and national champions

    The Financial Stability Board will expand the scope of SIFI regulation, it said this week, but with global insurance regulations under review and national finishes being implemented, bankers shrugged off the news

    • 13 Jan 2012
  • ING sets out strategy to exit state aid in 2012

    ING Bank on Friday morning set out its plans to reach a 10% Basel III core tier one ratio and exit state support over the next two years, saying it will further review non-core assets if needed.

    • 13 Jan 2012
  • RBS performs well on sterling covered debut

    Royal Bank of Scotland this week issued its debut covered bond in its home currency, the second issuer to do so already this year. It chose to differentiate itself from Barclays, which sold a 10 year last week, with a longer, 12 year maturity and attracted a strong order book which enabled it to price in line with guidance. The deal has since performed well, in contrast to the Barclays deal.

    • 13 Jan 2012
  • Leaseplan

    • 13 Jan 2012
  • Santander tweaks exchangeable to meet 9% EBA target

    Banco Santander has transferred a 4.41% stake in its Brazilian subsidiary to an undisclosed counterparty in one of several measures that have helped it meet the European Banking Authority’s 9% core equity tier one ratio.

    • 13 Jan 2012
  • ABN, Rabobank take Swiss FIG sector out of deep freeze

    Senior unsecured bank debt began moving back on to the Swiss franc bond menu this week as a pair of fixed rate deals from Dutch duo ABN Amro and Rabobank rekindled yield-starved investors’ appetite.

    • 13 Jan 2012
  • S&P questions triple-A obsession in ABS as sponsors shun agencies likely to rate lower

    With securitisation issuers finding it harder to achieve triple-A ratings following changes in agency methodologies, Standard & Poor’s believes the ABS market should drop its preoccupation with attaining the top standard.

    • 13 Jan 2012
  • Standard Chartered

    • 13 Jan 2012
  • BTA casts shadow but EDB prices $40m CP

    While BTA Bank has troubled a swathe of funds with the proposed restructuring of its 2018s, attention has turned to the effect that this will have on investor perception of the country in the bond and loan markets.

    • 13 Jan 2012
  • New issues perform as market digests supply

    The FIG market shook off concerns over secondary market underperformance on Friday, with the majority of the week’s new issues tightening in the afterglow of positive Spanish and Italian government auctions.

    • 13 Jan 2012
  • ‘Banks won’t use buffers’ but Basel confirms LCR in 2015

    Banks would be afraid to run down liquidity coverage ratios in times of stress, bankers said this week, after Basel regulators confirmed the rules would come into force from 2015.

    • 13 Jan 2012
  • Risk-on rally as Street firms up

    Triple-B Granite paper has been seen over 54 cash price — the highest level since August, and a sign that dealer sentiment is back into risk-on mode.

    • 13 Jan 2012
  • Pipeline replenished despite approaching blackout

    A series of mandates from outside the eurozone hit screens on Friday. Australian, New Zealand and Norwegian issuers could all launch in the next two weeks, while three Turkish banks have hired UniCredit Menkul Degerler for trades in 2012.

    • 13 Jan 2012
  • Blowout book for Zurich but others will wait as regs hamper hybrid bond plans

    Intense demand for Zurich Insurance’s $500m perpetual issue this week underscored the depth of liquidity available to strong European names in the Asian private banking market. But the deal is unlikely to herald a flood of further hybrid capital supply as banks wait for more clarity on regulations.

    • 13 Jan 2012
  • Nordea, Credit Suisse shine but fears grow over supply

    Nordea Bank Finland launched the largest ever Nordic covered bond and Credit Suisse priced the tightest five year trade of 2012 in another successful week for the covered bond market. However, while the tone remains more constructive than many syndicate bankers had hoped for during December, the list of top tier issuers able to launch stand out trades is almost exhausted.

    • 13 Jan 2012
  • Rabo quaffs from US cup as SAB swigs $7bn

    Yankee bond issuers found US investors in party mood this week as they tested the market with deals of increasing size and audacity.

    • 13 Jan 2012
  • Morning Wrap January 13

    Covered bond supply was restricted to an impressive €850m tap from BPCE on Thursday, taking the number of long dated French transactions already this year to six.

    • 13 Jan 2012
  • Tender reluctance pays off for Nemus investors

    Investors in the HSBC-sponsored Nemus 2006-1 synthetic CMBS were vindicated in their reluctance to tender, as the largest reference obligation in the structure prepaid in full on Friday.

    • 13 Jan 2012
  • Svenska Handelsbanken plunders cheap sterling

    Svenska Handelsbanken launched its third senior unsecured benchmark in as many days on Thursday, cashing in on a cheap basis swap from sterling into euros. The deal follows a £400m seven year, priced on Wednesday and a €1bn long five year, printed on Tuesday.

    • 13 Jan 2012
  • SBAB

    • 13 Jan 2012
  • Pfandbrief issuers benefit from rarity, LTRO liquidity

    Covered bond bankers of a bygone era could never have envisaged German Pfandbrief issuers benefiting from rarity value in a January window. But deals from Aareal Bank and Deutsche Pfandbriefbank (pbb) this week appeared to show this had become reality.

    • 13 Jan 2012
  • ANZ plots different course with long dated euro debut

    Australia and New Zealand Banking Group became the first Australian issuer to launch a second syndicated benchmark covered bond on Monday. Looking to differentiate itself from dual five year euro debuts from Commonwealth Bank of Australia and National Australia Bank last week, the borrower tapped the crowded long end with a 10-1/2 year jumbo.

    • 13 Jan 2012
  • EFG hits 33% take-up in sub-exchange

    Investors tendered a third of EFG International tier one bonds eligible for exchange into a Basel III compliant tier two issue this week.

    • 13 Jan 2012
  • RBS returns to public cards

    Royal Bank of Scotland has launched its first public credit card ABS since 2005, and looks set to be the first issuer to close a deal in 2012.

    • 12 Jan 2012
  • Investors concerned by overstretched FIG deals

    FIG market participants are worried that some recent senior deals have pushed too hard for size, opening them up to punishment in the secondary market. With many asking how long the recent stream of supply will last, underperforming deals could derail the positive sentiment seen so far this year, said bankers and investors.

    • 12 Jan 2012
  • Bold BPCE continues ‘reckless’ French rush

    Syndicate bankers had expected Thursday’s ECB meeting to curtail supply, but BPCE has courageously squeezed through the funding window with a competitively priced €850m 10-year tap.

    • 12 Jan 2012
  • Nomura’s global markets head Jotwani follows Bhattal out as ECM/DCM split

    Tarun Jotwani, head of global markets at Nomura, has followed Jesse Bhattal to the exit, after the Japanese bank decided to separate the fixed income and equities businesses, reversing a move it made in March 2011.

    • 12 Jan 2012
  • Strong interest for Zurich, Banco do Brasil, but regs will limit supply

    Strong demand for Zurich Insurance and Banco do Brasil’s deals show the depth of Asian retail demand for hybrid capital trades — but further supply depends on regulatory constraints, say bankers.

    • 12 Jan 2012
  • RBS ECM: not gone yet, but mandates to be handed back

    Senior managers at Royal Bank of Scotland’s equities, ECM and M&A units have been heartened by the number of expressions of interest shown by potential buyers, particularly in the Hoare Govett business which houses the UK cash equities and broking platform.

    • 12 Jan 2012
  • Auction fever brings peripheral relief

    The strong Italian and Spanish government debt auction results on Thursday have helped government bond yields tumble, which is good news for issuers. But with cheap financing from the ECB still on offer and covered bond spreads still wide to the government market, primary issuance prospects remain dim.

    • 12 Jan 2012
  • Bookrunners of Asia Pacific (ex-Japan) bonds in $, € and ¥ — last 12 months rolling

    • 12 Jan 2012
  • Loos starts as salesman for central bank, SWF business at Nomura

    Nomura has hired Andrew Loos, a former UBS banker, to run its central bank and G10 rate sales business in North Asia.

    • 12 Jan 2012
  • RBS sets out new structure: debt business safe

    Royal Bank of Scotland is expected to cut about 3,500 jobs in wholesale banking this year, as it pulls out of cash equities, corporate broking, equity capital markets and mergers and acquisitions advice. But debt capital markets businesses appeared to remain sheltered from the cuts.

    • 12 Jan 2012
  • ANZ plans new currencies and structures to meet investor demand

    ANZ Bank expects to increase the number of currencies and structures in which it prints private placements, as it prepares for expected continued volatility in the public markets in 2012.

    • 12 Jan 2012
  • Svenska Handelsbanken plunders cheap sterling

    Svenska Handelsbanken launched its third senior unsecured benchmark in as many days on Thursday, cashing in on a cheap basis swap from sterling into euros. The deal follows a £400m seven year, priced on Wednesday and a €1bn long five year, printed on Tuesday.

    • 12 Jan 2012
  • RBS names top bankers in new structure

    Royal Bank of Scotland will keep John Owen, Scot Barton and Peter Nielsen in senior leadership roles as it makes sweeping changes to its wholesale banking business.

    • 12 Jan 2012
  • Primary premiums drive secondary

    As a result of deal announcements and the new issue premium, secondary market turnover has been hit, with spreads moving on little volume. Curves have conspicuously steepened in France but DexMA remains out of line.

    • 12 Jan 2012
  • First Gulf sukuk prices tight to secondaries

    Abu Dhabi-based First Gulf Bank on Wednesday afternoon issued its $500m sukuk at 287.5bp over mid-swaps, in line with earlier price talk. The five year deal has a profit rate of 4.046% and is the second benchmark sukuk from the bank in six months.

    • 12 Jan 2012
  • S&P questions top-rated fixation in ABS

    With securitisation issuers finding it harder to achieve triple-A ratings following changes in agency methodologies, Standard & Poor’s believes the ABS market should drop its preoccupation with attaining the top standard.

    • 12 Jan 2012
  • Bookrunners of Asia Pacific bonds in $, € and ¥ — last 12 months rolling

    • 12 Jan 2012
  • Euro jumbos

    • 12 Jan 2012
  • ING carves out Asia insurance from IPO plan

    ING, which had been planning separate IPOs of its Eurasian and US insurance businesses this year, has changed its plans in response to turbulence in financial markets and the difficult economic outlook.

    • 12 Jan 2012
  • RBS lines up buyers after delivering bad news

    Royal Bank of Scotland has signed non-disclosure agreements with around 20 potential buyers of the businesses it is planning to sell off, said a senior banker on Thursday, after the bank announced that it was cutting its equity capital markets, M&A, cash equities and corporate broking divisions.

    • 12 Jan 2012
  • Nordea prints largest ever Nordic covered

    Having aimed for a maximum €2bn deal, Nordea Bank Finland ended up printing an even larger trade after its July 2017 drew €3bn of demand. The €2.25bn deal, increased off the back of ECB Covered Bond Purchase Programme participation, is the largest Nordic covered bond ever.

    • 11 Jan 2012
  • FIG frenzy as three more hit senior market

    The senior FIG market has seen more demand in the first two weeks of 2012 than in the whole of the second half of 2011.

    • 11 Jan 2012
  • First Gulf fast tracks $500m sukuk

    Abu Dhabi-based First Gulf Bank has asked Citi, HSBC, National Bank of Abu Dhabi and Standard Chartered to act as joint lead managers on a $500m sukuk issue.

    • 11 Jan 2012
  • Securitisation steps into safe haven role

    While senior unsecured collapsed altogether in 2011, the ABS market held firm — meaning more banks will come to the market in 2012. Owen Sanderson reports.

    • 11 Jan 2012
  • Santander sinks another £4.5bn in ahead of Holmes deal

    Santander UK is injecting another £4.5bn of collateral into the Holmes master trust to coincide with the new issue, Holmes 2012-1. The new collateral will give the trust the headroom to issue a vast deal, bigger even than Fosse 2011-1.

    • 11 Jan 2012
  • LCR should be good for covered bonds and ABS

    The Basel Committee this week reaffirmed its commitment to push ahead with the introduction of the liquidity coverage ratio by 2015. By that date banks will have to have set aside the requisite amount of capital in assets that the committee deems to be liquid.

    • 11 Jan 2012
  • Morning wrap January 11

    Four covered bond issuers collectively raised over €5bn of new funding on Tuesday across two currencies and three tenors. Total issuance this week exceeds €8bn equivalent and on Wednesday a further two are lining up with euro benchmarks. This suggests borrowers will have raised at least €25bn equivalent this year by the close of play on Wednesday.

    • 11 Jan 2012
  • EFG hits one-third participation in sub exchange

    Investors tendered a third of EFG International tier one bonds eligible for exchange into a Basel III compliant tier two issue, in an offer that closed on Monday.

    • 11 Jan 2012
  • ABN Amro Swissie deal proves sceptics wrong

    Most market participants thought banks’ reappearance in the Swiss franc market would stop at Rabobank’s seven year trade that was priced on Monday. But ABN Amro’s first franc deal in six months — a Sfr100m minimum 1.5% two year senior unsecured note, which is likely to grow to Sfr200m — may be a first sign of clemency from Swiss investors towards the FIG asset class.

    • 11 Jan 2012
  • RBS performs after distancing itself from Barclays

    RBS has issued the second sterling covered bond this year and its debut deal in the currency. It chose to differentiate itself from Barclays’ 10 year deal with a longer 12 year. In so doing, it attracted a strong order book enabling it to price in line with guidance and the deal has since performed well, in contrast to Barclays.

    • 11 Jan 2012
  • Insurance, national champs, in line for SIFIs regulations

    Bankers have shrugged off news that insurers and other financial institutions, as well as national champions, are in the Financial Stability Board’s sights for SIFI regulation.

    • 11 Jan 2012
  • Emirates Islamic Bank issues punchy $500m sukuk

    Dubai-based Emirates Islamic Bank has issued a $500m benchmark sukuk. The dollar denominated deal has a five year maturity and was priced at par on Tuesday at 350bp over mid-swaps, with a profit rate of 4.718%.

    • 11 Jan 2012
  • Zurich perp good omen for FIG capital

    Hybrid capital specialists say strong demand for Zurich Insurance’s perpetual tier two issue bodes well for Asian retail demand for other FIG capital transactions.

    • 11 Jan 2012
  • ABN and Credit Suisse maintain momentum

    ABN Amro and Credit Suisse maintained primary market momentum on Wednesday, adding another €2.25bn of supply. ABN Amro paid above initial price thoughts to ensure smooth execution of its 10 year, while Credit Suisse was able to price its five year inside UBS’s offering last week — making it the tightest five year euro print of the year.

    • 11 Jan 2012
  • Wanted: new CP investors, new CP issuers

    The commercial paper market has always been noted for its innovation but now — forced by the maelstrom of economic crisis spilling out from the Eurozone — the landscape of the market has changed. Perhaps permanently. Craig McGlashan reports.

    • 10 Jan 2012
  • Short-end test for auto ABS ahead of rare BWIC

    Debt investors are being offered a €138m BWIC of auto ABS on Tuesday afternoon — a rare outing for an asset class which is often buy-to-hold.

    • 10 Jan 2012
  • Hybrid hopes build after EBA late show

    After a frustrating year of regulatory uncertainty, the bank hybrid capital market is hoping for a better run in 2012. Katie Llanos-Small talks to market participants about their worries and expectations for the year ahead.

    • 10 Jan 2012
  • Chinese banks, Lotte Shopping eye dim sum market

    Agricultural Bank of China, China Development Bank and South Korean mall operator Lotte Shopping are planning to sell offshore renminbi bonds over the next few weeks, tapping demand from local investors before funding officials and fund managers alike take an extended break for Chinese New Year.

    • 10 Jan 2012
  • Covered bid stays strong

    The covered bond primary market continues to enjoy good momentum, with as many as four issuers collectively raising the equivalent of around €5bn in the four to 12 year area across two currencies.

    • 10 Jan 2012
  • MTN bankers ready to deal with uncertainty

    Drawing investors to financial names was one of the big challenges for MTN dealers in a difficult year for the sector. Demand from US investors is unlikely to pick up in 2012, while European demand will be mainly domestic. The result? Expensive funding for banks in the early part of the year, reports Craig McGlashan.

    • 10 Jan 2012
  • Unsecured bank funding enters the great unknown

    The term “senior unsecured” popped up more and more as 2011 unfolded, even though the asset class was conspicuous by its absence from primary markets. One of the first scalps claimed by the Eurozone crisis, it endured an awful second half. But 2012 is set to be a pivotal year, reports Will Caiger-Smith.

    • 10 Jan 2012
  • Money market tranche for Holmes

    Preliminary terms for Santander UK’s Holmes 2012-1 RMBS, the first European ABS of the year, include a $500m max 2a7 tranche, as well as three and five year scheduled amortisation tranches.

    • 10 Jan 2012
  • Europe doesn’t believe its own rhetoric

    If the European Parliament is writing bail-outs into CRD IV, what happened to the last four years of political and regulatory debate?

    • 10 Jan 2012
  • Vive la différence! CM-CIC goes for 12 year

    Crédit Mutuel-CIC Home Loan has launched the longest dated euro trade of 2012, a 12 year aimed at German and French buy and hold investors.

    • 10 Jan 2012
  • UniCredit rallies as value shines through

    Bookrunners for UniCredit’s €7.5bn rights issue were adamant on Monday that the shares and rights would stabilise as the cheap valuation came to the fore. On Tuesday morning their confidence appeared justified — the shares rallied 6.7% to 12.00 GMT and the rights soared 77% to close the gap to their implied price.

    • 10 Jan 2012
  • Morning wrap January 10

    Australia and New Zealand Banking Group, Aareal bank and Compagnie de Financement Foncier successfully raised a collective €2.5bn on Monday, opening the way for Deutsche Pfandbriefbank, Nordea and Credit Mutuel-CIC - which are expected to launch and price deals on Tuesday.

    • 10 Jan 2012
  • All benchmarks

    • 10 Jan 2012
  • LTRO funds help stretch senior FIG market’s short-end trend

    Barclays launched a €1.5bn self-led two year floater on Tuesday, following ABN Amro, Nordea and Rabobank, which all launched deals in that part of the curve last week, and SBAB, which priced one on Monday.

    • 10 Jan 2012
  • EM FIG survivors cling to the wreckage

    Confidence in CEEMEA financial institutions held up, if a little patchily, throughout 2011 while deteriorating in the West. Investors overall are less sceptical of their abilities to repay debt than their counterparts in western Europe. As Francesca Young reports, they are hoping that this will continue throughout 2012.

    • 10 Jan 2012
  • Vdp publishes spreads after transparency call

    The Association of German Pfandbrief Banks (vdp) has begun publishing indicative jumbo Pfandbriefe spreads following calls for greater price transparency from smaller institutional investors. At the same time the vdp has widened the definition of jumbo Pfandbriefe.

    • 10 Jan 2012
  • Liquidity is the new obscenity

    Defining liquid assets is always going to be a problem; the whole concept is flawed. The best regulators can do is use the Supreme Court’s standard on obscenity – “I know it when I see it”, in the words of Mr Justice Potter. Results otherwise are likely to prove perverse.

    • 10 Jan 2012
  • Short dated surge for European banks

    Interest is surging in short-dated medium term notes (MTNs) from European banks, with investors demanding paper maturing in two years or less.

    • 10 Jan 2012
  • Emirates Islamic Bank launches $500m sukuk

    Dubai-based Emirates Islamic Bank has launched a $500m benchmark sukuk. The dollar denominated Reg S deal has a five year maturity and price guidance of 350bp over mid-swaps.

    • 10 Jan 2012
  • Solvency affects liquidity risk, says IMF

    Bank solvency should be factored into liquidity risk calculations IMF economists say, in a paper published the day after it became clear Basel III’s liquidity coverage ratio would come into force from 2015.

    • 10 Jan 2012
  • A leaner RBS could be keener and fitter

    The future of Royal Bank of Scotland’s ambition as a global investment bank will be decided in the coming weeks. Don’t write the firm off. RBS was not strong in the threatened business lines anyway. It remains a top player in debt. If it decides to make a go of it, RBS has a good chance of thriving as a debt-based investment bank.

    • 10 Jan 2012
  • LM, scrip moves make for heavy Spanish dilution

    Spanish banks’ reliance on liability management, scrip dividends and disposals to meet their European Banking Authority capital deficits has been far from costless, with heavy EPS dilution for shareholders. Efforts to increase core tier one at Santander and BBVA by 2.9% and 2.2% respectively, have resulted in 24% and 20% earnings dilution, according to Barclays Capital estimates.

    • 10 Jan 2012
  • ABS off the mark in 2012 with Holmes mandate

    Santander UK’s Holmes programme has produced the first ABS mandate of the year. Barclays Capital, Deutsche Bank, JP Morgan and Santander GBM will be joint leads on the deal, which is set to be launched this week.

    • 09 Jan 2012
  • ‘Astonishing’ price for Aareal Pfandbrief

    Germany’s Aareal Bank launched the first Pfandbrief of 2012 on Monday, targeting a no-grow €500m four year transaction. With the deal size fixed, the issuer prioritised pricing, managing to defy bankers’ expectations and price inside guidance of 60bp area — and inside the curves of other second tier German issuers.

    • 09 Jan 2012
  • ANZ plots different course with euro debut

    Australia and New Zealand Banking Group became the first Australian issuer to launch a second syndicated benchmark on Monday. Looking to differentiate itself from dual five year euro debuts from Commonwealth Bank of Australia and National Australia Bank last week, the borrower tapped the crowded long end with a 10-1/2 year jumbo.

    • 09 Jan 2012
  • Tender reluctance pays off for Nemus investors

    Investors in the HSBC-sponsored Nemus 2006-1 synthetic CMBS were vindicated in their reluctance to tender, as the largest reference obligation in the structure prepaid in full on Friday.

    • 09 Jan 2012
  • UniCredit rights flight starts to bite

    UniCredit rights slumped on day one of subscriptions for the bank’s €7.5bn capital raise, ending the day down 65%, well below their implied price. The stock itself fell 12.8% to €2.286 a share, leaving it only 18% above the offer price.

    • 09 Jan 2012
  • Rabo returns to Swissies but stands alone

    Rabobank is to bring its first Swiss franc deal in five months — a Sfr200m minimum 2% seven year senior unsecured note.

    • 09 Jan 2012
  • Santander tweaks exchangeable to meet 9% EBA target

    Banco Santander has transferred a 4.41% stake in its Brazilian subsidiary to an undisclosed counterparty in one of several measures that have helped it meet the European Banking Authority’s 9% core equity tier one ratio.

    • 09 Jan 2012
  • Basel stands firm on LCR timing but banks still guessing over liquidity pool assets

    How liquid assets are defined will make a crucial difference to banks when it comes to complying with the liquidity coverage ratio, bankers said on Monday morning, following the Basel Committee’s clarification that these rules will come into force from 2015.

    • 09 Jan 2012
  • ECB borrowing plummets after busy week for FIG

    Borrowing from the ECB’s marginal lending facility has plummeted after a busy week in long and short term funding markets.

    • 09 Jan 2012
  • Albaraka eyes sukuk size increase

    Albaraka Turk, the Turkish banking unit of Bahrain-based Albaraka, has set its sights back on issuing a sukuk when market conditions are favourable. Depending on the timing, the transaction could increase from the borrower’s initial target size of $200m.

    • 09 Jan 2012
  • Emirates Islamic Bank gives sukuk price guidance

    Dubai-based Emirates Islamic Bank has given initial price guidance of 350bp over mid-swaps for its prospective benchmark sukuk issue. The Emirates NBD subsidiary is due to conclude a series of fixed income investor meetings on Tuesday, January 10, following sessions in Malaysia, Singarpore and Abu Dhabi.

    • 09 Jan 2012
  • Tougher names set to test appetite

    A better gauge of the depth of covered bond demand is likely this week, as bank arrangers test appetite for slightly more challenged credits. Of the four deals currently in the market, three are not considered the best or easiest names to sell — not that that should necessarily be a problem — provided the spread is right.

    • 09 Jan 2012
  • Senior FIG supply excites despite exclusivity worries

    The FIG market was on Monday morning torn over how to interpret a slew of senior deals. While some believed the market was beginning to move down the credit spectrum, others remained convinced that issuance would not move past the club of top tier borrowers that has dominated the year so far.

    • 09 Jan 2012
  • Top tier issues senior as LTRO spurs banks

    Bank investors hoovered up short end paper in this week’s senior unsecured offerings as they sought to recycle three year money from the European Central Bank, while issuers also attracted real money buyers at the longer end of the curve. But despite the positive tone, bankers said it would not be long before the market ran out of high quality issuers.

    • 06 Jan 2012
  • Banks on starting blocks as first deals struck

    Banks have sold their first medium term notes in 2012 but dealers expect the real business to start next week, as positive sentiment in the public segment trickles through to the private placement sector and investors look to put their cash to work outside of their domestic markets.

    • 06 Jan 2012
  • Bookrunners of all international bonds — 2011

    • 06 Jan 2012
  • Barclays diversifies with sterling debut

    Despite being the most expensive UK covered bond in sterling, Barclays Bank’s inaugural benchmark which priced on Thursday, met with a resoundingly strong reception – boding well for follow on deals from RBS, other UK issuers and possible other European names too.

    • 06 Jan 2012
  • Rabobank Nederland

    • 06 Jan 2012
  • Euro jumbos

    • 06 Jan 2012
  • NBG launches tender offer for only Greek covered bond

    National Bank of Greece is set to increase its core tier one capital by buying back its only covered bond alongside several tier one notes in a tender operation launched on Tuesday. The deadline for the offer is January 13.

    • 06 Jan 2012
  • Analysts attack ‘incestuous’ ECB carry plan

    FIG analysts have picked holes in the theory that banks could use money from the European Central Bank’s three year LTRO to generate income and prop up Europe’s floundering sovereign bond market, saying such a carry trade was "incestuous".

    • 06 Jan 2012
  • Southpaw: RBS’s withdrawal leaves Lazard with tough job to sell Hoare Govett

    As RBS takes the knife to its global banking and markets division, buying the equities platform would be an ideal way for one of the emerging forces in global investment banking to enter this business, writes David Rothnie. The problem is there are few candidates willing or able to take it on.

    • 06 Jan 2012
  • Barclays makes wins on cost and diversification in £ debut

    Barclays Bank issued its inaugural sterling benchmark covered bond on Thursday, a 10 year deal that represents a dual win for the borrower. Not only does it diversify its investor base, but it is probably cheaper than it could have funded in euros — not that the funding cost was the only consideration.

    • 06 Jan 2012
  • Aussie debs turn to euros after dollar debacle

    National Australia Bank launched its debut syndicated covered bond in euros on Thursday, a day after Commonwealth Bank of Australia sold an impressive €1.5bn inaugural trade in the same maturity and currency.

    • 06 Jan 2012
  • Bookrunners of all global bonds (Global) — 2011

    • 06 Jan 2012
  • Demand deep but finite for French 10 year

    French top tier borrowers have issued nearly €5bn of 10 year paper in three days, meeting demand from insurers and asset managers on the hunt for generous yields. The bonds in the secondary market have all held in, but the ten year maturity may not be such an automatic choice now for other French issuers that follow next week.

    • 06 Jan 2012
  • Euro-denominated FIG

    • 06 Jan 2012
  • Bradesco pays US standard to reopen LatAm FIG market

    Banco Bradesco attracted healthy interest for the first Latin American FIG transaction of the year on Thursday but failed to make a dent in the hefty concessions demanded of bank issuers by US institutional investors.

    • 06 Jan 2012
  • Yield hungry Germans help French covered restart in style

    Société Générale launched the third long dated French benchmark in as many days on Thursday. German investors in particular gave the benchmark trio a vote of confidence, an encouraging change of stance as many had held off from participating in French trades towards the end of last year, according to several market participants.

    • 06 Jan 2012
  • Capital by any means: Europe’s banks race out of new year traps

    Front-running the 30-odd European banks that have to increase their capital ratios by June, UniCredit revealed terms on its crucial €7.5bn rights issue on Wednesday. But it encountered a torrid reception, revealing just how difficult it will be for banks to secure institutional investor support for bank recapitalisations this year.

    • 06 Jan 2012
  • Covered bonds off to flying start but prospects uncertain

    The covered bond market enjoyed its busiest week since this time last year, with 10 issuers raising a collective €15bn versus the 15 borrowers who raised €18.5bn in the first week of 2011.

    • 06 Jan 2012
  • Rabobank Nederland

    • 06 Jan 2012
  • Skandinaviska Enskilda Banken AB

    • 06 Jan 2012
  • Bonds Tables 1236 (Full Year 2011)

    • 06 Jan 2012
  • Bonuses face 40% cut as markets turn sour and politicians rail

    Capital markets professionals are likely to be distracted from work in the coming weeks by gossip about bonuses, as banks announce their awards and it becomes clear how stressed markets and political pressure are affecting compensation.

    • 06 Jan 2012
  • Market calls for early move on €50bn Spain provisions call

    Market pressure could force Spain’s banks to take upfront provisions of €50bn against non-performing real estate loans — rather than over several years as suggested by the country’s finance minister — analysts and bankers have warned.

    • 06 Jan 2012
  • FIG issuers have to wait for Swiss return to senior, covered

    FIG borrowers started reappearing in the Swiss franc market this week after domestic investors imposed a veto on senior unsecured transactions and covered bonds in the last quarter of 2011.

    • 06 Jan 2012
  • Pernod and FIGs on US New Year menu

    Big names — from four continents — took the lead in the high grade dollar bond market this week. A motley group of US financial and industrial firms led by Citigroup and GE Capital were joined by Japan’s Sumitomo Mitsui Banking Corp, Canada’s Bank of Nova Scotia, Daimler and Pernod-Ricard from Europe and the Brazilian and Mexican sovereigns (see Emerging Markets section).

    • 06 Jan 2012
  • Portugal’s Banco BPI in rare tender for RMBS

    Banco BPI launched a tender offer for RMBS in the Douro series on Thursday — a move that will be watched closely by other Portuguese banks looking for capital.

    • 06 Jan 2012
  • Global covered bonds

    • 06 Jan 2012
  • Off to flying start but prospects uncertain

    The covered bond market enjoyed its busiest week since this time last year, with 10 issuers raising a collective €15bn versus the 15 borrowers who raised €18.5bn in the first week of 2011. But if past form is a guide, the rush of new issuance does not in any way indicate that the markets will remain buoyant in the longer term.

    • 06 Jan 2012
  • Barclays raises capital relief game as tier one pressure builds, more to come

    Barclays Bank has structured a capital relief deal on a €5.7bn book of large corporate loans, a move which other banks could follow as tier one capital ratios come under increasing pressure.

    • 06 Jan 2012
  • Old-style hybrids set for regulatory reprieve

    Expectations for subordinated debt and hybrid capital issuance this year have leapt following a European Parliament report proposing that such issues be grandfathered under the capital requirements regulation (CRR I).

    • 06 Jan 2012
  • Financial CP volumes strong but dealers remain tentative

    Banks have made a good start in the commercial paper market in this first week of 2012, but dealers were reluctant to predict a full-scale recovery for the FIG sector in money markets.

    • 06 Jan 2012
  • Scholar row hits Goldman sukuk landmark

    Goldman Sachs’s already controversial plan to expand the sukuk market by setting up a programme to issue the bonds has run into a new storm over its approval by Shariah scholars, a key hurdle for Islamic investors.

    • 06 Jan 2012
  • Underwriters hold nerve as UniCredit sinks

    A €7.5bn rights issue for an Italian-headquartered bank was never going to be a smooth operation in the middle of a European sovereign debt crisis but the performance of UniCredit after it set its deal terms this week showed just how skittish markets can be.

    • 06 Jan 2012
  • Premium senior holds steady as investors wait for primary supply

    Senior deals from top tier Dutch and Nordic issuers earlier this week were holding steady in the secondary market on Friday, as investors waited for more primary supply rather than turning to the secondary market.

    • 06 Jan 2012
  • EFG extends exchange deadline

    Switzerland’s EFG International has extended the deadline for holders of a tier one note to exchange it into a Basel III compliant tier two bond, citing delays over the holiday period.

    • 06 Jan 2012
  • Angry BTA bondholders blitz Kazakh Samruk

    Bondholders have threatened to drag Kazakhstan’s sovereign wealth fund into a bitter legal dispute if the previously restructured BTA Bank fails to pay a coupon missed at the start of this month. BTA, of which the fund Samruk Kazyna owns 81.5%, forced creditors to write down a portion of $12.2bn of debt in 2010.

    • 06 Jan 2012
  • ABN Amro Bank NV

    • 06 Jan 2012
  • ABS market in liquidity drive with twin boost

    Two schemes to improve ABS market liquidity are set for action in the year ahead — the PCS initiative and the Phoenix trading platform.

    • 06 Jan 2012
  • Markit Data 1236

    • 06 Jan 2012
  • Ozzie pair performs in secondary

    Covered bond traders reported that Australian inaugurals from Commonwealth Bank of Australia and National Australia Bank have traded as much as 10bp tighter in the secondary market, a welcome contrast to the dollar debuts of Westpac and ANZ last November.

    • 06 Jan 2012
  • Senior, covered bonds wake from fever but bankers fear relapse

    Banks went on a binge of bond funding as the covered bond and senior debt markets reopened after long gaps. Investors devoured €15bn of covered paper and €10bn of senior.

    • 06 Jan 2012
  • Nordea Bank AB

    • 06 Jan 2012
  • Fitch gets tough on retained ABS originators

    ABS originators that have a track record of allowing ratings on retained deals to slide might have future ratings limited to below triple-A level, warned Fitch on Thursday. The rating agency’s note was a warning shot to originators that manipulate transaction contracts instead of fulfilling contractual provisions.

    • 06 Jan 2012
  • Re-opening shows credit curve widening for high beta names

    National champions led the frenetic re-opening of the covered bond market this week, but the range of spreads on offer was a clear sign that the credit curve has widened sharply since this time last year.

    • 06 Jan 2012
  • RBS bankers resign themselves to 5,000 job cuts but remain confident on DCM

    Royal Bank of Scotland bankers have responded with a mixture of resignation, frustration and impatience to leaks about the strategic review of its investment bank. Sources say the bank envisages a maximum of 5,000 job cuts in its investment bank, half the number reported elsewhere this week.

    • 06 Jan 2012
  • RBS bankers admit 5,000 job cuts, confident on debt

    Royal Bank of Scotland bankers have responded with a mixture of resignation, frustration and impatience to leaks about the strategic review of its investment bank. Sources say the bank envisages a maximum of 5,000 job cuts in its investment bank, half the number reported elsewhere this week.

    • 05 Jan 2012
  • Euro jumbos: 2011 year-end

    • 05 Jan 2012
  • Fitch gets tough on retained ABS

    ABS originators that have a track record of allowing ratings on retained deals to slide might have future ratings limited to below triple-A level, warned Fitch on Thursday. The rating agency’s note was a warning shot to originators that manipulate transaction contracts instead of fulfilling contractual provisions.

    • 05 Jan 2012
  • Bookrunners of Asia Pacific bonds in $, € and ¥ — 2011

    • 05 Jan 2012
  • Australian debuts show depth of euro market

    National Australia Bank launched its debut syndicated covered bond in euros on Thursday, a day after Commonwealth Bank of Australia sold an impressive €1.5bn inaugural trade in the same maturity and currency. The trade looks set to price at the same level as CBA, though without attracting the same demand.

    • 05 Jan 2012
  • Provisioning call intensifies Spanish bank worries

    Market pressure could force Spain’s banks to take upfront provisions of €50bn against non-performing real estate loans — rather than over several years as suggested by the country’s finance minister — analysts and bankers have warned.

    • 05 Jan 2012
  • French trio draw German vote of confidence

    Société Générale launched the third French benchmark in as many days on Thursday. The French trio’s reception has been highly positive, with German investors driving the order books.

    • 05 Jan 2012
  • Philippines and Kexim blow open bond market in fine style

    The Republic of the Philippines and Export-Import Bank of Korea (Kexim) opened Asia’s bond market this week, selling deals that drew almost $20bn of demand between them. But despite the encouraging response, bankers are still cautious about launching riskier credits and think investors will be selective for some time to come.

    • 05 Jan 2012
  • Bookrunners of Asia Pacific (ex-Japan) bonds in $, € and ¥ — 2011

    • 05 Jan 2012
  • DNB Nor and Lloyds tell the tale of two five years

    DNB Nor and Lloyds came to market on Wednesday with five year offerings that enjoyed a healthy oversubscription. German investors and bank treasuries drove the trades for the non-eurozone credits, enabling both to price at the tight end of guidance. But in terms of spread, the difference of nearly 120bp showed that the similarities ended there.

    • 05 Jan 2012
  • Win-win for Barclays’ first sterling deal

    Barclays Bank opened books for its inaugural sterling benchmark covered bond on Thursday, a 10 year deal that is being marketed at Gilts plus 215-220bp. After less than two hours the book had grown to £1bn, suggesting it has received a very good reception. The funding represents a dual win for the borrower as, not only does it diversify its investor base, but it is also cheaper than euros.

    • 05 Jan 2012
  • Banco BPI tenders for RMBS

    Banco BPI has launched a tender offer for RMBS in the Douro series. The offer covers all classes in Douro 1 and 2, and class ‘A’ notes in Douro 3, with purchase price on all class ‘A’ notes at a flat 65% of par.

    • 05 Jan 2012
  • Banks recycle LTRO cash as senior flurry continues

    Bank investors hoovered up short end paper in Wednesday’s senior unsecured offerings, with DCM bankers saying many treasurers were looking to put to work the three year money they took in the European Central Bank’s long term refinancing operation (LTRO) in December.

    • 05 Jan 2012
  • UniCredit sets ‘compelling’ terms on rights issue

    UniCredit revealed the terms for its €7.5bn rights issue on Wednesday morning, setting the discount towards the conservative end of expectations and providing soothing words, if not commitments, about backing from key shareholders. The shares slumped but bankers remained confident and reported reverse enquiry for sub-underwriting.

    • 04 Jan 2012
  • Trio of senior hits FIG market but ECB use reveals underlying stress

    Three northern European banks stormed into the market with senior deals on Wednesday, bucking last year’s trend for short-dated floaters by tapping the longer end of the curve.

    • 04 Jan 2012
  • Covered Bond Day One in review: investors out in force

    Though the first day of activity in 2012 brought fewer trades than in 2011, the number of accounts that participated in the deals was up on last year. Almost 400 buyers participated in Tuesday’s salvo, with Germany taking over half of primary allocation.

    • 04 Jan 2012
  • ‘Accident waiting to happen’ as covered issuers fight for investor attention

    After Tuesday’s trio of trades, a further flurry of primary issuance hit the covered bond market on Wednesday as DNB Nor, Lloyds TSB, Crédit Agricole and Commonwealth Bank of Australia took advantage of buoyant demand to launch deals with attractive new issue premiums.

    • 04 Jan 2012
  • Europe’s banks split on capital plans ahead of EBA deadline

    With capital in increasing focus this year, tier one hybrids and the European Banking Authority’s contingent capital securities are being considered by the strongest bank borrowers. But FIG market participants are pessimistic about attempts to change the EBA’s Coco term sheet, and say that most banks will use deleveraging, profit retention and liability management exercises to reach the 9% core capital requirement by the end of June.

    • 04 Jan 2012
  • Controversial NBG tender a one-off

    National Bank of Greece is set to increase its core tier one capital by buying back its only covered bond alongside several tier one notes in a tender operation launched on Tuesday. The exercise is controversial, with some covered bond participants arguing that the modest tender price differential between the two instruments is not justified and that this undermines the intrinsic relative value of the covered bond.

    • 04 Jan 2012
  • Barclays ups capital relief game

    Barclays Bank has structured a capital relief deal on a €5.7bn book of large corporate loans called Papillon 2011-5. The bank has sold part of the 5% first loss piece, retaining the rest of the risk in the form of three credit default swaps between Barclays entities.

    • 04 Jan 2012
  • A Happy New Year? EuroWeek weighs the odds

    The dawn of 2012 brings new hope — and new fears. The sense of foreboding in financial markets is pervasive, but sentiment is self-fulfilling. Investors, bankers and funding officials alike must approach the year with determination and calmness, or the troubles besetting markets will only get worse. There are many good reasons to feel confident, as well as to worry. EuroWeek highlights five of each.

    • 03 Jan 2012
  • Italian govvies dropped as RMBS back-up collateral

    Italian RMBS deals from the Credico series can now drop Italian government bonds, which were used to back the transaction liquidity facilities and subordinated loans, and replace them with cash, following amendments to the deals over the Christmas break.

    • 03 Jan 2012
  • Emirates lines up investor meetings for benchmark sukuk

    Dubai-based Emirates Islamic Bank will begin a series of fixed income investor meetings in Asia, the Middle East and Europe this week as it looks to issue a benchmark sukuk.

    • 03 Jan 2012
  • Strong start but CBs fail to live up to 2011

    The covered bond primary market has opened strongly with a trio of top tier names from core jurisdictions collectively raising around €4.5bn on comfortably oversubscribed books. A further seven deals have been mandated for issuance in the near future. This impressive showing is to be expected given liquidity is technically strong. Yet big challenges lie ahead, specifically for peripheral markets — where borrowers remain shut out.

    • 03 Jan 2012
  • BTA boldholders brace for second restructuring

    Kazakhstan’s BTA Bank has not yet paid the outstanding coupon due on January 1 on its $2bn 10.75% 2018 bonds. Its actions have fuelled fears of a second lengthy bond restructuring in just three years. BTA Bank forced creditors to write down part of $12.2bn of debt in 2009.

    • 03 Jan 2012
  • Promsvyazbank returns to EBRD for subordinated loan

    Russia’s Promsvyazbank, which completed a $305m one year syndicated facility back in October from a group of international banks, has now taken a subordinated loan of Rb3.5bn from the EBRD.

    • 03 Jan 2012
  • Germans drive 2012 opener CRH

    Caisse de Refinancement de l’Habitat was the first covered bond issuer out of the traps on Tuesday, printing a €2bn 10-1/2 year deal that was driven from the outset by yield-hungry German investors.

    • 03 Jan 2012
  • UBS goes big and prints €1.5bn

    UBS was the second of three banks to open books on a covered bond in 2012, bringing a five year euro benchmark on Tuesday. The granularity of the book had the issuer caught in two minds over what to do with the size of the deal, but it eventually chose to print €1.5bn.

    • 03 Jan 2012
  • ING pipped but adds to strong start for 2012

    ING was among the first wave of issuers to restart supply on Tuesday, launching the first Dutch benchmark in almost six months.

    • 03 Jan 2012
  • Greek duo complete state taps

    National Bank of Greece and Piraeus Bank completed government-backed capital raises over the Christmas period, issuing as planned preference shares worth €1bn and €380m respectively.

    • 03 Jan 2012
  • Forecast disparity reveals depth of FIG uncertainty

    Analysts’ forecasts suggest that the outlook for the senior FIG market in 2012 is uncertain, with regulatory developments, high spreads and Europe’s debt crisis all contributing to a lack of visibility in the asset class.

    • 03 Jan 2012
  • If the ECB loves collateral, it should set it free

    The ECB is going to be the only bank that grows this year. It therefore needs to start acting like one. That means getting its vast warehouse of repo collateral back out to a market that desperately needs it.

    • 03 Jan 2012
  • NBG set to buy back covered paper above trading levels

    National Bank of Greece is set to increase its core tier one capital by buying back its only covered bond alongside several tier one notes in a tender operation launched on Tuesday morning.

    • 03 Jan 2012
  • Analysts attack sovereign carry trade theory

    FIG analysts on Tuesday picked holes in the theory that banks could use money from the European Central Bank’s three year LTRO to generate income and prop up Europe’s floundering sovereign bond market, saying such a carry trade was “incestuous”.

    • 03 Jan 2012
  • UniCredit adds 12 juniors, Nomura in co-books position

    UniCredit added 12 banks to its €7.5bn rights issue underwriting syndicate in the run up to Christmas, with the addition of several co-leads and co-managers and one in a slightly more senior role as a new co-bookrunner.

    • 03 Jan 2012
  • Rabo mandates first senior deal for 2012 as LTRO improves FIG mood

    Rabobank has mandated Bank of America Merrill Lynch, Morgan Stanley, UBS and its own investment bank to manage a 10 year senior unsecured deal. The Dutch bank is expected to open books on Wednesday morning, making it the first issuer to enter the market in 2012.

    • 03 Jan 2012

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UniCredit 10,283.03 88 5.94%
2 HSBC 9,924.14 51 5.73%
3 LBBW 8,393.04 48 4.84%
4 Natixis 7,239.94 37 4.18%
5 UBS 7,025.55 38 4.05%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 56,708.49 244 6.13%
2 JPMorgan 53,085.45 277 5.74%
3 Citi 52,245.64 280 5.65%
4 Morgan Stanley 42,417.02 226 4.58%
5 HSBC 36,410.48 226 3.93%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 47,013.23 201 11.74%
2 JPMorgan 42,475.83 212 10.61%
3 Citi 41,045.97 215 10.25%
4 Morgan Stanley 31,926.79 155 7.97%
5 Goldman Sachs 27,946.69 263 6.98%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Natixis 5,939.43 23 6.77%
2 LBBW 5,403.66 21 6.16%
3 UniCredit 5,082.55 24 5.79%
4 HSBC 5,076.13 19 5.78%
5 Credit Agricole CIB 4,965.07 22 5.66%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Barclays 6,170.54 15 14.26%
2 UBS 4,233.38 20 9.79%
3 BNP Paribas 3,880.04 17 8.97%
4 Credit Agricole CIB 3,549.81 11 8.21%
5 HSBC 2,321.22 16 5.37%