• IBA selects banks for ECP

    International Bank of Azerbaijan is meeting investors in conjunction with its establishment of a European Commercial Paper (ECP) programme.

    • 30 Jan 2015
  • MAS to amend covered bond law, delaying issuance

    The Monetary Authority of Singapore has published a consultation paper proposing to amend the covered bond law. The announcement suggests the timetable for Singaporean covered bond issuance will be pushed back.

    • 30 Jan 2015
  • Kookmin prepares for covered bond issuance

    Korea’s Kookmin Bank has issued a consent solicitation proposing to amend a negative pledge clause on three existing unsecured deals. The move signals that the firm is preparing for covered bond issuance.

    • 30 Jan 2015
  • EC consults on Capital Markets Union

    The European Commission is set to commence a consultation towards setting up a Capital Markets Union by 2019. The European Covered Bond Council (ECBC) plans a panel discussion on the topic in Brussels in February shortly after the official release of a “Green paper,” a copy of which was leaked to the press earlier this week. A second consultation, specifically alluding to the role of covered bonds is expected in June.

    • 30 Jan 2015
  • RBC reopens US dollar covered bond market

    After a long succession of euro issuance from Canadian banks, Royal Bank of Canada broke ranks and issued the first dollar covered bond of the year on Thursday, funding at levels close to what it could have achieved in euros. The $2bn deal is likely to have been closely watched by other global banks with an established presence in the US market, and suggests that further deals could follow.

    • 30 Jan 2015
  • Is Europe sleepwalking into the next crisis?

    Lulled into a false sense of security by the European Central Bank’s quantitative easing programme, investors seem to think they are immune from events in Greece. It’s certainly true that markets are in much better shape than they were when the country was first bailed out in 2010. Investors in AIB Mortgage Bank’s latest deal would probably vouch for that.

    • 30 Jan 2015
  • US: slowest January since 2012 despite late week prints

    A flurry of issuance by US financial names was not sufficient to rescue the slowest start to the year for the US FIG market since 2012.

    • 29 Jan 2015
  • QE momentum trumps Greece concerns in FIG... for now

    The one-directional trade that has dominated bond markets since the onset of easy monetary policy in Europe showed little sign of giving in to concerns about Greece’s creditworthiness and its future in the eurozone this week, as the prospect of quantitative easing in the region fuelled hunger for assets.

    • 29 Jan 2015
  • Morgan Stanley EUR1.5bn 1.75% Jan 25

    • 29 Jan 2015
  • Rabobank EUR1.5bn 1.375% Feb 27

    • 29 Jan 2015
  • Achmea EUR750m 4.25% PNC10 tier two

    • 29 Jan 2015
  • BPCE broadens investor base with T2 Samurai

    The investor base for subordinated Samurai bonds is growing, with BPCE’s debut in the format — the triple trancher is just the second ever Samurai sub deal to comply with Basel III — unearthing investors that do not traditionally participate in FIG deals.

    • 29 Jan 2015
  • Issuers shun sub market despite Achmea’s barnstormer

    Achmea shrugged off a weak credit market on Wednesday to draw a bumper book for its first subordinated deal since 2013, pricing a perpetual deal with a skinny new issue premium. However, the Dutch insurer’s success was insufficient to lure other issuers to sell capital trades of their own later in the week.

    • 29 Jan 2015
  • Is Europe sleepwalking into the next crisis?

    Lulled into a false sense of security by the European Central Bank’s quantitative easing programme, investors seem to think they are immune from events in Greece. It’s certainly true that markets are in much better shape than they were when the country was first bailed out in 2010. Investors in AIB Mortgage Bank’s latest deal would probably vouch for that.

    • 29 Jan 2015
  • Senior issuers shrug off Greek election to draw big books

    The senior unsecured market enjoyed a brief window of activity on Tuesday, when all three of the senior trades this week were printed. Morgan Stanley and Rabobank sold well received deals at the long end, while Caisse Centrale du Crédit Immobilier de France sold a government guaranteed note in the belly of the curve.

    • 29 Jan 2015
  • Bank capital and the war on risk sensitivity

    The regulatory tide has turned, and banks are no longer trusted to assess their own capital needs. The Basel Committee’s latest proposals on bank disclosure, published on Wednesday, would add detailed information on internal modelling to existing bank reporting.

    • 29 Jan 2015
  • Akbank goes for longer tenor as Turkish peers look on

    Akbank is using a novel tenor structure as it leads the first wave of Turkish bank loan refinancings this year, in a move that could set a benchmark for peer borrowers.

    • 29 Jan 2015
  • Vakifbank prints first Turkish Basel III compliant tier two bond

    Vakifbank priced the first ever Basel III compliant tier two bond on Monday, a $500m 10 year non-call five. But though bankers estimated that the bond paid around 115bp-116bp over its old style tier two bullet 2022s, they said it was difficult to strip out the cost of the addition of point of non-viability features.

    • 29 Jan 2015
  • Bank of England flags limits to regulation in markets review

    Andrew Hauser, director of markets strategy at the Bank of England, said on Thursday market discipline must lie at the heart of attempts to fix conduct in wholesale markets.

    • 29 Jan 2015
  • RBI aims for 20% asset cut, with Russian lending in the crosshairs

    Raiffeisen Bank International will cut its risk-weighted assets by 20%, in a move aimed at reducing its exposure to Russia and bolstering its capital buffer.

    • 29 Jan 2015
  • IB profits collapse at Nomura as fixed income declines

    Nomura reported a sharp decline in investment banking revenues and profits for the final quarter of 2014 — the third quarter of the bank’s 2014/2015 fiscal year — on Thursday. The Japanese bank suffered from plummeting revenues in its fixed income business, particularly in EMEA and the Americas.

    • 29 Jan 2015
  • Issuers keep away from primary baffled by market sentiment

    European FIG issuers are keeping their distance from the primary market as they try to decipher whether bullish sentiment brought on by the European Central Bank’s upcoming quantitative easing programme is outweighing fears of contagion stemming from political and fiscal uncertainty in Greece.

    • 29 Jan 2015
  • Analysts sceptical on Russian bad bank plans

    Russian officials are due to present plans for a bad bank to the government on Friday, as part of a range of measures unveiled on Wednesday aimed at combating the sharp economic downturn. But the creation of a bad bank is the most uncertain of all the proposed measures, said Russian bank analysts, and has attracted opposition from high ranking ministers.

    • 29 Jan 2015
  • TLAC takes shape as HK has second consultation

    Hong Kong has published its second consultation paper (CP2) on a resolution regime for financial institutions, as it readies itself for a new set of capital requirements – Total Loss Absorbing Capacity (TLAC). Market participants expect bond volumes to go up as banks prepare for the new regime, although for that to happen, the government will need to come up with answers to some tough questions, writes Rev Hui.

    • 29 Jan 2015
  • Akbank pushes longer tenor at start of Turkish loan wave

    Akbank is using a novel loan tenor structure as it leads the first wave of Turkish bank refinancings this year, in a move that could set a benchmark for peer borrowers.

    • 29 Jan 2015
  • Deutsche defies fixed income doubters

    Deutsche Bank’s fourth quarter numbers show the firm defying doubters who questioned the wisdom of its recommitment to fixed income trading. The bank reported fourth quarter debt sales and trading revenues up 13% to €1.15bn, against a backdrop of its US peers reporting drops of 16% (Citi) to 30% (BAML).

    • 29 Jan 2015
  • Core covered hold, but less certain in the periphery

    Core covered bond markets are well supported and, with Bund yields tumbling, they now offer exceptional value to established triple A investors, said dealers on Thursday. Though peripheral covered bonds have so far held in, uncertainty is greater and sentiment is more mixed.

    • 29 Jan 2015
  • Erste shrugs off RBI worries with stellar Pfandbrief

    Erste Bank’s first covered bond in three years issued on Thursday was nearly three times subscribed in less than an hour. The rollicking result showed it was unaffected by mounting concerns in the Austrian bank sector generally, and over its peer Raiffeisen Bank in particular.

    • 29 Jan 2015
  • More sub debt set to hit screens after Achmea print

    A weaker credit market on Wednesday failed to dent demand for a perpetual deal from Dutch insurer Achmea, with the issuer commanding a large order book. Subordinated supply could continue tomorrow, with Italy’s SACE concluding a roadshow for a hybrid deal today. Barclays, Citi, Deutsche Bank, HSBC and UniCredit organised the roadshow for the issuer.

    • 28 Jan 2015
  • How long can the cool in FIG last while Greece boils?

    Greece’s ruling Syriza party has taken back up the aggressive anti-Troika rhetoric that many thought would die a quiet death once it took office after Sunday’s Parliamentary elections, but so far the FIG market reaction seems contained.

    • 28 Jan 2015
  • Stanbic Uganda signs oversubscribed debut loan

    Stanbic Bank Uganda, a unit of South Africa’s Standard Bank, has signed an $85m debut loan with banks.

    • 28 Jan 2015
  • Security Bank pulls in $300m with dollar debut

    Philippine lender Security Bank made its mark on the dollar debt market for the first time on January 27, raising $300m from an order book that was close to six times covered. The good reception was helped by a tidy new issue premium and the country’s status as a safe haven from recent market volatility.

    • 28 Jan 2015
  • Morgan Stanley mulls debut Formosa, second RMB bond

    Morgan Stanley is mulling issuing a debut Formosa bond in Taiwan, eyeing a five year transaction with a size of no more than Rmb1bn ($160m), two sources told GlobalRMB this week. If a deal emerges, it would be the first Formosa from a US issuer, and only the second from a non-Chinese or Taiwanese bank.

    • 28 Jan 2015
  • US to review prospects for covered bonds

    The US Financial Services Committee has published a document which suggests policy makers will once again take a look at the potential for a US covered bond legal framework.

    • 28 Jan 2015
  • ECB must slow covered bond purchases or risk the market’s longer term damage

    Faced with shrinking yields, covered bond investors have been deserting the market. Unless the ECB moves out of the way and switches to sovereign purchases fast, there is a real risk that these buyers will not be there when the extraordinary stimulus measures now being delivered are taken away.

    • 27 Jan 2015
  • Long prints from MS and Rabo find favour

    The senior market was back in flow on Tuesday after a brief hiatus at the start of the week as market participants evaluated the results of the Greek election. A Syriza victory in the election was not enough to dull demand for FIG paper, with both Morgan Stanley and Rabobank drawing large order books for long dated deals.

    • 27 Jan 2015
  • Vakifbank prints first Turkish Basel III tier two, but PONV structure cost still unclear

    Vakifbank priced the first ever Basel III compliant tier two bond on Monday, a $500m 10 year non-call five. But though bankers estimated that the bond paid around 115bp-116bp over its old style tier two bullet 2022s, they said it was difficult to strip out the cost of the addition of point of non-viability features.

    • 27 Jan 2015
  • Akbank leads Turkish loan charge after bond

    The first wave of Turkish bank loan refinancings this year will kick off next week, say bankers, with Akbank expected to lead the charge.

    • 27 Jan 2015
  • ANZ hires head of European debt capital markets

    ANZ has hired a banker from RBC Capital Markets as its new head of debt capital markets in Europe.

    • 27 Jan 2015
  • Security Bank offers safe bet with dollar bond

    The Republic of Philippines status as a safe haven from the recent bout of macro concerns has prompted renewed investor interest in the county. The increased optimism was reflected by Rizal Commercial Banking Corp’s (RCBC) bond two weeks ago, and another lender, Security Bank Corp is now looking to do the same after opening books on January 27.

    • 27 Jan 2015
  • ECB must slow CBPP3 buying, or risk market’s long term health

    Faced with shrinking yields, covered bond investors have been deserting the market. Unless the ECB moves out of the way and switches to sovereign purchases fast, there is a real risk that these buyers will not be there when the extraordinary stimulus measures now being delivered are taken away.

    • 27 Jan 2015
  • Jury out on prospective CBPP3 purchasing rate

    Last week the ECB doubled its weekly covered bond purchasing rate to over €4bn, in line with the surge in primary issuance. Most analysts think the ECB will moderate the rate of covered bond purchases from March, when it will be able expand its balance sheet more rapidly with sovereign purchases, but not everyone is in agreement.

    • 27 Jan 2015
  • AIB and Bankinter show periphery immune to Greek woes

    After pulling a 10 year deal last year, AIB Mortgage Bank returned to the market on Tuesday to price a very successful seven year. At the same time its Spanish peer, Bankinter, chose to issue in the same 10 year maturity that foiled AIB last year. Both banks achieved a solid result suggesting better quality peripheral covered bond issuers have not been affected by events in Greece.

    • 27 Jan 2015
  • Brazil 1: Chile 0

    Brazil’s primary covered bond legal framework was transformed into law on January 19. It could could achieve what the Chilean mortgage bond framework has been unable to do, said Fitch in a special report on the Brazilian covered bond law published on Monday. The law should enable substantial protection for covered bond investors, though much will depend on the more detailed secondary legislation - where work has only just begun.

    • 27 Jan 2015
  • IHS loan 'going well' but Afren troubles fuel Nigeria fears

    Nigerian telecom towers group IHS continues to progress well with an $800m loan and should sign it within the week, bankers say. But there is mounting concern about the prospects for Nigerian financial institution and oil-related loans after fears rose of a default by Afren.

    • 26 Jan 2015
  • Vakifbank tightening expected for breakthrough Basel III compliant tier two

    Vakifbank has released price guidance for the first ever Basel III compliant tier two trade from Turkey at 7% area. Bankers are expecting tightening as the deal offers 120bp-140bp over the trading of the bank’s old style tier two 2022s.

    • 26 Jan 2015
  • Commitments scaled back on Stanbic Uganda loan debut

    Stanbic Uganda will hold a signing ceremony this week for its debut syndicated term loan facility, which bankers involved say has been oversubscribed.

    • 26 Jan 2015
  • FIG bankers sound caution over Greek result

    FIG bankers gave a subdued reaction on Monday morning to the victory of Alexis Tsipras's Syriza party in Sunday's Greek, with spreads largely unmoved over the weekend Friday. However, while the outlook for near term issuance is encouraging, bankers cautioned that the market's full reaction cannot be judged until February at the earliest.

    • 26 Jan 2015
  • BPCE finds new audience with tier two Samurai

    French lender BPCE sold the second ever Basel III compliant subordinated Samurai deal on Friday, pricing a triple tranche ¥48.3bn ($409.8m) trade. The new format allowed the issuer to diversify its Japanese following, drawing in many investors which do not traditionally participate in senior unsecured transactions.

    • 26 Jan 2015
  • Covered bonds on hold, as Greece takes centre stage

    The covered bond market was on hold on Monday, awaiting developments in Greece after the anti-austerity party, Syriza, won a near majority in Sunday’s elections. Though the result was in line with expectations, the market is sensitive to the risk of negative headlines. One or two deals could emerge this week, but there is unlikely to be much until next week, when many issuers emerge from blackout.

    • 26 Jan 2015
  • Covered bonds face greatest risk in the medium term

    A majority of covered bond investors polled by Fitch in December 2014 say the market’s greatest challenge is decreasing secondary market liquidity. The rating agency expects the most pronounced illiquidity from June 2016, which could feed through to the credit quality of covered bond programmes, as refinancing becomes more difficult.

    • 26 Jan 2015
  • UBS will pay 2014 bonuses in AT1

    UBS said it would pay part of its 2014 bonus pool in additional tier one (AT1) capital, following two previous years of paying bonuses in tier two. It plans to issue around Sfr2.5bn ($2.9bn) of AT1 to its employees over the next five years.

    • 23 Jan 2015
  • Haitong Int rides ECB momentum to print $700m

    Haitong International received a helping hand from the European Central Bank on January 22, with the ECB’s much publicised asset purchase programme proving to be the key for the Chinese broker to achieve much better pricing as well as size for its 5.5 year dollar bond.

    • 23 Jan 2015
  • Covered bond volumes triple as bull flattening gets underway

    The larger than expected quantitative easing programme announced by the European Central Bank on Thursday has turbo-charged the well-established bull flattening trend in covered bonds and trading volumes have tripled from earlier in the week. With the long end of French market now offering a tempting spread to OATs, real money buyers are set to return. And with Bonos and BTPs rallying hard, relative value between covered bonds and sovereigns should soon be restored in the Cédulas and Obbligazioni Bancarie Garantite markets.

    • 23 Jan 2015
  • NordLB Lux and Goldman set to expand dual recourse universe

    NordLB will start engaging with investors from mid-February regarding plans to sell its Lettre de Gage Publique. The issuer may also update investors about its merger plans, which could ultimately result in a wider pool of assets being financed under the Luxembourg covered bond law. Around the same time Goldman Sachs is likely to be reconsidering how to approach the market with its FIGSCO deal. The two issuers’ very different approaches show there is still great scope for innovation in dual recourse instruments.

    • 23 Jan 2015
  • Morgan Stanley, US Bank lead post-ECB rush

    Morgan Stanley and US Bank ensured a bumper end to the week in the dollar market after the European Central Bank unveiled its quantitative easing programme on Thursday.

    • 22 Jan 2015
  • JP Morgan EUR1.5bn 1.5% Jan 25, EUR750m FRN Jan 20

    • 22 Jan 2015
  • Fed hints at bonus regulation

    Jerome Powell, a member of the Federal Reserve’s board of governors, said US financial regulators were preparing a new rule on compensation at financial institutions, which could include more deferral, delayed vesting and “the possibility of more robust forfeiture”.

    • 22 Jan 2015
  • Goldman Sachs EUR1bn 1.375% Jul 22, EUR300m FRN Jul 22

    • 22 Jan 2015
  • QE could squelch banks unless growth follows

    While financial assets are off to the races following Thursday’s announcement of €60bn a month in eurozone quantitative easing, the banking system still needs growth to take off. The bond buying programme could hurt European banks by squashing the yield curve, and leave investment banks becalmed by low rates for longer.

    • 22 Jan 2015
  • No mention of corporates by Draghi is no problem for FIG

    Corporate bonds did not feature in European Central Bank president Mario Draghi’s announcement of a full scale quantitative easing programme, but the FIG debt markets nonetheless rallied along with sovereigns and equities on Thursday.

    • 22 Jan 2015
  • South Africa’s Investec plans $300m three year club loan

    Investec Bank is looking to sign a three year loan with international lenders.

    • 22 Jan 2015
  • Covered bond issuers rush to price before the ECB

    Five covered bond borrowers issued benchmark deals in the first half of this week, fearing potential volatility from Thursday's European Central Bank announcement on its sovereign quantitative easing programme.

    • 22 Jan 2015
  • NIBC shakes off investor worries to make senior return

    While US borrowers dominated senior unsecured issuance this week, Dutch lender NIBC Bank was also able to return to the euro senior unsecured market after an absence of almost three years.

    • 22 Jan 2015
  • Citi EUR1.25bn 1.75% Jan 25

    • 22 Jan 2015
  • NIBC Bank EUR300m 2% Jul 18

    • 22 Jan 2015
  • Lloyds continues US push with another London transfer

    UK-headquartered Lloyds Bank has transferred yet another senior banker to its New York outpost, as it attempts to win market share in carefully-selected parts of the US capital markets such as corporate debt and securitization. The new addition will focus on North American institutional investor coverage for the bank’s financial institutions team.

    • 22 Jan 2015
  • US issuers seize on low euro rates to grab funding arbitrage

    A trio of US banks found deep demand in the euro market this week, with Citi, Goldman Sachs and JP Morgan all drawing large order books for senior deals in the currency. A favourable cost of funding compared to dollars allowed the banks to offer up large new issue premiums to investors, calming the nerves of any investors concerned by the recent glut of supply or possible volatility from Thursday’s ECB meeting.

    • 22 Jan 2015
  • Gazprom agrees bilateral loans with Italian banks

    Gazprom has signed a €350m first ever bilateral loan with Intesa Sanpaolo, but its second in two months with Italian banks after agreeing a €390m deal with UniCredit in December.

    • 22 Jan 2015
  • NordLB to revive Lettre de Gage with first benchmark

    NordLB Covered Finance Bank (NORD/LB CFB) is set to revive the sedentary Lettre de Gage (LdG) market and plans to issue its first benchmark sized covered bond. The issuer, which will take advantage of the recently updated Luxembourg legal framework, mandated leads for a European roadshow on Tuesday.

    • 22 Jan 2015
  • FIG market reacts well to ECB rumours, but downside risk sharpens

    The FIG market looked robust on Thursday morning in the wake of encouraging rumours on the scale of European Central Bank quantitative easing, with the bank's president, Mario Draghi expected to announce the bond buying programme later in the day. Market participants have warned that the ebullient market reaction means any disappointment on Thursday afternoon could prove painful.

    • 22 Jan 2015
  • ANZ cost-saving CNH B3 bond to inspire non-Chinese FIGs to follow suit

    Australia and New Zealand Bank priced the first offshore renminbi-denominated Basel III bond from a non-Chinese bank on January 21. Not only did the Australian borrower achieve the size and pricing levels it was aiming for, but it also proved that funding in CNH can be cheaper than dollars, potentially triggering more non-Chinese lenders to follow suit, writes Narae Kim.

    • 22 Jan 2015
  • RSB back for second attempt

    Russian Standard Bank is making a second attempt to secure investor support for its capital update after failing to generate enough interest first time round. RSB re-launched the consent solicitation for its 10.75% 2018s on January 19.

    • 22 Jan 2015
  • Skies clear for Haitong International’s dollar return

    Chinese broker Haitong International is taking advantage of a quiet Asian primary market by opening books to a five and a half year dollar bond on January 22.

    • 22 Jan 2015
  • Peripheral upgrades unlikely to improve LCR demand

    Moody’s upgraded 12 Italian and Spanish covered bonds into “Aa” territory after the close on Wednesday, taking the bonds from category 2A to 1B in the liquidity coverage ratio (LCR). Though this should theoretically improve bank demand, last week’s LCR impact study published by the European Banking Authority (EBA) showed most banks had already met their minimum LCR requirement, suggesting scope for an improvement in appetite will be limited.

    • 22 Jan 2015
  • Large scale QE is good for covered bonds

    If Wednesday’s leaks prove true, and the Eurosystem buys €50bn of sovereign bonds per month from March 2015 to December 2016, the total €1.1tr package is larger than expected. Government bonds should therefore outperform and this will restore relative value by making covered bonds look comparatively cheap, said analysts.

    • 22 Jan 2015
  • Investec lines up three year loan

    South Africa’s Investec Bank is looking to sign a three year loan with international lenders.

    • 21 Jan 2015
  • Arbitrage keeps US banks active in euros

    Citi added to a spree of euro issuance from US banks on Wednesday, following Goldman Sachs and JP Morgan to hit the market for a 10 year senior print. The low rate environment in Europe means US banks can offer investors attractive spreads while still saving against their cost of funding in dollars.

    • 21 Jan 2015
  • Market awaits solution it doesn’t think will work

    European participants in the capital markets are waiting, with bated breath, for Thursday’s European Central Bank meeting and the expected announcement of quantitative easing, as well as the outcome of Greece’s Parliamentary elections on Sunday. But an interesting dynamic has set in around what were once thought to be two of the most important events of the start of 2015: no one seems to care much about either anymore.

    • 21 Jan 2015
  • Americans take the stage while Europe waits for QE

    US banks have been said to be magnanimous on new issue premiums this week, as they fill in for absent European issuers in the euro-denominated FIG market, with many in earnings blackouts or otherwise sitting out the week as the European Central Bank’s January meeting and Greece’s Parliamentary elections approach.

    • 21 Jan 2015
  • ANZ on track to landmark Basel III dim sum

    Australia and New Zealand Bank (ANZ) started book building for a Basel III tier two dim sum bond on Wednesday, January 21. The deal will be a landmark as the first CNH-denominated Basel III trade from a non-Chinese bank.

    • 21 Jan 2015
  • When regulators try to do credit analysis

    The European Commission wants credit ratings left out of financial regulation — a great move, if it can find something good to replace them. But it’s making the right decision for the wrong reason. Upset at the presence of sovereign rating caps the EC has thrown a hissy fit in its final version of the Liquidity Coverage Ratio, and suggests that jurisdiction should not be a part of the credit quality of covered bonds — a view that will come as a big surprise to anyone investing in them.

    • 21 Jan 2015
  • NordLB mandates for maiden Lettre de Gage benchmark

    NordLB Covered Finance Bank (NORD/LB CFB) has mandated leads for a European roadshow to sell its first benchmark sized covered bond under the recently amended Luxembourg legal framework. Though this deal will be backed by public sector assets, the law allows for a much wider pool of movable assets, suggesting there is potential for more innovative deals to follow.

    • 21 Jan 2015
  • CIBC pays no new issue concession

    Canadian Imperial Bank of Commerce opened books for the third Canadian benchmark issued in euros this year. The transaction priced tighter than its peers with no new issue premium, though it was still comfortably oversubscribed. The strong result suggests potential for spread narrowing between eurozone and non-eurozone covered bonds.

    • 21 Jan 2015
  • Morgan Stanley negotiates difficult quarter but still on track

    Morgan Stanley reported lower than expected fourth quarter profits on Tuesday. Earnings per share, excluding accounting adjustments, fell from 50 cents in the fourth quarter 2013 to 39 cents, which was short of consensus expectations of about 50 cents. Despite this, the bank says it is on track to benefit from a continued fall in funding costs, further falls in risk weighted assets and compensation ratios.

    • 20 Jan 2015
  • When regulators try to do credit analysis

    The European Commission wants credit ratings left out of financial regulation — a great move, if it can find something good to replace them. But it’s making the right decision for the wrong reason.

    • 20 Jan 2015
  • Uncertain outlook keeps premiums high in senior as JPM sells 10 year

    Borrowers have had to extend their run of offering attractive new issue premiums in the senior unsecured market on Tuesday, as JP Morgan offered investors a juicy level for long dated euro paper. A softer market and concerns over volatility are necessitating more enticing premiums in the asset class, according to syndicate managers.

    • 20 Jan 2015
  • CGD gets longest and cheapest post crisis Portuguese funding

    Portugal’s Caixa Geral de Depósitos (CGD) issued a €1bn seven year covered bond, the longest seen from any Portuguese issuer in four years. And at 1% it was also the lowest coupon ever paid by a Portuguese covered bond issuer. The comfortably oversubscribed deal offered a new issue premium of 3bp to 4bp. However, rival bankers said the spread looked unattractive relative to government bonds which are should benefit from prospective central bank buying.

    • 20 Jan 2015
  • BMO becomes third Canadian covered sterling issuer

    After raising €1.5bn of five year funding last week, Bank of Montreal returned to the covered bond market on Tuesday to issue a sterling three year floater, the third in this format from a Canadian bank so far this year.

    • 20 Jan 2015
  • BPCE follows Rabo with Samurai sub deal

    France’s BPCE opened order books on Monday for the second ever Basel III compliant Samurai deal, opting for a triple tranche structure. Only Rabobank has previously sold a similar trade, enjoying healthy arbitrage versus its cost of selling tier two paper in both dollars and euros.

    • 19 Jan 2015
  • NIBC Bank ends senior hiatus

    Dutch lender NIBC Bank returned to the euro senior unsecured market after an absence of almost three years on Monday, opening books on what is just its second non-government guaranteed senior trade since the financial crisis. Goldman Sachs will also price euro paper on Monday, selling a dual tranche fixed and floating 7.5 year print.

    • 19 Jan 2015
  • Commerzbank and NBC deal as order momentum slows

    Investors showed continued appetite for seven year paper, as Commerzbank and National Bank of Canada issued benchmark covered bonds in that maturity on Monday. However, leads said momentum was slower to build than last week. At the same time Portugal’s Caixa Geral de Depositos mandated leads for a deal ahead of this weekend’s Greek elections.

    • 19 Jan 2015
  • Austrian covered bonds hit after SNB’s move

    The Swiss National Bank’s decision to dispense with the currency peg between the Swiss franc and euro is credit negative for Austrian covered bonds, said Moody’s on Monday. The agency identifies the pools of UniCredit Bank Austria, Vorarlberger Landes-und Hypothekenbank and Hypo Alpe Adria Bank as having the greatest exposure to Swiss franc assets.

    • 19 Jan 2015
  • LCR to become binding as deletion of ratings to follow

    On January 17 the European Commission published a delegated regulation on the liquidity coverage ratio (LCR) in the “Official Journal of the European Union,” and the rules will become binding by October 2015. In December 2015, a further report will set out alternatives to credit ratings with the aim of deleting any reference to them in the LCR in five years. The European Covered Bond Council’s (ECBC) Label initiative could help but may need to be strengthened.

    • 19 Jan 2015
  • Covered bonds get seven in the seven year

    The covered bond market enjoyed its busiest week in the last three years as 16 borrowers launched benchmarks with a nominal value of €13.5bn ($15.70bn) across a range of currencies and tenors. But investors clearly showed a preference for the seven year — of which there were seven deals, accounting for half of this week’s supply.

    • 16 Jan 2015
  • Covered bond issuers supply across the curve

    Covered bond issuers from outside the Eurozone launched deals this week denominated in sterling and Australian dollars. But a bigger proportion were from the Eurozone where borrowers launched deals in the single currency in maturities that ranged from four to 20 years. The transaction were priced generously and enjoyed a solid reception, with central banks taking a back seat.

    • 16 Jan 2015
  • Covered bonds are ripe for expansion says European Parliament

    A paper released by the European Parliament this month promotes the idea that the covered bond market is ripe for expansion. At the same time, BBVA research has published a report suggesting the possibility that dual recourse instruments could be backed by infrastructure project loans, cash flows derived from Spanish electricity tariff deficits, or even be utilised for contingent capital purposes.

    • 16 Jan 2015
  • Busy first half expected next week

    The euro covered bond market is expected to regain momentum on Monday, as several issuers are looking to price deals ahead of potential volatility following the European Central Bank meeting on Thursday, and Greek elections on the following weekend.

    • 16 Jan 2015
  • SNB’s wake-up call: central banks can shock

    Perhaps it was stimulus envy — years of taking a back seat in the popular mind to the central banks of the US, the European Union, Japan and the UK.

    • 15 Jan 2015
  • Macquarie EUR500m 1.125% Jan 22

    • 15 Jan 2015
  • Deutsche Pfandbriefbank EUR500m 0.875% Jan 17

    • 15 Jan 2015
  • Covered bond issuers supply across the curve

    Covered bond issuers from outside the Eurozone launched deals this week denominated in sterling and Australian dollars. But a bigger proportion were from the Eurozone where borrowers launched deals in the single currency in maturities that ranged from four to 20 years. The transaction were priced generously and enjoyed a solid reception, with central banks taking a back seat.

    • 15 Jan 2015
  • Prudential GBP300m 1.375% Jan 18

    • 15 Jan 2015
  • Crédit Agricole EUR1.5bn 0.875% Jan 22

    • 15 Jan 2015
  • Commonwealth Bank of Australia EUR1bn FRN Jan 20

    • 15 Jan 2015
  • ING EUR1.5bn 0.7% Apr 20

    • 15 Jan 2015
  • Rabo AT1 debut may herald a more modest market in 2015

    Rabobank’s inaugural additional tier one marked not only the first such deal from a Dutch issuer, but the first AT1 deal of the year. Though the deal was priced into a market full of uncertainty, its sturdy reception, if less ecstatic than previous trades, suggests that investors are approaching the asset class with more sobriety than in 2014.

    • 15 Jan 2015
  • Metlife EUR850m 0.875% Jan 22

    • 15 Jan 2015
  • UniCredit EUR1bn FRN Feb 20

    • 15 Jan 2015
  • Nationwide stars as frequent funders fail to inspire

    The start of US bank reporting season produced a much-needed surge in big-ticket US FIG issuance, which is enduring its worst start to the year since the financial crisis.

    • 15 Jan 2015
  • BPE EUR500m 2% Feb 20

    • 15 Jan 2015
  • Caisse Centrale Desjardins du Quebec EUR500m FRN Jan 20

    • 15 Jan 2015
  • NAB sets record in first Samurai of 2015

    A strong bid for Australian paper from Japanese investors allowed National Australia Bank to price the tightest ever spread ever for a 10 year Samurai from a FIG issuer on Friday, the first print in the format of 2015.

    • 15 Jan 2015
  • FIG market struggles as senior flood leaves market oversupplied

    After a frantic week of senior unsecured issuance, euro senior volumes for 2015 have already outstripped the entirety of last January. However, the impressive volumes cannot mask problems in the market. Syndicate bankers are nervously whispering about oversupply as the week’s deals trade wider, a problem exacerbated by currency volatility on Thursday as the Swiss National Bank scrapped the currency ceiling on the Swiss franc.

    • 15 Jan 2015
  • Turkish trio spy chance to print in flight to low volatility

    Encouraged by the strong response to Turkey’s $1.5bn tap last week, a trio of the country's banks picked up the bond market baton this week — Akbank priced a $500m five year Eurobond while Turkiye Vakiflar Bankasi (Vakifbank) and Sekerbank announced investor meetings.

    • 15 Jan 2015
  • Covered bonds get seven in the seven year

    The covered bond market enjoyed its busiest week in the last three years as 16 borrowers launched benchmarks with a nominal value of €13.5bn ($15.70bn) across a range of currencies and tenors. But investors clearly showed a preference for the seven year — of which there were seven deals, accounting for half of this week’s supply.

    • 15 Jan 2015
  • Rabo surprises with generous AT1 debut

    Rabobank opened the additional tier one market for 2015 on Thursday, selling its debut in the format. The much anticipated deal was expected to sell well as a result of Rabobank’s high credit quality, but some bankers away from the deal were surprised to see the bonds sold at what was judged to be a generous level.

    • 15 Jan 2015
  • Arkea and Berlin Hyp deals boost senior volumes further

    Bond sales from Crédit Mutuel Arkea and Berlin Hyp on Thursday built on a frantic start to the year for the FIG market, helping volumes for the first two weeks of the year to rise higher than the whole of January 2014.

    • 15 Jan 2015
  • JP Morgan plans to keep getting bigger… if it’s allowed

    America’s biggest bank had a rough fourth quarter in 2014 and continues to face regulatory uncertainty over its size, but JP Morgan’s chief executive Jamie Dimon says the bank will continue to grow as part of its strategy to deliver shareholder value, unless regulators force it to do otherwise.

    • 15 Jan 2015
  • Sekerbank closes in on first international bond

    Sekerbank is holding investor meetings for a covered bond which will be the bank’s first ever international bond issue. It will also be the first ever public Turkish covered bond.

    • 15 Jan 2015
  • Akbank catches CEEMEA flight to quality

    Akbank TAS is out in the market with a new dollar bond, a week after the Turkish sovereign made its 2015 debut. The bank is making an opportunistic move to take advantage of tight spreads caused by a flight to less volatile credits across CEEMEA.

    • 15 Jan 2015
  • Onshore demand saves the day as BOCOM bags $750m

    Bank of Communications (BOCOM) priced a three year bond on January 9, relying on strong onshore investor demand to push through a slow bookbuilding process.

    • 15 Jan 2015
  • Bigger deals are the new normal for Asian bonds

    Larger deals and bigger new issue premiums will be the new normal for Asia ex-Japan as issuers adjust their debt funding strategies in the face of volatile markets. A pair of high profile bonds in the past week clearly illustrated this size-over-price approach, although bankers said that while it will become increasingly common, not everyone will adopt it, writes Rev Hui.

    • 15 Jan 2015
  • Woori overcomes weak demand to trade well in secondary

    South Korea’s Woori Bank raised smaller-than-expected $350m with its first dollar bond of 2015 on January 14. Due to the smaller order book size and slower bookbuilding process than usual, the South Korean lender had to settle for the lower end of what it aimed to raise, but has been enjoying a good performance in the secondary market.

    • 15 Jan 2015
  • ANZ seeks landmark Basel III offshore RMB bond

    Australia and New Zealand Bank (ANZ) has mandated five banks to run meetings with fixed investors for what looks to be the first Basel III bond from a non-Chinese bank in the offshore renminbi market.

    • 15 Jan 2015
  • BMO and Cafill cover 2015’s maturity range

    Bank of Montreal (BMO) and Caisse Française de Financement Local (Caffil) respectively issued one of the shortest and longest covered bonds of 2015. BMO’s five year appealed to a wide audience enabling the borrower to issue a large €1.5bn deal. Though Caffil’s €500m 20 year appealed to a smaller audience, the very high quality investor base it appeals to bodes well for the deal’s long term performance.

    • 15 Jan 2015
  • CRU and KBC take well-trodden seven year path

    The covered bond primary market maintained robust momentum on Thursday as another four issuers priced deals. The seven year tenor remains the firm favourite with two new trades on Thursday taking the total to eight this year.

    • 15 Jan 2015
  • Sekerbank markets first public euro SME covered bond

    Sekerbank is holding investor meetings for a covered bond which will be the bank’s first ever publicly syndicated deal targeted at investors in the private sector mainly in Europe. The deal takes advantage of the amended law which allows for greater use of derivatives in the cover pool.

    • 15 Jan 2015
  • Euro supply slows as market digests torrent of issuance

    The recent flood of euro denominated senior unsecured issuance slowed on Wednesday, with BPCE the only European financial to sell a deal in the currency. Toronto Dominion Bank took to the sterling market for a short dated FRN.

    • 14 Jan 2015
  • Bank sub deals to fire up soon as senior slows

    After two days of heavy issuance of European financial institution bonds — €6bn of euro senior unsecured paper on Monday and €4.8bn on Tuesday — it looks like the market is beginning to settle into a more normal rhythm.

    • 14 Jan 2015
  • Stanbic Uganda seeks debut loan, sets terms

    Stanbic Uganda has progressed with plans for a debut loan and looks set to sign the deal by the end of this month.

    • 14 Jan 2015
  • Assured by Kexim, Woori hits market with dollar deal

    Woori Bank opened books to its first dollar bond this year on Wednesday, January 14, as the South Korean lender was encouraged by the relatively successful outcomes of compatriot Export Import Bank of Korea (Kexim) earlier this week.

    • 14 Jan 2015
  • Intesa, ANZ NZ and DG go for sevens and sixes

    Primary momentum kept up pace in covered bonds on Wednesday. Intesa, DG Hyp and ANZ New Zealand joined the seven other borrowers that have already launched euro benchmarks so far this week. The issuers launched deals in the seven and six year area and all enjoyed a solid reception thanks partly to generous new issue premiums.

    • 14 Jan 2015
  • CRU to set pulses racing

    Cajas Rurales Unidas is set to become the second Spanish issuer to launch a deal this week, having mandated leads for its third euro benchmark. The transaction is likely to offer the most attractive spread seen in covered bonds this year, and could reprice the issuer’s curve.

    • 14 Jan 2015
  • Chheda joins RBS on hybrids

    Royal Bank of Scotland has re-hired former JP Morgan capital expert Veenay Chheda to its hybrid capital team.

    • 13 Jan 2015
  • Senior FIG deals still flying, but with smaller wings

    Book sizes for Tuesday’s offerings of senior fixed rate deals have fallen sharply, compared to the unusually swollen orders placed for new issues in recent days, but the market is still steaming ahead.

    • 13 Jan 2015
  • CCDJ returns to senior market with five year floater

    Demand was robust for floating rate paper on Tuesday as Commonwealth Bank of Australia sold its first deal of 2015 and Caisse Centrale Desjardins du Quebec (CCDJ) returned to the senior unsecured euro market after an absence of almost five years.

    • 13 Jan 2015
  • RCBC shines on the back of onshore investors

    Philippine bank Rizal Commercial Banking Corp (RCBC) priced its five year dollar bond on Monday, January 12. As onshore investors piled in to get a share of the popular credit, the Manila based lender effortlessly raised $200m despite competing supplies from bigger, more frequent issuers.

    • 13 Jan 2015
  • CCBI pays up with new five year

    China Construction Bank International (CCBI) tapped the debt market for $700m on January 12 as it continued the trend of issuers having to fork out a new issue premium in order get deals done this year.

    • 13 Jan 2015
  • Investors drink on BPER, BOI, CM-CIC and WL Bank

    The European covered bond market kept up its momentum on Tuesday as four euro-denominated deals hit the screens and books were opened on another denominated in Australian dollars. The euro deals all offered a new issue concession of around 5bp and were comfortably oversubscribed.

    • 13 Jan 2015
  • High FIG premiums stick as investors prepare for volatility

    A week before the European Central Bank is expected to announce a programme of quantitative easing and Greece elects its next president, investors are loading up on senior unsecured paper from top names in FIG, and being paid big new issue premiums. Investors are demanding more in part because of fears of volatility in coming weeks stemming from the ECB and Greece, bankers said.

    • 12 Jan 2015
  • BNP Paribas and UniCredit add to FRN flow

    Two more issuers built on a strong start to the year for euro-denominated floating rate notes on Monday, as UniCredit sold a five year bond and BNP Paribas opted for a two year tenor for its second FRN of the year. UniCredit was able to draw solid demand for its deal, despite printing at an aggressive level compared to its fixed rate curve.

    • 12 Jan 2015
  • Philippine issuers swarm to bond market

    Philippine bank Rizal Commercial Banking Corp (RCBC) launched bookbuilding for a five year dollar bond on Monday, January 12, as part of its fund raising exercise under a $1bn MTN programme.

    • 12 Jan 2015
  • Kexim and CCBI open books for dollar bonds

    Export Import Bank of Korea (Kexim) was back in the international debt market on January 12, opening books to a SEC-registered dual tranche benchmark transaction that is split between a five year and a 10 year.

    • 12 Jan 2015
  • Onshore bank demand delivers BOCOM $750m three year

    Bank of Communications (BOCOM) priced a three year dollar transaction on January 9, becoming the third financial dollar bond this year following China Huarong and Japan’s SMBC. Although the regular issuer witnessed a rather slow bookbuilding at the beginning, the Chinese deal gained momentum as onshore banks piled in to get their hands on a popular credit.

    • 12 Jan 2015
  • BBVA triumphs with sevens as CFF and LBBW take the wings

    The European covered bond market got off to an exceptionally strong start on Monday as LBBW, Compagnie de Financement Foncier (CFF) and BBVA launched euro benchmarks across a range of maturities, without a hiccough. The strong start bodes well for Tuesday when several more euro benchmarks including Bank of Ireland and BPER are due.

    • 12 Jan 2015
  • Lloyds takes another £1bn off the table

    Lloyds has become the fourth issuer this year to fund in sterling covered bonds, a market that has so far provided €3.65bn equivalent, almost as much as has been issued in euro benchmark format this year.

    • 12 Jan 2015
  • SMBC bags $2.25bn with tri-tranche dollar bond

    Sumitomo Mitsui Banking Corporation (SMBC) made its return to the offshore debt market on Thursday, January 8, raising a total of $2.25bn through a triple tranche dollar bond that attracted strong demand from investors and allowed bankers to price the deal flat to the borrower’s existing curve.

    • 09 Jan 2015
  • Improved conditions prompt BOCOM to act with 3yr

    Bank of Communications started receiving bids for a three year dollar transaction on January 9 as it looks to ride on the positive momentum created by China Huarong Asset Management and become the third financial institution to price a bond this week.

    • 09 Jan 2015
  • China Huarong picks size over price with $3.2bn triple trancher

    China Huarong Asset Management took the market by surprise on January 8 by printing a $3.2bn triple tranche offering in what is Asia's largest ever Reg S-only deal. With the market still bogged down by macro concerns and fears over Chinese property, the bad debt manager wisely chose to pay a juicy concession to get the huge deal done.

    • 09 Jan 2015
  • Religare Health Trust mandates four for roadshow

    Singapore-listed Religare Health Trust Trustee Manager has mandated four banks to conduct a roadshow for a possible Singapore dollar issue.

    • 09 Jan 2015
  • Australia Focus: Australia’s banks earn global significance

    Shortly before the recent publication of the David Murray Financial System Inquiry assessment on the evolution of the Australian banking system since the Wallis report in 1996, bankers and investors met at the GlobalCapital FIG roundtable to exchange views on the challenges lying ahead for Australian banks.

    • 09 Jan 2015
  • Financial institutions: 2015 — the year of bank capital — the sequel with no equal

    If you thought 2014 was going to be the year of bank capital, you were right… sort of. Graham Bippart reports.

    • 09 Jan 2015
  • Financial institutions: Distorting effects — ECB’s CBPP3 unsettles covered bond market

    The third covered bond purchase programme will not expand the European Central Bank’s (ECB) balance sheet to the extent needed because the market is too small. And spread tightening will not encourage greater issuance, as the ECB expects. The best hope for covered bonds in 2015 is for the ECB to give up on CBPP3 and turn its attention to the sovereign market where it has a much better chance of success, writes Bill Thornhill.

    • 09 Jan 2015
  • Currencies: Low rates prompt creative thinking in Swiss francs

    It looks like another year of low rates in Swiss francs but, accustomed to the demands of investors with yield targets to meet, Zurich’s syndicate bankers have plans in place to keep the market going. With the focus on Chinese issuers, subordinated debt and ever-longer tenors, if there is a way to boost yields it will be found. Nathan Collins reports.

    • 09 Jan 2015
  • Financial institutions: Covered bond teams prepare for tricky 2015

    Several high level departures were seen in the covered bond market in 2014 as banks, grappling with the tough market environment, consolidated and focussed on 2015. Though covered bonds are set to remain the regulator’s friend, supply has fallen and this has hit fee income. Despite these headwinds, banks that are in poll position have maintained competency across the value chain, writes Bill Thornhill.

    • 09 Jan 2015
  • Financial institutions: Senior faces up to TLAC, TLTRO, AT1 and ECB

    Nathan Collins takes a look at the year ahead for senior unsecured debt, focussing on three reasons market participants should be bullish for the next 12 months, along with three factors that could drive activity down.

    • 09 Jan 2015
  • Financial institutions: Covered bonds back where they belong, but LCR impact in doubt

    Covered bonds were always likely to be eligible assets for Basel III’s Liquidity Coverage Ratio, but when the final wording appeared it turned out to be much better than expected for the product. The long term implications are positive for the asset class, but a near term surge in demand is unlikely, writes Bill Thornhill.

    • 09 Jan 2015
  • Covered bond teams prepare for tricky 2015

    Several high level departures were seen in the covered bond market in 2014 as banks, grappling with the tough market environment, consolidated and focussed on 2015. Though covered bonds are set to remain the regulator’s friend, supply has fallen and this has hit fee income. Despite these headwinds, banks that are in poll position have maintained competency across the value chain, writes Bill Thornhill.

    • 09 Jan 2015
  • Westpac enlivens covered bonds, but can it last?

    Westpac successfully priced the first euro-denominated covered bond of the year on Thursday amid hopes that it will set a positive tone for next week — which is expected to be the busiest of the year. But with confidence still lacking following a string of underperforming deals issued at end of last year, there is still some trepidation that the supply glut will cause a further re-pricing.

    • 09 Jan 2015
  • Liquid covered bonds fail ESMA's test

    Covered bonds above a size of €750m are considered liquid according to the European Securities and Markets Association (ESMA) but nearly three quarters do not meet the regulator’s own liquidity test which takes into account the frequency and volume of trades.

    • 09 Jan 2015
  • New Year calls for a new perspective in bonds

    The European FIG market got off on the right foot this week, with issuers learning from mistakes made toward the end of 2014 and offering larger premiums to cash-rich and yield-strapped investors that want to put their money to work before yield targets get even harder to hit responsibly.

    • 08 Jan 2015
  • Russian debt rescheduling fears creep up

    A wave of Russian corporate debt rescheduling, defaults and renationalisations is inevitable this year, a senior banker and emerging market analyst have warned. However, the claims angered officials at Western lenders heavily exposed to Russian loans and bonds, writes Dan Alderson.

    • 08 Jan 2015
  • Issuers have epiphany on pricing, offering juicy premiums

    The Epiphany holidays in Europe on Tuesday may have disrupted the issuance calendar for the week, but that didn’t stop issuers from printing over €15.5bn of senior unsecured debt in just two days on Wednesday and Thursday.

    • 08 Jan 2015
  • National Australia Bank EUR1.25bn FRN Jan 18, EUR1bn 0.875% Jan 20

    • 08 Jan 2015
  • Intesa Sanpaolo EUR1.25bn 1.125% Jan 20

    • 08 Jan 2015
  • Bank of Nova Scotia EUR1bn FRN Jan 20

    • 08 Jan 2015
  • Crédit Agricole Assurances EUR1bn 4.25% perpetual tier two

    • 08 Jan 2015
  • Rabobank EUR2.5bn FRN Jan 17

    • 08 Jan 2015
  • Lloyds EUR1bn 1.25% Jan 25

    • 08 Jan 2015
  • Société Générale EUR2bn FRN Jan 17

    • 08 Jan 2015
  • Abbey National EUR1.5bn 1.125% Jan 22

    • 08 Jan 2015
  • DVB Bank EUR500m 0.5% Jan 18

    • 08 Jan 2015
  • Capital stays in focus with 2015 volumes set to grow

    Another busy year for bank capital is likely for 2015 according to analysts, with volumes for tier one and tier two debt expected to improve on last year’s record showing for bank capital.

    • 08 Jan 2015
  • Swiss buyers seek duration to combat low rates

    Swiss Re highlighted a growing demand from Swiss investors for long dated paper this week, selling the longest ever senior unsecured Swiss franc bond from an insurance company.

    • 08 Jan 2015
  • Rabobank breaks Yankee duck amid US deal surge

    Dutch lender Rabobank printed the first Yankee deal of the year as the US FIG new issuance market sprang back to life.

    • 08 Jan 2015
  • CredAg unit goes for last-minute Solvency II grandfathering

    In the first subordinated FIG deal of the year, Crédit Agricole Assurances, the wholly owned insurance subsidiary of Crédit Agricole SA, launched and priced an eleventh hour attempt at getting grandfathering for capital deals that aren’t compliant with new Solvency II capital rules.

    • 08 Jan 2015
  • Sub debt breakthrough to maintain Samurai momentum

    New mandates from France’s BPCE and National Australia Bank — including only the second tier two deal in the format — are set to carry the Samurai market’s strong 2014 primary performance on into the new year. Despite a risk of buyer fatigue in senior debt, international issuers see scope to diversify their investor bases and undercut their cost of euro funding by tapping Japanese funds.

    • 08 Jan 2015
  • Africa dominates January EM loan vols

    African borrowers have been busy in the loan market over the winter break, with Nigeria’s First City Monument Bank (FCMB) signing term loans and Stanbic Uganda rumoured to be coming to market. Meanwhile, IHS Towers is due to begin a roadshow for its loan and Zenith Bank of Nigeria has revealed the allocations of its recent $300m deal.

    • 08 Jan 2015
  • Westpac enlivens covered bonds, but can it last?

    Westpac successfully priced the first euro-denominated covered bond of the year on Thursday amid hopes that it will set a positive tone for next week — which is expected to be the busiest of the year. But with confidence still lacking following a string of underperforming deals issued at end of last year, there is still some trepidation that the supply glut will cause a further re-pricing.

    • 08 Jan 2015
  • Barclays, BNS and CIBC get sterling covered

    Barclays Bank re-opened the primary covered bond market on Monday by issuing a £1bn ($1.51bn) three year sterling benchmark, and was followed by a pair of Canadian borrowers.

    • 08 Jan 2015
  • CredAg unit goes for last-minute Solvency II grandfathering

    In the first subordinated FIG deal of the year, Crédit Agricole Assurances, the wholly owned insurance subsidiary of Crédit Agricole SA, has launched an eleventh hour attempt at getting grandfathering for hybrid capital deals that aren’t compliant with new Solvency II capital rules.

    • 08 Jan 2015
  • Enticing premiums keeps senior pipeline flowing

    The senior FIG market’s new year surge accelerated on Thursday, with another five new issues announced in the wake of Wednesday’s successful prints. Attractive new issue premiums have kept demand high for senior unsecured prints, according to syndicate managers.

    • 08 Jan 2015
  • Huarong and SMBC open books for triple tranchers

    China Huarong Asset Management is back in the market, launching a multi-tranche trade in dollars as it looks to become one of the first Asian companies to tap the debt market this year.

    • 08 Jan 2015
  • Upgrades in sight as Moody proposes new method

    Moody’s has asked the market to comment on a new proposal to change the anchor point for covered bond ratings from the issuer’s rating, to a new counterparty risk (CR) rating. The agency expects the proposal to have a net positive effect on covered bond ratings.

    • 08 Jan 2015
  • Westpac invigorates euro covered bonds with positive start

    Westpac was set to price the first euro-denominated covered bond of the year on Thursday in a move that is likely breathe confidence into the market, following a disappointing end to 2014.

    • 08 Jan 2015
  • BNS set to issue first Kangaroo covered bond of 2015

    Bank of Nova Scotia has returned to the covered bond market for a second time this week, mandating leads for the first Australian dollar covered bond deal of the year.

    • 08 Jan 2015
  • Covered bonds back where they belong, but LCR impact in doubt

    Covered bonds were always likely to be eligible assets for Basel III’s Liquidity Coverage Ratio, but when the final wording appeared it turned out to be much better than expected for the product. The long term implications are positive for the asset class, but a near term surge in demand is unlikely, writes Bill Thornhill.

    • 08 Jan 2015
  • CMHC joins forces with covered bond Label advisory council

    The Covered Bond Label Foundation (CBLF) has appointed Wojciech Zielonka, senior vice President of the Canada Mortgage and Housing Corporation (CMHC), as the Canadian national representative on its advisory council.

    • 08 Jan 2015
  • Abbey, BFCM find gush of demand for longer fixed rate seniors

    Abbey National and Banque Fédérative du Crédit Mutuel have opened up 2015's market for fixed rate senior unsecured bank bonds, offering investors longer tenors than the three floaters from other issuers also in the market today.

    • 07 Jan 2015
  • First flurry of FRNs finds strong demand

    Attractive levels helped drive demand for the first wave of floating rate notes to hit the Euromarket this year on Wednesday, as Bank of Nova Scotia, Rabobank and Société Générale all issued floating rate trades.

    • 07 Jan 2015
  • New year brings new energy to FIG market

    What a difference a new year makes. Despite the approaching snap elections in Greece and oil falling below $50, senior unsecured issuers took to the market looking to tap cash rich investors as they prepare for European bond yields to go ever lower.

    • 07 Jan 2015
  • ECBC argues against hard encumbrance limits

    A large part of a bank’s asset encumbrance is hard to measure and this may lead regulators to focus on one of the most visible and transparent components of encumbrance: covered bonds, according to a paper from the European Covered Bond Council published on Wednesday. The trade association urged European policy makers to take a holistic approach to assessing encumbrance and said a hard encumbrance cap should be avoided.

    • 07 Jan 2015
  • Dutch legal update will have limited impact

    An updated Dutch covered bond legal framework, which took effect on January 1 this year, brings the law into line with the European Banking Authority’s (EBA) best practice guidelines and European regulations. But, since most issuers already comply with the amendments, the impact is likely to be limited, said analysts from Société Générale’s research team.

    • 07 Jan 2015
  • CIBC issued first sterling benchmark

    Canadian Imperial Bank of Commerce (CIBC) became the third issuer to price a sterling-denominated floating rate covered bond this week, launching its inaugural transaction in the UK currency on Wednesday. The Canadian issuer matched the spread achieved by Barclays, which priced a deal on Monday, and in greater size and with a slightly longer duration than Scotiabank, which tapped a deal on Tuesday.

    • 07 Jan 2015
  • Soft bullet exchanges must be more open

    Credit Suisse has become the first Issuer to change the terms of its covered bonds from a hard to a soft bullet maturity — on existing deals. The move, which puts investors at a disadvantage, shows they cannot rely on original terms remaining in place through the life of a deal.

    • 07 Jan 2015
  • Soft bullet exchanges must be more open

    On December 30, when most investors were on holiday, Credit Suisse changed the terms of its existing covered bonds from a hard to a soft bullet maturity with the approval of just a few investors. Other issuers looking to change the terms of existing deals should be more upfront about liability management exercises that could put investors at a disadvantage.

    • 06 Jan 2015
  • UK banks turn away from securitization

    Securitization is declining further as a bank funding source into the first quarter of 2015, according to the Bank of England's survey of bank liabilities. Despite a larger proportion of wholesale funding overall, the proportion of asset-backed securities fell sharply in Q4 2014 and is expected to carry on falling in 2015.

    • 06 Jan 2015
  • Capital rules for securitizations: Basel giveth and Basel taketh away

    Mention “Basel capital charges” to someone in the securitization business and prepare for a shudder — the industry has had to swallow new rules every year for three years, and costs could still cripple the market. But help could be at hand from another set of Basel rules.

    • 06 Jan 2015
  • Swiss Re 15 year highlights changing habits of Swiss investors

    Swiss Re highlighted a growing demand from Swiss investors for long dated paper on Tuesday, selling the longest ever senior unsecured Swiss franc bond from an insurance company.

    • 06 Jan 2015
  • UKAR tenders NRAM and B&B subs

    Holders of subordinated debt issued from nationalised lenders NRAM (Northern Rock Asset Management, the nationalised 'bad bank' remains of Northern Rock plc) and Bradford & Bingley tendered the majority of more than £210m in outstanding bonds for as much as 206% of the outstanding principal amount.

    • 06 Jan 2015
  • PSB shows signs of liquidity with buyback

    Promsvyazbank has made another opportunistic move to manage its debt liabilities, on Monday announcing a buyback of 10% of its 2015s and 2016s. The move shows the bank has liquidity to deploy and follows an earlier buyback in December.

    • 06 Jan 2015
  • Turk Eximbank seeks one year loan

    Turk Eximbank is seeking to sign a one year loan, say bankers.

    • 06 Jan 2015
  • RSB fails to secure support for capital update

    Russian Standard Bank has withdrawn its proposed tier two bond update after failing to secure the consent of holders of nearly half of the bond before the December 16 deadline. The offer looked to be struggling as early as mid-December when the bank increased the late consent fee from 1% to 5% to switch to the new notes.

    • 06 Jan 2015
  • Investec hires von Hartig to head DCM

    Investec has hired Florian von Hartig as head of DCM. Von Hartig joins from Standard Bank, where he was global head of debt primary markets, managing DCM, securitization, ratings advisory, transaction execution and bond syndicate.

    • 06 Jan 2015
  • Clydesdale chief quits

    Clydesdale Bank, the UK subsidiary of National Australia Bank, said that David Thorburn, chief executive, had decided to stand down.

    • 06 Jan 2015
  • Sovereign QE is good for covered bonds, says Barclays

    The eurosystem is expected to become a less aggressive buyer of covered bonds if sovereign quantitative easing is announced, according to analysts at Barclays’ research. They recommend investors switch out of peripheral covered bonds into government bonds in the next few weeks.

    • 06 Jan 2015
  • The best hope for covered bonds in 2015

    The third covered bond purchase programme will not expand the European Central Bank’s (ECB) balance sheet to the extent needed because the market is too small. And spread tightening will not encourage greater issuance, as the ECB expects. The best hope for covered bonds in 2015 is for the ECB to give up on CBPP3 and turn its attention to the sovereign market where it has a much better chance of success.

    • 06 Jan 2015
  • Scotiabank follows Barclays in sterling covered

    Scotiabank has tapped its three year sterling FRN for £300m, a day after Barclays issued a £1bn deal in the same maturity. A euro deal could be announced shortly, but bankers warn that the size of the new issue premium needed in euros will present a quandary.

    • 06 Jan 2015
  • FIG markets waiting for better conditions before resumption of dealflow

    Issuers in the European FIG debt markets are unlikely to find the market they were hoping for in the first week of January, traditionally a busy one for the market.

    • 05 Jan 2015
  • Nigeria's FCMB signs loans while Stanbic Uganda eyes deal

    African banks have been busy in the loan market over the winter break, with Nigeria’s First City Monument Bank (FCMB) signing term loans and Stanbic Uganda rumoured to be coming to market. Meanwhile, Zenith Bank of Nigeria has revealed the allocations of its recent $300m loan.

    • 05 Jan 2015
  • Capital volumes set to keep growing after record 2014

    Another busy year for bank capital is likely for 2015 according to syndicate bankers and analysts, with volumes for tier one and tier two debt expected to improve on last year’s record showing for bank capital.

    • 05 Jan 2015
  • China Huarong picks 15 banks for dollar offering

    China Huarong Asset Management is looking to become one of the first Asian companies to tap the debt market this year by putting together a massive 15 bank syndicate for a dollar bond that is expected to launch later this week.

    • 05 Jan 2015
  • CS gets soft bullet consent second time round

    Credit Suisse finally received investors consent to change the maturity of a number of deals from hard to soft bullet maturities at a second vote held on December 30, 2014.

    • 05 Jan 2015
  • NBC mandates for roadshow

    National Bank of Canada has mandated leads for a roadshow starting next week.

    • 05 Jan 2015
  • Barclays issues first covered bond of 2015

    The primary covered bond market was re-opened by Barclays Bank, which issued a £1bn three year sterling deal on Monday. Order book momentum was slow to build reflecting an underlying uncertainty about the near term spread outlook and the size of new issue premiums that will be required next week when the more important euro market is expected to open.

    • 05 Jan 2015

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UniCredit 10,283.03 88 6.01%
2 HSBC 9,924.14 51 5.80%
3 LBBW 8,393.04 48 4.91%
4 Natixis 7,239.94 37 4.23%
5 UBS 7,025.55 38 4.11%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 55,206.99 242 6.06%
2 JPMorgan 52,753.76 271 5.79%
3 Citi 52,120.64 279 5.72%
4 Morgan Stanley 41,067.38 223 4.51%
5 HSBC 36,375.06 225 3.99%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 45,511.73 199 11.58%
2 JPMorgan 42,181.52 207 10.73%
3 Citi 40,920.97 214 10.41%
4 Morgan Stanley 30,577.16 152 7.78%
5 Goldman Sachs 27,936.22 261 7.11%

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 14.33%
2 UBS 4,233.38 20 9.83%
3 BNP Paribas 3,846.71 16 8.93%
4 Credit Agricole CIB 3,549.81 11 8.24%
5 HSBC 2,321.22 16 5.39%