• EU urged to press on with sustainable finance

    A group of nine NGOs, trade unions and other civil society groups have got together to produce an independent white paper setting out in detail how they believe the European Union’s Sustainable Finance Action Plan should progress. It calls on the EU to push ahead with the Plan, only some of whose targets have been acted on so far, and to take it further and deeper.

    • 28 Feb 2019
  • ECM aghast at Brexit delay plans but DCM encouraged

    Theresa May’s decision this week to allow Parliament to vote on extending the Brexit deadline by three months has split the UK capital markets down the middle. Bond bankers are cheered and believe UK issuance is likely to rise — but equity deal originators see it as another three months of stagnation, with IPOs all but impossible. Jon Hay, Sam Kerr, Tyler Davies and Aidan Gregory report.

    • 28 Feb 2019
  • Bankinter EUR500m 0.875% Mar 24

    • 28 Feb 2019
  • KBC Group EUR500m 4.75% PNC5 AT1

    • 28 Feb 2019
  • IMF’s Lagarde urges politicians not to weaken bank rules

    Christine Lagarde, head of the International Monetary Fund, warned politicians on Thursday not to roll back banking regulations established in the wake of the financial crisis, as she highlighted a spike in financial pay. She also discussed ways of making finance more sustainable in its outcomes, and how fintech could improve inclusivity.

    • 28 Feb 2019
  • UBI Banca EUR500m 5.875% 10NC5 tier two

    • 28 Feb 2019
  • An idea whose time has not come

    The common eurozone sovereign bond keeps rearing its head as a supposed solution to the monetary union’s problems.

    • 28 Feb 2019
  • Banks chase debt rally with big deal pricing revisions

    Financial institutions have been crushing new issue premiums by ratcheting in the pricing on new issues as they look to keep up with an impressive rally in the secondary market in February.

    • 28 Feb 2019
  • MUFG snatches dollar record in quiet market

    Mitsubishi UFJ Financial Group grabbed the record for the biggest Yankee dollar deal of 2019 and the largest ever by a Japanese financial institution when it printed a $5.5bn five-part transaction on Tuesday.

    • 28 Feb 2019
  • People moves in brief

    Mizuho replaces global markets head after less than a year — Syndicate banker leaves ING — Hudson joins Credit Suisse executive board

    • 28 Feb 2019
  • FIG’s big rally finds its limit: Italy’s second tier banks

    Conditions in the primary market have been nothing short of remarkable towards the end of February, with cash-rich investors chasing down new issues and letting banks get away without paying premiums. But FIG bankers say that there is one section of the market that is unlikely to be allowed to join in the party: Italy’s second tier banks. Tyler Davies reports.

    • 28 Feb 2019
  • NordLB subsidiaries find mixed responses with new deals

    NordLB’s Luxembourg subsidiary extended its covered bond curve with a well-received five year public sector backed deal on Wednesday. But NordLB’s capital problems weighed on the performance of a covered bond deal earlier in the week from Deutsche Hypo, another of its subsidiaries.

    • 28 Feb 2019
  • Metro Bank does the rights thing

    Metro Bank, the dog-friendly UK challenger bank which is launching branches while others close them, has had a rough time recently — with faults mainly of its own making. But whatever you think of the bank’s business model, it’s got one thing right.

    • 28 Feb 2019
  • Godall in, Peerbhoy out at Mizuho

    Asif Godall has been appointed as head of global markets for EMEA at Mizuho International plc, replacing Zahra Peerbhoy. Godall joins from Cairn Capital, where he was co-chief investment officer.

    • 28 Feb 2019
  • Carige brings fresh turnaround plan in bid to attract a partner

    Banca Carige, the struggling Italian lender, said this week that it was looking for €630m of new equity capital to carry out an ambitious plan to bring its non-performing exposure (NPE) ratio down to 6%-7% from 22%. The institution is also hoping to overhaul its funding sources, faced with replacing €5.5bn of financing from the Italian government and the European Central Bank.

    • 28 Feb 2019
  • QNB Finansbank books over $1.4bn, guidance revised

    QNB Finansbank has revised initial price thoughts for its benchmark dollar 5.5 year bond, with books for the deal over $1.4bn. Both an investor and a syndicate official had said earlier in the day they expected tighter pricing.

    • 28 Feb 2019
  • ABN opts for pragmatism over ambition

    ABN Amro, one of the banks at the centre of the global financial crisis in 2008, hopes that a new structure designed to deliver on a corporate and institutional banking (CIB) strategy anchored closer to home will allow it to prosper.

    • 28 Feb 2019
  • Singapore hosts its first cat bond

    Insurance Australia Group (IAG) has launched the first catastrophe bond out of Singapore, as the Lion City seeks to become a hub for insurance-linked securities (ILS) by offering grants to issuers.

    • 28 Feb 2019
  • Germany sanctions UK Pfandbrief assets post-Brexit

    The German lower house has approved an amendment to Pfandbrief legislation that should ensure UK assets remain eligible in German Pfandbriefe. Had the amendment not been passed, overcollateralization ratios of some Pfandbriefe would have fallen sharply.

    • 28 Feb 2019
  • Metro launches capital raise following accounting blunder

    Metro Bank has obtained a standby underwrite for a £350m ($464m) equity raise to be completed later this year, even as short sellers circle around the bank. The miscalculation in its risk-weighted assets (RWAs) announced last month, and an expected delay in getting permission for internal models to calculate those weightings, are both damaging for its capital ratios.

    • 27 Feb 2019
  • Haywood: I was unjustly singled out

    Tim Haywood, the portfolio manager dismissed from GAM for gross misconduct, says he is appealing against his former employer’s decision.

    • 27 Feb 2019
  • NordLB Lux enjoys great result for five year covered bond

    NordLB’s Luxembourg subsidiary extended its covered bond curve on Wednesday with an well received five year public sector backed deal. The bonds offered a very attractive spread for a deal from a core European jurisdiction, ensuring that demand from a diverse audience was quick to build.

    • 27 Feb 2019
  • Political agreement paves way for covered bond directive

    The development of a harmonised European covered bond legal framework hit a new milestone on Tuesday after an agreement was reached by the European Parliament and member states on the covered bond directive, paving the way for final approval in a few weeks.

    • 27 Feb 2019
  • QIIB order book hits $4bn before pricing well inside guidance

    Qatar International Islamic Bank sold its $500m five year sukuk on Tuesday, printing 25bp inside initial price guidance from an order book that reached $4bn in the first international sukuk deal from Qatar since May 2017.

    • 27 Feb 2019
  • Investors flock to rare Bankinter senior print

    Bankinter found plenty of demand for a new senior transaction on Wednesday, as the Spanish lender entered a strong market to refinance its only other outstanding senior bond.

    • 27 Feb 2019
  • Créd Ag to add to funding run in popular Euroyen format

    Crédit Agricole put out price thoughts for a non-preferred senior bond in the Euroyen market on Wednesday, getting the ball rolling on its third public debt offering in the space of a week.

    • 27 Feb 2019
  • QNB Finansbank markets first Turkish senior bond since March '18

    Turkish lender QNB Finansbank has mandated six banks to arrange a dollar 5.5 year Reg S/144A benchmark senior bond, the first senior bond from a Turkish bank since March.

    • 27 Feb 2019
  • Investors cool on extension risk as AT1 market blossoms

    Investors have moved on quickly from the first ever non-call decision on an additional tier one instrument this month, allowing banks to thrive in the new issue market. The feeling among some funds is that any fears about extension risk have simply been overdone.

    • 27 Feb 2019
  • Financial markets income holds up for Stan Chart

    Standard Chartered posted stronger numbers for financial markets products last quarter than its peers, with the investment bank also reducing credit impairment levels.

    • 27 Feb 2019
  • ICBC Leasing squeezes pricing for tight $1.5bn bond

    ICBC Financial Leasing Co pulled off an ultra-tight spread on both tranches of a $1.5bn bond. The issuer built a mammoth order book with generous initial guidance but ultimately pushed investors inside fair value estimates.

    • 27 Feb 2019
  • New sustainable benchmarks regulation: read the small print

    The EU’s first piece of sustainable finance legislation sets rules for green investment indices. That is all well and good, but more promising is a hint that all the ordinary indices may have to admit how un-green they are.

    • 26 Feb 2019
  • The EU is internalising the deficiencies of the Banking Union

    It is richly ironic that incoming measures meant to take Europe one big step closer to completing its Banking Union have ended up recognising that nothing of the sort actually exists.

    • 26 Feb 2019
  • IFRS 9 and 16: Fake changes with real consequences

    Even credit geeks relegate accounting geeks to the back corners of the classroom. It’s proverbially dry, and shouldn’t affect real world issues, such as whether a company can deliver returns for its shareholders and pay its debts. But seemingly esoteric accounting changes can mean major real world consequences. It’s not just for the geeks; it’s time to get real about IFRS.

    • 26 Feb 2019
  • Covered bonds excel in superb market

    Covered bonds issued by Intesa Sanpaolo, Axa Bank and Aktia on Tuesday “flew out the door”, according to leads, with the depth and breadth of demand surpassing expectations. The superb conditions may not last, but exuberance is expected to prevail for now.

    • 26 Feb 2019
  • KBC completes refi, brings AT1 flurry to euro market

    KBC Group completed a refinancing round for its €1.4bn perpetual non-call March 2019 additional tier one on Tuesday, becoming the first issuer to target euros in a recent flurry of issuance in the asset class.

    • 26 Feb 2019
  • QIIB tightens sukuk after books hit $2.9bn

    Qatar International Islamic Bank has tightened price guidance on its five year sukuk and set the size of the deal at $500m after books for the note exceeded $2.9bn.

    • 26 Feb 2019
  • Ex-Barclays chair Grimstone to join Gulf infra fund

    Sir Gerry Grimstone, whose departure from Barclays was announced last week, is joining a joint venture between Investcorp and Aberdeen Standard Investments as chair.

    • 26 Feb 2019
  • Investors bet on UK terrorist attacks in cat bond first

    Pool Re, a government-backed reinsurer, has priced the first ever catastrophe bond to cover terrorist attacks specifically, allowing investors to receive a return from providing insurance cover. Those on the deal claim it shows the depth of the UK’s financial expertise in the insurance linked securities (ILS) market.

    • 26 Feb 2019
  • Jupiter CFO quits for insurer

    Charlotte Jones will be leaving Jupiter Fund Management to join RSA Insurance Group.

    • 26 Feb 2019
  • NordLB questions weigh on Pfandbrief demand

    Saddled with the problems of its parent group and in the absence of a top rating, Deutsche Hypo had to settle for what it could get in the market on Monday. The fact that it raised €625m of 10 year funding at a level close to its curve was therefore something of a minor triumph.

    • 25 Feb 2019
  • Volksbank Wien makes stellar Pfandbrief entrance

    Volksbank Wien on Monday became the 12th bank in Austria to issue benchmark covered bonds, selling its debut deal on the back of the highest subscription of any benchmark from the country in over two years.

    • 25 Feb 2019
  • Créd Ag blows out in hot FIG market with €6bn demand for 10yr MREL bond

    Investors put in more than €6bn of orders for a new non-preferred senior bond from Crédit Agricole at the beginning of the week, after the French bank opened books on the longest dated deal of the year so far.

    • 25 Feb 2019
  • UBI tests risk appetite in euros with T2 print

    UBI Banca has given financial institutions bond investors one of their first opportunities to pick up high yielding product in the euro market this year, with the Italian lender opening books on a new tier two on Monday.

    • 25 Feb 2019
  • BOC’s Ha resurfaces at Chinese rival

    Former Bank of China syndicate head Sebastian Ha has joined SPDB International as its head of fixed income.

    • 25 Feb 2019
  • Amex leads the way in dollars with funding splurge

    Financial institutions have accessed the dollar market with ease this week, but Yankee bank supply has nonetheless remained subdued.

    • 22 Feb 2019
  • Grimstone to quit Barclays

    Sir Gerry Grimstone is vacating his position as chair of Barclays’ non-ringfenced bank at the end of the month, to be replaced by incoming group chair Nigel Higgins.

    • 22 Feb 2019
  • Scandal-stricken Danske tops up MREL in booming market

    Danske Bank paid a higher than average new issue premium for non-preferred senior this week, as the money laundering scandal surrounding the institution deepened with new investigations and supervisory actions.

    • 22 Feb 2019
  • Deloitte predicts TFS will end, prompting UK covered bond boom

    Analysts at Deloitte said this week that they expected the Bank of England would not renew its Term Funding Scheme, leading to a substantial rise in secured issuance volumes. This is at odds with the views of some market participants, who believe that Brexit could make a new funding programme inevitable in the UK.

    • 22 Feb 2019
  • Green Taxonomy risks becoming a greenwash

    Of all the parts of the EU Sustainable Finance Action Plan, the Taxonomy is closest to the heart of the green bond market.

    • 21 Feb 2019
  • Issuers spy chance for dream deals as credit marts erupt

    A potent mix of ingredients this week yielded some of the most fertile primary market conditions of the year across credit classes. Borrowers emerged from blackouts blinking into a dazzlement of demand. Now they are urged to do the deals they have long dreamed of before the market sours.

    • 21 Feb 2019
  • Conservative MEPs quail at pushing for ‘brown’ list in green Taxonomy

    Centre right members of the European Parliament have balked at approving a proposal to change the EU’s Taxonomy of Sustainable Economic Activities so it highlights unsustainable activities. Jon Hay reports.

    • 21 Feb 2019
  • The banking package: four of the key changes to capital regulations

    The European Union is on the cusp of overhauling its prudential capital rules for banks. The incoming regulatory changes have far-reaching consequences, including for the debate around green finance, the future for dividend payouts and for the market for non-performing loans (NPLs).

    • 21 Feb 2019
  • People moves in brief

    Soc Gen places ECM bankers on risk list — Sofr architect to retire — Ex-Bridgewater COO joins blockchain firm

    • 21 Feb 2019
  • BBVA EUR1bn 1.125% Feb 24 non-preferred

    • 21 Feb 2019
  • ING Groep USD1.25bn PNC5.2 AT1

    • 21 Feb 2019
  • OP Corporate Bank EUR500m 0.375% Feb 24 green

    • 21 Feb 2019
  • Rabobank EUR1.25bn 0.625% Feb 24 non-preferred

    • 21 Feb 2019
  • Banks resurface as FIG market glows red hot

    FIG bond market participants were speaking in superlatives as new bonds flew off the shelves this week. But some DCM officials are advising their clients not to count on conditions remaining evergreen through the rest of 2019, encouraging them to put long-held deal plans into action.

    • 21 Feb 2019
  • Estonian covered bond law opens door for Luminor Bank

    The Estonian parliament’s recent approval of covered bond legislation paves the way for the first Baltic deal, which could come from Luminor Bank, but whether it is initially secured on a pool of pan-Baltic mortgages remains to be seen.

    • 21 Feb 2019
  • Barclays finds a stick to shake at Bramson

    Barclays’ corporate and investment bank performed strongly relative to peers in the last quarter of 2018, helping management make the case for a strong CIB franchise against investor Edward Bramson, who wants it to downscale this part of the group. Although analysts reckon the argument will continue, Aviva Investors announced it would be siding against the activist, after the results were released on Thursday.

    • 21 Feb 2019
  • Sparebanken 1 the best of the rest in survey

    Sparebanken 1 Boligkreditt’s (Spabol) 10 year has the highest covered bond mark of all deals issued by any bank outside the eurozone this year on GC BondMarker. SEB issued the highest scoring Swedish deal and Royal Bank of Canada (RBC) issued the best ranking Canadian covered bond this year.

    • 21 Feb 2019
  • BNPP comes through conventional curve with new green bond

    BNP Paribas saved about 5bp on pricing by going green with its latest non-preferred senior offering this week, bringing the deal against an impressive market backdrop.

    • 21 Feb 2019
  • Pfandbrief trio vie to be top dog in covered bonds

    Of the 13 German Pfandbriefe issued this year, a trio of deals issued by DZ Hyp, BayernLB and Deutsche Pfandbriefbank are vying for the top covered bond mark.

    • 21 Feb 2019
  • AT1 pipeline holds at least two more deals as market thrives

    Banks are circling the additional tier one market, looking to replicate very well received transactions from Crédit Agricole and ING Groep this week.

    • 21 Feb 2019
  • SG and CM-CIC covered bonds win top marks, Caffil has scope to improve

    Société Générale’s €1bn eight year and Credi-Mutuel CIC’s €1bn five year are leading the way with the highest mark of all French covered bonds issued this year on GC Bond Marker. But with the survey still open on Caffil’s recent €1bn 10 year social debut, these two issuers could well be knocked off the top spot.

    • 21 Feb 2019
  • CCB, Citic keep Asia bank capital on a roll

    China Construction Bank (CCB) and China Citic Bank International this week priced Basel III-compliant tier two deals, raising $2.35bn between them. The deals represent only the latest supply from Asia’s bank capital market, which is gearing up for a busy year. Addison Gong reports.

    • 21 Feb 2019
  • UBS tax fraud charge outstrips expectations and provisions

    UBS is appealing a decision in France that would see it pay €4.5bn after being found guilty of helping clients defraud the tax authorities. The total amount topped market expectations, dwarfed the bank’s provisions for litigation, and gobbled up its 2018 net profits and then some.

    • 20 Feb 2019
  • Créd Ag set to make it three in a week for AT1 market

    Crédit Agricole was building momentum behind a new additional tier one in the dollar market on Wednesday morning, the third deal in the asset class in the space of seven days.

    • 20 Feb 2019
  • BBVA, Rabobank hit non-preferred as investors put cash to work

    BBVA and Rabobank were both selling non-preferred senior bonds in euros on Wednesday, with investors showing a real thirst for new supply after a quiet start to the year.

    • 20 Feb 2019
  • FIG market enjoys boom as returns buoy funds

    Banks have been drawing strong demand for new and outstanding bonds as financial debt funds gain confidence having posting some of their highest monthly returns since 2016.

    • 20 Feb 2019
  • NN Bank improves on Achmea showing with CPT

    Dutch issuer NN Bank attracted twice as much demand for its conditional passthrough (CPT) covered bond on Wednesday as its compatriot Achmea managed last week. Moreover, the issuer was able to tighten the spread much further from the initial level, enabling it to be priced with virtually no new issue concession.

    • 20 Feb 2019
  • HVB Pfandbrief tap shows how times have changed

    UniCredit’s German subsidiary, HVB, attracted much more demand for a €500m tap of a 10 year benchmark on Wednesday than when the bond was originally issued in January. Not only that but it did so at a tighter spread and new issue concession. The strong execution underscores just how much market sentiment has improved.

    • 20 Feb 2019
  • Citic Bank sells tier two as legacy treatment falls

    China Citic Bank International has priced a $500m Basel III-compliant tier two deal inside fair value, as the lender looks to switch out of a legacy tier two that not only has a high interest rate but has also lost most of its capital recognition over time.

    • 20 Feb 2019
  • Hartwell joins NAB for corps and FIG role

    Tylor Hartwell is starting at National Australia Bank, after leaving Sumitomo Mitsui Banking Corporation earlier this year.

    • 20 Feb 2019
  • No need to panic over UK banks' China exposure

    The UK banking sector has more links to China than the equivalent sectors in the US, Japan, the euro area and South Korea do combined. Analysts are warning that China's growth is slowing, and HSBC’s poor results have been linked to this. But those espousing that view are overstating the connection.

    • 19 Feb 2019
  • Cross-border recognition of assets is key to pan-Baltic covered bond success

    Covered bonds offer a way for Baltic banks to develop a new seam of long-term standalone wholesale funding. But a successful conclusion to this project will depend on whether investors are convinced there is an effective mechanism for cross-border recognition of assets.

    • 19 Feb 2019
  • There’s only one way forward for Greek NPLs

    As investors and service providers pour into the market for Greek non-performing loans, authorities in the country have proposed two schemes to help the country's banks meet their ambitious targets for selling off these assets and cleaning up their balance sheets. Only one of them deserves serious consideration.

    • 19 Feb 2019
  • Credit revenue halves at HSBC

    HSBC’s global banking and markets business increased its use of reserve repo and customer deposits for funding in 2018. But it endured a tough fourth quarter, with inflows from credit in its fixed income, currency and commodities (FICC) division sinking by 49.7%.

    • 19 Feb 2019
  • Luminor to test pan-Baltic covered bonds under Estonian law

    Parliamentary approval of Estonian covered bond legislation opens the way for Luminor Bank to make the first steps towards establishing a pan-Baltic covered bond market, according to the bank’s head of treasury, Max Ehrengren.

    • 19 Feb 2019
  • EBA nominates new chair from Santander

    The European Banking Authority has gone to the private sector for its next appointment as chair.

    • 19 Feb 2019
  • Estonia kicks out Danske Bank

    The Estonian Financial Services Authority this week ordered Danske Bank to leave the country. The Danish lender replied that it would exit the Baltics and Russia as a whole. Meanwhile, the Estonian regulator and its Danish counterpart are under investigation for a possible breach of European Union law in relation to Danske’s money laundering scandal.

    • 19 Feb 2019
  • Santander CF brings in €1bn of funding in ‘red hot’ market

    Santander Consumer Finance was about four times subscribed for a €1bn senior deal on Tuesday, with the euro primary market firing on all cylinders.

    • 19 Feb 2019
  • ING draws more than $8bn of demand for tight AT1 print

    A flood of orders helped ING Groep to price a $1.25bn additional tier one on top of fair value on Tuesday, with the Reg S dollar market back in action after Banco Santander’s landmark extension decision.

    • 19 Feb 2019
  • OP ushers in a ‘new spread regime’ in senior

    OP Corporate Bank came with tight pricing for its first ever green bond on Tuesday. The Finnish lender took just two and a half hours to complete its trade, over three months after it first spoke with investors about a possible transaction.

    • 19 Feb 2019
  • UBI issues most heavily subscribed OBG in six years

    Unione di Banche Italiane issued the most heavily subscribed Obbligazioni Bancarie Garantite since January 2013, showing that, despite pricing over 100bp tighter than Italian government bonds, it offered value to some investors. Demand was probably boosted by an improvement in sentiment that followed comments from the European Central Bank suggesting a new stimulus package is in the offing.

    • 18 Feb 2019
  • Covered bond pipe rebuilds as issuers emerge from blackout

    The Mortgage Society of Finland has mandated leads for a roadshow with a view to issuing a seven year deal. It follows Volksbank Wien which mandated leads last week and precedes a number of issuers expected to announce mandates after emerging from blackout.

    • 18 Feb 2019
  • EU Parliament calls for ‘brown’ category in green Taxonomy

    Members of the European Parliament are planning to add a controversial ‘non-sustainable’ category to the Taxonomy of Sustainable Economic Activities proposed last year by the EU Commission. Two Brussels sources have told GlobalCapital the Parliament's vote on the issue, scheduled for Wednesday February 20, has been postponed after heavy pressure from corporate lobbyists.

    • 18 Feb 2019
  • Fresh TLTRO talks feed into positive backdrop in FIG

    Expectations of a new round of targeted longer-term refinancing operations (TLTROs) for banks, fanned by recent comments from executive members of the European Central Bank, are feeding into a positive backdrop in the financial institutions bond market.

    • 18 Feb 2019
  • New names join swelling Middle East pipeline

    A pair of Middle Eastern borrowers hit screens announcing bond roadshows on Monday, marking the end of a period of scanty supply for what is expected to be the busiest region in emerging markets bonds this year.

    • 18 Feb 2019
  • NatWest Markets trips up on trading, as RBS cautions on Brexit

    Royal Bank of Scotland’s commercial banking division grew its operating profit last quarter, its latest results revealed last Friday, despite corporate clients steering away from spending as they await the outcome of Brexit. Its investment bank, NatWest Markets, endured a difficult quarter, however.

    • 18 Feb 2019
  • Research round-up: slowing supply should support spreads

    New issue premiums have stabilised at reasonable levels, oversubscription ratios have steadied and secondary flows are more mixed. While a small widening cannot be ruled out, the more constrained supply outlook will keep spreads in check.

    • 15 Feb 2019
  • SG and ING pile into yen amid bumper demand from investors

    Société Générale is enjoying a record year in the Japanese debt markets, after selling its debut deal in Euroyen format late on Friday. The transaction received strong demand from investors, even though it was marketed at the same time as another total loss-absorbing (TLAC) eligible transaction from ING Groep.

    • 15 Feb 2019
  • Banking package stands on cusp of final approval

    The European Union is just centimetres away from signing off on a long-awaited revamp of its prudential capital rules for banks, after EU ambassadors gave the green light on Friday to texts agreed by the Council and Parliament at the end of 2018.

    • 15 Feb 2019
  • Lloyds chooses Chalmers as CFO

    Lloyds Banking Group has appointed William Chalmers, a Morgan Stanley FIG banker, as its next chief financial officer.

    • 15 Feb 2019
  • Cinda AMC goes conservative on bond size

    China Cinda Asset Management Co raised $1bn from a foray into the bond market, going for the lower-end of its size target despite what bankers on the deal called an ‘overwhelming’ response from investors.

    • 15 Feb 2019
  • BBVA EUR750m 2.572% Feb 29 T2

    • 14 Feb 2019
  • Société Générale EUR1.75bn 1.25% Feb 24 non-preferred senior

    • 14 Feb 2019
  • UniCredit EUR1bn 4.875% Feb 29 tier two

    • 14 Feb 2019
  • Zurich Insurance EUR500m 2.75% Feb 49 tier two

    • 14 Feb 2019
  • Levfin and a bad block weigh on Credit Suisse

    Credit Suisse’s fourth quarter results showed damage from the high yield and leveraged finance market’s tantrum in the last quarter of 2018. The bank was also hit by a Canada Goose block trade gone wrong.

    • 14 Feb 2019
  • AT1s: extend but don't pretend

    Additional tier ones couldn’t have reacted any more calmly to the first ever extension of a deal this week, but the market is still a long way from overcoming its ultimate test.

    • 14 Feb 2019
  • AT1 market looks on the bright side of Santander extension

    The bigger surprise in the financial institutions debt market this week was not that Banco Santander decided to extend the life of an additional tier one bond, but rather that the subordinated debt market took the decision in its stride.

    • 14 Feb 2019
  • Credit Bank of Moscow joins Russia resurgence in euros

    Credit Bank of Moscow printed a €500m five year bond on Tuesday, taking advantage of positive sentiment towards Russian bonds that existed early in the week before new talk of fresh US sanctions on Russia later dented enthusiasm for the country’s credit.

    • 14 Feb 2019
  • UBS pivots from FIG to GIG

    UBS is re-balancing its corporate finance business to end its reliance on its Financial Institutions Group with impressive results, writes David Rothnie.

    • 14 Feb 2019
  • Commerz readies for Brexit by moving jobs and clearing activity

    Commerzbank has faced some resistance from staff over moves from the UK to continental Europe in preparation for Brexit, although the bank says those who have moved have no regrets. Meanwhile, margin pressure has been weighing on the bank’s corporate clients division, but there were positive signs in its financial institutions business last quarter.

    • 14 Feb 2019
  • Scope berates ECB for covered bond OC signalling

    The European Central Bank’s liquidity stress test requires banks to report the maximum volume of covered bonds they could issue. This sends the wrong message to issuers who will think it is alright to max out on covered bond issuance, even though it reduces the overcollateralisation (OC) that is there to protect investors.

    • 14 Feb 2019
  • No reason to wait on market conditions, says Deutsche treasurer

    Deutsche Bank has pulled about $5.25bn equivalent of non-preferred senior funding out of the market in the past two weeks, stomaching higher funding costs than some of its peers. The bank’s treasurer told GlobalCapital this week that it was prudent to step into the market now, with the issuer having cut through half of its target for loss-absorbing debt issuance in 2019.

    • 14 Feb 2019
  • Cap markets revenue falls by a third at Créd Ag

    Crédit Agricole provided no let-up in the disappointing performances of fixed income, currencies and commodities (FICC) desks in French banks’ fourth quarter results. By one measure it was the lender's worst quarterly result there in more than six years.

    • 14 Feb 2019
  • Vakifbank sells second covered bond of 2019

    Vakifbank has found competitive funding with a privately placed covered bond, its second of the year, sold via sole lead manager Credit Suisse, even though the publicly syndicated Turkish covered bond market has been closed for some time.

    • 14 Feb 2019
  • Svenska reboots AT1 market after landmark extension decision

    Svenska Handelsbanken found strong demand at tight levels for a new additional tier one this week, helping to put to bed any concerns that the market might be languishing after the first ever ‘non-call’ in asset class.

    • 14 Feb 2019
  • BBVA obliterates T2 premium as demand swirls around southern Europe

    BBVA did not have to offer any premium to investors to bring in a new tier two bond on Thursday, according to lead managers, as asset managers show renewed thirst for debt from southern European financial institutions.

    • 14 Feb 2019
  • RHB squeezes investors with tightly priced bond

    Malaysia’s RHB Bank ended its dollar bond market hiatus on Tuesday, offering a $300m bond that got big demand despite its ultra-tight pricing.

    • 14 Feb 2019
  • AT1s to bounce back from first non-call as Svenska mandates

    Svenska Handelsbanken picked banks on Wednesday to arrange the sale of a new additional tier one in the dollar market, with the dust yet to settle around Banco Santander’s decision to extend the life of one of its instruments.

    • 13 Feb 2019
  • Covered bond spreads ‘tread water’ as coverage falls

    BPCE and Achmea Hypo managed good price and size outcomes for their covered bonds issued on Wednesday, but the fact they were less well subscribed than recent deals added to the impression that the recent good run has stalled, with spreads now ‘treading water,’ a lead manager conceded.

    • 13 Feb 2019
  • UniCredit crushes premium with T2 outing

    Italy’s UniCredit was able to raise €1bn of new tier two capital without having to pay a large premium on Wednesday, adding to recent evidence that the subordinated debt market is in rude health.

    • 13 Feb 2019
  • ABN to unleash €1bn of AT1 through legal merger

    ABN Amro is set to boost its capital ratios through merging its operating and holding companies.

    • 13 Feb 2019
  • Performance fees offset deriv loss for Natixis

    Two numbers stood out in Natixis’ fourth quarter results: the €259m loss from Asian equity derivatives, and the €249m of performance fees generated by its asset and wealth management business.

    • 13 Feb 2019
  • Santander becomes the first bank to extend an AT1

    Banco Santander broke new ground in the additional tier one market on Tuesday, when it said that it would not be calling its €1.5bn 6.25% bonds. Many investors were stunned and even angry about the bank’s actions, which could have major implications for the way in which call decisions are viewed across the sector.

    • 13 Feb 2019
  • Green knowledge is not an efficient market

    Biofuels have swollen thanks to policies to combat climate change — even though often, they do not help the problem and can make it worse. This is a shocking record, born of ignorance, both accidental and wilful.

    • 12 Feb 2019
  • Caffil gets superb reception for first social

    Caisse Française de Financement Local (Caffil) attracted orders worth €2.6bn from 110 investors for its debut €1bn social covered bond on Tuesday — the first from a French issuer. The deal, which was subscribed in half an hour, was priced flat to Caffil’s curve.

    • 12 Feb 2019
  • EU time-pressured to give supervisors more powers

    The European Council on Tuesday confirmed its position on the review of the European system of financial supervision. It maintained that supervisors should not be funded by private firms, but agreed to give the European Securities and Markets Authority (ESMA) more power. But there is now a rush to find an agreement with the European Parliament before its members go on leave for May’s elections.

    • 12 Feb 2019
  • Covered bond mandates pile up as new issuers dawn

    Volksbank Wien has mandated leads for a roadshow to market its debut covered bond and BPCE has mandated leads for the second French covered bond of the week. Meanwhile, Moody’s has assigned ratings to the covered bonds of Caja Rural de Granada, which has yet to issue its first deal.

    • 12 Feb 2019
  • ING targets seven year tenor on return to sterling

    ING made a comeback in the sterling market on Tuesday, targeting the seven year part of the curve with a senior deal from its holding company.

    • 12 Feb 2019
  • Credit Bank of Moscow hedges bets with Reg S/144A euro bond

    Credit Bank of Moscow has tightened price guidance for its euro five year bond, with books in excess of €800m for the Reg S/144A note — an unusual format for a euro deal, but one designed to provide a fall back option of switching to dollars if pricing for the bank’s inaugural euro bond was deemed unfavourable after feedback.

    • 12 Feb 2019
  • SocGen draws big crowd for new TLAC offering

    Société Générale attracted close to €5.5bn orders for a tightly priced new non-preferred senior deal in euros on Tuesday, when it also began marketing two more tranches of loss-absorbing debt in the increasingly popular Euroyen format.

    • 12 Feb 2019
  • Ex-HSBC banker aims to make lending purposeful again

    Dozens, the latest digital banking offering, aims to revolutionise retail banking in favour of the customer, by routing returns back to depositors and avoiding most unsecured consumer lending. Is this an unworkable goal, or is founder Aritra Chakravarty on to something?

    • 12 Feb 2019
  • ING and CBA covered bonds are ‘virtuous’

    ING Bank and Commonwealth Bank of Australia sold 10 year strong covered bond deals on Monday, creating a "virtuous circle" that should encourage more issuers to enter the market, according to one lead manager. But another cautioned that demand for long dated bonds was "frothy".

    • 11 Feb 2019
  • Peripheral banks bounce after positive SREP results

    Southern European banks were given a lift at the beginning of the week, when they emerged from the European Central Bank’s annual supervisory review and evaluation process (SREP) with their capital requirements broadly unchanged.

    • 11 Feb 2019
  • Zurich enjoys smooth ride into tight pricing for T2

    Investors showed strong support for a new subordinated bond from Zurich Insurance at the beginning of the week, though the firm ended up paying only a small premium for the new issue.

    • 11 Feb 2019
  • Italy’s BPER plans AT1 after bank buyout

    BPER Banca will issue a new additional tier one (AT1) as part of the financing for its acquisition of Banco di Sardegna, a small lender based on the Italian island of Sardinia.

    • 11 Feb 2019
  • Banks and investors ignoring biofuel risks

    The harmful climatic effects of biofuels, which policymakers have long promoted as a solution to climate change, are increasingly being pointed out, although the financial industry remains largely unaware of them. A report by ShareAction has highlighted the risks investors and banks are running by financing the burning of wood as a fuel.

    • 08 Feb 2019
  • TSB scores Sonia success second time round

    TSB successfully issued its inaugural Sonia linked deal which, in contrast to the bank’s previous attempt that was blighted by political uncertainty, it attracted a comfortably oversubscribed order book. The successful outcome suggests the bank can now look ahead to a more normal year according to TSB treasurer, Alison Straszewski.

    • 08 Feb 2019
  • OP prices flat to DZ in covered bonds

    OP Mortgage Bank has issued the first Finnish covered bond of the year and did so at the same spread and in larger size than DZ Hyp managed little more than two weeks ago. With 10 year Bund yields heading towards zero, yield starved investors are chasing the market even tighter.

    • 08 Feb 2019
  • Scholz: no bad bank for Deutschmerz, NordLB rescue not state aid

    Olaf Scholz, finance minister and vice-chancellor for Germany, said that there was 'no debate' about the creation of a bad bank in a prospective merger between Deutsche Bank and Commerzbank. He also does not believe that the recapitalisation of NordLB by the association of German savings banks would contravene EU state aid rules.

    • 08 Feb 2019
  • Champagne Nova Scotia toasts TLAC debut

    Bank of Nova Scotia this week became the third Canadian bank to have hit the dollar market with a debut bail-in bond, as spreads continued to rally.

    • 08 Feb 2019
  • Pfandbriefbank demonstrates strength of Swiss model

    Robert Horat, managing director of the Zurich-based Pfandbriefbank schweizerischer Hypothekarinstitute, says he is mystified as to why the pooling model underpinning Swiss Pfandbriefe has not been used as a blueprint for covered bond markets elsewhere in Europe.

    • 07 Feb 2019
  • Raters, investors ‘should cooperate’ on ESG

    Rating agencies and investors are realising they have more in common than they thought when it comes to environmental, social and governance (ESG) factors. And they are more inclined now to work together than find fault.

    • 07 Feb 2019
  • Deutsche Bank EUR1.5bn 1.625% Feb 21/EUR750m 1.875% Feb 22/EUR750m 2.625% Feb 26/GBP500m Feb 24 non-preferred senior

    • 07 Feb 2019
  • Banco Santander USD1.5bn 7.5% PNC5 AT1

    • 07 Feb 2019
  • French duo to ramp up cuts as global markets ops crash

    BNP Paribas and Société Générale both announced new plans to slim down their investment banks this week. They posted sharp drops in revenue across global markets operations that were, on balance, a bit worse than those registered so far by the rest of the industry.

    • 07 Feb 2019
  • AT1s: new bottles, old wine

    Many of the assumptions that surrounded older iterations of perpetual bank capital instruments are still there in the new class of additional tier one securities.

    • 07 Feb 2019
  • Santander AT1 signals start of tough period for call decisions

    A last minute additional tier one deal from Banco Santander this week had investors crossing their fingers in the hope that they can survive 2019 without seeing a bond being extended past its first call date.

    • 07 Feb 2019
  • ECB's TLTRO generosity will prove misplaced

    The European Central Bank (ECB) is well aware of the fact that €400bn borrowed under TLTRO II will no longer be counted as stable funding from June, so a new financing package is certain to be announced in the next month or two. But issuers waiting for a handout are going to be disappointed by what follows and will be obliged to tap capital markets, just as conditions deteriorate.

    • 07 Feb 2019
  • NAB’s CEO and chair to leave after damning report

    The CEO and the chair of National Australia Bank will step down in the wake of a critical report into misconduct in the banking sector.

    • 07 Feb 2019
  • Good Q4 for UniCredit as its CIB goes for a Burton

    UniCredit has hired Richard Burton to lead its corporate and investment banking operations, alongside a host of other changes to its senior staff, as it looks towards a future strategy. On Thursday it revealed results welcomed by analysts.

    • 07 Feb 2019
  • Sparebank 1 SMN sets green framework

    Sparebank 1 SMN is ready to become the first Norwegian issuer of senior unsecured debt that complies with the green bond principles. Other banks, after issuing green unsecured deals are expected to issue green covered bonds.

    • 07 Feb 2019
  • Bankia comes tight for rare T2, not yet set on non-pref

    Spain’s Bankia found a tight pricing level this week for the first benchmark tier two transaction of 2019. The bank is maintaining a higher than average stock of debt in the asset class, having not yet decided to issue non-preferred senior bonds.

    • 07 Feb 2019
  • Gazprom guides with 15bp NIP, Credit Bank of Moscow to follow

    Gazprom, the Russian state oil and gas company, has released price guidance for its seven year dollar benchmark bond, offering a 15bp new issue concession, according to investors. Credit Bank of Moscow is also queued for a return to the international bond markets next week in euros. Russian issuers are re-emerging after some of the US sanctions were lifted last month, improving sentiment.

    • 06 Feb 2019
  • Sparebanken Vest issues largest covered

    Sparebanken Vest Boligkreditt opened books on the first covered bond of the week on Wednesday and managed to issue its largest ever deal with no new issue concession.

    • 06 Feb 2019
  • Santander stuns market with AT1 announcement

    Banco Santander opened books on a new additional tier one deal in dollars on Wednesday, surprising market participants who thought the Spanish bank would not refinance an older series of euro notes before their call date on March 12.

    • 06 Feb 2019
  • Tight covered bond concessions are unsustainable

    Covered bond new issue concessions and spreads have tightened considerably since the start of the year, but it is unsustainable, according to one major investor.

    • 06 Feb 2019
  • Canadian TLAC issuance to ‘increase imminently’, says CreditSights

    Analysts at the research house CreditSights expect that Canadian banks could soon start issuing more senior bonds for their total loss-absorbing capacity requirements (TLAC), having held back from the market after taking care of their funding needs with older forms of senior debt.

    • 05 Feb 2019
  • Covered bond supply hopes dim as market conditions improve

    A sustained improvement in market conditions suggests issuers now have access to a broad mix of funding instruments and, in the wake of January’s extraordinarily heavy covered bond supply, issuance is likely to moderate.

    • 05 Feb 2019
  • EU institutions close in on PEPP compromise

    The European Parliament and the EU member states are planning to approve a provisional agreement on the Pan-European Personal Pension Product (PEPP) in February — one of the flagship pieces of the Capital Markets Union (CMU) initiative.

    • 05 Feb 2019
  • Deutsche floats ‘big numbers’ in four-part MREL offering

    Deutsche Bank offered large new issue premiums in an effort to lure investors towards four tranches of non-preferred senior debt in euros and sterling on Tuesday. The decision to include a two year offering caught some market participants by surprise.

    • 05 Feb 2019
  • Further 'consolidation of Erdogan power' as Isbank to become Treasury property

    Turkish President Tayyip Erdogan said on Tuesday that Isbank will become the property of the country's finance ministry, in what a US-based investor said he saw as a 'further consolidation of Erdogan power'.

    • 05 Feb 2019
  • Bond king retires after a pauper’s year

    Portfolio manager Bill Gross, regarded as a legend of the fixed income investment world, announced his retirement on Monday, after a torrid year for the global unconstrained bond fund he managed at Janus Henderson Investors.

    • 04 Feb 2019
  • Scope for further covered bond tightening questioned

    SEB issued a seven year covered bond last week 9bp tighter than where DNB Boligkreditt was able to print at the start of this year, showing just how far spreads have rallied. Even though the market is still well supported, investors could soon become reluctant to chase the market even tighter.

    • 04 Feb 2019
  • Rabo lawyer swaps bond docs for decks

    Karel Naphausen, formerly head of the capital markets and treasury team in Rabobank’s legal department, is leaving the sector in order to focus on being a DJ and producing house music.

    • 04 Feb 2019
  • NordLB falls well below its minimum capital requirements

    NordLB said at the weekend that it had welcomed an offer of an equity injection from the German association of savings banks (DSGV) and the State of Lower Saxony, as it looks to restore its capital position to above its minimum requirements.

    • 04 Feb 2019
  • FIC revenues hamper Deutsche in Q4

    Deutsche Bank’s weak set of results on Friday were driven by losses in its corporate and investment bank, notably in fixed income and currencies trading, but bank chiefs suggested the CIB performance was set to improve. The bank, subject to rumours about a merger with Commerzbank, also made sure to state that it had more than enough capacity to pay additional tier one coupons.

    • 01 Feb 2019
  • Santander UK issues solid Sonia five year

    Santander UK paid a modest new issue premium for its second Sonia-linked covered bond and the second five year Sonia linked of 2019.

    • 01 Feb 2019
  • Green bond players size up chances of 2019 growth

    Green bond watchers are putting out their forecasts for issuance this year, hoping for a return to growth after a disappointing 2018. The year has started decently, with at least $6bn issued so far, including this week’s debut issue from Telefónica, hailed as the first from the telecoms sector.

    • 01 Feb 2019

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UniCredit 9,899.53 85 5.95%
2 HSBC 9,526.96 48 5.72%
3 LBBW 8,393.04 48 5.04%
4 UBS 7,025.55 38 4.22%
5 Natixis 6,983.61 35 4.20%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 51,652.37 236 5.83%
2 Citi 51,520.64 277 5.82%
3 JPMorgan 50,413.29 259 5.69%
4 Morgan Stanley 37,444.59 211 4.23%
5 HSBC 35,000.16 218 3.95%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 42,087.70 194 11.13%
2 Citi 40,320.97 212 10.66%
3 JPMorgan 40,094.95 197 10.60%
4 Morgan Stanley 27,290.14 144 7.22%
5 Goldman Sachs 26,779.07 255 7.08%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Natixis 5,705.57 22 6.61%
2 LBBW 5,403.66 21 6.26%
3 HSBC 5,076.13 19 5.88%
4 Credit Agricole CIB 4,965.07 22 5.75%
5 Deutsche Bank 4,872.38 17 5.64%

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 6,110.54 14 14.47%
2 UBS 4,173.38 19 9.88%
3 BNP Paribas 3,846.71 16 9.11%
4 Credit Agricole CIB 3,549.81 11 8.41%
5 HSBC 2,155.16 15 5.10%