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Increased demand from dollar investors for yieldy bank paper helped UBS print its new $2bn Coco with permanent principal write-down features. But institutional funds may still not be ready for additional tier one products.
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Central bankers face a tough job keeping markets happy, particularly when reactions to their every word become more extreme each day. ECB president Mario Draghi came in for a torrent of criticism last week after failing to live up to the market's wildest expectations. But he should not be the target
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The US dollar covered bond market is all set for Royal Bank of Canada to issue the first SEC registered deal. But despite the promise this offers, others may not yet be ready to follow.
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As Basel III approaches, investors should expect to see more deals like VTB’s hybrid capital deal. They need to get used the potential variables that such trades bring.
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The Libor scandal raises scores of questions about the state of the banking industry and its regulatory watchdogs. But above all it has highlighted the futility of any attempt to grasp the full mechanics of complex modern banks. Gary Jenkins reckons the only solution is a total reimagining of what the sector should look like.
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The UK’s latest scheme to stimulate the economy, Funding for Lending, has been greeted with an almost audible weary sigh from the market. It should reduce loan funding costs appreciably, which can only help the economy. Whether it unlocks loans for borrowers who can’t get them already is much less certain.
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Aircraft Pfandbriefe raise uncomfortable questions about what is a covered bond. In doing so, they risk jeopardising the regulatory esteem in which the asset class is held.
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After Libor fiddling and swap mis-selling, many are saying investment banks have no place in the commercial banks’ state-protected tent. The middle of a government debt crisis is not the best time to re-open this debate. But sooner or later, the ghosts will have to be faced.
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The top four UK banks are in trouble again, for possible mis-sales of swaps to SMEs. Saying it was a one-off will not do any more. The drive for high profits will always lead to abuses. Tough regulation will be necessary — but the banking model needs to change.
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Analysts have been quick to hit out at Spain's bank stress test results last week, telling anyone who will listen that the 6% core tier one target under the stressed scenario will not give confidence. But the market should remember how far it has come on capital.