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Santander drew criticism last week for the way it has tackled its sub debt buyback. But its actions were hardly out of character. And anyone desperate for an exit will still welcome the opportunity.
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An overwhelming majority of investors believe that another LTRO is inevitable. The previous two interventions disrupted normal market operations. The ECB must tread carefully with its third.
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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.