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The covered bond market has a reputation for allowing tough trades to be done, so when My Money Bank postponed its debut deal, the product was imprudently tarnished. The situation could have been avoided had the deal been launched a week earlier or sometime later — just not last week. -
It is high time that the famously conservative Japanese market started embracing new practices. There are signs that modernisation is afoot.
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Over the weekend, Harris County in Texas voted in favour of issuing bonds to pay for flood defences, a year after Hurricane Harvey caused terrible damage in the Houston region. It is part of a wider tussle over who bears the risk of catastrophes — and the capital markets are at the forefront of the discussion.
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It is misplaced to be relaxed about the speed with which banks are aligning their liability structures with regulatory requirements.
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Amid the chaos in Turkey, bankers are pitching bond buy-back opportunities to the country's beleaguered banks. Many argue that those in a position to take them up should be looked upon favourably by investors. The problem is, those investors might not even notice.
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The sovereign credit crisis spurred lawmakers to undertake a number of major initiatives designed to sever the ‘doom loop’ — the link between sovereign and bank credit risk. Recent events in Italy and Turkey show the limits of these policies, but not their impotence.
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There is something strange about allowing banks to use ordinary senior debt to count towards their minimum requirement for own funds and eligible liabilities (MREL).
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Rabobank has launched a green CP and certificate of deposit programme, opening up the world of short-term debt to SRI investors for the first time.
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Market participants should not become complacent about the battles that are still taking place over the handling of the resolution of Banco Popular, because the outcome is likely to form the blueprint for what will happen when any large European bank fails in the future.
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The concept behind the European Secured Note was never genuinely driven by a desire to improve bank funding options, but by a need to ring-fence the quality of assets in covered bonds.
