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Latest News
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Insurers look after cap stacks as markets glow hot
European insurance companies were busy raising capital in every major currency this week, as they showed they were not willing to let a strong issuance window pass by them amid Covid-19.
28 May 2020 -
BNS to plant a flag for AT1 pricing
Bank of Nova Scotia was looking to test investors’ appetite for one of first additional tier one transactions of the coronavirus pandemic on Thursday, helping to set a reference point for pricing in the asset class.
28 May 2020 -
Phoenix Group swaps old for new but lacks plan transparency
Insurance company Phoenix Group Holdings launched a tier two in the dollar market on Thursday in a refinancing exercise, making use of favourable conditions across the board with a "well received" trade. But the issuance raised some concerns regarding the company’s plans to deleverage after its acquisition of ReAssure.
28 May 2020 -
Banks enjoy tight pricing for capital in ‘momentum market’
Commerzbank and Crédit Agricole this week showed that banks do not have to pay big premiums for subordinated paper, with investors regaining their appetite for risk during the coronavirus pandemic.
28 May 2020 -
Commerzbank flags AT1 issuance intentions
Commerzbank set up an issuance programme this week that will enable it to sell up to €3bn of additional tier one (AT1) debt. The German lender is preparing to take advantage of regulatory relief in its Pillar 2 capital requirements.
27 May 2020 -
Aviva preserves debt capital with new T2
Aviva was set to raise £500m of tier two capital on Wednesday, fuelling speculation that the UK insurer would be looking to call one of its outstanding perpetual bonds.
27 May 2020 -
Afme: EU must consider more relief on leverage ratios
The EU should further loosen bank leverage ratio requirements if it wants to avoid a credit crunch amid Covid-19, according to Michael Lever, head of prudential regulation at the Association for Financial Markets in Europe.
26 May 2020 -
EBA warns of bad loan build-up amid coronavirus
The European Banking Authority warned this week that lenders could struggle with asset quality problems for years as a result of Covid-19, publishing the findings in its first sensitivity analysis of the EU banking sector.
26 May 2020 -
Lloyds extends AT1, blaming coronavirus
Lloyds Banking Group has become the latest financial institution to extend the life of an additional tier one capital instrument (AT1), after arguing on Friday that it would be "uneconomic" for it to refinance its €750m 6.375% notes amid the stress of the coronavirus pandemic.
22 May 2020 -
BoE updates IFRS 9 guidance as UK extends payment holidays
The Bank of England has reminded UK lenders to apply ‘sound risk management practices’ in the capital treatment of their mortgages amid Covid-19, after the Financial Conduct Authority extended its payment holiday scheme by another three months.
22 May 2020 -
BEA reopens bank capital market for Asia
Bank of East Asia (BEA) sold the first Basel III compliant tier two dollar bond in Asia since the global outbreak of Covid-19. It raised $600m on the back of a book that was more than 8.5 times oversubscribed at its peak.
22 May 2020 -
Comeback banks open door for risky capital raises
A series of comeback trades has established firm demand for every debt class in the bank bond market. With credit spreads moving another leg tighter this week, issuers must now consider whether they have a precious opportunity to wheel out their riskiest transactions with the coronavirus pandemic still threatening society and capital markets. Tyler Davies reports.
21 May 2020 -
RT1 outperforms as markets recover amid Covid-19 crisis
A strong performance in the restricted tier one (RT1) instruments has put the niche insurance bond market in the spotlight recently. Some investors have made strong returns from the asset class, as valuations have recovered during the coronavirus crisis.
21 May 2020 -
ECB suggests changes to Commission’s ‘quick fix’ for bank capital rules
The European Central Bank said this week that policymakers should consider offering banks further relief on their leverage ratios during the coronavirus pandemic, building on legislative proposals put forward by the European Commission last month.
21 May 2020 -
ING grabs tier two and demand for bank sub debt rises
ING has become the latest EU bank to sell subordinated debt during the coronavirus crisis, after capitalising on healthy levels of demand for its tier two paper on Tuesday.
19 May 2020
