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  • BNS to plant a flag for AT1 pricing

    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.

  • Phoenix Group swaps old for new but lacks plan transparency

    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.

  • Commerzbank flags AT1 issuance intentions

    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.

  • Aviva preserves debt capital with new T2

    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.

  • Afme: EU must consider more relief on leverage ratios

    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.

  • EBA warns of bad loan build-up amid coronavirus

    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.

  • Lloyds extends AT1, blaming coronavirus

    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.

  • BoE updates IFRS 9 guidance as UK extends payment holidays

    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.

  • BEA reopens bank capital market for Asia

    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.

  • Comeback banks open door for risky capital raises

    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.

  • RT1 outperforms as markets recover amid Covid-19 crisis

    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.

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