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Latest News
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FIG issuers to pay ‘coronavirus premium’ to access market post-earnings
Syndicate bankers argue that financial institutions will need to pay a premium to access the bond market in the next couple of weeks, as investors fret about the potential impact of the outbreak of coronavirus in China.
27 Jan 2020 -
PGH proves popular amid lack of RT1 supply
Investors flocked to a rare offering of restricted tier one (RT1) capital from Phoenix Group Holdings this week, allowing the insurance company to tighten pricing by 37.5bp. The bonds will form part of the financing for the UK firm’s acquisition of ReAssure Group from Swiss Re.
22 Jan 2020 -
Bond squeeze threatens risk-reward dynamics in senior bank paper
Investors have been showing a clear preference for subordinated bank bonds in the primary market, with the valuations for more senior asset classes having been squeezed into extraordinarily tight levels in 2020.
22 Jan 2020 -
Jyske takes small T2 to work on cap stack
Jyske Bank offered a small new issue premium to investors in a tier two offering in euros this week, taking the opportunity to optimise its capital structure in favourable market conditions.
21 Jan 2020 -
'Utter madness' in bank capital as Erste scores blow-out
Issuers of additional tier one (AT1) capital have been more than 10 times subscribed for new deals on average in 2020 so far. This week's euro trade from Erste Group was no exception, with the €500m bond attracting €6.25bn of orders and a 'phenomenally tight' coupon.
20 Jan 2020 -
CS opens AT1 dollar market with a bang
Credit Suisse became the first issuer of additional tier one (AT1) paper market in dollars this year, seizing the high levels of appetite for this asset class to print through fair value.
16 Jan 2020 -
Monte is living a charmed afterlife
The stars have aligned for Banca Monte dei Paschi di Siena following its rescue by the Italian state. It is hard to see how other banks could be so fortunate.
16 Jan 2020 -
Ibercaja lands ‘negative new issue premium’ with euro tier two
Ibercaja Banco was said to have steered a new tier two bond through fair value on Thursday, when the Spanish lender also announced the results of a tender for some of its existing capital securities.
16 Jan 2020 -
BTN pioneers with first Indo Basel III tier two
Investors chased after a rare $300m Basel III-compliant tier two bond from Indonesia’s Bank Tabungan Negara (BTN) in both primary and secondary markets this week, sending the 12.3 times covered deal tighter in the aftermarket.
16 Jan 2020 -
Monte launches T2 at 8% to complete capital plan
Banca Monte dei Paschi di Siena was more than two times subscribed for a €400m tier two on Wednesday, as the state-backed Italian lender used strong market conditions to finally complete the last leg of its capital raising plan.
15 Jan 2020 -
Santander confirms ‘irreversible’ decision to call its controversial CoCo
Banco Santander has followed through on its commitment to call an additional tier one (AT1) bond, after extending the life of the instrument a number of times in 2019. The decision comes as favourable market conditions increased the likelihood that issuers will choose to refinance their contingent capital securities this year.
15 Jan 2020 -
This euro market is made for Monte
The only thing missing from a stellar start to 2020 is a capital transaction from Italy’s Banca Monte dei Paschi di Siena.
14 Jan 2020 -
Italian AT1s pile up as Banco BPM gets away with no NIP
Banco BPM did not need to pay a new issue premium to follow UBI Banca with the sale of an additional tier one (AT1) on Tuesday, as Italian banks make the most of an 'issuer's market' at the beginning of 2020.
14 Jan 2020 -
Why the Santander saga won’t trigger a run of AT1 extensions
European banks don’t believe they have a free option to extend the lives of their additional tier one (AT1) securities, despite the apparent success of Banco Santander’s call policy.
14 Jan 2020 -
UBI Banca lands blowout with debut AT1
Unione di Banche Italiane was close to 14 times subscribed for a €400m additional tier one (AT1) in the euro market on Monday, as it capitalised on expectations of scarce supply in the asset class. The debut deal means the bank will become the fourth Italian issuer of AT1 capital.
13 Jan 2020
