Regulatory Capital - All Articles

  • Credit Suisse heads out on the road for Swissie Coco

    Credit Suisse is all set for a trip around Switzerland on March 5 and 6 to introduce investors to its Swiss franc buffer capital note. If the bank decides to come to the market thereafter, it would be the first Coco in the local currency.

    • 29 Feb 2012
  • RBS targets capital, calls with exchange

    Royal Bank of Scotland is offering holders of tier two paper coming up for call this year a chance to swap into new notes, in a deal that is designed to improve the quality of the UK bank’s capital as well as being an investor relations exercise.

    • 29 Feb 2012
  • Sabadell sets terms on €913m rights issue

    Spain’s Banco de Sabadell launched a long-awaited rights issue on Monday evening, setting out to raise €913m to give it the balance sheet strength to take advantage of its recent acquisition of Banco CAM.

    • 28 Feb 2012
  • LM accounting under scrutiny after UK goes on offensive over buyback

    Bankers were looking carefully at a retrospective tax rule change in the UK on Tuesday, as the government went on the offensive, saying a bank found a way to avoid a tax bill of around £300m from a below par debt buyback.

    • 28 Feb 2012
  • CAM buys back sub debt in T2 clean up

    Failed Spanish savings bank Caja de Ahorros del Mediterraneo (CAM) launched a buyback of tier two paper on Friday, in a deal that is intended to tidy up the lender’s subordinated debt.

    • 27 Feb 2012
  • Markit data 1243

    • 24 Feb 2012
  • Tier one buyback interest splits with EFG, UBI

    Tier one buybacks at EFG Hellas and UBI Banca met sharply different responses from investors this week, with bondholders much cooler on the Italian bank’s offer than that of the Greek borrower.

    • 24 Feb 2012
  • Pohjola raises T2 hopes, but regulatory worries remain

    More European banks may look at issuing tier twos after Pohjola Bank printed a €500m bullet this week, but regulatory uncertainty is still concerning some.

    • 24 Feb 2012
  • Commerz targets hybrid capital in equity swap

    Commerzbank this week launched a debt for equity swap that could generate over €1bn of core tier one capital, in what one investor called a sensible liability management approach amid a rally in prices of hybrid securities.

    • 24 Feb 2012
  • Austrians take reins in buyback stampede

    Austrian banks took the lead this week in Europe’s capital-generating liability management stampede, which still shows no sign of slowing.

    • 24 Feb 2012
  • Strong take-up for Egg Banking buyback

    Egg Banking plc met strong take-up on buybacks of two subordinated securities at prices close to par this week.

    • 24 Feb 2012
  • Dexia buyback ‘distressed exchange’: S&P

    Standard & Poor’s said on Thursday that Dexia Bank Belgium’s cash tender — which struck market participants this week with its low 25% buyback price — is a distressed exchange.

    • 24 Feb 2012
  • CKI closes hybrid as bankers divide deal between them

    Cheung Kong Infrastructure issued a $300m hybrid bond at the end of last week, closing the deal a week after it had been delayed by a listing hiccup with the Luxembourg Stock Exchange.

    • 23 Feb 2012
  • Commerz picks up reverse enquiry for debt for equity swap

    Reverse enquiry drove Commerzbank to launch a debt for equity swap on Thursday morning, which could generate as much as €1bn of core tier one capital for the bank.

    • 23 Feb 2012
  • Dexia, BAWAG tender for tier ones

    Dexia Bank Belgium and Austria’s BAWAG are tendering for tier one notes, as the trend for banks to buy back subordinated paper below par to generate capital steams ahead. The deals were announced the same as Greece’s EFG Hellas reported a strong take-up on its own buyback.

    • 21 Feb 2012
  • More tier two in the pipeline as Pohjola prints €500m

    Bankers are expecting more tier two issues from European banks, particularly Scandinavian issuers, after Pohjola printed a €500m bullet 10 year on Monday.

    • 21 Feb 2012
  • UBI hits 22% take-up on LM against tier one rally headwind

    A previous tender offer, a rallying market and competing liability management exercises limited investor participation on UBI Banca’s tier one buyback last week to 22% of eligible paper.

    • 20 Feb 2012
  • Pohjola follows Nordea with bullet tier two

    Finland’s Pohjola Bank was marketing an old-style tier two bond at 340bp over mid-swaps on Monday, following a similar deal from regional champion Nordea three weeks earlier.

    • 20 Feb 2012
  • UBS AG (Jersey branch)

    • 17 Feb 2012
  • UBS landmark contingent tier two trades down, stirs up pricing debate

    The FIG market struggled this week to interpret the latest data point for contingent capital as UBS’s tier two note — the first of its kind — was buffeted by turbulent conditions. Investors and bankers could not reach consensus on where the Swiss style low trigger tier two issue, which carries permanent write-down risk, should be priced, nor could they coalesce around a single reason for why the bond dropped three points the day after pricing.

    • 17 Feb 2012
  • Markit Data 1242

    • 17 Feb 2012
  • BNPP returns to senior with five year, Erste buys back tier ones, tier twos

    BNP Paribas printed a €1bn five year senior unsecured euro deal at 148bp over mid-swaps on Friday, drawing plaudits from the market for its execution.

    • 17 Feb 2012
  • HSH tops up core capital with tier two buyback

    HSH Nordbank added €260m to its common equity capital this week — but at the cost of total capital — in a rare German buyback deal that has been closely watched by liability management specialists.

    • 17 Feb 2012
  • Intesa tier one buyback hit by sub debt rally

    Intesa Sanpaolo hit a 32% take-up on a tier one buyback offer that was affected by rallying prices on Italian sub debt. The lender will buy back €1.23bn of three tier one securities, having launched an any-and-all cash tender offer on February 6.

    • 16 Feb 2012
  • UBS tier two hammered by Moody’s downgrade threat

    A threat by Moody’s on Thursday morning to downgrade UBS by three notches has knocked the shine off the Swiss bank’s groundbreaking tier two instrument, pushing the bonds down to a cash price of 97.5 on Thursday morning.

    • 16 Feb 2012
  • DBS bolsters capital with domestic LT2

    DBS Bank sold S$1bn ($791m) of lower tier two bonds this week, getting demand from a spread of different investors while bolstering its capital levels for the first time in more than a year.

    • 15 Feb 2012
  • UBS hits $5.5bn demand as private bank bid rolls in

    Strong demand from private bank investors had driven order books on UBS’s contingent tier two note to $5.5bn by late morning on Wednesday, allowing leads to bring pricing 25bp in from initial guidance.

    • 15 Feb 2012
  • UBS opens books on contingent tier two at 7.5%

    Investors placed more than $1.5bn of orders for UBS’s contingent tier two instrument by late morning on Tuesday, after the Swiss bank ended speculation over pricing on the innovative capital deal by releasing initial thoughts of 7.5% area yield. But opinion was divided on whether the write-down risk premium was being correctly priced.

    • 14 Feb 2012
  • BFA preps debt for equity swap as EBA deadline nears

    Banco Financiero y de Ahorros, the parent company of Bankia, is preparing a €1.3bn debt for equity swap in an effort to improve its tier one ratio to comply with the EBA’s 9% core capital requirement and new Spanish provisioning rules.

    • 13 Feb 2012
  • German LM returns as HSH Nordbank targets tier two

    HSH Nordbank launched a tier two buyback on Thursday, the first core capital generating liability management deal from a German issuer since Commerzbank’s operation in January 2011.

    • 10 Feb 2012
  • UBS sizes up low trigger Coco in key test for bank capital

    The expected low trigger tier two contingent capital issue from UBS is being keenly watched by the bank capital community as an influential test case for instruments with permanent writedown features.

    • 10 Feb 2012
  • Crédit Agricole buyback take-up hits €2.1bn cap

    Crédit Agricole SA used excess medium and long term cash raised last year to fund its jumbo cash tender offer that closed this week, the bank’s global head of funding told EuroWeek.

    • 10 Feb 2012
  • EFG goes low on buyback

    Greece’s EFG Hellas launched a buyback on Thursday night, offering some of the lowest prices seen on bank capital tenders in recent months. The bank said it would buy back three tier ones totalling €415m at 40 cents on the euro. A €470m tier two is eligible for buyback at 50% of par.

    • 10 Feb 2012
  • Rule change spurs Italians into LM rush

    Three Italian banks offered to buy back hybrid paper this week in a rush to generate capital following a rule change by their regulator.

    • 10 Feb 2012
  • Provision rules to spark fresh wave of Spanish bank mergers

    Spain’s biggest banks said this week that they had already gone a long way towards meeting the country’s new provisions and capital requirements. But for the smaller institutions, the rules are expected to spark another round of mergers.

    • 10 Feb 2012
  • Markit Data 1241

    • 10 Feb 2012
  • EBA says real economy safe as banks plan LM, asset cuts

    Lending to the real economy will not be affected by banks’ plans to convert hybrids to equity and cut assets to reach the 9% temporary core capital buffer, the European Banking Authority said on Thursday night. But as markets keep up a New Year rally, questions are creeping in over the future of the Europe-wide recapitalisation project.

    • 10 Feb 2012
  • IMF authors argue tougher capital rules could work

    Two authors of an IMF Working Paper published Wednesday said that higher bank capital requirements could have modest effects on the world economy — provided central banks could alter monetary policy at the same time.

    • 09 Feb 2012
  • German LM returns as HSH Nordbank targets tier two

    HSH Nordbank launched a tier two buyback on Thursday, the first core capital generating liability management deal from a German issuer since Commerzbank’s operation in January 2011.

    • 09 Feb 2012
  • UBI leaps into liability management

    UBI Banca has joined the rush of Italian banks buying back hybrid capital deals, launching a €450m cash tender offer on Tuesday evening.

    • 08 Feb 2012
  • Fitch lifts lid on expected UBS contingent instrument

    A ratings report from Fitch has shed more light on the contingent capital instrument expected to be launched by UBS in the coming days, saying it will likely rate the notes three notches below the bank’s own rating.

    • 08 Feb 2012
  • UBS prepares for low trigger Coco

    UBS is expected to launch a new style, low trigger tier two contingent capital deal as soon as next week, ending speculation over if, or when, it would issue a Coco.

    • 07 Feb 2012
  • Secondary rally dampens UniCredit take-up

    An exuberant rally in Italian hybrids was a headwind to UniCredit’s jumbo buyback offer last week, meaning investors were only prepared to tender a third of the €5.6bn equivalent eligible for repurchase in Italy’s first large scale buyback. At the same time, Crédit Agricole found a nearly 50% take-up on its own jumbo buyback, thanks to a greater number of French precedents.

    • 07 Feb 2012
  • Intesa, Popolare jump in after Italian buyback regs change

    Banco Popolare and Intesa Sanpaolo’s jumbo buyback offers are the first from Italian banks since the regulator changed its stance towards liability management last week.

    • 07 Feb 2012
  • Bank recap plans impressive: EBA

    The European Banking Authority has hit out at suggestions that it would reject up to half the measures in bank recapitalisation plans, calling them “inaccurate and misleading”. The EBA said it had been impressed with banks’ efforts towards meeting the framework it set out in December, to reach a 9% core capital ratio by the end of June.

    • 06 Feb 2012
  • LM back in spotlight with Lloyds, Bank of Italy moves

    Bank liability management is set for a second wind as issuers continue launching deals. Lloyds TSB Bank, Banco Popular Español and Catalunya Banc became the latest on Thursday — and after the Bank of Italy loosened its stance on buybacks and exchanges.

    • 03 Feb 2012
  • Markit Data 1240

    • 03 Feb 2012
  • Nordea demand opens door to tier two renaissance

    More dated sub debt deals are on their way, said bankers, after the success of Nordea’s lower tier two issue this week. Some 350 accounts placed more than €4bn of orders for the Swedish bank’s lower tier two bond issue, the first in euros since May 2011.

    • 03 Feb 2012
  • Banks eye tier two options after Nordea demand tops €4bn

    FIG bankers say that the heavy demand seen for Nordea’s lower tier two issue is leading other banks to look at their options for callable non-step issues, but they warn that the floodgates are not open yet.

    • 02 Feb 2012
  • FIG LM back in spotlight with Lloyds, Bank of Italy announcements

    Bank liability management is set for a second wind, as issuers continue launching deals — Lloyds TSB Bank and Catalunya Banc became the latest on Thursday — and after the Bank of Italy loosened its stance on buybacks and exchanges.

    • 02 Feb 2012
  • Nordea’s tier two tests non-step market

    Nordea Bank’s 10 year non-call five lower tier two deal is being watched closely as a test of the market for non-step subordinated debt issues.

    • 01 Feb 2012