Regulatory Capital - All Articles

  • G-SIIs follow G-SIBs: insurance under scrutiny

    The regulatory acronym alphabet soup had another ingredient added to it this week as the International Association of Insurance Supervisors began consulting on how to define G-SIIs — global systemically important insurers.

    • 31 May 2012
  • BPM coupon skips sparks fears that sub risks are escalating

    Banca Popolare di Milano’s tier ones were downgraded this week as the borrower opted to stop paying coupons on the security — a rare move that some interpreted as a sign of growing risks for subordinated bondholders.

    • 31 May 2012
  • Spanish banks face burden sharing as recap fears grow

    Talk of subordinated creditors to Spain’s banks taking losses increased sharply this week, as the government scrabbled to find €19bn for Bankia’s parent.

    • 31 May 2012
  • Bank of England warning over Coco risks

    Bank usage of contingent capital could increase systemic risk if investors try to provoke or avoid conversion, the Bank of England said in a discussion paper on Thursday.

    • 31 May 2012
  • Markit data 1257

    • 31 May 2012
  • Bank of England warns on Coco risks

    Bank usage of contingent capital could increase systemic risk if investors try to provoke or avoid conversion, the Bank of England said in a discussion paper on Thursday.

    • 30 May 2012
  • Kutxabank turns to ABS and LT2 tender for capital boost

    Kutxabank extended the Spanish penchant for tender offers through unmodified Dutch auctions on Wednesday, when it launched a buyback on seven tranches of ABS and three lower tier two securities.

    • 29 May 2012
  • PICC picks 17 banks for H share offering

    PICC Group, a Chinese non-life insurance company, has mandated 17 banks to lead its IPO. The company is hoping to raise $5bn-$6bn in a dual listing in Hong Kong and Shanghai in the second half of the year.

    • 28 May 2012
  • Fear, uncertainty and anger: the view from Madrid

    Uncertainty reigned among bankers in Madrid on Monday morning, as they welcomed clarity on the capital needs of Bankia but worried about what lay ahead.

    • 27 May 2012
  • Loan portfolio buyers increase, discounts fall

    The number of investors that are considering buying loan portfolios is increasing, and the discounts they are negotiating are falling, according to a survey that should cheer Europe’s capital-hungry banks.

    • 24 May 2012
  • Contagion seen limited as Bankia recap figure rises

    Spanish savings group Bankia took another step towards full nationalisation on Friday as the Spanish stock market suspended trading in its stock. The suspension came as the bank’s board met to prepare an announcement in which Bankia is expected to ask for an extra €15bn of capital from the state to keep itself from collapsing.

    • 24 May 2012
  • Domestic scramble for Landshypotek’s final old-style LT2

    Landshypotek issued its first sub-debt capital note in five years on Tuesday, a Skr500m ($69.7m) dual tranche 10 year non-call five bond that included a regulatory capital event call that the issuer had not incorporated in any previous subordinated debt issue.

    • 24 May 2012
  • Markit Data 1256

    • 24 May 2012
  • RBC covered cracks SEC code to unlock US heartland

    Royal Bank of Canada is to take covered bonds into the US mainstream with the product’s first SEC-registered public offering, writes Bill Thornhill.

    • 24 May 2012
  • Santander picks new head for global wholesale

    Banco Santander has appointed Banesto CEO José García Cantera to run the global wholesale banking franchise. He replaces Adolfo Lagos, who is due to retire next year.

    • 24 May 2012
  • Subordinated deals still possible — but not just yet

    Optimism that more FIG borrowers will be able to bring capital transactions before summer was strong among syndicate officials this week, despite a volatile backdrop.

    • 24 May 2012
  • ÖVAG offers to buy back €250m preferred security

    Austria’s ÖVAG launched a buyback and consent solicitation on a preferred security on Tuesday night in a bid to improve its capital position.

    • 24 May 2012
  • Delta Lloyd bides time after roadshow

    As leads wait for final feedback from Delta Lloyd Life’s investor meetings to evaluate the prospects of a bond issue, bankers say the market backdrop is not yet ready for capital deals.

    • 23 May 2012
  • Domestic scramble for rare Landshypotek sub debt

    Landshypotek issued its first sub-debt capital note in five years on Tuesday, a Skr500m dual tranche 10 year non-call five bond that included a regulatory capital event call that the issuer had not incorporated in any previous subordinated debt issue.

    • 22 May 2012
  • ÖVAG targets pref for capital generation

    Austria’s ÖVAG launched a buyback and consent solicitation on a preferred security on Tuesday night in a bid to improve its capital position. The borrower is offering to buy back a €250m fixed to floating rate preferred security at 39% of par.

    • 22 May 2012
  • Beazley uses excess liquidity to buy back LT2

    Specialist insurer Beazley has bought back £30m of a £150m deal in a liability management exercise that was designed to take advantage of excess liquidity.

    • 20 May 2012
  • Bankia hits back as pressure mounts on Spain’s banks

    Market pressure was heaped on Spanish savings group Bankia this week, with the lender forced to reassure depositors on Thursday that their cash was safe as the bank’s share price tumbled.

    • 17 May 2012
  • Markit Data 1255

    • 17 May 2012
  • OP’s stellar jumbo proves covered market strength in appalling week for bonds

    Finland’s OP Mortgage Bank shrugged off an appalling market backdrop and ended a two week covered bond drought with a stellar benchmark trade on Wednesday.

    • 17 May 2012
  • Arkéa hits 54% participation rate

    France’s Crédit Mutuel Arkéa released take up results on its cash tender on a €250m CMS-linked tier one security this week. Investors tendered €135.4m — 54.2% of the deal outstanding — for cash at 60% of par.

    • 17 May 2012
  • HSBC’s Flint warns on one-size-fits-all bail-ins

    Douglas Flint, chairman of HSBC, this week underlined his bank’s support of the regulatory concept of forcing losses on bondholders through bail-in. Speaking at a HSBC financial institutions conference, Flint also warned that much more work needed to be done to iron out potential problems with the framework.

    • 17 May 2012
  • Cyprus Popular looks at capital with LM, rights issue plans

    Cyprus Popular Bank — formerly known as Marfin — made strides this week towards filling a big capital hole ahead of the European Banking Authority’s deadline for a 9% core tier one ratio by the end of June, with a liability management exercise and plans for a rights issue.

    • 17 May 2012
  • Volatility dampens covered hopes despite yield hunger

    Real money accounts are desperate for financial institution paper — but only from the right names. As volatility continues to rock the markets, European covered bond and senior unsecured bankers tried to deduce issuance prospects in the light of OP Mortgage Bank’s successful trade on Wednesday (see separate story). While some are hopeful, others remain extremely doubtful.

    • 17 May 2012
  • Delta Lloyd eyes sub deal

    Delta Lloyd Life is meeting investors in the coming days with an eye to a debut subordinated transaction.

    • 17 May 2012
  • Europe CRD agreement brings Basel III closer

    Europe took big strides towards implementing Basel III rules this week, with a grouping of European finance ministers (Ecofin) agreeing to drafts of the new capital requirements directive and regulation.

    • 17 May 2012
  • Cyprus Popular offers cash or senior in tier two swap

    Cyprus Popular Bank is offering holders of a €450m subordinated floater to switch the bonds in to senior paper or tender them for cash below par, in a bid to increase its capital ratios.

    • 14 May 2012
  • Capital ratios to suffer as Spain’s banks calculate provisions

    Spain’s national champions say new provisioning requirements will not materially hurt their capital ratios. But the rules will have a larger effect on the smaller institutions.

    • 13 May 2012
  • Delta Lloyd eyes sub deal

    Delta Lloyd Life has mandated Barclays, Morgan Stanley and Rabobank for a series of investors meetings, with an eye to a debut subordinated transaction.

    • 13 May 2012
  • Swiss Re, Macquarie meet investors, deals may follow

    Macquarie and Swiss Re are both set to finish European investor meetings on Friday. The Swiss insurer is eyeing its third capital trade of the year, but EuroWeek understands that there is no specific transaction under discussion for Macquarie, whose meetings were organised by HSBC and Royal Bank of Scotland.

    • 10 May 2012
  • Markit Data 1254

    • 10 May 2012
  • CRH holds off as CIF stays silent but buyers’ hunger grows

    Core and non-Eurozone covered bond supply remains in high demand, with France’s Caisse de Refinancement de l’Habitat the most likely candidate to slake investors thirst for issuance.

    • 10 May 2012
  • What’s the cap gap? Demand for Spain clarity after Bankia turmoil

    Spain is at risk of an Irish-style bank meltdown, investors and bankers cautioned this week as the government was forced to take a 45% stake in its largest savings bank group.

    • 10 May 2012
  • Alpha buyback adds €333m to CT1 ahead of Basel III

    Even as its sovereign looked to be lurching ever closer to meltdown, Greek lender Alpha Bank added €333m, or 74bp, to its core tier one capital ratio by buying back capital securities below par, it said this week.

    • 10 May 2012
  • Swiss Re eyes third helping of capital

    Swiss Re is taking another look at the subordinated debt market, meeting accounts in Europe later this week.

    • 08 May 2012
  • AIG gets 40% take-up in Swissie buyback

    American International Group announced on Wednesday morning that the final volume of its tender offer, which it launched on April 23 with a cap of Sfr350m ($379.48m), was Sfr338.46m. All offers were accepted and none of the buyers were pro-rated. Co-ordinators Credit Suisse and UBS will price the offer at 1pm London time on Wednesday.

    • 08 May 2012
  • Alpha adds 74bp to CT1 with buyback

    Alpha Bank added 74bp to its core tier one capital ratio, it said on Monday as it released take-up rates on a below par buyback on capital securities. The Greek lender hit an aggregate 66% participation rate in the cash tender offer it launched last month.

    • 07 May 2012
  • Spain ‘bad bank’ in question as analysts doubt firepower

    Spain’s ability to step in if its banks need help came under analyst scrutiny this week, as worsening economic conditions intensified the market focus on the country’s lenders.

    • 03 May 2012
  • European Commission consults on banking sector reform

    A European Commission working group on reform of the banking sector launched a broad consultation for financial institutions and their customers this week.

    • 03 May 2012
  • Credit Mutuel Arkéa launches tier one buyback

    French lender Crédit Mutuel Arkéa launched an offer to buy back a €250m constant maturity swap-linked tier one note at 60% of par this week.

    • 03 May 2012
  • US financials return to the fray after results season

    US banks made their long-awaited return to the fray after first quarter reporting season with a flurry of self-led deals. Goldman Sachs, Wells Fargo and US Bancorp broke the hiatus of benchmark issuance from the sector with deals worth a combined $4.75bn.

    • 03 May 2012
  • Makit Data 1253

    • 03 May 2012
  • Basel takes microscope to trading book capital

    In a bid to cut regulatory arbitrage, the Basel Committee on Banking Supervision called for a re-write of the boundaries between trading books and banking books in a consultation released on Thursday.

    • 02 May 2012
  • Arkéa launches tier one buyback

    French lender Crédit Mutuel Arkéa launched an offer on Wednesday to buy back a €250m constant maturity swap-linked tier one note at 60% of par.

    • 01 May 2012