Regulatory Capital - All Articles

  • MPS launches sub for senior exchanges

    Italy’s Banca Monte dei Paschi di Siena launched a swap of up to €1.25bn of old capital instruments for senior debt this week, in a bid to increase its capital as the government agreed to buy a hybrid instrument in the lender.

    • 28 Jun 2012
  • Markit Data 1261

    • 28 Jun 2012
  • Basel gets tough on transparency

    The Basel Committee on Banking Supervision this week revealed the details banks will have to disclose on their capital positions from next year, as it toughens up on transparency.

    • 28 Jun 2012
  • BPE, NLB boost tier one

    Banco Popular Español and Nova Ljubljanska Banka both lifted their tier one ratios this week ahead of the European Banking Authority’s capital deadline with liability management exercises.

    • 28 Jun 2012
  • HMRC hybrid guidance leaves big questions unanswered

    Guidance this week from the UK tax authority offered little clarity on whether hybrid tier one securities issued under incoming bank capital rules would be treated as debt or equity for tax purposes.

    • 28 Jun 2012
  • Tier two returns as ABN hits road

    ABN Amro is set to revive Europe’s dormant tier two capital market, when it meets investors next week to discuss a potential new issue.

    • 28 Jun 2012
  • Banks look to new-style issuance despite slow progress on regulations

    A handful of European banks are understood to be looking seriously at their options for issuing tier one or tier two securities in the second half of this year, despite fears that regulations will take longer to finalise than expected.

    • 28 Jun 2012
  • Capital rules timetable worries grow as banks look to new-style issuance

    As Europe’s banks begin preparations to issue tier two and hybrid tier one securities in the second half of the year, worries are growing that final sign-off on new capital rules will take longer than expected.

    • 27 Jun 2012
  • HMRC hybrid guidance leaves big questions for later

    Guidance this week from the UK tax authority has done little to clarify whether hybrid tier one securities issued under incoming bank capital rules would be treated as debt or equity for tax purposes.

    • 27 Jun 2012
  • MPS launches sub for senior exchange as it reveals three year plan

    Italy’s Banca Monte dei Paschi di Siena launched its swap of up to €1.25bn of old capital instruments for senior debt on Wednesday as it laid out a new three year plan that includes shrinking the balance sheet and reducing its reliance on official funding.

    • 26 Jun 2012
  • Basel shines a light on bank capital

    Details of the securities that make up a bank’s capital base are set to become much more accessible next year, after the Basel Committee on Banking Supervision (BCBS) on Tuesday published new reporting templates.

    • 25 Jun 2012
  • Markit Data 1260

    • 21 Jun 2012
  • Talanx tender targets tier two for securities reclaim

    Insurance holding company Talanx is putting to work some of the cash it raised through its March benchmark issue to buy back older securities that will soon lose capital treatment.

    • 21 Jun 2012
  • FIG pipeline builds despite downgrade wave

    Despite the downgrades of 15 major global banks by Moody’s on Thursday night, market participants said the move could help unclog FIG funding markets if banks moved to print with the ratings actions out of the way.

    • 21 Jun 2012
  • Bold BPE kicks off debt swap despite defining week for Spain

    As Spain’s struggling lenders digest the findings of the much anticipated external report on their capital shortfall and prepare for their sovereign’s formal bailout request, one of their number, Banco Popular Español, has boldly begun a swap of old capital securities, writes Katie Llanos-Small.

    • 21 Jun 2012
  • SG tender slides in under €1.3bn ceiling

    Results of Société Générale’s jumbo lower tier two buyback offer reflected investor comfort with the French bank’s subordinated paper, a banker involved in the transaction said.

    • 21 Jun 2012
  • ÖVAG hits 84% take-up on preferred security buyback

    Austria’s ÖVAG said on June 15 it would buy back 84% of a preferred security, and received bondholder consent to remove a dividend stopper.

    • 21 Jun 2012
  • Wells and NBC go big on dollar taps

    The investment grade market for dollar-denominated bank paper received a shot in the arm this week with big deals from Wells Fargo and National Bank of Canada as the spectre of further downgrades hovered over the sector.

    • 21 Jun 2012
  • SG tender slides in under cap

    Participation in Société Générale’s jumbo lower tier two buyback offer came almost exactly in line with the ceiling, despite take-up varying sharply across different tranches.

    • 20 Jun 2012
  • Talanx tender targets tier two

    Insurance holding company Talanx is putting to work some of the cash it raised through its March benchmark issue to buy back older securities that will soon lose capital treatment.

    • 20 Jun 2012
  • Bank clean-up estimates mount as Spanish NPLs head north

    Analysts are increasingly worried about the eventual cost of bad lending at Spain’s financial institutions — fears that have been exacerbated by Bank of Spain data released on Monday that showed increasing rates of non-performing loans.

    • 18 Jun 2012
  • ÖVAG hits 84% take-up on pref buyback

    Austria’s ÖVAG will buy back 84% of a preferred security in a tender offer designed to top up its capital, and has received bondholder consent to remove a dividend stopper.

    • 17 Jun 2012
  • MS highlights capital, profit worries for Italian banks

    Italy’s government should be looking at recapitalising its banks, which are a “serious drag” on the economy, Morgan Stanley analysts say — although they reckon the banks are not about to sink the sovereign.

    • 17 Jun 2012
  • NLB takes aim at UT2 for capital

    Slovenia’s Nova Ljubljanska Banka became the second European bank this week to take advantage of low secondary trading prices to buy back subordinated paper.

    • 14 Jun 2012
  • US moves to comply with Basel III at last

    The US put an end to uncertainty over if or when it would implement the Basel III framework last week, when the Federal Reserve launched a consultation on new capital rules.

    • 14 Jun 2012
  • Spanish LM exercise kicks off with par swaps

    Fears over creditor burden-sharing in Spain’s troubled banks grew this week, despite the first liability management exercises since the government sought €100bn in European help being par for par deals.

    • 14 Jun 2012
  • NAB in dollar debut

    National Australia Bank made its dollar debut late on Tuesday afternoon. Leads Commonwealth Bank of Australia (CBA), Westpac Banking Group and Australia and New Zealand Banking Group priced a $1.25bn five year 144A/Reg-S trade at 100bp over mid-swaps, a 5bp new issue premium.

    • 14 Jun 2012
  • Sabadell, Liberbank look to swap retail sub debt to senior or equity

    Spain’s Banco Sabadell and Liberbank announced plans to swap retail holders of subordinated paper into equity and senior unsecured this week — and both plan mechanisms to get investors to hold the output securities for four years.

    • 14 Jun 2012
  • Cheers for EBA after hybrid hearings deemed positive

    Capital structuring specialists this week praised the European Banking Authority for its consultative approach to new rules on own funds, after what they said was a constructive public hearing on Thursday, writes Katie Llanos-Small.

    • 14 Jun 2012
  • Market guesses at Spain recap methods

    Amid the confusion and questions surrounding Spain’s decision to ask for a €100bn European-funded bail-out for its banks this week was the issue of the recapitalisations themselves.

    • 14 Jun 2012
  • SocGen enters Basel III phase two preparations with jumbo buyback

    Société Générale launched a cash tender offer this week of a size not seen in the European market since late 2011, targeting over €5bn worth of tier two securities in the second phase of its Basel III liability management plan.

    • 14 Jun 2012
  • Markit Data 1259

    • 14 Jun 2012
  • Sabadell launches CAM debt for equity swap

    Retail holders of subordinated debt in Spain’s Banco CAM are being targeted by the failed bank’s new owner with a swap into Banco Sabadell equity.

    • 13 Jun 2012
  • Kutxa takes two thirds of offers in buyback

    Spain’s Kutxabank has announced the take-up results in its ABS and tier two buyback, which was priced through unmodified Dutch auction, saying it will repurchase €210m of lower tier two and ABS paper at an average price of 72% of par.

    • 12 Jun 2012
  • Liberbank looks at retail swap

    Spain’s Liberbank is seeking permission to buy back all its retail targeted subordinated debt at par. But the deal would come with a twist: bondholders would have to keep all the proceeds in a fixed term savings account at the bank for four years.

    • 12 Jun 2012
  • Bank of Ireland offloads loan portfolio

    Bank of Ireland has agreed the sale of a portfolio of UK infrastructure project finance loans of around €200m to one of Aviva’s investment vehicles. The transaction will take the bank within touching distance of its €10bn divestment target.

    • 12 Jun 2012
  • SG reveals hand on Basel III with jumbo buyback

    Société Générale returned to liability management on Monday, with a deal that sheds light on its plans to prepare for Basel III rules — and breaks the hiatus in large scale buybacks and exchanges from European banks that has existed since the first quarter.

    • 11 Jun 2012
  • US moves towards Basel III

    The US put an end to uncertainty over if or when it would implement the Basel III framework on Thursday, when the Federal Reserve launched a consultation on new capital rules.

    • 07 Jun 2012
  • Seismic shift in senior debt as European bail-in arrives

    Bankers warned this week that proposed European rules to allow governments and regulatory authorities to force losses on senior bondholders of failing institutions would drastically alter the risks of buying unsecured bank debt, writes Will Caiger-Smith.

    • 07 Jun 2012
  • Comeback time for tier three?

    Despite continuing uncertainty over the structure of future tier two instruments, this week’s European Commission draft directive on bank resolution and recovery has opened the way for a new class of bail-in buffer capital.

    • 07 Jun 2012
  • Resolution tools abound under EC proposals

    Regulators will be able to intervene early in a troubled bank in an attempt to turn it around before it goes into resolution, under the European Commission’s proposals for a directive on bank resolution and recovery published this week.

    • 07 Jun 2012
  • Markit Data 1258

    • 07 Jun 2012
  • Tier two regs lurch forward but issuance still held back

    Europe’s banks strode towards a revival of the increasingly important tier two capital market this week when the European Commission published its long awaited proposal on bank recovery and resolution, writes Katie Llanos-Small.

    • 07 Jun 2012
  • EC opens door to tier two — but will anyone issue?

    Prospects of Europe’s banks issuing Basel III compliant tier two have moved sharply closer with yesterday's announcement of a new bank resolution and recovery directive proposal. But complete certainty on issuance remains tantalisingly out of reach.

    • 06 Jun 2012
  • Portugal sets bail-out terms

    Portugal on Monday set the terms of its banking sector recapitalisation, under which two of its three big listed banks will raise most of the required funds through hybrid capital injections and only a small part from state-underwritten rights issues. The country’s troika-backed bail-out has already earmarked the funds required.

    • 05 Jun 2012
  • Early intervention option for bank resolution and recovery

    Regulators will be able to intervene early in a troubled bank in an attempt to turn it around before it goes into resolution, under proposals for a directive on bank resolution and recovery published by the European Commission on Wednesday. The draft directive also elaborated on what constitutes the point of non-viability, but gave the ultimate authority on defining such a moment to the European Banking Authority.

    • 05 Jun 2012