Regulatory Capital - All Articles

  • NAB on Aussie dollar streak

    National Australia Bank (NAB) capitalised on European and Asian investors’ liking for Australian bank names this year to price a A$200m ($131.4m) five year senior unsecured eurobond on Tuesday. The bank followed with a A$40m 6% 2022 self led bond the following day.

    • 31 Jul 2012
  • Real money buyers flock to ANZ tier two

    Fund managers and Asian private banking investors drove demand for Australia & New Zealand Bank’s $750m 10 year non call five tier two on Tuesday, underlining the depth of liquidity available for strong names untarnished by the eurozone crisis.

    • 31 Jul 2012
  • ANZ hits old style window for US dollar tier two

    FIG investors looked down under on Tuesday as Australia & New Zealand Bank’s US dollar denominated Reg S bond was followed by a senior benchmark from National Australia Bank.

    • 30 Jul 2012
  • Sovereign sell off benefits Intesa buyback

    A sell-off in peripheral European sovereign paper last week helped convince investors to participate in Intesa Sanpaolo’s subordinated and senior unsecured tender, driving the participation rate to just under 35% for the sub paper and around 15% for the senior.

    • 29 Jul 2012
  • Markit Data 1265

    • 26 Jul 2012
  • Core tier two downgraded, but retains IG status with S&P

    Tier two from banks in core jurisdictions took a ratings hit from Standard & Poor’s this week, but remained in investment grade territory.

    • 26 Jul 2012
  • CS doubles buyback spend as market tension drives take-up

    Strength of investor interest in Credit Suisse’s capital buyback surprised market participants this week, and led the bank to increase its overall spend to $4bn, after 32% of the 11 securities targeted were tendered.

    • 26 Jul 2012
  • Old Mutual increases spending cap on senior buyback

    Old Mutual plc is to buy back £387.7m of its own senior debt in conclusion of a liability management exercise launched last week. It increased the funds it had earmarked for the repurchase and left two subordinated instruments untouched, after receiving more demand for the buyback than it had expected.

    • 26 Jul 2012
  • Bankinter targets retail with debt for equity swap

    Bankinter last Friday (July 20) opened a debt for equity swap targeting a line of preference shares held by retail investors, as the Eurogroup approved the bail-out for Spain’s banks.

    • 26 Jul 2012
  • Industry vents anger over hybrids as deal pipeline develops

    Temporary write-down mechanisms are among the points of contention highlighted by market participants responding to the European Banking Authority’s consultation on new-style hybrid tier one instruments.

    • 26 Jul 2012
  • US money funds shun eurozone as Nordic bank popularity surges

    US prime money market funds have slashed their exposure to eurozone banks to an all time low. But they are shifting their attention towards Nordic banks, which are breaking records in the euro commercial paper market.

    • 25 Jul 2012
  • NordLB pioneers contingent capital securitisation

    Norddeutsche Landesbank has pioneered a synthetic securitisation that it says acts as contingent capital, and could be a blueprint for other banks without public listings.

    • 25 Jul 2012
  • Market tension supercharges Credit Suisse buyback participation

    Credit Suisse achieved a higher than expected take-up for its any-and-all capital buyback, hitting a 32% participation rate across the 11 securities targeted and buying back around $2.05bn of bonds.

    • 25 Jul 2012
  • Tier two keeps IG status with S&P

    Tier two from banks in core jurisdictions took a ratings hit from Standard & Poor’s on Tuesday, but remained investment grade. Downgrades of capital securities are being watched closely because of worries that appetite for paper that falls below investment grade will be light.

    • 24 Jul 2012
  • Credit Suisse coughs up 40bp for dollar sub holders

    Credit Suisse on Wednesday announced the reference yields and purchase prices for its buyback of two US dollar lower tier two bonds, with the results of the tender due later in the afternoon.

    • 24 Jul 2012
  • No hybrid coupons, no dividends, investors tell EBA

    Insight Investment has told the European Banking Authority that investors in new style hybrid capital instruments must not be subordinated to shareholders under incoming rules.

    • 23 Jul 2012
  • VTB tier one preps for Russia’s Basel III

    Russian lender VTB is preparing the country’s first tier one hybrid capital transaction, with an ambitious structure that takes inspiration from Banco do Brasil’s hybrid earlier this year.

    • 22 Jul 2012
  • Markit Data 1264

    • 19 Jul 2012
  • Second sub buyback as Credit Suisse tidies up its profile

    Credit Suisse opened up a cash tender offer on subordinated and senior paper this week, at the same time as it unveiled sweeping plans to increase its capital ratios.

    • 19 Jul 2012
  • Santander UK increases cap on buyback

    Investors tendered three-quarters of paper eligible for Santander UK’s capital buyback offer, pushing the lender to increase the cap on the deal.

    • 19 Jul 2012
  • Bankinter opens retail debt for equity swap

    Bankinter has opened a debt for equity swap targeting a line of preference shares held by retail investors.

    • 19 Jul 2012
  • Credit Suisse launches strong capital attack

    Credit Suisse’s subordinated paper rallied this week as the bank responded to Swiss National Bank pressure with a swathe of measures to boost its solvency.

    • 19 Jul 2012
  • FIG buybacks return as secondary liquidity fades

    Financial institution liability management inched up a gear this week with three new deals hitting the screens. But in contrast to the winter buyback boom driven by a race for capital, motivations for this week’s cash tender offers were more varied.

    • 19 Jul 2012
  • Intesa targets €32bn senior, sub with cash tender offer aimed at upping tier one ratio

    Intesa Sanpaolo launched a cash tender offer this week targeting an eye-catching €10bn of subordinated securities and more than €22bn of senior unsecured paper, but capped the deal at less than 5% of the amount outstanding.

    • 19 Jul 2012
  • Old Mutual cuts debt load with buyback

    Old Mutual plc pressed ahead with its £1.7bn debt reduction plan this week, launching a £450m senior and subordinated buyback.

    • 19 Jul 2012
  • US Bancorp breaks coupon record as Stanley dives in

    US Bancorp set a new record for the lowest coupon on a 10 year bank deal after reporting a rise in profits while Morgan Stanley hit the market with a 30 year trade this week.

    • 19 Jul 2012
  • Old Mutual targets £450m in senior, sub buyback

    Old Mutual plc is pushing ahead with its £1.7bn debt reduction plan with a £450m buyback operation across senior and subordinated paper.

    • 18 Jul 2012
  • Credit Suisse comes back for LM seconds

    Credit Suisse launched a cash tender offer on Wednesday, having a second go at buying back some tier one and tier two securities targeted in a buyback in March and adding a capped offer for senior notes.

    • 17 Jul 2012
  • CS offers Sfr1.9bn MACCS clawback

    Credit Suisse will raise Sfr3.8bn from a new mandatory convertible bond after choosing a structure that allows it to issue around 18% of its existing share capital at close to the market price while giving shareholders some pre-emption rights and getting immediate core equity tier one treatment.

    • 17 Jul 2012
  • Intesa targets €32bn senior, sub with buyback

    Intesa Sanpaolo is targeting almost €10bn of subordinated securities and more than €22bn of senior unsecured paper in a below par buyback offer.

    • 17 Jul 2012
  • Credit Suisse launches capital attack

    Credit Suisse’s contingent capital securities tightened by 125bp on Wednesday morning and its equity rallied over 6% as it announced a swathe of measures to boost its solvency.

    • 17 Jul 2012
  • Spanish burden sharing gets nod from central bank governor

    Spain’s new central bank governor acknowledged on Tuesday the potential for subordinated bondholders to take a hit as the country’s lenders are bailed out. Luis Linde, who took over as head of the Bank of Spain last month, put the politically sensitive issue of burden sharing on the table in a speech to the Spanish parliament, in which he also catalogued what he saw as the country's supervisory failings in the last decade.

    • 16 Jul 2012
  • Santander UK hits 73% take-up on capital buyback

    Investors tendered three quarters of paper eligible for Santander UK’s capital buyback offer, pushing the lender to increase the cap on the deal to accommodate strong demand.

    • 15 Jul 2012
  • MPS gains €230m after sub for senior exchange offer

    Banca Monte dei Paschi di Siena generated €230m of core capital in a sub for senior exchange offer this week after meeting a 30% participation rate, despite overall interest falling short of the deal cap.

    • 12 Jul 2012
  • Bail-out tensions rise in Spain after leaked draft indicates burden sharing

    Debate intensified over Spain’s bank bail-out this week, after a leaked draft of conditions knocked the gloss off news that the money could start being disbursed in a matter of weeks.

    • 12 Jul 2012
  • Mutuals grapple with hybrids

    The UK government is asking for suggestions as to whether its Building Societies Act needs updating to support a new, loss-absorbent capital instrument as part of a wholesale review of the mutual sector.

    • 12 Jul 2012
  • EBA claims win as banks hit ratios without cuts

    More than half of the €94.4bn raised by Europe’s larger banks to meet a 9% core capital ratio has come from fresh capital, the continent’s regulator said this week — with lending cuts minimal.

    • 12 Jul 2012
  • Tense wait for groups results

    Under the draft agreement, banks would be treated differently according to their capital position.

    • 12 Jul 2012
  • Burden sharing better than more sovereign debt: RBS

    Sharing the burden with subordinated investors is a better way to recapitalise Spain’s banks than for the government to bail them out completely, Royal Bank of Scotland’s head of European macro credit research has said.

    • 11 Jul 2012
  • Painful LM ahead: burden sharing threat raised over Spanish sub

    Aggressive liability management trades on subordinated could be ahead for troubled Spanish banks, after a memo leaked overnight indicated burden sharing was likely for lenders that take a European bail-out.

    • 10 Jul 2012
  • We did it — but no time to rest now, says EBA

    After a fourth quarter of grumbling and a first half of getting on with it, the continent’s larger banks have hit the 9% core capital ratio set down by the European Banking Authority, the regulator said on Wednesday. But it acknowledges that pumping up capital ratios on its own will not heal Europe’s troubled banks.

    • 10 Jul 2012
  • Talanx buys back €200m in tier two tidy-up

    German insurance holding company Talanx is to buyback €200m of tier two paper through a tender offer that puts to work cash raised from its first quarter benchmark deal.

    • 09 Jul 2012
  • MPS gains €230m with sub for senior swap

    Banca Monte dei Paschi di Siena generated €230m of core capital in its sub for senior exchange offer, which saw a 30% participation rate, despite overall interest falling short of the deal cap.

    • 08 Jul 2012
  • Builders grapple with hybrids question

    The UK government on Friday asked for suggestions as to whether its Building Societies Act needs updating to support a new, loss-absorbent capital instrument as part of a wholesale review of the mutual sector.

    • 08 Jul 2012
  • Boldly simple StanChart blows out with five year

    Standard Chartered Plc was commended for its bold tier two issue this week, with a blowout transaction that was striking for its simplicity.

    • 05 Jul 2012
  • ABN revives tier two with 10 year bullet trade

    ABN Amro put an end to a hiatus in European tier two supply this week with a bullet 10 year transaction that followed a snappy series of investor meetings. It had been looking at its options for printing a new tier two issue for a while, but had been hampered by regulatory confusion.

    • 05 Jul 2012
  • Tier 2 bogeyman put to bed as FIG issues hit €12bn

    Europe’s financial institutions have printed €12bn of euro denominated senior and subordinated paper in a blazing five days of market activity that also put an end to a long hiatus in both tier two and Italian issuance.

    • 05 Jul 2012
  • Santander UK cleans up capital with buyback

    Santander UK is spring-cleaning its capital base with a cash tender offer on 10 capital instruments, one of which is more than 20 years old.

    • 05 Jul 2012
  • Markit Data 1262

    • 05 Jul 2012
  • Insurance sub revived as Generali, Swiss Re tap market

    Strong demand supported subordinated 30 non-call 10 year transactions from Assicurazioni Generali and Swiss Re this week, which took advantage of the bull market to get deals away.

    • 05 Jul 2012
  • UOB increases tier two despite tight pricing

    United Overseas Bank sold a S$1.2bn ($949.83m) tier two deal this week, and bankers hope the strong response to the deal will encourage more Asian banks to sell subordinated debt in the Singapore dollar market.

    • 04 Jul 2012
  • StanChart targets second dollar tier two clip of year

    Standard Chartered Plc hit the Reg S dollar market for its second clip of tier two paper this year on Thursday morning, in a swift operation that met overwhelming demand.

    • 04 Jul 2012
  • Delta Lloyd tests water after Generali prints sub deal

    Dutch life insurer Delta Lloyd was testing market appetite on Wednesday morning for a 30 year non-call 10 subordinated issue, a day after Italian borrower Generali printed a similar transaction.

    • 03 Jul 2012
  • Santander UK cleans up capital with buyback

    Santander UK is spring-cleaning its capital base with a cash tender offer on 10 capital instruments, some of which are more than 20 years old.

    • 03 Jul 2012
  • ABN seizes regulatory, market advances to print tier two

    A breakthrough in regulatory clarity gave ABN Amro the confidence to hit the euro market with its first tier two transaction in four months, a senior funding official at the bank told EuroWeek Bank Finance.

    • 03 Jul 2012
  • Insurance bonanza as Generali follows Swiss Re

    Italian insurer Generali was set to price a twice subscribed €750m 30 non-call 10 year transaction on Tuesday, the day after investors clambered for a similar structure from Swiss Re.

    • 02 Jul 2012
  • ABN ends structure speculation with tier two

    ABN Amro launched a subordinated deal late on Tuesday morning, ending speculation over what form Europe’s first bank tier two in four months would take.

    • 02 Jul 2012
  • 'Punchy' Swiss Re set to storm market

    With its size capped at €500m, Swiss Re’s 30 non-call 10 year is poised to go well, according to bankers away from the deal — and already another insurer is preparing to follow it into the market.

    • 01 Jul 2012
  • Malaysian banks set to increase local debt sales

    Malaysian banks will step up their domestic bond issuance in the second half of the year, helping them fund planned acquisitions, both in the country and offshore.

    • 01 Jul 2012