Regulatory Capital - All Articles

  • Santander hits 16% take-up in controversial buyback

    Santander has bought back €1.15bn equivalent of capital securities in an unconventional liability management exercise, where it did not guide investors on the price it would be willing to buy notes back at.

    • 30 Aug 2012
  • ABN kicks off post-summer capital flow

    DCM bankers were fighting for mandates this week as FIG borrowers’ plans for capital issuance began to come into focus.

    • 30 Aug 2012
  • Markit Data 1270

    • 30 Aug 2012
  • ABN Amro makes Asia push for funding, capital

    ABN Amro plans to become a regular issuer in Asia, its treasurer has told EuroWeek, after the bank made its offshore renminbi debut and announced a tier two focused roadshow in the region.

    • 29 Aug 2012
  • ABN mandates for tier two roadshow

    ABN Amro has appointed four banks to lead a roadshow in Europe and Asia for a potential Reg S tier two transaction, starting on September 3. The announcement came as the bank was set to price a two year senior unsecured offshore renminbi bond on Wednesday.

    • 28 Aug 2012
  • Nordics could be first as hybrid capital issuers take stock

    Nordic lenders could kick off a wave of subordinated debt issuance as issuers return from holiday to look at the market in earnest, said bankers on Tuesday.

    • 27 Aug 2012
  • Senior safe under Spanish resolution regime?

    Senior unsecured debt looks likely to be exempt from burden sharing under Spain’s resolution regime, according to a leaked draft of the document. Subordinated bondholders could suffer losses but the hierarchy of claims will be respected, according to the document.

    • 23 Aug 2012
  • JPM, AIG take advantage of pause to print capital

    In a quiet week for US FIG issuance as the markets wound down at the end of August, a handful of financial institutions tapped the dollar market, including hybrid capital trades from JP Morgan and American International Group.

    • 23 Aug 2012
  • Santander keeps cards close to chest with unmodified auction

    There were furrowed brows on liability management desks all across the City on Thursday as Santander announced it was to buy back up to €2bn face value of tier one, upper tier two and lower tier two capital in a liability management exercise.

    • 23 Aug 2012
  • Bankers fear hesitation among tier two names as Delta Lloyd trades down

    Bank capital specialists fear second tier FIG issuers could be discouraged from printing subordinated paper by the poor aftermarket performance of Delta Lloyd’s €500m tier two deal, which was trading below par this week after being priced on Tuesday.

    • 23 Aug 2012
  • Westpac looks offshore for $800m tier two

    Australia’s Westpac Bank raised $800m from a tier two deal on Wednesday, turning to international investors less than a month after topping up its capital with domestic deadline.

    • 22 Aug 2012
  • Santander keeps sub holders in the dark with audacious LM trade

    Santander is to buy back around €2bn of tier one, upper tier two and lower tier two capital in a liability management exercise.

    • 22 Aug 2012
  • Westpac hits $800m with tier two

    Australia’s Westpac Banking Corporation printed an $800m 10.5year non-call 5.5 trade on Wednesday in a deal that was more than four times subscribed.

    • 22 Aug 2012
  • Westpac taps Asia and Europe for tier two

    Westpac on Wednesday followed fellow antipodean Australia & New Zealand Bank into the subordinated market, pricing a 10.5 year non-call 5.5 dollar tier two deal that received strong support out of Asia and Europe.

    • 21 Aug 2012
  • Delta Lloyd taps institutional demand with 30 non-call 10

    Dutch insurer Delta Lloyd brought its 30 non-call 10 year subordinated deal to market on Tuesday, having whetted investors’ appetites with a roadshow in early July.

    • 21 Aug 2012
  • Delta Lloyd launches 30 non-call 10 deferrable

    Dutch insurer Delta Lloyd has launched a 30 non-call 10 year fixed to floating rate deferrable subordinated bond, with initial pricing thoughts at 9% area.

    • 20 Aug 2012
  • Spain dices with institutional investors over prefs sold to retail

    Institutional bondholders have accused Spanish banks of double standards after reports that the country’s government was considering inflicting a hefty initial haircut on retail buyers’ preference share holdings, only to compensate them over several years with higher interest payments.

    • 16 Aug 2012
  • TruPs cash spurs CapOne, State St perps

    US financials Capital One and State Street took advantage of a wave of trust preferred redemptions to issue new subordinated perpetuals this week.

    • 16 Aug 2012
  • Loss absorption evolving as UBS deal sees institutions warm to write-down

    Institutional investors took a big step towards accepting contingent capital instruments with principal loss absorption features last Friday (August 10), as managed funds bought close to half of UBS’s $2bn low trigger tier two deal.

    • 16 Aug 2012
  • Markit Data 1268

    • 16 Aug 2012
  • Spain dices with institutional investors over prefs

    Institutional bondholders on Wednesday accused Spanish banks of double standards after reports that the country’s government was considering initially inflicting a hefty haircut on retail buyers’ preference share holdings, only to compensate them over several years with higher interest payments.

    • 14 Aug 2012
  • Permanent write-down turns corner as institutional accounts buoy UBS tier two

    Institutional investors took a large step towards accepting contingent capital instruments with permanent write-down features on Friday, as managed funds bought close to half of UBS’s $2bn low trigger tier two deal.

    • 12 Aug 2012
  • Anglo ruling could push investors towards UK

    A recent English High Court judgment that ruled that the coercive liability management exercise Anglo Irish Bank used in 2010 to force losses on bondholders was unlawful could encourage investors to buy bonds governed by English law, analysts at market research firm CreditSights have said.

    • 09 Aug 2012
  • Markit Data 1267

    • 09 Aug 2012
  • UBS tier two book size doubles overnight

    UBS has closed books on a low trigger tier two bond at $8.4bn, and is set to price the deal on Friday afternoon.

    • 09 Aug 2012
  • UBS woos institutions with bullet tier two, others to follow

    UBS’s low trigger tier two deal, set to price on August 10, could be a watershed moment for contingent capital. If successful, it will prove that institutional investors are happy to buy structures that incorporate the risk of permanent writedown, bankers said on Thursday.

    • 09 Aug 2012
  • UBS woos US buyers with bullet structure for lower tier two

    UBS has launched a high-trigger US dollar-denominated lower tier two transaction, following the template of a similar deal it sold in February, but opting for a 10 year bullet structure to attract US investors that missed out on that trade.

    • 08 Aug 2012
  • LTRO III on the way, investors say

    European investors overwhelmingly believe that the ECB will launch a third long term refinancing operation as banks’ refinancing problems continue.

    • 08 Aug 2012
  • Anglo ruling could push investors towards English law bonds

    A recent English High Court judgement ruling that the coercive liability management exercise Anglo Irish Bank used in 2010 to force losses on bondholders was unlawful could encourage investors to buy bonds governed by English law, analysts at market research firm CreditSights have said.

    • 07 Aug 2012
  • Secondary market hits Stanchart but subordinated pipeline builds

    Fallout from the New York regulator’s probe into Standard Chartered Bank’s dealings with Iran is unlikely to damage the broader FIG market, bankers said, despite significant moves in the bank's spreads on Tuesday.

    • 06 Aug 2012
  • UBS courts institutions with low trigger tier two

    UBS is meeting investors in the US, Switzerland and the UK this week on a roadshow for a US dollar-denominated low trigger subordinated lower tier two bond. The bank hopes that going on the road with institutional investors will attract real money accounts that stayed away from its last lower tier two bond.

    • 05 Aug 2012
  • Credit Suisse increases buyback spend to retire $1.8bn of senior

    Credit Suisse has increased the cap on its senior unsecured liability management exercise to buy back all the notes tendered by investors. The bank will remove $1.8bn of its debt from the market, spending just under $2.2bn by buying the bonds back at cash premiums of between 1.25 and 3.25 percentage points.

    • 02 Aug 2012
  • LM desks chew over Anglo ruling on burden-sharing

    An English High Court judgment on July 27 handed an olive branch to bondholders who have been subjected to burden sharing via coercive liability management exercises on subordinated debt. The judgment ruled that Anglo Irish Bank’s use of the "exit consent" mechanism in 2010 was unlawful.

    • 02 Aug 2012
  • Markit Data 1266

    • 02 Aug 2012
  • CRD IV delay unlikely to affect capital plans, say bankers

    A potential delay of up to a year in the implementation of the Basel III framework into European law should not affect banks’ capital raising plans, bankers said on Thursday. In any case, they expect regulators to start monitoring banks under Basel III even before it is implemented.

    • 01 Aug 2012