Regulatory Capital - All Articles

  • Regulatory discretion drives RWA variations, says Basel

    A quarter of variations to risk weights in large banks’ trading books come from undisclosed supervisory discretion, according to the Basel Committee on Banking Supervision.

    • 31 Jan 2013
  • Harsh burden sharing fears set to ease if SNS Bank finds private recap

    A tough liability management exercise on SNS Bank subordinated paper would be less likely if the bank finds a private sector source for a recapitalisation, investors have said.

    • 31 Jan 2013
  • SNS Bank poised for discounted sub debt LME as capital hunt continues

    Dutch lender SNS Bank could launch a liability management exercise on subordinated debt to reduce the size of an expected government capital injection, analysts say.

    • 28 Jan 2013
  • Life left in Asian Reg S market, say bankers

    Distribution statistics on recent dollar denominated Reg S hybrid issues are showing a lower participation of Asian investors for subordinated bank debt deals than in the past. But bankers say investors will continue to be enticed by the right names, despite plummeting yields.

    • 25 Jan 2013
  • Markit Data 1289

    • 25 Jan 2013
  • Don’t write off Asian dollar demand just yet, say bankers

    Distribution statistics on recent dollar denominated Reg S hybrid issues are showing a lower participation of Asian investors for subordinated bank debt deals than in the past. But bankers are reluctant to call time on the market, saying investors will continue to be enticed by the right names, despite plummeting yields.

    • 22 Jan 2013
  • BIL spends €187m on reg capital boost

    Banque Internationale à Luxembourg chose to accept around 55% of all the notes offered by investors for purchase in its tender offer for subordinated debt, which expired on January 18.

    • 22 Jan 2013
  • Spain triggers Mare Nostrum convertible on capital deficit

    The Bank of Spain has triggered the switch of a Banco Mare Nostrum convertible bond into equity as part of a recapitalisation and restructuring plan that also encompasses a subordinated debt liability management exercise.

    • 21 Jan 2013
  • Sub investors gobble up Axa double-header

    Two outings in three days this week helped Axa tackle its upcoming sub debt maturities, as the French insurance group took $850m from the Reg S market over Monday and Tuesday, before returning on Thursday with a €1bn 30 year non-call 10 trade.

    • 18 Jan 2013
  • KBC set to print around 75bp outside Barclays Coco

    KBC Bank is set to print a contingent capital transaction between 65bp and 90bp outside the trading levels for Barclay's existing deal which carries the same 7% core tier one trigger.

    • 18 Jan 2013
  • Markit Data 1288

    • 18 Jan 2013
  • StanChart long and simple in sterling, dollars

    Emerging markets lender Standard Chartered doubled up on long dated issuance this week, printing a 25 year sterling senior unsecured bond the same day as it re-opened a 30 year dollar denominated tier two note.

    • 18 Jan 2013
  • EFG refills its coffers with Swiss franc tier two

    EFG International came to market on Wednesday with a Swiss franc tier two deal, looking to replace the tier two debt that was taken out through a buyback offer earlier this month. The Basel III compliant paper proved attractive, offering a high yield from an investment grade issuer.

    • 18 Jan 2013
  • KBC’s state aid Coco pops up encouraging $5bn book

    Investors demonstrated strong support for KBC Bank’s long-awaited contingent capital bond on Thursday, pushing orders to over $5bn by late afternoon. The deal, which is set to be priced on Friday, will help the Belgian borrower repay its state aid early.

    • 18 Jan 2013
  • KBC starts strongly with $3bn books as Axa tops up in euros

    Belgium’s KBC Bank opened books on its highly anticipated Reg S contingent capital trade on Thursday, having spent the earlier part of the week meeting investors in Europe and Asia. Despite some observers’ protestations that the price guidance was not generous enough, the deal started well, receiving $3bn of orders. Meanwhile, Axa was set to price a 30 year non-call 10 trade in euros.

    • 17 Jan 2013
  • EFG refills coffers with Swiss franc tier two

    EFG International came to market on Wednesday with a Swiss franc tier two deal, looking to replace the tier two debt that was taken out through a buyback offer earlier this month. The Basel III compliant paper proved attractive, offering a high yield from an investment grade issuer.

    • 16 Jan 2013
  • UniCredit sings for its sub debt

    UniCredit took a path less travelled by European banks on Wednesday morning, raising subordinated debt in Asia, with a Singapore dollar bond issue. It sold a S$300m 10.5 non-call 5.5 year tier two issue.

    • 16 Jan 2013
  • Axa wraps up perp, KBC could launch this week

    Axa was set to price a perpetual non-call six year deal to yield 5.5% on Tuesday, having received around $6.5bn of demand for the Reg S trade. Meanwhile, bankers involved in KBC Bank’s contingent capital roadshow said the bond could be launched at the end of the week.

    • 15 Jan 2013
  • Sub debt: Axa turns to dollars as StanChart taps 30s

    Axa returned to subordinated issuance on Monday after an absence of nearly three years, as Standard Chartered re-opened a recent tier two.

    • 14 Jan 2013
  • S&P lifts lid on KBC Coco structure with BB+ rating

    Standard & Poor’s has rated KBC Bank’s contingent capital instruments BB+, assigning minimal equity content to the proposed structure.

    • 14 Jan 2013
  • UK Financial Policy Committee sets out counter cyclical capital buffer

    The UK’s Financial Policy Committee is being handed powers to set capital buffers for the country’s banks, in line with a Treasury consultation last year.

    • 14 Jan 2013
  • BoI Coco placement signals Irish recovery

    Bank of Ireland added weight to the country’s status as Europe’s poster-boy for recovery on Wednesday, when it completed a re-marketing of the contingent capital notes it sold to the government after 2011’s bailout. The success of the deal marks the latest point in the issuer’s rehabilitation with international investors, and could open the door for senior unsecured issuance, said bankers.

    • 11 Jan 2013
  • US buyers give big hug to StanChart, Pru sub

    Standard Chartered plc proved that it had put the embarrassment of last year’s spat with US regulators behind it this week, as it placed $2.5bn of tier two paper, mostly with institutional accounts in the country. Meanwhile, Prudential proved its popularity with Asian investors, building a book of around $16bn for its perpetual non-call five trade.

    • 11 Jan 2013
  • BIL opens sub debt buyback to strengthen reg capital

    Banque Internationale à Luxembourg, formerly part of Dexia, is offering to buy back a tier one and four lower tier two securities in a cash tender offer designed to bolster its regulatory capital.

    • 11 Jan 2013
  • EFG preps tier two roadshow after tender offer closes

    EFG International on Tuesday mandated for a two day roadshow in Switzerland next week, ahead of a possible Swiss franc deal. The bank is looking to raise money in Swiss francs to replace tier two debt likely to be taken out through a buyback offer.

    • 11 Jan 2013
  • KBC expected to opt for permanent write-down for Coco

    Belgium’s KBC Bank is expected to emulate Barclays and choose a permanent write-down structure when it prints its non-dilutive contingent capital note, which could hit the market in just over a week’s time. The issuer takes to the road in Europe and Asia next Monday to meet investors in advance of the transaction, which will help it repay its state aid early.

    • 11 Jan 2013
  • Markit Data 1287

    • 11 Jan 2013
  • KBC set to test appetite for Cocos from lower tier issuers

    KBC Bank’s non-dilutive contingent capital note, which is being issued as part of the issuer’s plan to repay government aid it received during the crisis, will be a crucial test for appetite for Cocos from lower rated issuers, said bankers on Thursday.

    • 10 Jan 2013
  • BoI Coco success underscores Irish optimism — but also desperation for yield

    Bank of Ireland added weight to the country’s status as Europe’s poster-boy for recovery on Wednesday, when it completed a remarketing of the contingent capital notes it sold to the government after 2011’s bailout.

    • 10 Jan 2013
  • Broadening interest in BoI spurs secondary Coco placement

    At least €500m of Bank of Ireland high-trigger contingent capital notes are for sale, as the government takes advantage of strong demand for high yielding FIG products to offload some of its investment in the bank’s 2011 recapitalisation.

    • 09 Jan 2013
  • StanChart taps reverse enquiry to add 30 year, Pru trades up

    Investors proved their appetite for high yielding paper on Tuesday, piling into subordinated issues from Standard Chartered Bank and Prudential plc. Demand for Standard Chartered’s tier two debt was so strong the bank added a 30 year tranche to its 10 year bond, taking $2.5bn out of the market altogether.

    • 09 Jan 2013
  • Orders top $15bn for Pru’s perp as StanChart goes global

    The subordinated debt market burst into life on Tuesday as Prudential plc drew more than $15bn of demand for a perpetual issue and Standard Chartered began marketing a 10 year tier two deal globally with a 144a/Reg S structure.

    • 08 Jan 2013
  • BIL tenders for €600m to build regulatory capital

    Banque Internationale à Luxembourg, formerly part of Dexia, is offering to buy back a tier one and four lower tier two securities in a cash tender offer designed to bolster its regulatory capital.

    • 08 Jan 2013
  • EFG prepares tier two roadshow after tender offer closes

    EFG International has mandated for a two day roadshow in Switzerland next week, ahead of a possible Swiss franc deal. The bank is looking to raise money in Swiss francs to replace tier two debt likely to be taken out through a buyback offer.

    • 08 Jan 2013
  • Banks weigh up options, Europe closes in on loss absorption

    As European policymakers approach a final agreement on new rules specifying how subordinated bonds and additional tier one instruments must be structured, banks have two options: wait for clarity on how to incorporate loss absorption at point of non-viability, or simply press ahead with tier two issuance — and risk not receiving capital treatment under the new framework.

    • 04 Jan 2013
  • PSB to call $100m sub debt as strong bid for EM outweighs step-down

    Promsvyazbank will call its $100m subordinated 2018s on January 31, according to an investor relations official at the Russian bank, in spite of an imminent coupon step-down. Demand for emerging market debt is so strong that a new issue would be cheaper, although the bank has no urgent need for funding.

    • 04 Jan 2013
  • Markit Data 1286

    • 04 Jan 2013
  • Europe close to interim solution for PONV as issuers eye up tier two

    New rules specifying how subordinated bonds and additional tier one instruments must be structured, including how to incorporate loss absorption at the point of non-viability (PONV), could be finalised as soon as February, the European parliament has said. Once agreed, the framework could be passed into law in the first half of the year — but bankers reckon that issuers will power ahead with new deals before then.

    • 03 Jan 2013
  • BBVA mandates as other banks bide time

    BBVA mandated for a five year senior unsecured euro transaction on Wednesday afternoon. The deal announcement came as other European banks were lining up a range of transactions and indices moved tighter on Wednesday’s market open.

    • 02 Jan 2013
  • Greek banks line up Cocos to cover PSI losses

    Greece’s four largest banks are set to sell contingent capital instruments to the Hellenic Financial Stability Fund to cover part of the losses from 2012’s Greek sovereign debt swap.

    • 02 Jan 2013