Regulatory Capital - All Articles

  • Not a Macif book — but insurance sub rolls on

    French insurer Macif on Thursday brought a small euro deal to the subordinated bond market, continuing a recent trend of supply from the insurance sector. Bankers said the small book might have been down to the aggressive pricing, but congratulated the issuer on getting capital at a competitive level.

    • 28 Feb 2013
  • RBS Coco could come before FPC Pillar II announcement

    Investment banks pitching to Royal Bank of Scotland for their chance to structure and execute a contingent capital trade for the UK borrower are focusing most of their attention on the dollar market, although tapping euro demand has also been considered.

    • 27 Feb 2013
  • Dutch court rejects SNS bondholder appeal

    The Dutch Council of State has ruled that the government’s decision to expropriate SNS Reaal’s shareholders and subordinated debt investors was legally sound, dealing a further — although not unexpected — blow to bondholders’ hopes of compensation.

    • 26 Feb 2013
  • UK buyers flash the cash for Zurich

    UK investors took almost half of Zurich Insurance Company’s €787.5m subordinated bond on Monday, showing their love for simple structures in an asset class that has performed well in recent months despite some weakening at its more aggressive end.

    • 26 Feb 2013
  • Zurich Insurance jumps in before Italy result

    Zurich Insurance Company opened books on a 30.5 year non-call 10.5 subordinated transaction on Monday, taking advantage of a supportive market backdrop to insure against the volatility that could arrive when polling closes for Italy’s general election later in the day.

    • 25 Feb 2013
  • Sub club reopens with Aberdeen and Swiss Re

    Subordinated debt raced back onto the playing field this week, after more than a month on the bench, with two deals announced in quick succession. Aberdeen Asset Management was hoping for a warm reception in Asia after European accounts placed more than $500m of orders for a perpetual offer, while Swiss Re mandated for a contingent capital roadshow.

    • 22 Feb 2013
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    • 22 Feb 2013
  • Aberdeen AM gets solid demand although Asia quiet

    Aberdeen Asset Management was set to price the first subordinated FIG deal for over a month on Friday, having kept books for its perpetual non-call five year trade open overnight to capture Asian private bank demand — although European accounts were understood to have provided the bulk of demand.

    • 22 Feb 2013
  • Beazley shelves retail bond plans

    Specialist insurer Beazley this week pulled out of its planned retail bond issue after the majority of its subordinated debt investors declined the firm’s offer to buy back their securities at par.

    • 22 Feb 2013
  • CRD IV delay no barrier to hybrids but most will wait

    A potential delay in finalising the fourth capital requirements directive (CRD IV) and the accompanying capital requirements regulation (CRR) need not be a barrier to banks which want to print new-style hybrids, said DCM bankers this week.

    • 22 Feb 2013
  • It’s alive! Sub debt back in business with Aberdeen AM and Swiss Re

    Subordinated debt investors saw the light on Thursday after more than a month in the shadows. Aberdeen Asset Management broke into the dollar Reg S market — which only two weeks ago was selling off aggressively — with its perpetual fixed-for-life trade and Swiss Re mandated leads for a contingent capital trade.

    • 21 Feb 2013
  • CRD IV talks stall but new hybrids could still come

    A potential delay in finalising the fourth capital requirements directive (CRD IV) and capital requirements regulation (CRR) need not be a barrier to banks which want to print new-style hybrids, bankers told EuroWeek Bank Finance on Wednesday.

    • 20 Feb 2013
  • Beazley withdraws from retail bond after low LM participation

    Specialist insurer Beazley has decided to pull out of its planned retail bond issue after the majority of its subordinated debt investors decided to decline the firm’s offer to buy back their securities at par.

    • 18 Feb 2013
  • Confusion surrounds SNS CDS auction as 400 investors appeal expropriation

    Bondholders of failed Dutch lender SNS Reaal were facing an uncertain future on Thursday as they waited to hear what chance they would have of claiming on CDS protection they had bought to insure against losses on their bonds.

    • 15 Feb 2013
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    • 15 Feb 2013
  • Coco infusion expected as banks wait on Bank of England Pillar II numbers

    UK banks could be set to reignite the contingent capital market over the coming months, as the Bank of England prepares to nail down exactly how much the country’s lenders need to raise to fill their regulatory capital buffers. The Bank is expected to determine UK lenders’ Pillar II capital shortfall when the Financial Policy Committee (FPC) meets on March 19.

    • 15 Feb 2013
  • Aberdeen AM offers hope for stymied sub debt market

    Capital structurers are looking forward to brighter days in subordinated debt, as the market shakes off last week’s troubles and borrowers return to primary issuance. Aberdeen Asset Management begins marketing a new deal on Friday, and bankers hope that as results season ends, other issuers could press forward with their plans and unleash pent-up supply.

    • 15 Feb 2013
  • Aberdeen reignites sub debt with perpetual promise

    The subordinated debt market, which has rebounded in recent days after suffering heavily last week from the fallout of SNS Reaal’s nationalisation, is looking forward to some new issuance after UK investment firm Aberdeen Asset Management began marketing a new deal.

    • 14 Feb 2013
  • Ringfencing could turn investment banks into hedge funds, says Bishopsfield

    The UK government’s attempts to protect consumers and taxpayers from losses in the investment banking arms of large retail lenders could force investment banks to ramp up risk, potentially triggering losses in other financial companies if they fail, the co-founder of a leading UK investment firm told EuroWeek Bank Finance on Tuesday.

    • 12 Feb 2013
  • SNS investors file over 400 appeals against nationalisation

    Shareholders and bondholders of failed Dutch lender SNS Reaal have sent over 400 letters to the country’s Council of State appealing the government’s decision to expropriate their holdings in order to nationalise the bank just over a week ago.

    • 12 Feb 2013
  • Beazley tender sparks downgrade but company dismisses S&P capital concerns

    UK specialist insurer Beazley has clashed with Standard & Poor’s following its announcement of a tender offer for subordinated debt last week. The ratings agency withdrew Beazley’s counterparty rating at the issuer’s request, after downgrading it to BBB from BBB+, just as Beazley was gearing up for a retail bond roadshow in London later this week.

    • 11 Feb 2013
  • Iceland repricing shows growth of European demand

    The strength of the US market has long been cited as one of the factors affecting tightening pricing in the European market. But the repricing of an £885m facility for UK food retailer Iceland, the first purely European margin reduction seen in the sector for many months, illustrates that demand for European deals is growing independent of the US bid.

    • 08 Feb 2013
  • Beazley mandates for retail bond

    Specialist insurer Beazley is set to replace its outstanding subordinated debt with senior funding through a buyback followed by a retail bond issue.

    • 08 Feb 2013
  • The great repricing: sub debt hit by SNS and Asian retreat

    Subordinated bank debt is under pressure, hit by a double whammy of the fallout from the Dutch government’s nationalisation of SNS Reaal and a gradual waning of the Asian bid for European paper. Investors are being forced to reassess the risks of sub debt and the reward they should be demanding for buying it, just as the market is gearing up to absorb heavy supply in 2013, writes Will Caiger-Smith.

    • 08 Feb 2013
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    • 08 Feb 2013
  • Westpac doubles up on bank capital refinancing

    Westpac Banking Corp returned to domestic investors this week for a A$1.25bn ($1.29bn) bank capital deal, managing to double the size of a bond it has falling due later in the year.

    • 08 Feb 2013
  • Wells, Citi lead with sub trades, ANZ takes $1.25bn

    Wells Fargo and Citigroup both brought subordinated trades to the US market this week, as banking and financial names accounted for more than half of investment grade supply.

    • 08 Feb 2013
  • Beazley tenders for sub debt

    Specialist insurer Beazley is offering investors the chance to sell back their sub debt, so that the issuer is no longer committed to maintaining a rating on the notes.

    • 07 Feb 2013
  • Bank capital under pressure from SNS fallout and Asian retreat

    The bank capital market is coming down hard after the highs of the past few months, as investors reassess the risks of subordinated debt in the wake of SNS Reaal’s nationalisation and Asian private bank demand recedes.

    • 06 Feb 2013
  • Nationalised SNS Reaal to contribute to €1bn state levy

    SNS Reaal, the Dutch banking group that was nationalised last Friday, was dealt another blow on Monday when it was revealed that it would have to contribute to a €1bn levy to be imposed on the major Dutch banks in 2014. But senior bondholders were relieved to hear that their holdings would remain in SNS Bank rather than being transferred to a new bad bank that is expected to take on the group’s loss-making Property Finance assets.

    • 04 Feb 2013
  • Bondholders given 10 days to appeal SNS Reaal sub haircuts

    Bondholders have 10 days to appeal against the Dutch government’s expropriation of SNS Reaal subordinated debt. As it stands, hybrid capital and sub debt sold by the firm’s banking entities looks set to be wiped out after the company was nationalised overnight.

    • 01 Feb 2013
  • SNS haircut worries ease but bondholder outcomes still murky

    Fears that subordinated creditors to SNS Bank would be subjected to harsh burden-sharing measures eased this week as talk of a private recapitalisation picked up. But the uncertainty drove sharp moves in the bank’s subordinated debt.

    • 01 Feb 2013