Regulatory Capital - All Articles

  • Barclays in focus as Coco plans emerge

    After Wall Street’s giants basked in the glow of a promising set of second quarter results, some of Europe’s biggest names have had a tougher time this reporting season. Barclays’ results were hit by mis-selling charges, while Deutsche Bank’s profits halved year-on-year as it increased legal provisions and suffered a decline in debt trading.

    • 31 Jul 2013
  • Barclays must raise its game with Coco execution

    Barclays has made no bones about its commitment to the Coco market, which it now aims to access again as part of its capital raising plan. But its past deals have had a rough ride in the secondary market and another one may be challenging. After Tuesday’s results, potential buyers need the promise of perfect execution this time.

    • 30 Jul 2013
  • EBA sets capital trigger limits for bonus bonds

    The European Banking Authority has set out rules for which contingent capital bonds can be used in pay packages, in an attempt to tie bankers’ bonuses to the long-term future of their institution and stop banks getting round remuneration rules with tailored Cocos.

    • 30 Jul 2013
  • Santander UK looks to retire old capital

    Santander UK is looking to optimise its capital base in light of new capital regulations by buying back up to £486m equivalent of tier one and tier two securities, which it will replace with new-style tier one and tier two issuance in due course.

    • 30 Jul 2013
  • Barclays boosted as bondholders await capital plans

    Barclays’ capital securities traded up on Monday as the bank confirmed that it would update the market on its capital raising plans at the same time as announcing second quarter results on Tuesday.

    • 29 Jul 2013
  • Sub down but not out as CS follows Uniqa

    Just as market participants rushed to call Austrian debutant Uniqa’s €350m 30 year non-call 10 the last trade before the summer break, Credit Suisse was putting the finishing touches to plans for a Reg S/144A subordinated trade, which it announced a roadshow for on Thursday afternoon.

    • 25 Jul 2013
  • Italy’s economic woes weigh on banks as S&P downgrades 17

    The potential for a deeper and longer recession in Italy than originally expected, alongside sustained higher funding costs for the country’s banks, has prompted Standard & Poor’s to downgrade 17 Italian lenders by one notch on Wednesday evening.

    • 25 Jul 2013
  • UK investors out in force for Uniqa

    UK investors took the largest portion of Austrian insurer Uniqa’s first public bond on Tuesday, buying some 36% of the deal. The 30 year non call 10 bond was well received and was trading up in the secondary market on Wednesday.

    • 24 Jul 2013
  • Funding markets still alive even as summer approaches

    ABN Amro made a bid to print the last meaningful senior unsecured supply in euros before the summer break on Wednesday morning, as it launched a floating rate deal. Leads ABN Amro, Bank of America Merrill Lynch, Deutsche Bank and Royal Bank of Scotland released initial price thoughts in the Euribor plus 60bp area for the three year transaction.

    • 24 Jul 2013
  • Uniqa brings public debut but sub shutting down

    Austrian insurance firm Uniqa printed its debut public deal on Tuesday, a €350m 30 year non-call 10 subordinated trade that was more than three times covered. While there is still a chance of further senior unsecured supply this week, Uniqa’s trade is likely to be the last subordinated bond to hit the market until the end of August.

    • 23 Jul 2013
  • Another LIVE testing

    Another LIVE testing

    • 23 Jul 2013
  • ‘Predatory’ hedge funds face uphill battle on Co-op Bank

    US hedge funds that have bought large chunks of Co-op Bank subordinated debt have underestimated the UK regulator's willingness to impose losses on the troubled bank’s bondholders, analysts told EuroWeek Bank Finance on Monday.

    • 22 Jul 2013
  • BBVA Peru approves first sub debt programme

    The board of BBVA Banco Continental, the Peruvian subsidiary of Spanish lender BBVA, has approved a programme of Reg S/144A subordinated debt issuance of up to $600m.

    • 19 Jul 2013
  • US FIG deluge follows Bernanke and blackout

    Wall Street’s titans clamoured to access the dollar market this week after posting better-than-expected earnings, as markets responded positively to Fed chairman Ben Bernanke’s semi-annual statement.

    • 18 Jul 2013
  • Danske and SocGen in a quandary after S&P slashes RAC credit scoring

    Danske Bank is considering what action to take after Standard & Poor’s changed its methodology for calculating the equity content of hybrid debt, downgrading its 2037 tier two bonds from ‘intermediate’ to ‘minimal’ equity content.

    • 18 Jul 2013
  • Zurich goes back to basics with new tender offer in buy back exercise

    Zurich Insurance Company has announced a tender offer for its €500m 2025 subordinated notes, which will be financed by a tap of the €787.5m 2043 bond that Zurich issued in March this year as part of a controversial bond swap exercise.

    • 18 Jul 2013
  • No blowout as yet, but Rabo tier two builds bail-in buffer

    The tier two market proved it wasn’t shut for summer this week, as Rabobank snuck in with a €1bn 10 year bullet that got in and out quickly at a tight spread, helping to bolster the bank’s buffer of tier two capital to protect senior bondholders against bail-in.

    • 18 Jul 2013
  • CNP proves Asian bid is alive, then buys back euros

    Asian investors threw their weight behind French insurer CNP Assurances last week, buying 42% of its perpetual non-call six year deal — the largest proportion they have taken of a European issuer’s capital trade since AG Insurance’s deal in March.

    • 18 Jul 2013
  • Rabo tier two ‘builds bail-in buffer’

    Rabobank sold a €1bn 10 year bullet tier two bond on Wednesday that has since underperformed the wider market in secondary trading. But a banker involved in the trade said the issuer had fulfilled its objectives for the opportunistic trade, which helps build a solid buffer of tier two capital to protect the bank’s senior bondholders from bail-in.

    • 18 Jul 2013
  • Danske in quandary after S&P slashes RAC credit

    Danske Bank is considering what action to take after Standard & Poor’s changed its methodology for calculating the equity content of hybrid debt, downgrading its 2037 tier two bonds from ‘intermediate’ to ‘minimal’ equity content.

    • 18 Jul 2013
  • Rivals underwhelmed by Rabo tier two

    Rabobank brought its first tier two deal since last September on Wednesday, gathering €1.25bn of orders for a €1bn 10 year bullet transaction. That orderbook was smaller than BPCE’s identically structured deal last week — leading some rival bankers to suggest that Rabo could have been more generous with its pricing.

    • 17 Jul 2013
  • Banks must set out capital raising triggers, says FSB

    The Financial Stability Board has told the world’s biggest banks to draw up a list of triggers that could lead to capital raising efforts.

    • 17 Jul 2013
  • FIG flurry ahead of Wednesday’s Fedwatch

    There was no summer slowdown in sight for FIG this week — it has been a busy few days for senior, with Australian banks printing sterling and euros and Banque Federative du Crédit Mutuel now in the market for a seven year. In capital, Rabobank has opened books on a euro denominated tier two deal, its first since September 2012.

    • 17 Jul 2013
  • Back to basics for Zurich with new tender offer

    Zurich Insurance Company has announced a tender offer for its €500m 2025 subordinated notes, which will be financed by a tap of the €787.5m 2043 bond that Zurich issued in March this year as part of a controversial bond swap exercise.

    • 16 Jul 2013
  • CNP announces buyback amount

    French insurer CNP Assurances has announced the maximum acceptance amount for its subordinated debt buyback, following the pricing of its $500m perpetual trade last Friday.

    • 16 Jul 2013
  • UOB nails tight spreads on Tier I hybrids

    United Overseas Bank priced Asia’s first Tier I Basel III-compliant bonds on July 15 at tight levels, providing a benchmark for other Asian banks as they prepare to meet Basel requirements.

    • 16 Jul 2013
  • UOB nails tight spreads on Tier I hybrids

    United Overseas Bank priced Asia’s first Tier I Basel III-compliant bonds on July 15 at tight levels, providing a benchmark for other Asian banks as they prepare to meet Basel requirements.

    • 16 Jul 2013
  • BPCE

    Rating: -/BBB+/BBB+

    • 15 Jul 2013
  • CNP proves Asian bid is back

    Asian investors threw their weight behind French insurer CNP Assurances last week, buying 42% of its perpetual non-call six year deal — the largest proportion they have taken of a European issuer’s capital trade since AG Insurance’s deal in March.

    • 15 Jul 2013
  • CNP tightens pricing as orderbook swells

    French insurer CNP Assurances found more demand for a Reg S subordinated perpetual non-call six bond on Friday, having left books open overnight for Asian accounts. The trade also benefited from added European interest on Friday morning.

    • 12 Jul 2013
  • Trio of Yankee banks come roaring back in dollars

    A trio of Yankee banks broke the dollar FIG drought this week as investors returned to risk in the US high-grade market.

    • 11 Jul 2013
  • CNP breaks back into Asian market as BPCE reignites tier two

    As French bank BPCE brought a gutsy €1bn 10 year subordinated bond on Thursday — the first capital supply from a bank since Société Générale’s underwhelming 10 year bullet at the end of May — its compatriot CNP Assurances was busy reviving the Asian Reg S dollar market, which has gone untapped since UBS’s tier two Coco more than a month and a half ago.

    • 11 Jul 2013
  • This weeks Markit data

    CDS: week’s biggest movers — Markit CDX North America investment grade index — Markit iTraxx Europe subordinated financials index — Markit iTraxx Europe senior financials index — Markit iTraxx SovX Western Europe index — Markit iTraxx Europe index — Markit iTraxx crossover index

    • 11 Jul 2013
  • CNP returns to Reg S and buys back euros

    French insurer CNP Assurances has opened books on a perpetual Reg S dollar trade on Thursday, having roadshowed in early June. The deal will be followed by a tender offer on its €1.25bn subordinated notes, intended to smooth out a spike in the issuer’s maturity profile.

    • 11 Jul 2013
  • BPCE impresses with tight €1bn tier two

    BPCE tapped reverse enquiry from European real money investors on Thursday to sell a €1bn tier two bond which came just 5bp wide of where a recent Société Générale deal was trading. The tight pricing and the depth of demand impressed market participants, who said the deal’s success showed that investors were keen to buy higher yielding assets.

    • 11 Jul 2013
  • Uniqa hits road for public sub debt debut

    Austrian insurer Uniqa is set to bring its debut public bond issue, and is meeting investors across Europe from next Monday to discuss the potential euro-denominated subordinated transaction.

    • 09 Jul 2013
  • Basel Committee looks into simplifying regulation

    The Basel Committee on Banking Supervision is looking to allay concerns that the Basel III framework is too complex, and it is examining the comparability of capital adequacy ratios across banks and jurisdictions.

    • 08 Jul 2013
  • Repriced FIG market prepares for more after Aviva triumph

    The primary market has re-opened for financial names, bankers argued this week after Aviva attracted a €4bn welter of orders from over 300 investors for its tier two offering.

    • 05 Jul 2013
  • Barclays debt shrugs off pressure after downgrade

    Barclays debt was virtually unmoved on Wednesday after a one-notch downgrade from Standard & Poor’s added to recent pressure from the UK regulator for the bank to meet a 3% liquidity ratio earlier than expected.

    • 05 Jul 2013
  • FIG better protected from headline risk ahead of Draghi and payrolls

    FIG spreads are much better placed to deal with the potential volatility from the central bank policy meetings and US employment data that close out this week, said bankers, now that the panic provoked by Ben Bernanke’s mention of QE-tapering has burnt the fast money off the market.

    • 04 Jul 2013
  • Gazprombank pulls Swiss franc tier two

    Gazprombank has postponed its planned Swiss franc tier two bond, with market volatility spoiling the issuer's plans. However, the Russian bank may return to the Swiss franc market in the future, EuroWeek understands.

    • 04 Jul 2013
  • Barclays debt shrugs off more pressure after downgrade

    Barclays debt was virtually unmoved on Wednesday after a one-notch downgrade from Standard & Poor’s added to recent pressure from the UK regulator for the bank to meet a 3% liquidity ratio earlier than expected.

    • 03 Jul 2013
  • Aviva’s 300 club fuels hopes of supply to come

    Aviva collected orders from more than 300 investors for its €650m hybrid tier two deal on Tuesday, fuelling expectations of a pick-up in primary supply next week.

    • 03 Jul 2013
  • Aviva welcomed back to market with promising book

    Aviva plc tightened pricing on its tier two deal on Tuesday afternoon after gathering around €4bn of orders. Some syndicates away from the deal saw a generous premium at initial guidance, but they almost unanimously praised a bold move from the UK insurer in a FIG market that hadn’t seen a benchmark deal in over a month.

    • 02 Jul 2013
  • NBG buys back 12.4m prefs in capital grab

    National Bank of Greece has booked a capital gain of around $155m on buying back non-cumulative preference shares from retail investors at a steep discount to face value, in an exercise designed to generate core tier one capital.

    • 01 Jul 2013