Regulatory Capital - All Articles

  • SocGen shrugs off AT1 scepticism to land $4.5bn for hybrid

    Société Générale bolstered the new-style bank capital market this week by attracting nearly $4.5bn of orders for the first temporary write-down additional tier one bond.

    • 29 Aug 2013
  • Nationwide targets £715m of Pibs in tender

    Nationwide has launched a tender offer for holders of its permanent interest bearing shares, targeting some £715m of securities in an attempt to bolster its capital structure.

    • 29 Aug 2013
  • Enough arguing — buy AT1 or don’t

    Société Générale took a brave step into the world of new-style CRD IV-compliant capital on Thursday, bringing the market’s second-ever additional tier one transaction.

    • 29 Aug 2013
  • Intesa looks to bin old-style tier two in exchange

    Intesa Sanpaolo is targeting €5bn of old-style tier two capital in an exchange offer, giving investors the chance to switch into a new 10 year bullet tier two bond which will comply fully with the European Capital Requirements Regulation.

    • 29 Aug 2013
  • Crédit Agricole to enlarge RAC with high-strike Coco

    Crédit Agricole will issue a tier two contingent capital instrument which is intended to achieve intermediate equity content to boost its risk-adjusted capital (RAC) ratio with rating agency Standard & Poor’s.

    • 29 Aug 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

    • 29 Aug 2013
  • Intesa looks to bin old-style tier two in exchange

    Intesa Sanpaolo is targeting €5bn of old-style tier two capital in an exchange offer, giving investors the chance to switch into a new 10 year bullet tier two bond which will comply fully with the European Capital Requirements Regulation.

    • 29 Aug 2013
  • SocGen tightens AT1 pricing as investors pile in

    Société Générale got an enthusiastic response to its debut additional tier one capital trade on Thursday, managing to tighten pricing from the initial level after investors placed around $4bn of orders for a potential $1bn-$1.25bn trade.

    • 29 Aug 2013
  • Crédit Agricole to enlarge RAC with Coco

    Crédit Agricole has announced plans to issue a tier two contingent capital instrument which is intended to achieve intermediate equity content to boost its risk-adjusted capital (RAC) ratio with ratings agency Standard & Poor’s.

    • 29 Aug 2013
  • SocGen edges closer to AT1 after roadshow

    Société Générale on Tuesday finished a roadshow for the second ever CRD IV-compliant additional tier one trade, which will be the first test of the recently agreed temporary write-down loss absorption structure.

    • 28 Aug 2013
  • FIG issuance on hold amid Syria concern

    After deals from Wells Fargo and ANZ Bank on Tuesday, FIG issuers stepped back from the primary market on Wednesday with bankers citing concern about possible Western military intervention in Syria as the reason why borrowers have put their plans on hold.

    • 28 Aug 2013
  • Nationwide targets £715m of Pibs in tender

    Nationwide has launched a tender offer for holders of its permanent interest bearing shares, targeting some £715m of securities in an attempt to bolster its capital structure.

    • 27 Aug 2013
  • SocGen to test temporary write-down for AT1

    Société Générale is preparing the second additional tier one deal since Europe’s Capital Requirements Directive was finalised earlier this year. The deal will be the market’s first test of the newly agreed temporary write-down loss absorption structure — sparking a debate about how much that feature should be worth in terms of pricing.

    • 22 Aug 2013
  • Credit Suisse Coco disappoints with small size

    Credit Suisse sold a perpetual non-call five year Swiss franc Coco on Wednesday afternoon that, while priced at the tight end of guidance, fell short of the issuer's size expectations. Dominique Kunz, head of Swiss franc DCM at the bank, blamed deteriorating sentiment for the lack of demand.

    • 22 Aug 2013
  • Temporary writedown has to count for something

    Société Générale is planning to test out the temporary writedown loss-absorption mechanism in a new CRD IV additional tier one bond for the first time. The industry lobbied intensely for the mechanism but some investors now say it shouldn’t merit tighter pricing. What then, is the point of issuance?

    • 22 Aug 2013
  • S&P rates new SocGen AT1 notes

    Standard & Poor’s, the ratings agency, has assigned a long term issue rating of BB+ to Société Générale’s proposed additional tier one deal, which is expected to hit the market soon after a roadshow in Europe and Asia next week.

    • 22 Aug 2013
  • Credit Suisse Coco disappoints with small size

    Credit Suisse sold a perpetual non-call five year Swiss franc Coco on Wednesday afternoon that, while priced at the tight end of guidance, fell short of the issuer's size expectations.

    • 22 Aug 2013
  • CS set to price Swiss franc Coco

    Credit Suisse is preparing to price a perpetual non-call five year bond on Wednesday afternoon having received strong demand for the low trigger permanent write down structure from retail investors.

    • 21 Aug 2013
  • Nordics dominate senior as capital heats up

    The funding and bank capital markets have roared back into action this week, with senior unsecured and covered bond supply dominated by Nordic and French names, while Société Générale announced the second ever CRD IV-compliant additional tier one trade.

    • 21 Aug 2013
  • Temporary write-down has to count for something

    Société Générale is planning to test out the temporary write-down loss absorption mechanism in a new CRD IV additional tier one bond for the first time. The industry lobbied intensely for the mechanism but some investors now say it shouldn’t merit tighter pricing. What then, is the point of issuance?

    • 20 Aug 2013
  • SG follows BBVA into AT1 but structure will be simpler

    Société Générale is preparing the second new-style additional tier one capital deal since European policymakers agreed on the final Capital Requirements Directive package, which translates Basel III into law, back in March this year. The deal will be the first test of the temporary write-down loss absorption mechanism.

    • 20 Aug 2013
  • CS opens books on Swiss franc perp

    Credit Suisse opened books on a perpetual non-call five year Swiss franc Coco deal on Tuesday morning, and is planning to price the low trigger loss absorbing capital paper on Wednesday.

    • 20 Aug 2013
  • Lloyds reshuffles DCM as FIG head goes home

    Lloyds has reorganised its capital markets origination team, promoting two senior bankers after the departure of its head of financial institutions DCM.

    • 19 Aug 2013
  • In it for the long haul — Deutsche’s capital solutions mission

    Gerald Podobnik has covered the hybrid capital market at Deutsche Bank for 10 years. Capital, especially bank capital, has undergone a regulatory remodelling over the past three or four years, so it pays to have a veteran in residence. Podobnik spoke to EuroWeek’s Will Caiger-Smith about the changing face of capital regulation and the challenges it creates for issuers and structurers.

    • 15 Aug 2013
  • Benchmark market facing supply dearth despite tightening spreads

    A booming trade in private placements could usurp the benchmark FIG funding market in the second half of the year, as continued deleveraging reduces funding requirements and issuers begin to focus more on issuing new-style capital instruments.

    • 15 Aug 2013
  • CS gears up for Swiss franc perpetual Coco

    Credit Suisse announced plans for a perpetual Swiss franc Coco trade on Wednesday, and is scheduled to meet investors next week. ING provided the other activity in an otherwise-quiet week for niche-currency borrowing, opening books for a new Australian-dollar three year bond on Thursday.

    • 15 Aug 2013
  • Costs of RBS split would outweigh benefits: Fitch

    After a solid set of second quarter results at Royal Bank of Scotland, the costs of splitting the bank into a good bank and a bad bank to house non-performing assets would outweigh the benefits of such a plan, Fitch Ratings said on Wednesday.

    • 15 Aug 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

    • 15 Aug 2013
  • CS gears up for Swiss franc perpetual Coco

    Credit Suisse announced plans for a perpetual Swiss franc Reg S Coco trade on Wednesday, with the bank scheduled to meet investors next week.

    • 14 Aug 2013
  • Goldman sates hunger in lazy FIG market

    The primary FIG markets have been languishing in the heat of the summer, with Goldman Sachs providing the only new euro benchmark deal of the week. But the dollar market has seen action and secondary spreads have continued to tighten. Bankers envisage more supply coming towards the end of the month.

    • 14 Aug 2013
  • Beyond banks: FSB extends reach of resolution regimes

    The Financial Stability Board is looking at ways to apply bank resolution regimes to other financial sector companies like insurers and central counterparties, having identified a list of nine “too big to fail” insurance firms last month.

    • 13 Aug 2013
  • Santander UK retires £427m in capital update

    Santander UK has bought back nearly all of the old-style tier one and tier two securities it was targeting in a tender offer as it looks to respond to new capital regulations in Europe.

    • 09 Aug 2013
  • Rates set to keep senior shorter as periphery bank prospects rise

    The backdrop in the euro senior unsecured market should be strong in late August as spreads continue their slow grind tighter and investors scrap for paper after the summer break.

    • 08 Aug 2013
  • Macquarie, Discover reprice curves in FIG dollar flurry

    Strong investor demand for FIG paper enabled a flurry of borrowers to flatten new issue concessions in the dollar market this week ahead of an expected slowdown in supply.

    • 08 Aug 2013
  • DZ Bank responds to Swiss sub demand by selling 10 year deal

    DZ Bank ended a lull in Swiss franc bond issuance on Wednesday, selling a 10 year tier two deal. Zurich based syndicate bankers expect that August will be quiet aside from sporadic activity from frequent issuers, but DZ Bank was willing to respond to reverse inquiry to the lead manager.

    • 08 Aug 2013
  • Banking union won’t stop failure, say investors

    Most European investors believe that the European Union’s plans for banking union within the single market will not reduce default risk for its banks, according to research by Fitch Ratings. The results of the survey highlight the conflicting effects of banking union on the risks involved in buying bank debt, said the agency.

    • 08 Aug 2013
  • DZ Bank responds to Swiss sub demand

    DZ Bank ended a lull in Swiss franc bond issuance on Wednesday, selling a 10 year tier two deal. Zurich based syndicate bankers expect that August will be quiet aside from sporadic activity from frequent issuers, but DZ Bank was willing to respond to reverse inquiry to the lead manager.

    • 07 Aug 2013
  • Covered keeps activity humming for banks

    A smattering of issues this week showed it is possible for covered bond issuers to price publicly syndicated deals at the height of summer. Activity is more pedestrian in other FIG markets as Europe’s lenders continue to report second quarter results, with many posting more satisfying numbers than this time last year.

    • 07 Aug 2013
  • Avoid innovation for innovation’s sake, says PRA

    The UK’s Prudential Regulation Authority has called on the country’s banks to stick to the spirit of the European Capital Requirements Directive package by using easily understandable regulatory capital structures. But at the same time, it recommended that banks comply with its own vision for additional tier one securities, which goes over and above the European regulations.

    • 06 Aug 2013
  • EBA wants transparency to counter RWA variations

    Variations in banks' internal methods of assessing risk weights and expected losses are still vexing the European Banking Authority (EBA). Six months after publishing a report that said that half of the difference between banks' RWAs could be down to such variations, the EBA has now asked banks to apply their models to a hypothetical portfolio of debt — and has found similar problems.

    • 06 Aug 2013
  • Credit Suisse Coco strong in secondary market

    Credit Suisse’s debut low trigger Coco traded up in the secondary market on Monday after pricing last week, underscoring the strength of demand for high yielding capital products as well as the lack of activity in primary and secondary trading, which is helping spreads to tighten.

    • 05 Aug 2013
  • Credit Suisse

    Rating: A1/A+/A

    • 05 Aug 2013
  • Credit Suisse lights up sleepy summer with public Coco deal

    Thumbing its nose at the conventional summer slowdown, Credit Suisse made its return to the public Coco market after more than two years on Thursday, pricing a $2.5bn 10 year bullet with a low trigger for permanent principal write-down.

    • 01 Aug 2013
  • Santander UK is aiming to retire old notes after new capital regulations

    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.

    • 01 Aug 2013
  • Buyers flood in as Credit Suisse returns to Cocos

    Credit Suisse made its return to the public Coco market after more than two years on Thursday, opening books on a 10 year Reg S/144A dollar bullet, with a low trigger for permanent principal write-down. The deal is the first time CS has brought a new public subordinated bond since the dual tranche Swiss franc and US dollar Coco it printed in February 2011.

    • 01 Aug 2013