Regulatory Capital - All Articles

  • Swiss Re opens books on Swiss franc Coco

    Swiss Re started bookbuilding for a Swiss franc dual trigger contingent capital deal on Monday morning. The Coco will incorporate a new structure, according to syndicate bankers involved, with the bond writing down in full should the issuer’s solvency falls below a certain threshold, or if a minimum amount of insured damage be caused by an Atlantic hurricane.

    • 30 Sep 2013
  • Swiss Re readies for catastrophe bond Coco

    Swiss Re roadshowed this week ahead of a possible Swiss franc contingent capital deal. The Coco will incorporate a structure that has never before been used, according to syndicate bankers involved, with the bond writing down in full if the issuer’s solvency falls below a certain threshold, or should a minimum amount of insured damage be caused by an Atlantic hurricane.

    • 26 Sep 2013
  • Danske shows euro market is the place to be for tier two

    The subordinated debt market continues to be the area of focus for top tier FIG credits. Danske Bank this week joined a star-studded list of borrowers that have brought strong deals over the past two weeks, proving the market has an appetite for variety.

    • 26 Sep 2013
  • Danske Bank shrugs off management upheaval with strong show in tier two

    Just a week after binning its CEO and launching a below-market buyback, Danske Bank put on an impressive show in bank capital on Tuesday, printing a €1bn 10 year non-call five tier two deal which tightened 9bp in secondary trading.

    • 25 Sep 2013
  • Covered bonds lead the charge in FIG

    The covered bond market has exploded this week, with four euro deals launched on Wednesday, following one in US dollars on Tuesday. Bank issuance overall is back with a bang, after Fed tapering uncertainty was pushed aside, for the time being at least, and investors got the German election outcome they wanted. There has been strong supply in bank capital and senior unsecured, while UK issuers have returned to ABS after a long absence.

    • 25 Sep 2013
  • ‘Generous’ Danske deal finds over €3.5bn of demand

    Danske Bank found a wealth of demand, mostly from European institutional investors, for its 10 year non-call five deal on Tuesday, helping books swell to over €3.5bn by midday London time. Some bankers put that down to what they called the deal’s “generous” pricing.

    • 24 Sep 2013
  • StanChart gets price over size

    The leads on Standard Chartered’s $1bn 10 year bullet, which was sold on Monday mainly to US accounts, defended the deal against critics who said the small book size of $2.5bn showed that the deal had struggled, perhaps because of investor fatigue as StanChart has sold a large amount of tier two paper into the US market this year.

    • 24 Sep 2013
  • UBS reaffirms strength of capital solutions team

    The departure of a senior capital solutions banker from UBS does not affect the firm’s commitment to the bank capital market, a source at the bank told EuroWeek Bank Finance on Tuesday.

    • 24 Sep 2013
  • BNP opens books on domestic Aussie deal

    BNP Paribas is set to sell its second Australian dollar bond of the year from its Australian subsidiary, opting for a four year deal. Demand has proved strong from domestic accounts, with pricing expected to take place on Wednesday.

    • 24 Sep 2013
  • StanChart hits US for tier two as Danske replaces RAC deal

    Standard Chartered was waiting for the US markets to open to provide the bulk of demand for its new 10 year bullet tier two trade on Monday, having received a solid base of orders from Asian and European accounts in the morning.

    • 23 Sep 2013
  • Swiss Re markets catastrophe bond Coco

    Swiss Re has mandated banks for investor meetings ahead of a possible Swiss franc Coco deal. The Coco will incorporate a structure that has never before been used, according to syndicate bankers involved, with the bond writing down in full if the issuer’s solvency falls below a certain threshold, or should a minimum amount of insured damage be caused by an Atlantic hurricane.

    • 23 Sep 2013
  • DNB Bank rides no-taper rally to net tight tier two

    Norway’s DNB Bank made the most of an ebullient tone in the FIG market on Thursday, printing €750m of tier two paper well inside the initial pricing thoughts as market participants cheered the US Federal Reserve’s unexpected decision not to cut back its asset purchases. Tier two supply is expected to increase over the coming weeks, as borrowers seek to take advantage of the strong market backdrop to build up their capital buffers.

    • 19 Sep 2013
  • Danske takes action on defunct S&P RAC bond

    Dankse Bank offered its tier two bondholders a compromise on Wednesday, in a tender offer that is intended to retire a subordinated bond that no longer counts towards Standard & Poor’s risk-adjusted capital (RAC) ratio because of a change in the ratings agency’s methodology.

    • 19 Sep 2013
  • DNB Bank screams into tier two with tight 10 NC5

    Norway’s DNB Bank took advantage of an ebullient tone in credit markets on Thursday following the US Federal Reserve’s decision not to taper asset purchases, printing a €750m 10 year non-call five deal with a minimal new issue premium. Austrian lender Bawag was less fortunate — it cancelled plans for a subordinated trade after completing a European roadshow.

    • 19 Sep 2013
  • Danske takes action on defunct S&P RAC bond

    Dankse Bank offered its tier two bondholders a compromise on Wednesday, in a tender offer that is intended to retire a subordinated bond that no longer counts towards Standard & Poor’s risk-adjusted capital (RAC) ratio because of a change in the ratings agency’s methodology.

    • 18 Sep 2013
  • Primary attractions and tier two tantrums

    Attractive spreads have dominated new issues this week, with UniCredit grabbing investors’ attention with its senior coupon and ANZ New Zealand and Kommunalkredit Austria offering eye-catching premiums in covered bonds. But in the bank capital market, holders of Danske’s perpetual tier two bond complained that they were being short changed in a tender offer.

    • 18 Sep 2013
  • Metrobank kicks off Philippines push into Basel III bonds

    Philippine lender Metrobank is set to nail the first benchmark in Basel III-compliant tier two bonds for the country in US dollars.

    • 18 Sep 2013
  • ING goes across the pond for tight tier two return

    ING found solid demand among US real money investors for a 144A/Reg S tier two deal on Monday, its first since 2008. Accounts outside the US also supported the trade, taking around a quarter of the bonds. Bankers involved in the transaction said it came with little or no new issue premium.

    • 17 Sep 2013
  • Barclays sets terms on £5.95bn rights issue

    Barclays set the terms and timetable on its £5.95bn rights issue on Monday, with the deal expected to complete at the beginning of October.

    • 16 Sep 2013
  • Bankers surprised by FIG quiet ahead of Fed decision

    Bankers expressed surprise that the primary markets for bank capital, senior unsecured and covered bonds were bare amid a strong backdrop on Monday, with some predicting a busy Tuesday ahead of a US monetary policy decision by the Federal Open Market Committee (FOMC) a day later.

    • 16 Sep 2013
  • Crédit Agricole SA

    Crédit Agricole SA

    • 13 Sep 2013
  • Credit Suisse opens up new euro path for Cocos as Créd Ag brings dollars

    Credit Suisse and Crédit Agricole priced Cocos this week, both of them breaking new ground. But while Credit Suisse received praise for the flawless execution of the first ever euro denominated subordinated Coco to hit the primary market, some market participants questioned Crédit Agricole’s decision to use a tier two host for its deal.

    • 12 Sep 2013
  • Intesa and Intesa Vita print tier two debt

    Intesa Sanpaolo Vita, the life insurance unit of Intesa Sanpaolo bank, issued its debut subordinated bond on Tuesday, finding strong demand and using a new tier two deal from the bank — issued as part of an exchange — as a pricing reference.

    • 12 Sep 2013
  • PBs return in droves for Fukoku perp

    Fukoku Mutual Life Insurance Company sold its first US dollar denominated deal on September 10, issuing a $500m perpetual. A generous premium lured in private banks, which have been relatively subdued in Asia’s dollar bond markets since the June rout.

    • 12 Sep 2013
  • Crédit Agricole overcomes capital recalculation to bring debt Coco

    Crédit Agricole finally opened books on its inaugural contingent capital trade on Thursday, having been forced to postpone the trade because of potential recalculations of the capital ratio on which the 7% write-down trigger was based.

    • 12 Sep 2013
  • Credit Suisse broadens Coco horizons with strong European distribution

    Credit Suisse priced the first euro-denominated new contingent capital instrument on Wednesday, taking advantage of demand from accounts focused on that currency in the wake of the US dollar Coco the bank executed in July. Bankers involved in and away from the deal said it was another sign that institutional investors were developing a taste for the Coco product.

    • 12 Sep 2013
  • Monte Paschi board reviews €2.5bn restructuring plan

    The board of Monte dei Paschi di Siena, Italy's third largest bank, reviewed the lender's restructuring plan on Tuesday, ahead of expected European Union approval later this month.

    • 12 Sep 2013
  • Credit Suisse breaks open euro Coco market

    Credit Suisse on Wednesday took a step into untested waters, opening books on a 12 year non-call seven low-trigger contingent capital trade, the first euro Coco ever to hit the market. The deal came after Crédit Agricole was forced to postpone its debut Coco to make last minute changes to the documentation. Elsewhere, Intesa Sanpaolo Vita priced a €500m five year tier two bullet.

    • 11 Sep 2013
  • Créd Ag looks to Thursday for Coco debut

    Crédit Agricole has amended the documentation for its debut Coco and is looking at possibly launching the 20 year non-call five deal on Thursday, having been forced to delay the launch on Tuesday because of potential changes to its fully phased-in Basel III common equity tier one capital ratio, a key metric in the deal’s loss absorption mechanism.

    • 11 Sep 2013
  • Banks plunder sub as senior reopens

    After Intesa Sanpaolo Vita — the Italian lender’s life insurance unit — hit the subordinated debt market on Tuesday, Credit Suisse followed suit with a euro-denominated Coco on Wednesday. Crédit Agricole’s Coco was delayed by a last minute documentation change, but the FIG markets are on a roll, with SEB and Macquarie bringing senior trades.

    • 11 Sep 2013
  • Private bank presence re-emerges as Fukoku prices perp

    Fukoku Mutual Life Insurance Company sold its first US dollar denominated deal in a $500m perpetual on Tuesday after a generous premium was able to lure in private banks that have been relatively subdued in Asia dollar since the June rout.

    • 11 Sep 2013
  • Crédit Agricole postpones Coco to amend documentation

    Crédit Agricole has postponed the launch of its inaugural contingent capital trade after new regulatory developments that could affect the calculation of key capital ratios on which the triggers for the instrument’s loss absorption features are based.

    • 10 Sep 2013
  • Sabadell launches €1.38bn two-step cap hike

    Banco de Sabadell kicked off a €1.38bn capital raise on Monday evening with a €650m block trade that will reshuffle its shareholder register ahead of a rights issue to make up the rest of the the target.

    • 10 Sep 2013
  • Intesa prints new tier two bullet through sub exchange

    Intesa Sanpaolo has issued a new €1.45bn tier two bond after buying back €1.428bn of outstanding tier two debt, in an effort to optimise its capital structure and replace old-style capital with new paper that will be fully recognised under the incoming European Capital Requirements Regulation (CRR). Elsewhere, UBI Banca has offered to buy back a tier two bond it is not planning to call.

    • 09 Sep 2013
  • Monte Paschi set for €2.5bn cap hike, cost-cutting

    Monte dei Paschi di Siena, Italy’s third largest bank, is set to approve a restructuring plan later this month that will include a €2.5bn capital raise.

    • 09 Sep 2013
  • SNS Reaal reshuffles board

    SNS Reaal, the Dutch lender that was nationalised in February after suffering heavy commercial real estate losses, has reshuffled its executive board, appointing a new retail banking chairman after a resignation.

    • 06 Sep 2013
  • You can’t depend on the Asia bid — and that’s no bad thing

    Demand from private bank investors in Hong Kong and Singapore was once a cornerstone for high-yielding subordinated bank debt trades. That bid has backed off recently, and as SocGen’s additional tier one trade showed, it is no longer dependable — but that’s no bad thing.

    • 05 Sep 2013
  • Credit Suisse forges path for first euro Coco

    Credit Suisse added its name to a growing list of banks looking at the European subordinated bond market this week, announcing a European roadshow for a possible low-trigger Coco deal, which would be the first instrument of its kind denominated in the single currency.

    • 05 Sep 2013
  • Japan’s lifers make their case for subordinated debt overseas

    Japan’s life insurers will be visiting global investors to sell subordinated debt despite plenty of liquidity back home.

    • 05 Sep 2013
  • Créd Ag set for inaugural Coco

    Crédit Agricole is looking to bring its first contingent capital trade, having spent the week meeting investors to thrash out the finer points — and most importantly, the pricing — of a 20 year non-call five structure which will see investors permanently lose 100% of their principal if the bank breaches a 7% common equity tier one capital ratio.

    • 05 Sep 2013
  • CS and Bawag add names to sub pipeline

    The pipeline for subordinated debt continues to swell, with Credit Suisse and Austria’s Bawag announcing roadshows for deals that could hit the market in the next couple of weeks. The potential deals signal the revival of the euro tier two market for bank debt, which has lain dormant since July. Credit Suisse's deal would be the first euro-denominated Coco to hit the market.

    • 05 Sep 2013
  • HSBC brings callables back into focus

    Real money investors dominated the allocation of HSBC’s €1.5bn 10 year non-call five tier two deal, which was priced on Tuesday off a book of €3.5bn. Bankers involved in and away from the deal said it was encouraging to see callable tier two bonds — rather than bullets — back in the market, as investors look to shorten the duration of their exposures, to guard against rising rates.

    • 04 Sep 2013
  • Capital and covered in focus as FIG heats up

    The bank capital market is beginning to show signs of the predicted deluge of September supply, with HSBC bringing its first tier two bond in three years on Tuesday, Crédit Agricole on the road for a Coco, and Intesa Sanpaolo Vita meeting investors for a euro subordinated deal. Covered bonds have also been pouring out this week, but while the senior pipeline is bulging, there were no deals in the euro market on Tuesday or Wednesday — and the deals that came on Monday had mixed fortunes.

    • 04 Sep 2013
  • Fukoku Mutual Life seeks sub debt

    Japan’s Fukoku Mutual Life Insurance Company has mandated banks to issue a subordinated US dollar deal in a perpetual non-call 10 format, according to a deal term sheet.

    • 04 Sep 2013
  • You can’t depend on the Asia bid — and that’s no bad thing

    Demand from private bank investors in Hong Kong and Singapore was once a cornerstone for high yielding subordinated bank debt trades. That bid has backed off recently, and as SocGen’s additional tier one trade showed, it is no longer dependable — but that’s no bad thing.

    • 03 Sep 2013
  • HSBC tightens pricing on tier two return

    HSBC returned to the euro tier two market on Tuesday for the first time since 2009, managing to bring the pricing of its 10 year non-call five trade to the tight end of guidance. The deal is the bank’s first tier two transaction in any currency since 2010, and could be the first in a string of issuance as banks look to stock up on capital.

    • 03 Sep 2013
  • SocGen AT1: Asian participation low, but hedge funds and PBs still big players

    Société Générale got less Asian participation than it expected for its debut additional tier one trade last week, although private banks and hedge funds still played in large sizes, taking 30% of the temporary write-down trade. The distribution statistics for the deal, released on Monday morning, showed that real money accounts took 62% — an encouraging sign for the nascent asset class.

    • 02 Sep 2013
  • ICBC mandates banks for Tier II

    Industrial and Commercial Bank of China (Asia) has mandated 10 banks to issue its first US dollar denominated Basel III-compliant bond.

    • 02 Sep 2013