Regulatory Capital - All Articles

  • KBC Group EUR750m 0.5% 10.25NC5.25 T2

    • 29 Aug 2019
  • BBVA follows Swedbank to lift lid on busy autumn AT1 pipeline

    BBVA raised $1bn of additional tier one capital in the dollar market on Wednesday, firing the starting gun for what could be a very busy pipeline of issuance in the format this autumn.

    • 29 Aug 2019
  • UBS returns to S$AT1 after secondary rally

    Switzerland-based UBS Group has priced its second Singapore dollar-denominated Basel III-compliant additional tier one (AT1) bond in just nine months, taking advantage of a rally in its deal from last November.

    • 29 Aug 2019
  • BBVA heads to dollars for AT1 after Swedbank success

    BBVA was marketing an additional tier one bond on Wednesday, making use of the favourable conditions that other issuers have found for similar instruments in the dollar market, while BNP Paribas, Bank of Nova Scotia and Bawag kept euro investors busy.

    • 28 Aug 2019
  • NIP 'hardly visible' on popular KBC tier two

    KBC only needed to offer a slim new issue premium to attract €2bn of demand for a new tier two bond this week. The deal pricing was squeezed by 20bp from initial price thoughts, resembling senior deals from other issuers.

    • 27 Aug 2019
  • Bumper books chase Swiss Re perp as insurance pipeline grows

    Investors were clambering over one another to get a piece of a perpetual bond from Swiss Re on Tuesday, as insurance companies like ASR Nederland and Beazley began lining up deals for the autumnal issuance window.

    • 27 Aug 2019
  • New era for bond pricing as corporates, banks push deeply negative

    Europe's bond market reopened for the autumn issuance season this week — but it is a new bond market. The summer's queasy bout of bearishness has pushed government bond yields to unprecedented lows and these are now for the first time being tested as a platform for private sector bond issuance.

    • 22 Aug 2019
  • UBS AT1 surprise lays open Kanga possibilities

    Market participants expect more banks will now want to print Kangaroos after investors on a search for yield poured into UBS's additional tier one (AT1) deal on Tuesday. The syndication, which surprised those involved after it managed to shave 75bp off its initial pricing guidance and attract A$4bn ($2.71bn) of orders, suggested a market ripe for a deal spree.

    • 22 Aug 2019
  • Blowout Swedbank deal heralds the start of a busy AT1 refi season

    Swedbank was supported with 14 times as much demand as it needed for a $500m additional tier one bond on Thursday, helped by falling interest rates in the US. The deal could be the first of many from European banks, which are facing up to a busy call schedule for AT1s in 2020.

    • 22 Aug 2019
  • UBS surprises with ultra-tight pricing for Aussie AT1 debut

    UBS sold an Australian dollar additional tier one capital note on Tuesday, surprising those involved after it managed to shave 75bp off of its initial pricing guidance on the back of a A$4bn ($2.7bn) orderbook. Market participants expect more banks will now want to look at the Kangaroo market for capital issuance, with BNP Paribas having also launched an AT1 in the currency last month.

    • 20 Aug 2019
  • Issuers in wait-and-see mode after poor primary performance

    Market participants are confident that FIG issuance will pick up next week but there are concerns around secondary performance. They are likely to pay close attention to how this week’s deals from Goldman Sachs and Credit Suisse fare before marketing their own.

    • 15 Aug 2019
  • CS attracts hefty AT1 demand but struggles for price compression

    Credit Suisse sold a dollar-denominated additional tier one (AT1) bond on Wednesday. Despite hefty demand for the notes, the issuer only revised the pricing by a small margin as market turmoil increased through the day.

    • 15 Aug 2019
  • New issue premiums need recalibrating after the summer, say FIG bankers

    Issuers are set to gravitate towards selling higher yielding regulatory debt in the post-summer issuance window, so that they can attract investors and compensate for low overall interest rates. But FIG bankers are unsure what concessions will be needed to get deals away.

    • 08 Aug 2019
  • Bank capital investors preach discipline amid new QE hype

    Some bank capital investors are positioning themselves to take advantage of volatility in the remainder of 2019, revealing their concerns that the market is overly excited about the prospect of a new quantitative easing (QE) programme in Europe.

    • 07 Aug 2019
  • HSBC fires starting gun on second half AT1 supply

    HSBC has said that it will look to raise additional tier one (AT1) capital in the second half of 2019, as investors point to 10 or more issuers that could refinance securities in the next six months.

    • 06 Aug 2019
  • HSBC spins around on disco bonds

    HSBC will grandfather its discounted perpetual (disco) bonds after all. Its decision last year to declare the securities to be fully eligible as tier two capital angered some investors: it has now backtracked after the introduction of new capital rules, although they will lose eligibility at a later date.

    • 06 Aug 2019
  • Economic fears cast a cloud on FIG market performance

    FIG bond investors are showing signs of become more risk-averse at the beginning of August, with bank bond spreads widening amid questions about the health of the European economy.

    • 06 Aug 2019
  • Sterling slump raises questions over UK AT1 calls

    The new UK government’s cavalier approach to Brexit has had a brutal impact on the value of sterling, making it less likely that UK banks will want to pay back the principal on some of their foreign currency additional tier ones (AT1s), writes Tyler Davies.

    • 01 Aug 2019
  • Gender bond pioneer to combat ‘vulture funds’ in Ireland

    Paul Byrne, the treasurer who helped structure the first additional tier one (AT1) gender equality bond, is joining Quartech, the asset manager of HomeOptions, an ESG not-for-profit firm that aims to challenge private equity funds purchasing mortgage portfolios in Ireland.

    • 01 Aug 2019
  • Barclays to call three AT1s in September, despite FX loss

    Barclays said on Thursday that it will redeem three of its additional tier one (AT1) bonds in September, though a weaker pound means that paying the debt back will eat into its common equity tier one ratio.

    • 01 Aug 2019