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Most recent/Bond comments/Ad
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◆ Stability leads to third day of FIG sterling issuance ◆ Rabo prints its first tier two four years ◆ BBVA completes first sterling senior bond since 2020
◆ Receptive but crowded FIG market requires concessions for funding to clear ◆ BBVA goes big with its first SP in more than two years ◆ Bawag issues first bond after PTSB acquisition
Bank issuance ranges from strategic tier one capital to insurance subsidiary funding externalisation and big senior bond offerings
◆ Issuer's joint-tightest spread since 2020 ◆ Constructive backdrop helped execution, says lead ◆ Busy primary market expected on Tuesday
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Panic took hold of the secondary senior unsecured market on Thursday, in the wake of weak Spanish and French govvie auctions (see separate story for details of auctions). Southern European bank paper widened significantly.
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The mood in bank funding markets was despondent on Wednesday, as Italy’s bond yields crept back above 7% and indices widened. Secondary flows were scant in senior unsecured FIG paper, and while RCI Banque — an issuer that syndicate desks generally treat as a corporate — launched a two year deal at 4%, bankers agreed that there was little chance of financial institutions coming to market.
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The big new issue premium HSBC paid for its dual tranche dollar deal on Monday was a barometer of market weakness, bankers have told EuroWeek Bank Finance.
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Senior unsecured market participants on Monday said a window had opened for issuers wanting to pre-fund for next year, although they emphasised that it was only accessible for top tier AA-rated banks. Meanwhile, Italy’s banks continued to suffer from the sovereign crisis, lagging behind on the tightening that had been seen in govvie yields since Friday.
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The European market was not the only one to feel the reverberations from the sovereign crisis this week. Earlier in the week, Swedish lender Nordea was forced to abandon its debut Samurai deal, EuroWeek understands, while Rabobank had to modify guidance on its deal.
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Swedish financial SBAB surprised the market this week when it issued the first senior unsecured note in the sector since Rabobank’s bond in August.