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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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The flow of senior issuance from Spanish financial institutions is unlikely to be affected by the news of the Portuguese bail-out, bond bankers said at the end of what was one of the strongest weeks for the sector yet.
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Portugal’s banks, entangled with the sovereign in a spiral of ratings downgrades, are unlikely to see their funding fortunes improve with a sovereign bail-out, bankers said on Thursday.
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Investors fell back in love with European banks this week, embracing over Eu10bn of new senior issues — including second and third tier names frozen out of the market for up to three years — despite a mass of negative news headed by Portugal’s bail-out.
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Italian financial institutions were out in force in the senior FIG market this week, raising in excess of Eu3.15bn. Bankers found particular encouragement in the fact that issuers that had struggled to find a bid earlier this year were able to make successful returns in large size.
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Supply from financials has flooded the Swiss franc market in the past month, including a stream of new issues and senior unsecured taps over the last fortnight. And with no appealing alternatives for investors right now, the strong performance from financials looks set to continue, bankers said.
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A bail-out of Portugal is unlikely to solve any liquidity problems at the country’s banks, bond bankers said on Thursday.