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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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ING Bank bucked the trend for defensive, short tenor trades on Tuesday, but on Wednesday it followed others in the senior market to price its bond at the wide end of guidance.
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ING Bank is set to buck the short maturity FRN trend in the European senior FIG market with a new 10 year.
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ING Bank braved unfavourable senior debt market conditions in the wake of last week's European Commission paper on bank bail-ins, pricing a Sfr200m dual tranche deal on Monday through lead manager Deutsche Bank, but with bankers speculating that it might have achieved greater size in better market conditions.
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ABN Amro launched a Sfr150m five year senior unsecured bond on Tuesday with Credit Suisse and UBS as lead managers. However, investor cautiousness, triggered by worries over eurozone debt woes, is making for tricky conditions. Bankers also noted volatility around the swap rate.
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European financial analysts at JPMorgan have warned that European banks could be subjected to multi-notch ratings downgrades as European bail-in regimes get implemented. In a note entitled “the great bank downgrades” and published last Friday, analysts said that bank ratings had traditionally incorporated some implicit or explicit state support but that this was going to change.
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The pace of issuance in the European senior market has picked up as borrowers try to get funding on board. But the market is already showing signs of strain, with deals pricing at the wide end of guidance.