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GlobalCapital: What are the drivers for change on the funding mix between senior, covered and capital?

GlobalCapital: What’s your view on the extent that we can expect other shocks or disappointments affecting spreads? El Amir, UniCredit: If you look at the subordinated product like lower tier two, that’s been hit pretty hard across the board. So it certainly feels like people have taken Argentina, disturbances in Israel, BES, and everything else, as an excuse to take profits.

GlobalCapital: What does the TLTRO mean for spreads? Timo Boehm, Pimco: We expect it will lead to more demand from banks but also on the primary side our expectation is that it may also lead to less issuance which would be supportive to spreads tightening. I suppose that banks themselves will invest in the periphery as, though spreads tightened a lot this year, there is still a decent pick-up there. In addition, we expect less new issuance out of the periphery. We will see a few more peripheral deals this year which pales in comparison to the amount of bonds being redeemed.

GlobalCapital: When do you expect net negative supply to cease?

GlobalCapital: It looks like covered bonds will go to Level 1 of the LCR and non-EEA bonds could come in as a Level 2A asset? How does this change things? El Amir, UniCredit: It is good news. A lot of the analysis on covered bonds showed that they were as liquid as sovereign bonds, so including them in the Level 1 was the right decision. I think it will incrementally improve demand but I don’t think it is just going to be exponential just because most of the market assumed they were going to be level 2A. Our liquidity portfolio had been buying a significant amount of covered bonds already, so the fact they’re now Level 1 isn’t going to change our behaviour hugely.

GlobalCapital: What’s your view on SME covered bonds?

GlobalCapital: How do you model recovery?

GlobalCapital: How rapidly do you think an administrator could sell the mortgage portfolio of an insolvent bank?

GlobalCapital: How quickly can OC evaporate in a stressed market?

Last October Promsvyazbank signed a loan that its chief executive officer Artem Konstandian told GlobalCapital was the “easiest deal in our history”. A year on and the bank is back — but if it gets a loan away it could be the hardest financing Promsvyazbank will ever raise.

GlobalCapital recognised in London on September 18 those who have had the biggest impact on derivatives markets over the last year. The winners of the Global Derivatives Awards were voted for by their industry peers. Below are some of the highlights from the gala evening.

Mongolia’s potential to be one of the fastest growing economies in the world could soon be unlocked. The smart money had better move fast.