Italy
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The Italian Treasury is on Tuesday set to hold its last bond auction before the country holds a referendum on constitutional reform that analysts believe could have an impact on eurozone periphery spreads into the new year. -
Bondholders will be able to take part in Banca Monte dei Paschi di Siena’s debt-for-equity swap this week, as market participants hope the Italian lender can pull off its ambitious rescue plan in what is set to be a key month for the Italian banking sector.
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Rising jitters around the approaching Italian referendum and ECB meeting in early December are keeping European credit spreads elevated, say traders, but many see the potential for a big rally given the extent of underperformance versus the US in November.
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Autostrade per L’Italia hit the euro bond market for a long 10 year transaction on Thursday, selling to a euro investor base that is still cool on longer dated maturities.
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UBS's former global head of DCM and client solutions has landed a new role at Citi, as head of markets and securities for Italy at the US bank.
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Banca Monte dei Paschi di Siena’s debt-for-equity swap is the bank resolution and recovery directive (BRRD) working in practice. Bondholders have no escape.
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Banca Monte dei Paschi di Siena (MPS) was unmistakably clear when spelling out the terms of a debt-for-equity swap this week: if bondholders don’t volunteer to be bailed in, the bank will be placed in resolution and they will have no choice. But creditors are not the only ones who are worried as the world’s oldest lender teeters on the brink — the whole Italian banking system is holding its breath.
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Banca Monte dei Paschi di Siena laid out the terms of an offer to retail bondholders to swap their subordinated debt for equity this week. High participation in the liability management exercise is essential if the bank is to complete a planned €5bn capital increase and avoid being placed in resolution.
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Italy’s largest domestic bank, Intesa Sanpaolo, saw non-performing loan inflows slow to the lowest rate ever in the third quarter, though operating margins drooped as the bank paid more to service bad loans.
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Real money sellers were seen in recently issued Italian covered bonds on Thursday, along with some profit-taking at the long end of the French curve, which is expensive to OATs. But with German Pfandbriefe looking cheap relative to Laender, the bonds look well supported, bankers said.
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Italy’s bottle top maker Guala Closures on Tuesday began roadshowing for a new deal to refinance all of its high yield bond debt as the market’s pipeline accelerates before the US elections.
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