Italy

Italy brought a rare syndicated effort at the short end of the euro curve on Wednesday, but there was little sign that the unorthodox approach disturbed investors as it built an oversubscribed book at a punchy price.

Public sector borrowers are taking advantage of some of the best conditions in the dollar market all year to print jumbo sized deals at the tightest spreads to US Treasuries in months.

Italy has confirmed it is considering a 50 year benchmark, a deal that would put it in an exclusive club of half century sovereign issuers. But while some bankers may suggest it wait to lock in even lower yields than its peer Spain achieved last week, the issuer would be wise to move before June.

UniCredit and Intesa Sanpaolo both escaped having to deduct the Atlante fund’s rescue of Banca Popolare di Vicenza from their capital. But the firms took very different equity damage from the debut deal, despite each owning a €300m stake. Owen Sanderson reports.

Banking is a game with rules, and regulators set them. That’s why, when the chips are down, they can change them to make banks look better.

By 2018, the European Commission will review the resolution directive that came into effect at the start of this year. In light of Italian banks’ recent struggles, maybe it's already time for a rethink.

Concern around Banco Popolare’s first quarter results sent its equity price plummeting on Tuesday, but the shares have since retraced some of their losses as the bank looks to make rapid progress on its planned merger and capital raise.

By 2018, the European Commission will review the resolution directive that came into effect at the start of this year. In light of Italian banks’ recent struggles, maybe it's already time for a rethink.

Spain has nipped in ahead of its eurozone periphery peer Italy, mandating banks for a debut 50 year euro benchmark on the same day that the Community of Madrid had a strong showing at the short end and Greek yields rallied across the curve.

The Community of Madrid is preparing its first syndicated bond in a year, as the Republic of Italy considers following the lead of France and Belgium by publically issuing a 50 year bond.

Despite the failed IPO of Banca Popolare di Vicenza, which was bought entirely by Italy’s new bank rescue fund, Veneto Banca is expected to press ahead with its €1bn flotation. Bankers are divided on its chances of success, writes Jon Hay.

Banca Popolare di Vicenza is now Fondo Atlante’s problem. The hastily put together Italian bank rescue fund had to stump up all the €1.5bn of capital needed for BPV to avoid a bail-in this week, after there was too little demand to allow the IPO to go ahead.