Bank Strategy - All articles

  • Barbarians arrive at the banks’ gates as others flee

    While banks fight shy of big-ticket mergers, a select group of private equity firms are leading the restructuring of the industry in Europe, writes David Rothnie.

    • 31 Jan 2019
  • Alpha Bank shifts non-performing SME loans

    Alpha Bank sold a €1bn gross-book value portfolio of non-performing Greek SME loans, along with €56m repossessed real estate assets, to a group of funds managed by affiliates of Apollo Global Management and International Finance Corporation in December. The bank was advised by White & Case.

    • 31 Jan 2019
  • Clydesdale mandates BAML, BNP Paribas, Citi and Wells Fargo with new Lanark UK RMBS

    Clydesdale Bank mandated Bank of America Merrill Lynch, BNP Paribas, Citi and Wells Fargo for the first UK RMBS of the year, Lanark 2019-1.

    • 31 Jan 2019
  • Confidence rises in GACS scheme renewal and extension to UTPs

    The guarantee on securitization of bank non-performing loans (GACS) is likely to be extended, according to market participants speaking at a non-performing loans (NPL) event by the rating agency DBRS. Traders and other sources suggest the government could extend the programme to loans classified as 'unlikely to pay' (UTP).

    • 30 Jan 2019
  • Euro CLO pipeline accelerates after first 2019 deal priced

    Credit Suisse Asset Management priced its first euro CLO at the end of last week, placing the triple-A bonds at 108bps over three month Euribor as CLO investors remain largely undeterred by regulatory concerns. This week, GSO is expected to price its Crosthwaite Park CLO by Friday, with the manager floating initial price thoughts at the start of the week.

    • 28 Jan 2019
  • Pepper RMBS to be priced with euro tranche

    Australian lender Pepper Money this week started marketing an RMBS that will offer investors a euro-denominated tranche and a short-dated dollar tranche, as the issuer looks ready to be the first to jump into the European securitization market this year.

    • 24 Jan 2019
  • Orcel mess leaves gaps at the top of European banking

    The path from M&A rainmaker to CEO is a perilous one, as John Cryan and Andrea Orcel have proved. Will Christian Meissner be the next senior banker to try it, asks David Rothnie.

    • 24 Jan 2019
  • Bulging Euro CLO pipeline pushes past new regs

    GSO has entered the market with a euro CLO alongside Credit Suisse Asset Management's Cadogan Square XIII deal, which is looking at initial price thoughts of 105bp-110bp.

    • 23 Jan 2019
  • Metro’s trading update terrifies investors

    Metro Bank’s update to the market on Wednesday has led to speculation it will need to raise capital once more. It revealed slowing loan and deposit growth, weaker than expected profits, and a greater than expected rise in risk-weighted assets chewing up its capital ratio. The update came at a time when UK banks are pessimistic about raising capital.

    • 23 Jan 2019
  • Carlyle Group and BNPP marketing CLO amidst arbitrage drop

    Carlyle Group and BNPP are marketing a two-year non-conforming Euro CLO, at a time when CLO arbitrage is its worst level since 2013.

    • 22 Jan 2019
  • Leveraged loan worries dominate US bank earnings

    End of year earnings calls at the US banks all featured anxieties about the exposure of the firms to a leveraged finance market that was looking increasingly stretched through year end, with some bridges said to be hung and discounts offered on risk positions.

    • 17 Jan 2019
  • Moynihan promises hiring at BAML as De Giorgi quits

    Diego De Giorgi has left his post as global head of investment banking at Bank of America Merrill Lynch, less than four months after his boss and close ally Christian Meissner was ousted as head of corporate and investment banking (CIB) at the US bank.

    • 17 Jan 2019
  • Barclays marketing new CSAM CLO

    Barclays is on the road this week with a CLO that it is looking to sell this quarter for Credit Suisse Asset Management.

    • 17 Jan 2019
  • Investment banks gear up for tech coverage revolution

    Technology M&A will continue to power corporate finance activity in 2019 but, as deals increasingly cross sectors, banks are having to re-tool their coverage and break up internal silos, writes David Rothnie.

    • 17 Jan 2019
  • Axiom: NPEs down overall, but worst performers are surprising

    EU banks have drastically reduced their non-performing exposures over the past year, and the weakest lenders in terms of provisioning shortfalls are not from Europe’s periphery, according to research by Axiom Alternative Investments. However, two banks named as some of the worst performers disagreed with this label.

    • 17 Jan 2019
  • Kensington Mortgages renews warehouse line

    Kensington Mortgages has renewed a warehouse line of credit with BNP Paribas and Citibank, giving it the ability to fund nearly £1bn worth of new originations.

    • 16 Jan 2019
  • Santander cancels Orcel's CEO appointment over deferred comp cost

    Santander has said it would not be hiring Andrea Orcel as group chief executive after all, because the cost of buying him out of previous compensation awarded at UBS would be too high. But sources close to and away from the situation said that the Spanish bank under Orcel would have also looked to poach other senior UBS employees, potentially sending the buy-out bill spiralling.

    • 15 Jan 2019
  • MUFG hires Mann for FIG in Paris

    Mitsubishi UFJ Financial Group has appointed Jason Mann as European head of financial institutions DCM, a role which will be based in a branch of the bank’s new subsidiary, established to prepare for Brexit.

    • 15 Jan 2019
  • Chinese activity in CEE set to grow

    China’s activity in central and eastern European (CEE) lending and investment is set to swell further in 2019, as its banks and other financial institutions extend their reach.

    • 15 Jan 2019
  • Agarwal on banking: ‘I loved the work we did’

    Capital markets veteran Sandeep Agarwal speaks to GlobalCapital about his decision to leave the sector after a period of more than 20 years, reflecting on what he describes as the "best learning experience" he could have asked for following the financial crisis. As he prepares for a new challenge outside of banking, Agarwal warns that the industry is not "out of the woods yet".

    • 14 Jan 2019
  • New UK RMBS issuance to be sold to US clients

    A handful of prime UK RMBS deals are rumoured to be in the pipeline, along with several prime euro transactions, with issuers said to be targeting US investors while they wait for the fog to clear around new ‘simple, transparent, standardised’ (STS) rules.

    • 14 Jan 2019
  • Legal experts butt heads on STS application for US issuers

    Law firms are struggling to see eye to eye on how to interpret “simple, transparent and standardised” (STS) transparency requirements for US entities issuing in Europe.

    • 10 Jan 2019
  • Credit Suisse investment banking business defies the critics

    Credit Suisse surprised its critics in 2018 by showing that, despite its pivot to wealth management, the European corporate finance business is robust and surprisingly well-diversified, writes David Rothnie.

    • 10 Jan 2019
  • Barclays names new DCM leadership

    Barclays has unveiled the new structure of its management team for its global DCM and risk solutions group businesses, naming a new head of DCM for EMEA.

    • 10 Jan 2019
  • Carige's last trade: troubled Italian bank privately placed securitization

    Banca Carige raised private funding from an institutional investor in May last year through the sale of senior notes in a securitization, perhaps the last time the troubled Italian bank, now facing state recapitalisation, succeeded in raising external funding.

    • 10 Jan 2019
  • RBC corporate DCM head Seibel to run Mizuho’s EU arm

    Mizuho International said it had hired Christoph Seibel, head of EMEA corporate debt capital markets at RBC Capital Markets, to be chief executive of its EU operations, Mizuho Securities Europe.

    • 10 Jan 2019
  • Italy gives Carige liquidity support, opens path to recap

    The Italian government has agreed to provide a guarantee for Banca Carige’s bonds, giving it a chance to shore up its liquidity position. The state has also put the option of a precautionary recapitalisation on the table.

    • 08 Jan 2019
  • Over half of UK banks and brokers could shift to EU

    Twenty-seven universal banks, investment banks and brokerages have confirmed or are considering moving operations or staff from the UK to the rest of the EU, according to EY. Paris is gaining in popularity as a destination for UK financial services firms, but Dublin appears to be the top choice.

    • 07 Jan 2019
  • Barclays bounce-back breaks top five DCM ranking

    All of the top five DCM banks by revenue are US houses — for the third year running — though the resurgent Barclays cracked the top five by volume this year, according to full year 2018 figures from Dealogic.

    • 03 Jan 2019
  • Barclays takes fight to US banks in corporate finance, but doubts linger

    Barclays has asserted its credentials as Europe’s top investment bank with market share gains in 2018, but can it shake off lingering doubts about the franchise, asks David Rothnie.

    • 02 Jan 2019