Pre-migration untagged articles

Société Générale SCF leveraged off attractive pricing and a Eu1bn maximum size to build a Eu4bn book for a seven year jumbo and fix pricing inside guidance last Friday (June 26). But the execution disappointed some investors, who likened it to practices in the corporate bond market.

Société de Financement de l’Economie Français (SFEF), the agency set up to finance the French banking system, raised Sfr2bn in a two year floating rate bond on Wednesday — the Swiss market’s largest ever triple-A issue and the largest ever floating rate bond.

Investor interest in lightly structured notes developed further this week, and dealers report more European demand.

Veolia Environnement sold a Eu250m eight year fixed rate note via Calyon on Monday. The par-priced domestic French note pays a 5.7% coupon.

Deutsche Postbank is planning a debut public sector covered bond transaction that will be half-backed by mortgages guaranteed by KfW, an arrangement that promises to extend the amount of collateral that can be viably used as cover for German Pfandbriefe.

Ireland lost its last triple-A rating this week as Moody’s downgraded it to Aa1, leaving the rating on negative outlook.

Dealers of private EMTNs: Non-syndicated deals for less than $250m excluding financial repackaged SPVs, GSE issuers, self-led deals and issues with a term of less than 365 days.

The European Central Bank gave few new details as to what it will buy or how it will operate when its Eu60bn covered bond purchase programme starts Monday, despite releasing the official eligibility criteria on Thursday.

Efforts are underway in Cyprus to pass covered bond legislation, which could be in place within six weeks, enabling the country’s banks to participate in the European Central Bank’s purchase programme.

UniCredit priced the first Italian covered bond issue since Banca Popolare di Milano inaugurated the obbligazioni bancarie garantite market in July 2008 on Monday, a Eu2bn seven year debut that came tighter than expected.

Concerns about the Middle East’s government-related entities (GREs) were reawakened this week after Standard & Poor’s changed its methodology for rating such companies and placed greater emphasis on the likely support they will receive from their respective governments.

Andrew Haldane, the Bank of England’s executive director for financial stability, told a banking conference in Chicago that returns on equity are little more than gambler’s luck. "During the golden era, competition simultaneously drove down returns on assets and drove up target returns on equity," Haldane said. "Caught in this cross-fire, higher leverage became banks’ only means of keeping up with the Joneses. Management resorted to the roulette wheel. Good luck and good management need to be better distinguished"