Financing Financial Institutions 2012

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  • Unifying the Union

    Banking union will be the most significant change in eurozone financial governance since the creation of the single currency itself. It needs to happen quickly but, as Adrian Murdoch reports, the path remains unclear and key stakeholders are proving reluctant advocates of the project.

  • Tinkering with funding and liquidity

    Hovering on the horizon, the liquidity coverage ratio and net stable funding ratios are still enshrouded in a cloud of uncertainty. Katie Llanos-Small asks how banks are preparing for the ill-defined rules, and what that will mean for their product offerings.

  • The regulatory mist begins to clear to reveal capital clues

    Hybrid capital and subordinated debt has confounded issuers since the onset of the financial crisis, evolving slowly as regulators drip-feed guidance to the market. Now with regulations on the verge of being finalised, Katie Llanos-Small asks what the new bank capital structure looks like.

  • Sparking the ABS market into life

    The launch of the PCS initiative will spearhead the securitisation market’s efforts at bringing investors and regulators back onside. But lack of issuance in the short-term could prove to be another headache. Joe McDevitt reports.

  • Searching for the bid beyond Asia

    Regulators’ visions of new-style hybrid capital securities are frequently met with gasps from bankers wondering who will buy such instruments. With real loss absorption here to stay, Katie Llanos-Small asks if there is a bid for new instruments beyond Asian private banks.

  • Searching for a solution to the RWA conundrum

    Internal risk weighting models are an increasingly concerning aspect of how banks calculate their capital ratios. But with the standardised model boasting anachronistic rules like zero weightings on sovereign risk, Katie Llanos-Small asks if it is idealistic to think there is a better way.

  • RBC ushers in new era for dollar covered bonds

    Dollar covered bonds went public this year, courtesy of a groundbreaking SEC registered deal from Royal Bank of Canada. This frees the market from the constraints of private placement rules, providing better liquidity and a wider investor base — both sorely needed if the dollar market is to reach its full potential. Steve Gilmore reports.

  • LTRO’s tide of cash turns FIG funding topsy-turvy

    If financial institutions and investment bankers were hoping for an easy ride in 2012, they will have been disappointed. The bank finance arena has been turned upside down over the course of the year, as the sudden injection of liquidity from the LTRO changed the balance of power in the market. Will Caiger-Smith searches for order in a very disrupted market.

  • Liability management extends its capabilities

    The variety and volume of liability management by banks over the last year shows they consider it a versatile tool, a trend that LM professionals say will only continue. But it will not be without its controversies, as Tom Porter reports.

  • From paralysis to frenzy: FIG investors hunt for value

    A mountain of regulatory changes conspired with a dire economic backdrop to turn fixed income investors off financial institutions for most of 2012. Although the mood changed in the FIG market over the summer, for most of the year high spreads and volatile conditions made access to the wholesale market unappetising for a lot of borrowers.

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  • European banks start to find relief through securitisation

    Capital is back at the top of the agenda for Europe’s banks, giving capital relief securitisation specialists renewed hope that their methods will soon be de rigeur in capital boosting strategies. Joe McDevitt reports.

  • EM leaders break away in two tier market

    Emerging market bond funds have enjoyed strong inflows in 2012 creating ideal conditions for issuance. But while the sovereign, agency and corporate EM sectors have revelled in demand, not all financial institutions have been so lucky. Francesca Young reports on a two tier bond market — and how it’s changing EM capital markets. With profiles of VTB and Banco do Brasil.

  • Crisis-hewn covered market starts to take new shape

    The European sovereign debt crisis and the introduction of new legal frameworks across the globe have changed the face of the covered bond market completely. Bill Thornhill examines what has happened to the once-dominant markets in Europe and who will be the key players of the future.

  • Can covered take up the senior slack?

    Covered bonds have helped provide crucial funding for banks, particularly when access to the senior unsecured market has been closed. Bill Thornhill looks at recent issuance trends in the light of the changing regulatory and monetary policy environment, and explores what the future holds for these two key interrelated financial markets.

  • Calm before the storm: LTRO roll-off bodes well for FIG supply

    Negative net supply, volatile markets, unattractive rates and cheap central bank liquidity — for large portions of 2012, the bank finance market has been an unhappy place. But towards the end of the third quarter, capital issuance was finally going ahead, even without the official green light from European regulators. Forthcoming LTRO redemptions make a torrent of supply likely in 2014 and 2015. Will Caiger-Smith looks ahead to a busy future in the FIG market.

  • Asia and private placements cushion cash-strapped banks

    Volatile markets and difficult funding conditions for financial firms mean diversifying — by investor base and product type — has never been more important. But some of the options available to banks come with their own challenges. Craig McGlashan reports.

  • All change as treasury teams roll with the punches

    The treasury function at banks has undergone enormous change in recent years, reshaped by crisis and regulation. Phil Moore looks at the challenges facing the modern-day treasury team.

  • A new regime — but how much does bail-in rewrite the rules?

    Having overshadowed the senior unsecured market for the best part of a year and a half, bail-in finally made the leap from debate to directive in June with the publication of Europe’s draft crisis management framework. It had been a long time coming, but once it arrived, discussion around it quickly tailed off. But hang on — haven’t the rules of senior debt just been rewritten, asks Will Caiger-Smith?

  • A global perspective on a global asset class

    Never before have different jurisdictions had such divergent experiences in the covered bond market. Since the start of the year and the European Central Bank’s Long Term Refinancing Operations, spreads in core Europe have moved ever tighter. German levels have reached sub-Euribor territory with peripheral paper trading hundreds of basis points wider after hitting record highs. Meanwhile, countries outside the eurozone have enjoyed comparative stability and experienced the same spread performance as core Europe, without suffering from the same lack of liquidity.

Publisher: Oliver Hawkins

Telephone: +44(0)20 7779 7304

Commercial director of events: Daniel Elton

Telephone: +44 (0)20 7779 7305


Publisher, special projects: Ashley Hofmann

Telephone: +44 (0)20 7779 8740