Sterling

Banks look to get ahead of obstacles on the horizon with almost €25bn of unsecured issuance in first week of 2023

Unsecured sterling FIG start its busiest since before the coronavirus pandemic

KfW and BNG were out with euro issuance, while EIB opened books on a dollar bond and others added to sterling supply

Size and spread close to what was possible in euros

UK lender dominated Wednesday's bond supply in UK currency

Public sector issuers from across the spectrum brought deals in a variety of currencies

US insurer pays a premium, but unearths tasty double digit arbitrage

As the world came out of the coronavirus pandemic, bond market conditions in 2022 did the opposite of what was expected of them and sharply deteriorated. Rising inflation, in part a result of the war in Ukraine, supply bottlenecks and fast tightening central banks all hurt banks’ abilities to access stable funding in international markets. Accessing unsecured primary financing, even senior debt, was no mean feat as new issue premiums moved higher for most of the year on top of skyrocketing spreads. Refinancing subordinated bonds at economic levels was far more challenging amid extreme volatility that brought back memories of the 2008 global financial crisis. Four bellwether deals are recognised this year for their market-leading achievements and successful execution that empowered the rest of the FIG market in Europe. They not only re-opened market access to a broader issuer base but also gave much needed confidence boost to battered investors. By Atanas Dinov and Frank Jackman.

The Bank of England’s reprieve will help the UK challenger bank meet next year’s MREL targets

After unexpectedly strong issuance of unsecured bonds in November, European banks have pre-funded for 2023, in anticipation of it being a year for refinancing across most, but not all, of the debt capital structure. Which asset classes are banks set to focus on? Atanas Dinov reveals GlobalCapital’s survey findings.

Financial institutions have grappled with an increasingly expensive primary bond market in 2022. As interest rates continue to climb and investors demand more spread for their cash, how much will banks have to pay up to play in the primary markets in 2023? By Frank Jackman.

Swiss bank's decision to call the deeply subordinated debt has increased the pressure on other big European lenders to follow