Switzerland

Julius Baer became the first foreign bank to issue a Singapore dollar-denominated additional tier one (AT1) this week. By doing so, the Swiss lender has joined a growing number of banks that are satisfying their capital needs through the country’s bond market, writes Rev Hui.

The Singapore dollar bond market is welcoming a new participant this week with Swiss lender Julius Baer going live on November 11 with an additional tier one trade – the first time a foreign bank is issuing an AT1 in the Lion City.

Banque Fédérative du Crédit Mutuel (BFCM) sold its first Swiss franc bond since 2014 on Monday, as international visitors to the market increase.

Swiss foods group Nestlé issued a €500m no-grow bond on Wednesday, clinching a 25bp spread over mid-swaps and still drawing a €1.6bn order book.

Glarner Kantonalbank (GLKB) has priced a junior subordinated Swiss franc additional tier one (AT1) bond on Friday, drawing interest from local retail investors.

Switzerland’s largest canton returned to the Swiss franc market after a long absence on Tuesday, with a 12 year deal that was heavily oversubscribed.

The Financial Stability Board has reported progress in implementing over-the-counter derivatives market reforms, but has also highlighted where it believes further work is needed and is seeking further market feedback.

Swiss foods group Nestlé issued a €500m no-grow bond today, clinching a 25bp spread over mid-swaps and still drawing a €1.6bn order book.

Credit Suisse made good use of money market funds to secure €1.5bn in two year floating rate note on Wednesday.

Switzerland's largest canton returned to the Swiss franc market after a long absence on Tuesday with a 12 year deal that was heavily oversubscribed.

The Scandinavian bank returned to the Swiss franc market with a new eight year senior unsecured benchmark bond on Tuesday, following strong demand from local institutional investors

Increased market volatility in foreign exchange, derivatives and equities has driven improved investment bank results at UBS. The same volatility has hurt earnings at several other banks reporting this week.