UniCredit

Big European investment banks pivoted towards the Americas during 2019 in an attempt to boost revenues and position themselves for the next downturn, writes David Rothnie. With large M&A across the industry still off the table, banks are finding scale through joint ventures and alliances.

Italian superyacht maker Sanlorenzo was buoyant in trading on Tuesday after the company made its debut on the Borsa Italiana. However, the stock was under water by the close on Thursday, on very thin trading volumes.

Andrea Enria, chair of the European Central Bank’s supervisory board, has confirmed that eurozone banks will be able to include subordinated debt as part of their Pillar 2 capital requirements. The resulting 90bp improvement in common equity tier one (CET1) buffers could help to offset "unwarranted consequences" from the implementation of Basel III, he said.

The European Central Bank has the power to decide the ultimate impact of the Basel III rules in Europe.

The fight to influence the way in which EU lawmakers implement the final Basel financial rules is heating up towards the end of 2019, with lobbyists tussling over the potential impact on the European banking sector.

Algebris Investments has launched a new fund to buy investment grade securities issued by global financial institutions. It is looking to profit from a sector that it sees as being undervalued compared with every other area of credit.

JAB Holding, the consumer products holding company, steepened its credit curve this week with its dual tranche bond, as it preferred securing demand over squeezing investors on pricing.

JAB Holding, the acquisitive consumer products holding company of the Reimann family, launched eight and 20 year euro benchmark bonds on Monday, hoping to adjust its debt pile with the proceeds.

Bank capital experts were taken aback this week after UniCredit suggested that it would use subordinated debt to count towards its Pillar 2 capital requirements — a development that, if copied, could lead to a surge in the supply of additional tier one (AT1) and tier two bonds. It could also help financial institutions offset the negative capital impact of Basel IV. Tyler Davies reports.

The listing of Italian luxury yacht maker Sanlorenzo is due to be priced at €16, the bottom of the initial range, despite a tough market backdrop for IPOs.

Chemical company Lanxess has signed a €1bn sustainability-linked loan, as lenders expect next year to see huge growth in other German companies using the format.

Germany’s Volkswagen has signed a €10bn revolving credit facility, with the automobile company taking advantage of a significant oversubscription to double the size of its existing revolver.