8 February 2012
A tussle between European regulators contains a glimmer of hope for the ABS market – the European Central Bank has been more sympathetic to the asset class, and now it hopes to win control of the rules on regulatory liquidity from the Commission. read more »
08 February 2012
Lesser-known German financial Aareal Bank hit the senior market on Wednesday, aiming for €500m of three year paper at 200bp over mid-swaps.
A ratings report from Fitch has shed more light on the contingent capital instrument expected to be launched by UBS in the coming days, saying it will likely rate the notes three notches below the bank’s own rating.
Around three-quarters of BBVA’s €2bn 18 month fixed rate deal was placed outside Spain, a vote of confidence for the Spanish bank and proof that there is demand for strong peripheral names.
UBI Banca has joined the rush of Italian banks buying back hybrid capital deals, launching a €450m cash tender offer on Tuesday evening.
Turkey’s Akbank has bowed to pressure from its lending group and increased the all-in margin of its annual refinancing to 145bp from 100bp. But the deal is still priced a bit too aggressively, said bankers.
A tussle between European regulators contains a glimmer of hope for the ABS market – the European Central Bank has been more sympathetic to the asset class, and now it hopes to win control of the rules on regulatory liquidity from the Commission.
Socram Banque’s French auto ABS, Titrisocram 2012-1, will break through the 100bp barrier when leads BNP Paribas and Natixis price it early on Tuesday afternoon. Final price will be 97bp over one month Euribor.
Italian insurers Fondiaria-Sai and Unipol Gruppo Finanziario announced on Monday a list of eight banks that would be prepared to underwrite their dual €1.1bn rights issues that will pave the way for a four-way merger in the industry.
UBS’s equity capital markets and fixed income capital markets businesses shed 74% and 50% of revenues, respectively in the final quarter of 2011 compared to the same period in 2010. That contributed to a 49% drop in revenues for the Swiss firm’s investment banking division for the fourth quarter compared to the Q4 2010.
Intesa Sanpaolo could be locked out of commercial paper funding after a downgrade by Fitch Ratings pushed it a step closer to falling below money market funds’ investment criteria.
The strength of the Long Term Refinancing Operation rally was on vivid display this week as Santander shrugged off a heap of negatives to rack up one of the largest ever order books for a covered bond. Despite its flop last time out, a poorly received recent asset liability management (ALM) exercise and the cédulas sector’s eight month washout, the €2bn benchmark restarted Spanish supply in stellar fashion on Wednesday — and paved the way for more risk-on deals.
The European Central Bank’s long term refinancing operation has been put to good use by the European banking sector. But its lack of discrimination raises dependency and, longer term, increases systemic risks.
Intesa Sanpaolo
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