6 February 2012
The European Banking Authority has hit out at suggestions that it would reject up to half the measures in bank recapitalisation plans, calling them “inaccurate and misleading”. The EBA said it had been impressed with banks’ efforts towards meeting the framework it set out in December, to reach a 9% core capital ratio by the end of June. read more »
06 February 2012
In spite of slight widening in the CDS and secondary cash markets, Fidelity and Leaseplan stepped into the senior unsecured market on Monday with sterling and euro denominated benchmarks.
Citigroup is offering to buy back up to $750m of euro and sterling-denominated senior unsecured bonds, in an operation which bankers say shows that the US bank has excess liquidity to put to work.
BNP Paribas and Natixis have launched Titrisocram 2012-1, an auto ABS backed by French collateral originated by Socram Banque.
Lloyds Banking Group’s Arkle RMBS reached £3.25bn equivalent when it was priced on Friday afternoon, underlining the positive mood that has gripped the European structured finance market since the beginning of the year.
South Korea’s Busan Bank drew a whopping $5bn of orders for its $300m bond last week, proving the ravenous appetite for investment grade bonds despite the heavy issuance since the start of the year.
More dated sub debt deals are on their way, said bankers, after the success of Nordea’s lower tier two issue this week. Some 350 accounts placed more than €4bn of orders for the Swedish bank’s lower tier two bond issue, the first in euros since May 2011.
Spain’s new economy minister has set out a €50bn real estate provisioning plan that banks must execute by the end of the year. Luis de Guindos, Spain’s minister for the economy, on Thursday night outlined the plan, which will give banks until the end of the year to increase their provisioning substantially.
BNP Paribas held firm on Friday amid a bondholder rebellion as investors spurned a cash tender offer it made earlier last week for €3bn of Fortis Bank convertible and hybrid equity-linked securities (Cashes). And when it announced an acceptance rate of 63% on Tuesday, it belied last week’s protest.
The European Banking Authority has hit out at suggestions that it would reject up to half the measures in bank recapitalisation plans, calling them “inaccurate and misleading”. The EBA said it had been impressed with banks’ efforts towards meeting the framework it set out in December, to reach a 9% core capital ratio by the end of June.
Another threat to US money market funds’ demand for commercial paper has emerged from the Federal Reserve Board, days after money funds warned about the damage proposed SEC regulation could do to the industry.
Russia’s state owned savings bank Sberbank managed to hit up the market for an additional $250m late on Thursday, having already raised $1.5bn through a dual participation note on Tuesday.
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.
Aegon, the A3/A-/A rated Dutch insurance firm, has switched the denomination of its revolving credit facility, signing a new €2bn five year syndicated loan to replace an outstanding $3bn line due in September.
Market participants on Monday spoke out against Moody’s claim that the European Central Bank’s decision to provide banks with three year funding was credit negative.
Moody's reckons the ECB's long term refinancing operation is credit negative for Europe's banks. It's hard to square this with the relief it is providing the sector, but the agency is right to warn of the dangers of relying on central bank funding.
Deutsche Bank’s corporate banking and securities (CB&S) division has posted its worst quarterly result since the end of 2008, reporting a pre-tax loss of €422m.
Intesa Sanpaolo
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