Equity

Acid test for senior debt as EU intensifies bail-in fears Investors in senior unsecured bank debt may soon be forced to confront the bail-in fears they have been trying to ignore for so long, as EU legislators move to degrade further the status of the asset class.

Market ignoring impact of depositor preference and bail-in, say investors As two European policy centres moved towards greater protection of uninsured depositors and more stringent rules on creditor burden sharing this week, investors expressed concern that the continued strength of liquidity in the market was stopping bondholders from demanding the extra spread they should be paid for the increased risk of losses on senior unsecured and subordinated bank debt.

Société Générale offers concession against euros for Swiss francs Société Générale sold five year Swiss franc debt on Wednesday, taking advantage of a gap in its curve in the currency to drum up extra demand. The deal offered investors a small premium over the bank’s euro curve, but also gave SocGen the opportunity to diversify its investor base.

ING draws in retail interest with five year Australian dollar transaction ING sold its first public Australian dollar deal of the year on Tuesday afternoon, a five year bond, through its Australian subsidiary. The deal saw strong demand, particularly from retail investors, with leads able to price almost double the issuer’s original target.

Sampo sells new krona benchmark after buyback Finnish insurance company Sampo sold its first Swedish krona debt in two years on Wednesday. The issuer sold Skr4bn ($604.3m) of floating rate debt across two tranches. Sampo also bought back more than Skr3bn of floating rate debt that was due to mature in September.

Nomura, DVB, Bank Austria flood the fashionable fives Nomura was back in the euro senior unsecured market for the first time in more than three years this week, and was joined by two European borrowers in the five year maturity that has been in vogue in recent weeks due to its depth of demand.

Sampo sells Swedish krona bonds following buyback Finnish insurance company Sampo sold its first Swedish konra debt in two years on Wednesday. The issuer sold Skr4bn ($604.3m) of floating rate debt across two tranches. Sampo also bought back more than Skr3bn of floating rate debt that was due to mature in September.

SocGen pays up over euros for Swiss deal Société Générale sold five year Swiss franc debt on Wednesday, taking advantage of a gap in its curve in the currency to drum up extra demand. The deal offered investors a small premium over the bank’s euro curve, but also gave SocGen the opportunity to diversify its investor base.

UBA set to tap 2018s as bullish run stalls UniCredit Bank Austria was set to print the day's only new senior unsecured paper in euros on Thursday as the bond rally suffered a pullback on concerns about a potential end to US asset purchases.

ABN sees Rabo’s 10 year, raises six months ABN Amro followed Rabobank out to the long end of the senior unsecured curve on Wednesday, offering investors a little extra yield by opening books on a 10.5 year deal.

Nomura impresses with euro return Nomura printed a euro senior unsecured benchmark for the first time in more than three years on Wednesday, winning plaudits from rival bankers as that rarity drove a strong deal.

Sampo launches benchmark Swedish krona deal Sampo, the Finnish insurance company, is expected to price a dual tranche benchmark Swedish krona trade on Wednesday afternoon.

DVB targets fashionable five years DVB Bank on Tuesday followed fellow European banks into the five year space in senior unsecured, which has been in vogue in recent weeks because of the depth of demand in that maturity.

ING to price first Aussie of the year on Tuesday ING is expected to sell its first public Australian dollar deal of the year on Tuesday afternoon, a five year EMTN. The deal has seen high demand, with the leads expecting to price a deal around twice the size of the issuer’s minimum target.

FIG hits pause but pipeline healthy FIG issuers were cooling off on Monday as public holidays across Europe kept syndicates and investors alike away from their desks. But they will be keen to return with the market in fine shape and a clutch of issuers on the road.

Premium-light deals on FIG menu as issuers bask on spread plateau Senior unsecured deals came thick and fast this week, but with very thin premiums as investors yearning for financials exposure drove curve-flat deals tighter still in the secondary market.

Big accounts ‘error’ on BNP Paribas bond BNP Paribas achieved its goal of distributing its latest senior unsecured bond among lower-tier accounts this week. The regional structure of the deal scared off many of Europe’s bigger buyers, but the €650m deal traded up as they had a change of heart. The French bank collected €725m of orders from 120 accounts on Tuesday.

BHH drives its rare senior venture with big lead interest An asset manager’s large lead order gave Berlin-Hannoversche Hypothekenbank the impetus to print a rare €300m senior benchmark this week.

ASB Bank capitalises on high rating with Swiss deal ASB Bank, the New Zealand subsidiary of Commonwealth Bank of Australia, sold five year Swiss franc debt on Monday, taking advantage of a scarcity of issuance from high grade financials in the currency.

High spread equals success for BofA Merrill Kanga Bank of America Merrill Lynch sold its first Kangaroo bond in nearly three years on Tuesday, pricing a five year dual tranche benchmark during the Sydney day. Investors rushed to pick up the paper, attracted by the high yields on offer and the issuer’s rarity in Australian dollars.

JP Morgan reaches for 15 year euros to offer investors yield JP Morgan was set to print the equal longest euro senior unsecured financial institution bond of the year so far on Friday, as it tried to give yield-chasing buyers something to get excited about.