Corporate credit correspondent
Jane's Feed
Apr 28, 2010

Banks suffer funding pain after Greek downgrade

LONDON, April 28 (Reuters) – New bond issuance from banks in
Europe seized on Wednesday after Standard & Poor’s credit rating
downgrades on Greece and Portugal threatened to hike funding
costs for banks from the continent’s so-called “periphery”.

The primary market shut-down is temporary, bankers said, but
if credit spreads remain elevated for banks from Portugal and
Spain it will cause pain in terms of their financing.

Apr 23, 2010

Sovereign woes hit covered bonds ahead of ECB move

LONDON, April 23 (Reuters) – Europe’s covered bond market
looks ready to stand on its own feet when European Central Bank
(ECB) support ends in June, but this week’s Greek flare-up
highlights new problems in southern Europe for this key bank
funding tool.

Smaller banks in Europe’s so-called periphery will find it
more costly to access the covered bond market after Greece’s
debt troubles even though the wider market has been buoyed by
the ECB’s support. [ID:nLDE63M0XZ]

Apr 15, 2010

New Basel rules may hamper bank lending – S&P

LONDON, April 15 (Reuters) – Proposals from international
regulators to make the global banking system less risky might
have unintended consequences that could constrain lending and
hamper the derivatives and inter-bank markets, Standard & Poor’s
said on Thursday.

The credit rating agency said proposals from the Basel
Committee on Banking Supervision could force some banks to
change their business models and encourage some to shift to
short-term lending.

Mar 23, 2010

HSBC deal gives boost to subordinated bank debt

LONDON, March 23 (Reuters) – HSBC <HSBA.L> on Tuesday became
the third bank in a week to issue Lower Tier 2 subordinated
bonds, braving regulatory uncertainty and tapping into investors
thirst for higher yields.

HSBC’s 900 million pound ($1.35 billion) Lower Tier 2
subordinated issue follows 10-year Lower Tier 2 deals in euros
last week from Lloyds <LLOY.L> and Nordea <NDA.ST>, which
effectively reopened this market for European banks.
[ID:nLDE62G14M]

Mar 12, 2010

Rabobank may issue bond as soon as Friday-lead

LONDON, March 12 (Reuters) – Rabobank [RABN.UL] may go ahead
with a planned contingent senior bond as soon as Friday as it
finalises the exact timing of the issue, officials at one of the
banks managing the sale said on Friday.

The triple-A rated Dutch bank has held roadshows this week
to sound out investors on this new-style of bond that can absorb
losses in times of stress and provide mutually-owned Rabobank
with capital at relatively low cost.

Feb 24, 2010

Regulators add to European banks’ funding burden

LONDON, Feb 24 (Reuters) – Proposals from regulators to stop
banks getting hooked again on the short-term funding that lay at
the heart of the credit crisis could increase the competition
for retail deposits and hurt the real economy, say analysts.

Smaller banks could come under pressure in this climate and
customers may suffer if banks cut back on lending to meet the
funding regulations, they said.

Dec 10, 2009

Rush of deals points to revival of bank FRN market

LONDON, Dec 10 (Reuters) – The market for floating rate
notes (FRNs), traditionally a major funding tool for banks, is
springing back to life, giving lenders more fund-raising options
as they recover from the credit crunch.

Spain’s BBVA <BBVA.MC> on Thursday joined the growing list
of banks lining up to issue these bonds, which generally have
short maturities and floating rate coupons. [ID:nGEE5B90VX]

Nov 24, 2009

UK’s Lloyds prices record $22.4 billion rights issue

LONDON (Reuters) – Lloyds Banking Group <LLOY.L> got strong demand for a 9 billion pound ($14.9 billion) bond exchange on Monday, an indication of possible investor appetite for the UK bank’s record share issue due to price on Tuesday.

Lloyds, Britain’s largest retail lender, received offers of 12.5 billion pounds from investors for its bond exchange, designed to help it exit a costly state-backed insurance scheme for bad debts.

Nov 23, 2009

Lloyds’ bond exchange paves way for share issue

LONDON (Reuters) – Lloyds Banking Group <LLOY.L> got strong demand for a 9 billion pound ($14.9 billion) bond exchange on Monday, an indication of possible investor appetite for the UK bank’s record share issue due to price on Tuesday.

Lloyds, Britain’s largest retail lender, received offers of 12.5 billion pounds from investors for its bond exchange, designed to help it exit a costly state-backed insurance scheme for bad debts.

Nov 20, 2009

Bankers, regulators eye next generation of CoCos

LONDON, Nov 20 (Reuters) – Investment bankers are already
pitching to clients a new form of hybrid bond that financial
regulators see as a potential saviour of troubled banks, but it
is uncertain if they will work or if investors will buy them.

The bonds, which convert to equity if a bank’s capital runs
low, have been created for Lloyds <LLOY.L> as part of a 21
billion pound ($34.63 billion) capital raising to free the UK
bank from a government insurance scheme for bad loans.