IFR International - 28.07.2018

WAR ûDEMANDûFORûBONDSûRATEDûINûTHEû3INGLEû!û
BANDûANDûABOVEûHASûINCREASED ûHELPINGû
banks.
h4HEREûISûLIQUIDITYûAVAILABLEûFORûDEALSû
DESPITEûBROADERûMARKETûVOLATILITYûWHICHû
MEANSûISSUANCEûCONDITIONSûAREûSTILLûVERYû
CONSTRUCTIVE vûSAIDûONEûSYNDICATEûBANKER
&IFTHû4HIRDû"ANKû!!
ûRAISEDû53BNû
INûTHREEûTRANCHESûOFûTHREE
YEARûlXEDûANDû
mOATERS ûANDûSEVEN
YEARûlXEDûRATEûBONDSûTHATû
were priced about 12bp inside initial price
TALKûONûBOOKSûOFû53BNû!TûlNALûPRICING û
the bonds had about 1bp in concessions.
0.#û"ANKû!!
ûALSOûGOTûAûSOLIDûRESPONSEû
FORûITSû53MûSûTHATûPRICEDûBPû
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AGAINûPRICEDûWITHûJUSTûBPûINûCONCESSION
3UN4RUSTû"ANKû"AA!
!
ûWENTûAûSTEPû
further to issue callable debt that again
found strong interest.
4HEû53BNûOFFERING ûOFûFOURûNON
CALLû
THREEûANDûSIXûNON
CALLûlVEûlXEDûTOûmOATERSû
ANDûFOURûNON
CALLûmOATERS ûWASûmOODEDûWITHû
US$2.9bn in orders. They were priced about
10bp-13bp inside IPTs for about 4bp of
concession.
4HEûBONDSûISSUEDûBYû&IFTHû4HIRD û0.#ûANDû
SunTrust were all quoting about 2bp to 5bp

tighter in secondary on Thursday.

The increased bid for banks is on the back

OFûIMPROVEDûINDUSTRYûEARNINGSûANDûANû

ENVIRONMENTûWHEREûREGULATIONSûWEREû

BECOMINGûLESSûRESTRICTIVEû3EVENTEENûOFûTHEû

ûBANKSûUNDERû#REDIT3IGHTSûCOVERAGEû

(which includes SunTrust and PNC) beat the

street’s consensus estimates in the second

quarter. Fifth Third was one of three that

missed these estimates.

#REDIT3IGHTSûSAIDûITûHASûAûhPOSITIVEû

FUNDAMENTALûVIEWûOFû&IFTHû4HIRDûBASEDûONûITSû

CONSERVATISMûINûLENDINGûINûRECENTûYEARSûASû

WELLûASûRELATIVELYûHIGHERûCAPITALûLEVELSû

COMPAREDûTOûPEERSv

EUROS

FIDELIDADE POSTPONES EURO TIER 2

FIDELIDADE – COMPANHIA DE SEGUROS has rowed

BACKûONûPLANSûTOûSELLûANûUNRATEDû4IERûûAû

TRANSACTIONûVIEWEDûASûAûTOUGHûSELLûEVERûSINCEû

it was mandated.

4HEûCOMPANYûnû0ORTUGALSûLARGESTûINSURERû

WITHûAûûMARKETûSHAREûnûHADûlNISHEDûAû

ROADSHOWûTHEûPREVIOUSûWEEKûHAVINGûMETû

INVESTORSûINû0ORTUGALû,ONDONû0ARISûANDû

Milan.

It was hoping to sell a €250m no-grow 10-

YEARûBULLETûITSûINAUGURALûISSUEûTHROUGHû

CaixaBIûDeutsche BankûGoldman SachsûHauck &

Aufhauser and JP Morgan. The issuer

subsequently said that it had no plans to

bring the deal in the near future.

The recent broad repricing means

INVESTORSûAREûNOûLONGERûFORCEDûDOWNûTHEû

credit spectrum to generate decent returns.

#REDITû3UISSEûFORûEXAMPLEûSOLDûAû53BNû

PERPETUALûNON

CALLûlVE

YEARû!DDITIONALû4IERûû

ATûûEARLIERûINû*ULYûVERSUSûTHEûûCOUPONû

fellow national champion UBS paid in

January when it raised a US$2bn perp non-

CALLûlVE

“In this market when you can buy really

HIGHûQUALITYû!4SûINûTHEûûAREAûWHYûAREû

YOUûGOINGûTOûBOTHERûWITHû;&IDELIDADE=ûUNLESSû

ITSûATûûORûSOMETHINGûLUDICROUSûANDûINûAû

market that’s suffering a bit from liquidity

ASûWELLvûSAIDûAûBANKERûAWAYûFROMûTHEûLEADS

4HEûPROSPECTûOFûFURTHERûVOLATILITYûHITTINGû

PERIPHERALûBONDSûISûALSOûLIKELYûTOûHAVEû

WEIGHEDûONûINVESTORSûMINDSûPARTICULARLYûIFû

THEYûALREADYûHOLDûTHEû0ORTUGUESEûSOVEREIGN

Italy’s budget negotiations in September

are seen as a potential new source of

UNCERTAINTYûFORûEXAMPLEûWHILEû"ANCAû

Carige is also back in the spotlight after the

%#"ûREJECTEDûITSûLATESTûCAPITALûPLANû4HEû

LENDERSûTOPûINVESTORû-ALACALZAû

)NVESTIMENTIûHASûREQUESTEDûTHEûBOARDûBEû

REMOVEDûINûANûESCALATINGûGOVERNANCEûSPAT

“If you get the contagion you saw out of

)TALYûEARLIERûINûTHEûYEARûITûCOULDûBEûDIFlCULTû

and you could be stuck with [the Fidelidade

BOND=vûAûSECONDûBANKERûSAID

GOLDMAN OFFERS WEEK’S SOLE

BENCHMARK

!ûGOLDMAN SACHS 10.25-year euro senior drew

AûSTRONGûRESPONSEûFROMûINVESTORSûAFTERû

limited recent supply in the European

lNANCIALûMARKET

BONDS FIG

ALL FINANCIAL INSTITUTION BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)

1 BNP Paribas 47 11,771.51 9.5
2 UBS 25 11,534.29 9.3
3 Deutsche Bank 37 8,985.43 7.3
4 SG 29 7,631.54 6.2
5 HSBC 41 7,624.21 6.2
6 Credit Agricole 23 6,695.95 5.4
7 Natixis 17 5,999.85 4.8
8 JP Morgan 28 5,185.53 4.2
9 Morgan Stanley 23 5,142.65 4.2
10 Goldman Sachs 21 4,577.02 3.7
Total 197 123,783.12
Including banks, insurance companies and finance companies. Excluding equity-related and covered bonds. Excluding publicly owned institutions.

Source: Thomson Reuters SDC code: N11

ALL SUBORDINATED FINANCIAL INSTITUTION

BONDS (ALL CURRENCIES)

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

1 JP Morgan 18 3,193.26 6.9

2 SG 9 3,106.55 6.7

3 BNP Paribas 15 3,087.74 6.7

4 HSBC 17 2,685.62 5.8

5 BAML 13 2,429.82 5.3

6 Morgan Stanley 14 2,334.61 5.1

7 UBS 12 2,295.96 5.0

8 Citigroup 14 2,271.01 4.9

9 Goldman Sachs 11 2,133.17 4.6

10 Deutsche Bank 11 1,948.36 4.2

Total 68 46,061.01

Source: Thomson Reuters SDC code: J3a

ALL GLOBAL AND EUROMARKET YEN BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)

1 Sumitomo Mitsui Finl 6 63,650.03 19.5
2 Nomura 10 60,233.33 18.4
3 Mizuho 9 47,433.36 14.5
4 BAML 2 31,833.33 9.7
5 Daiwa Securities 7 23,916.67 7.3
6 MUFG 1 21,833.33 6.7
7 HSBC 2 15,000.00 4.6
8 Barclays 4 11,650.00 3.6
9 Goldman Sachs 1 10,000.00 3.1
10 Mitsubishi UFJ MS 2 6,666.67 2.0
Total 24 326,536.30
Excluding equity-related debt. Including preferreds.
Source: Thomson Reuters SDC code: K10

ALL SAMURAI BONDS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues ¥(m) (%)

1 Sumitomo Mitsui Finl 28 278,401.67 22.0

2 Mizuho 32 247,388.33 19.5

3 Mitsubishi UFJ MS 31 236,255.00 18.6

4 Daiwa Securities 27 191,846.67 15.1

5 Nomura 27 189,130.00 14.9

6 Natixis 11 47,120.00 3.7

7 BAML 2 30,000.00 2.4

8 Citigroup 5 17,333.33 1.4

9 BNP Paribas 3 16,125.00 1.3

10 Credit Agricole 4 14,500.00 1.1

Total 43 1,268,100.00

Excluding equity-related debt.

Source: Thomson Reuters SDC code: K11

ALL INTERNATIONAL YEN BONDS

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues ¥(m) (%)

1 Sumitomo Mitsui Finl 34 342,051.69 21.5

2 Mizuho 41 294,821.69 18.5

3 Nomura 37 249,363.33 15.6

4 Mitsubishi UFJ MS 33 242,921.67 15.2

5 Daiwa Securities 34 215,763.33 13.5

6 BAML 4 61,833.33 3.9

7 Natixis 11 47,120.00 3.0

8 Citigroup 6 22,819.58 1.4

9 MUFG 1 21,833.33 1.4

10 BNP Paribas 3 16,125.00 1.0

Total 67 1,594,636.30

Including all Euro, foreign and global issues. Excluding equity-related debt.

Source: Thomson Reuters SDC code: K12