Banks
Borrowers look to private placements as substitute for bank lending
With banks showing reduced appetite for lending to small and medium-sized corporates, to what extent could institutional investors step into the breach, via either the private placements market or direct lending?
Credit traders count cost of Xover versus long financials unwind
A rally in European financial subordinated debt did little to ease the pain for traders last month, as the focus switched to regulatory risk around senior bank bonds.
Rise of zombie banks threatens Europe's credit investors
European governments have yet to address the problem of zombie banks: those institutions leveraged to the hilt, unable to lend, and a persistent burden on the state. But with banks facing massive refinancing requirements and growing scrutiny from…
IMF uneasy on nagging weakness of eurozone’s banks
Fund’s Global Financial Stability Report and World Economic Outlook updates show concern over insufficiency of eurozone stress tests, links between banking and sovereign risks
New financials credit analyst for RBC in London
Carlo Mareels joins after six years at HSBC.
Credit Institute panellists pooh-pooh CoCos as viable fixed income investment
Appetite for CoCo securities is likely to be limited, while senior haircuts on bank debt are only a matter of time, according to panellists at recent Credit Institute event.
Private mortgage market remains hamstrung by bad practice: Joseph Mason column
Foreclosures and put-backs are part of the same failed practices in mortgage underwriting.
Government-issued ABS of non-performing assets may revive securitisation market
US government agencies such as the Federal Deposit Insurance Corporation and the National Credit Union Administration are using securitisation as a means to monetise the assets of failed banks and credit institutions. Governments in Europe are keen to…
Author slams 'free market drivel' of bank apologists: Yves Smith profile
The creator of the Naked Capitalism blog and author of one of the definitive accounts of the global financial crisis argues that the US remains chained to outdated economic ideas and that its banks should be regulated like utilities.
Bond investors should remember that haircuts are only a last resort in EC proposals
The EC would explore other avenues of recapitalisation for failing banks, before opting for haircuts.
'Poor disclosure' by banks hampering bond investors: Diana Monteith profile
The senior research analyst at Loomis Sayles talks to Credit about the systemic implications of the Eurozone crisis and risks and opportunities in distressed debt.
Eurozone problems weigh on bank sub debt holders
The escalating crisis surrounding Ireland and other peripheral Eurozone economies affected investor sentiment last month – particularly towards subordinated bank debt.
Credit investors will benefit from financials becoming more ‘utility-like’, says Pimco’s Spajic
With banks cutting leverage, increasing capital and changing their funding models, they offer good value for credit investors.
Credit markets lose momentum after new mortgage fears
Renewed concerns over provisioning by US mortgage lenders led to some pullback for credit as October closed, following a strong advance to mid-month.
Going loco for CoCos: Gary Jenkins column
Regulators may view CoCos as vital to new bank capital requirements, but will credit investors be so supportive of a product which contains a risk of forced selling?
Curbs on bank trading activity hit liquidity
Restrictions on bank proprietary trading have caused liquidity to fall in both the cash and credit derivatives markets, forcing investors to adopt alternative strategies.
Aviva Investors takes multi-asset approach to Europe
Aviva Investors, the asset management arm of Aviva Group expects the increase in the creation and distribution of exotic structured products to continue and anticipates an increase in interest from institutional investors for structured solutions…
Basel’s new 7% equity capital minimum welcomed
Banks are relieved at new minimum capital requirements announced by Basel on September 12, but there are concerns about investor reaction
Credit investors to face losses before taxpayers under Basel proposal
In the financial crisis, holders of tier 2 debt in failing financials found their investments protected when taxpayers were made to bear the brunt of bailouts. But a new proposal by the Basel Committee looks to prevent that happening again.
Financial regulators tighten grip on banks with series of rule changes
July saw amendments to Basel III, the signing of the Dodd-Frank reform bill, and the results of stress tests on European banks. Credit assesses how investor sentiment towards the banking sector has been affected by this activity.
Eurozone a 'slow-motion train wreck' – senior economist
Larry Brainard, chief economist at political risk consultancy Trusted Sources, argues that until Eurozone policymakers shift the emphasis of remedial action from sovereign debt and onto the banking sector, the region will continue to struggle.
Credit rating agencies: A question of trust
For companies involved in the production and trade of energy, credit ratings agencies have played an important risk function, but confidence plummeted after their perceived failure to signal the financial crisis
European power: Iberian market slow to develop
Market analysts have pinpointed the Iberian power market as one to watch due to recent increased participation from banks, hedge funds and utilities. However, some European energy companies are still highly critical of the market’s structure and…
Brussels backs bank tax to fund new resolution network
European Commission calls for a network of resolution funds to bear cost of winding down firms; cost covered through levy on lenders