RSS feedLloyds
’The Basel III sell-off continues
The early price action in the UK banks:
And in Europe
Welcome to the sub-marine crisis
On Thursday, AP Moller Maersk — the world’s top container shipping company — spooked shipping industry watchers when it reported deeper than expected losses of $706m for the nine months to September,
A CoCo Cashbox
Let’s get CoCorporate lawyer-y (sorry).
In recent weeks, FT Alphaville has become intimately familiar with the concept of CoCos, or contingent convertibles. We shall now turn to the mechanics of the actual capital structure (joy).
The CoCo indexing conundrum
How confusing is this?
LONDON, Nov 11 (Reuters) – Bank of America Merrill Lynch reversed its position for a second time on Wednesday to decide its bond indexes would not include new contingent capital securities,
Cuckoo for CoCos
Fresh off the London Stock Exchange, more Lloyds CoCos (that’s Contingent Convertibles) for everyone:
EXCHANGE OFFERS – MAXIMUM ECN NEW ISSUE AMOUNTS
On 3 November 2009, Lloyds Banking Group plc (“Lloyds”) announced two Exchange Offers relating to certain Existing Securities for Enhanced Capital Notes guaranteed by Lloyds or Lloyds TSB Bank plc,
Contingent capital comes to pass, with a little help from the EC
And so it began — the Lloyds statement detailing the bank’s plans to raise contingent capital is out.
This is a concept still confusing the market even as it’s gaining increasing prominence with regulators.
Lloyds short squeeze?
The chart below, from Data Explorers, shows that the mammoth short-selling interest in Lloyds Banking Group shows no sign of shrinking ahead of the restructuring it is expected to announce later this week:
The pictorial Lloyds capital raising
Putting Lloyds £15bn capital-raising plans into sharp perspective on Friday, is Jason Napier at Deutsche Bank, click to enlarge:
If Lloyds’ Asset Protection Scheme-avoiding rights issue does come to pass it would be the first line on that chart.
Why Lloyds won’t be paying its TV licence this year
Some of you may have caught Bank of England governor Mervyn King’s appearance in the BBC Two documentary ‘The Love of Money,’ on Thursday evening.
If not, and if you are located in the UK, you can catch it here on BBC iPlayer.
Hybrid debt attack, from Moody’s
Perhaps genuinely expected by the market this time — a Moody’s downgrade of Lloyds, RBS, Allied Irish Banks and Bank of Ireland subordinated, or hybrid, debt.
On the UK side:
London, 09 September
RBS and Her Majesty’s APS
Check out these impairments, from RBS’s just-released interim results:
Impairments, however, rose sharply to £7,521 million, compared with £1,479 million in the first half of 2008. Over 70% of the impairment costs arose in the Non-Core division,
Laughing Lloyds
Lloyds shares were up 5.5 per cent in early trade on Wednesday, even after the bank posted higher than expected impairments on bad debt.
From the statement:
Impairments in the first half were £13.4 billion,
A gilty displeasure
If you thought Wednesday’s gilt auction failure was worrying for the government, its quantitative easing efforts, which rely on the market’s want to sell securities back to the Bank of England, are clattering rather than swimming along nicely.
LOLloyds results
Inadequate pro forma information – suggests Lloyds still struggling to understand what it has bought. P&L broadly in line with recent profit warning.
The view of one leading banking analyst to the annual result statement(s) published by Lloyds Banking Group on Friday.
Lloyds ‘needs to raise £11.2bn’
Okay, this is from someone who would probably describe himself as being ‘cautiously bullish’ on the British banking sector – Tom Raynor at Citi.
Profit warning raises capital concerns — In previous research (Darkest Before the Dawn — 27 January 2009) we estimated that Lloyds Banking Group (LBG) could get through the economic downturn by raising as little as £3bn in equity at 60p per share.
HBust
Special Friday afternoon delivery from Lloyds Banking Group (our emphasis).
Since its 12 December 2008 trading update, HBOS’s 2008 trading has been further impacted by increasingly difficult market conditions,
What is Lloyds TSB up to?
Rumours that Lloyds TSB might be preparing to take another charge in connection with its acquisition of HBOS have been swirling the London market all week. Here’s an example from a Markets Live commenter earlier this week:
Lloyd’s to benefit from AIG difficulties
Lloyd’s of London is poised to benefit from a return to the “old fashioned” diversification of insurance risk because of the crisis at AIG, say market underwriters and brokers. London 100, a survey of 100 senior executives in the London market,
Too little too late?
The Tarp is soon to arrive, but markets on Monday are waking up to the fact that it may be too little, too late.
CAC: -3.3%
DAX: -2.9%
FTSEurofirst 300: -2.5%
There’s a broad sell off on the FTSE 100 this morning – down 3 per cent at one point in the first hour of trade.
Buyers lined up for Deutsche Postbank
And it looks like Lloyds TSB is leading the pack, with an offer pitched at €67 a share – totalling €11bn according to trader talk.
Reuters reports Santander, Deutsche Bank are also interested. Allianz and Commerzbank – earlier favourites are still in the running too.
Lloyd’s rides the credit crisis
Lloyd’s of London played down its exposure to claims arising from the collapse of the US subprime mortgage market and the wider credit crisis, as it reported a second year of record profit. Luke Savage,