RSS feedsubordinated bonds
’Pensioners win their BoI burdensharing battle
Simply amazing.
After a very vocal campaign highlighting the unfairness of Bank of Ireland’s proposed exchange offer for subordinated debt — which included £75m worth of so-called Pibs that the Irish bank inhereited from Bristol &
FSA says ‘no’ on Bank of Ireland
A swift response from the UK’s Financial Services Authority for once.
Holders of Bristol & West permanent interest-bearing shares (Pibs), a type of subordinated debt, last week asked the FSA to look into Bank of Ireland’s debt restructuring.
UK pensioners 1 Irish bank 0
Irish taxpayers… 0?
For your perusal — a letter sent on Monday by Brown Rudnick to Bank of Ireland, challenging some (coercive) terms in its debt buyback.
Click image for the full letter:
An Allied Irish credit event query, redux
Readers are at this point excused a slight sense of déjà vu…
That’s a credit event query appearing for Allied Irish Banks, a second time. Isda has accepted the request for consideration.
Someone asked Isda back in April whether a government order to make Allied Irish buy back subordinated debt had triggered credit protection.
The ongoing mess in Allied Irish’s capital structure
So bad a mess even the hedging looks bust.
Quite apart from threatening to overturn the foundation-stone financial hierarchy of debt over equity…
There’s another way Allied Irish’s subordinated liabilities order might kill a market,
The problem with Europe’s bail-ins
Here’s something to ponder while we wait for the European Commission’s consultation document on haircuts for senior investors in Europe’s banking debt.
It’s what all this talk of Basel III — plus burdensharing,
Waiting for a senior bank bond haircut…
Here’s the action in European financial CDS as the market waits for the European Commission to release a consultation paper outlining its plans to haircut senior bank (not sovereign) bondholders. According to Ambrose Evans-Pritchard of the Telegraph this will happen today,
Those crazy, crazy CACs
Or, all CAC-ed up?
In addition to creating a two-tiered sovereign bond market in Europe, those Collective Action Clauses (CACs) beloved by ze Germans — and meant to force debt restructuring losses on private investors — could well end up increasing a country’s chance of defaulting.
Italian sub debt differenza
So what’s up with Banco Popolare and Monte Dei Paschi Di Siena?
We ask, because credit default swaps on these two Italian banks’ subordinated debt have recently rocketed off from their peers.
Here’s a chart we’ve made courtesy of Markit data:
More burdensharing for Irish bondholders
Surprise! More burdensharing for Irish bank bondholders is here.
Only, it’s rather softer. The considerate side of burdensharing, if you like.
Hot on the heels of the bailed-out Anglo Irish’s discounted exchange offer comes the below from Bank of Ireland.
Anglo Irish bondholders blink [corrected]
So much for the bondholder resistance.
The results of Anglo Irish Bank’s first sub-debt exchange offer — the one aimed at inflicting ‘burden-sharing’ on bondholders — are out. This particular meeting is the prelude to the main 2016 noteholder meeting,
Conquering Anglo Irish CDS
CDS-watchers — mark your calendars.
November 23 is the first possible date that Anglo Irish Bank’s sub-debt exchange could trigger a credit event for CDS written on the bonds. That is, the ‘liability management exercise’ will elicit lump-sum payments for protection buyers.
Anglo Irish’s burden-sharing template
On Thursday, Anglo Irish — Ireland’s euro-guzzling bailed-out bank — unveiled a dramatic exchange offer for investors in its subordinated, or junior, debt.
The bank is offering holders of some of its outstanding sub-debt to swap their notes for new Irish government guaranteed bonds that will be due in 2011 with a coupon of three-month Euribor plus 3.75 per cent.
Anglo Irish unveils sub-debt exchange
Anglo Irish’s “mutually advantageous talks” with sub-debtholders have led it to…
… this ‘exchange.’ €0.20 on the euro, and possibly worse. Fresh from the RNS:
EXCHANGE OFFERS, PROPOSALS AND PUBLICATION
Not burden-sharing, but ‘mutually advantageous’ talks
We’re sure we’re not the only ones who’ve noticed a wee bit of inconsistency in Ireland’s attitudes towards burden-sharing for Irish bank bondholders.
“It’s unthinkable that Ireland would default on senior debt or that Ireland’s banks would default on senior debt”
Abramovich vs Ireland
So, from Irish subordinates to Russian billionaires.
Millhouse LLC, Roman Abramovich’s private asset management company, is not happy with the bank bail-out plan released last week by the Irish Finance Ministry.
The fate of Anglo Irish sub-debt
What gory fate does Brian Lenihan have in mind for Anglo Irish Bank subordinate debt investors?
Unveiling details of the as-much-as €50bn bail-out of Ireland’s banks on Thursday, the Ireland finance minister remarked that:
Ireland takes a break from the bond market
Ireland’s final estimate for its bailout of Anglo Irish — €29.3bn total gross cost, or €34.3bn in a stress scenario – is striking enough. So is confirmation that the government will take a majority stake in Allied Irish Banks.
‘D Day’ for Anglo Irish
Thursday is ‘D Day’ — D as in debt — for Anglo Irish Bank.
Not only is the Irish government expected to detail the fate of Anglo Irish’s senior and subordinated debt investors, as well as its bail-out cost estimates for the bank — it’s also the first day about €4bn of senior and €1.7bn of Anglo sub-debt will be floating around without a government guarantee.
Moody’s thwacks Anglo Irish bonds
More bad news for Anglo Irish creditors on Monday — Moody’s slashed its ratings of the bank’s senior unsecured and subordinated debt; the latter by six notches, no less, although Moody’s actions on the bank’s senior unsecured debt may be of more concern.
When Anglo Irish bonds are liability managing
This week, the prospect of an Anglo Irish debt ‘liability management’ exercise burst into the market’s consciousness.
Anglo Irish anguish
The term is fixed-income code for what would basically a tender or exchange offer for existing Anglo subordinated debt — about €1.7bn of Lower Tier 2 bonds — which sit further down in the nationalised bank’s capital structure than senior debt.
Ireland’s subordinated bond ATTACK!
Ireland may have forsworn a default on senior bank bonds — but the subordinated stuff could turn out to be a rather different story.
On Thursday morning, Irish bank CDS shot sharply up on [UNCONFIRMED] chatter of an imminent “Allied Irish default”
Flipping the capital structure || erutcurts latipac eht gnippilF
Spotted late on Thursday — one massive change for banks’ capital structures appearing just on the horizon.
The Basel Committee published a 20-page consultative document on loss absorption in capital instruments — something that’s (finally) gaining some serious regulatory attention after the recent financial crisis.
Stress test’s sovereign support = senseless
Amongst all the criticisms of the European stress tests, there’s one glaring omission.
From the Committee of European Banking Supervisors’ summary report:
Government support measures received by institutions in the sample as of end 2009 have been taken into account and subject to specific analysis (see Section 4.5 of the report).
A new type of TruPS warfare
TruPS CDOs may have escaped the full wrath of US financial reform, but they still have to deal with the rather daunting prospects of their underlying collateral — those Trust Preferred Securities (TruPS).
SocGen calling
What’s this? A bank actually calling its Tier 1 bonds?
From a statement on the Luxembourg Exchange:
The calling and not-calling of Tier 1 and Tier 2 bonds became something of a controversial subject,