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’The not so great European banking recap
Are you confused by the ‘facts’ and figures on the latest bank stress test?
These charts (click to expand) from Morgan Stanley’s Huw Van Steenis should help.
Using reported 2011 core Tier 1 capital,
The cost of being a global Sifi
Global Sifi buffers is both the likely new name of FT Alphaville’s pub trivia team and a hotly followed piece of financial regulation.
The Financial Stability Board is not due to formally announce its capital recommendations until November,
The world’s strongest bank is…
… Singapore’s Oversea-Chinese Banking, according to analysis published by Bloomberg Markets magazine on Monday:
The winners receive a healthy dose of schadenfreude (not you #16) and a signed copy of the Basel III rules.
Commerzbank’s mind-numbing cash call
Is this the most complicated cash call of recent times ever?
Judge for yourself.
Presenting Commerzbank’s €11bn capital increase (click the image for the term sheet):
Now if we are reading this correctly — something that’s not helped by the fact you can’t access the press release from outside Germany for some arcane regulatory reason — Commerzbank is planning to do the following:
Costs and Basel III undermine HSBC
Thud.
That’s the sound of the HSBC’s annual report and accounts hitting the FT Alphaville desk — all 397 pages of it. (Download at your peril.)
Clearly, we haven’t had time to read all of it, but here are our initial thoughts.
The great European bank rights issue guessing game
If you’re wondering who might follow the lead of Deutsche Bank and tap its shareholders for cash this table should help.
Source Merrill Lynch:
Basically everyone on that list might need a cash call (except National Bank of Greece which,
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,
UBS, Citi and other ‘below average’ banks
Standard & Poor’s freshly published comparison of global banks’ risk-adjusted capital (RAC) adequacy made for gripping reading on a chilly Monday morning in New York.
The report contains 22 pages of data,
Bargaining Tier 1
Remember how the Fed was testing reverse repos with money market funds as a potential way to drain QE liquidity out of the system further down the line?
Well, some blogosphere talk (Zero Hedge, ahem) appears to suggest the Fed may now be backing away from the idea of using non-traditional participants like money market funds altogether,
The Deferred Tax Asset disaster
Does anyone remember Deferred Tax Assets?
Banks like Citi used to be (and in fact, still are) stuffed with them. In fact the assets have become a point of contention over the past year and a half, as regulators,
Burden sharing for bondholders lives!
Remember the hybrid debt, or subordinated bond, attack launched by the European Commission against certain Euro-area banks?
The Commission wanted bank bondholders to share some of the pain of government bailouts,
Capitalising on recapitalisation…
… is something that can be done by buying European banks’ Tier 1 bonds — even hybrid ones — according to Société Générale credit analysts.
The whole thesis is based, firstly, on the idea that under new regulation (the strengthened Basel II,
KBCoupons!
The adventures in banks’ hybrid Tier 1 debt continue apace this Wednesday morning, via Belgium’s KBC.
From a Tuesday press release issued by the partially state-owned bancassurer:
1 September, 2009 – 5.45 p.m.
The brief Brom bond opp
Price of the 2016 Floating Rate Note (FRN) issued by West Bromwich Building Society (Baa3, Moody’s) was down at a low of 43.4 pence on the pound yesterday.
Having opened at around 45 pence on the pound on Friday,