Hybrids in the news

EFG breaks new ground with Basel III compliant Tier 2

EFG International is planning to raise Basel III compliant Tier 2 capital, the first issue of its kind in Europe from a “not too big to fail” institution. The Swiss private bank is planning the bonds as part of a liability management exercise via BNP Paribas.

UniCredit's Ravera speculates on CoCo term sheet

UniCredit’s head of strategic portfolio, group finance Federico Ravera speculated how a potential contingent capital termsheet from the European Banking Authority might look at a Terrapinn conference on the topic on Monday, but warned of the need for clarity on when any potential conversion might happen. 

EU crunch time as bank watchdog warns on funding | Reuters

UBS Plans to Issue Contingent Capital, Chief Ermotti Says

UBS  has “concrete plans” to issue contingent capital and will move on them “as fast as possible,” Chief Executive Officer Sergio Ermotti said.The bank still prefers contingent instruments that are not dilutive to shareholders, such as bonds that are written down when triggered, Ermotti and Chief Financial Officer Tom Naratil said today.

Citi, JPMorgan May Face Highest Basel Capital Surcharges

 JPMorgan, BNP Paribas, Royal Bank of Scotland Group Plc, and HSBC Holdings Plc may face top capital surcharges of 2.5 percentage points, according to a provisional list prepared by global regulators

Carney Says ECB Will Stop ‘European Equivalent of Lehman’

Mark Carney (Canada)  is the new head of the FSB. According to him, Banks in Europe would need to sell as much as 2.5 trillion euros ($3.45 trillion) of assets to meet a new requirement that their so-called Tier 1 capital ratio reach 9 percent by June. Another alternative would be to increase the capital base by using contingent capital.

Blue-chip corporates make second stand over Basel III

The European Association of Corporate Treasurers sent an open letter to the European Commission, they have great concerns regarding the increased cost of their hedging operations following the tougher stance of Basel III regarding non-cleared and non-collateralized derivative transactions.

FSB publishes list of 29 systemically important banks

U.S.: Bank of America , Bank of New York Mellon, Citigroup , Goldman Sachs, J.P. Morgan , Morgan Stanley, State Street, Wells Fargo 

U.K.: Royal Bank of Scotland, Lloyds Banking Group , Barclays , HSBC Holdings ;

France: Credit Agricole SA , BNP Paribas SA , Banque Populaire, Societe Generale SA

Germany: Deutsche Bank AG , Commerzbank AG

Italy: Unicredit Group SA

Switzerland: UBS   , Credit Suisse 

Belgium: Dexia SA

Netherlands: ING Groep NV ING 

Spain: Banco Santander SA

Sweden: Nordea AB

Japan: Mitsubishi UFJ , Mizuho FG   , Sumitomo Mitsui 

China: Bank of China  

Profile: New FSB chair Carney helped by banker past

Rabobank Pays to Sell First Basel III-Compliant Tier 1 Debt

A new CoCo from Rabo: Its $2 billion of undated Tier 1 bonds, callable after 5 1/2 years, were priced to yield 8.4 percent. The notes comply with so-called Basel III rules that mean they can be written down if Rabobank’s equity capital ratio sinks, or may sink, below 8 percent, according to the terms of the deal.

HIGHLIGHTS-Bank of Canada's Carney speaks in Ottawa

Rabo defies market turmoil, ploughs on with hybrid