Obbligazioni perpetue e subordinate Tutto quello che avreste sempre voluto sapere sulle obbligazioni perpetue... - Cap. 3 (15 lettori)
- Creatore Discussione Joe Silver
- Data di Inizio
Montepaschi’s Restructuring and Recapitalization Are Credit Positive for Senior Creditors, Negative for Junior Bondholders
Last Thursday, the European Commission (EC) announced that it had reached an agreement with the Italian government on a restructuring plan for Banca Monte dei Paschi di Siena S.p.A. (Montepaschi, B2/B3 review direction uncertain, ca review for upgrade6 ) and had agreed on a “precautionary recapitalization” conditioned on the bank meeting certain requirements. The EC also stated that Montepaschi’s governmentfunded recapitalization will be in compliance with the European Union’s (EU) state aid rules and will not trigger Montepaschi’s resolution, ending lingering uncertainty about this specific issue. A resolution would have prompted a bail-in of senior creditors, in accordance with the Bank Recovery and Resolution Directive (BRRD). The plan is credit positive for senior bondholders and depositors because they will not be subject to bail-in as part of Montepaschi’s recapitalization, and will benefit from the additional capital. Junior bondholders, however, will incur losses. Before the restructuring and recapitalisation plan can proceed, the European Central Bank (ECB) must confirm that Montepaschi is solvent and in compliance with regulatory capital requirements, and the bank must sell its nonperforming loan portfolio to private investors. According to the ECB’s criteria, a bank is considered solvent if it fulfils the minimum capital requirements (i.e., Pillar 1 requirements) and does not have a shortfall under the baseline scenario of the relevant stress test. At the end of March 2017, Montepaschi reported a transitional common equity Tier 1 (CET1) ratio of 6.5%, above the ECB’s Pillar 1 requirement of 4.5%. Furthermore, Montepaschi on 29 May announced that it was in exclusive talks with a group of investors (including bank rescue fund Atlante) to dispose via a securitization its €26 billion portfolio of nonperforming loans. Since Montepaschi’s precautionary recapitalization involves taxpayer funds, EU state aid rules make sure that public capital, which must be calibrated to the minimum necessary, can only be injected into a bank that is viable, and hence profitable. As per state aid rules, Montepaschi has to undertake an in-depth restructuring of its operations and de-risk its balance sheet via the sale of its entire nonperforming loan portfolio. The EC and the Italian government will now work to finalize Montepaschi’s restructuring plan. The EC also disclosed that in accordance with the principle of burden sharing, Montepaschi’s shareholders and junior bondholders must contribute to the cost of restructuring the bank in order to limit Italian taxpayers’ contribution. We believe this will result in losses for subordinated bondholders and we continue to rate its subordinated debt Ca review for downgrade. We will conclude our review when the terms of the exchange are announced. The EC also stated that the Italian government must be sufficiently compensated for its capital injection, but it is unclear how such compensation will be made. In December 2016, Montepaschi requested public intervention after having failed to attract private funds for a recapitalization. The plan the Italian government announced for Montepaschi is a mix of bail-in and bailout. It aims to increase the bank’s capital sufficiently to allow it to report an 8% CET1 ratio and an 11.5% total capital ratio under the adverse scenario of the stress tests overseen by the European Banking Authority, published in July 2016, which will require €8.8 billion of new capital. The additional capital is characterized as precautionary, in accordance with the BRRD.
Last Thursday, the European Commission (EC) announced that it had reached an agreement with the Italian government on a restructuring plan for Banca Monte dei Paschi di Siena S.p.A. (Montepaschi, B2/B3 review direction uncertain, ca review for upgrade6 ) and had agreed on a “precautionary recapitalization” conditioned on the bank meeting certain requirements. The EC also stated that Montepaschi’s governmentfunded recapitalization will be in compliance with the European Union’s (EU) state aid rules and will not trigger Montepaschi’s resolution, ending lingering uncertainty about this specific issue. A resolution would have prompted a bail-in of senior creditors, in accordance with the Bank Recovery and Resolution Directive (BRRD). The plan is credit positive for senior bondholders and depositors because they will not be subject to bail-in as part of Montepaschi’s recapitalization, and will benefit from the additional capital. Junior bondholders, however, will incur losses. Before the restructuring and recapitalisation plan can proceed, the European Central Bank (ECB) must confirm that Montepaschi is solvent and in compliance with regulatory capital requirements, and the bank must sell its nonperforming loan portfolio to private investors. According to the ECB’s criteria, a bank is considered solvent if it fulfils the minimum capital requirements (i.e., Pillar 1 requirements) and does not have a shortfall under the baseline scenario of the relevant stress test. At the end of March 2017, Montepaschi reported a transitional common equity Tier 1 (CET1) ratio of 6.5%, above the ECB’s Pillar 1 requirement of 4.5%. Furthermore, Montepaschi on 29 May announced that it was in exclusive talks with a group of investors (including bank rescue fund Atlante) to dispose via a securitization its €26 billion portfolio of nonperforming loans. Since Montepaschi’s precautionary recapitalization involves taxpayer funds, EU state aid rules make sure that public capital, which must be calibrated to the minimum necessary, can only be injected into a bank that is viable, and hence profitable. As per state aid rules, Montepaschi has to undertake an in-depth restructuring of its operations and de-risk its balance sheet via the sale of its entire nonperforming loan portfolio. The EC and the Italian government will now work to finalize Montepaschi’s restructuring plan. The EC also disclosed that in accordance with the principle of burden sharing, Montepaschi’s shareholders and junior bondholders must contribute to the cost of restructuring the bank in order to limit Italian taxpayers’ contribution. We believe this will result in losses for subordinated bondholders and we continue to rate its subordinated debt Ca review for downgrade. We will conclude our review when the terms of the exchange are announced. The EC also stated that the Italian government must be sufficiently compensated for its capital injection, but it is unclear how such compensation will be made. In December 2016, Montepaschi requested public intervention after having failed to attract private funds for a recapitalization. The plan the Italian government announced for Montepaschi is a mix of bail-in and bailout. It aims to increase the bank’s capital sufficiently to allow it to report an 8% CET1 ratio and an 11.5% total capital ratio under the adverse scenario of the stress tests overseen by the European Banking Authority, published in July 2016, which will require €8.8 billion of new capital. The additional capital is characterized as precautionary, in accordance with the BRRD.
warren baffo
Forumer storico
vedo che sui siti tedeschi le IKB T1 venerdì avrebbero fatto altre 4-5 figure ... (e sembrerebbe anche con qualche volume reale)
qualche notizia? (qualche ipotesi?)
in un mese sono passate da sotto 40 a ben sopra 50...
qualche notizia? (qualche ipotesi?)
in un mese sono passate da sotto 40 a ben sopra 50...
Jackrussel
Forumer storico
wagenbach
Forumer attivo
wagenbach
Forumer attivo
bia06
Listen other's viewpoint avoid conflicts & wars.
Grazie mille per l´info !
Prese sotto i 30 e seppellite da tempo immemore in pf....sarebbe utile capire se queste riprendono a pagare cedola a fine giugno....quasi quasi conviene tenersele.....Idee?
Prese sotto i 30 e seppellite da tempo immemore in pf....sarebbe utile capire se queste riprendono a pagare cedola a fine giugno....quasi quasi conviene tenersele.....Idee?
vbrm
Forumer attivo
Pimco esce dai bond italiani
Pimco Pulls Out of Italy as JPMorgan Sees Risk of Autumn Vote
Forse è il caso di prendere un po' di profitto, dove si può, fino alle elezioni ?
Pimco Pulls Out of Italy as JPMorgan Sees Risk of Autumn Vote
Forse è il caso di prendere un po' di profitto, dove si può, fino alle elezioni ?
warren baffo
Forumer storico
grazie mille !
sembrerebbe che valga solo per uno dei 2 T1 esistenti, cioè XS0194701487
Il DE0008592759 non sembra citato...
Vediamo domani con germania aperta per vedere cosa succede
drbs315
Forumer storico
Le ho anch'io, a fine giugno direi impossibile... prima di ricominciare a pagare deve ristorare con gli utili i costi sostenuti da Lone Star, la controllante, circa 1,2 mld mi pare; dovrebbe non pagare per vari anni ancora.