Alert per futuri downgrades sugli strumenti ibridi, con nuova normativa Basilea III :
LBCP.PA MCO.N] By Matthew Attwood LONDON, July 29 (IFR) - A proposal by Fitch to revise its rating criteria for bank regulatory capital securities could lead to a wave of downgrades of legacy instruments as the agency removes implicit state support from its ratings criteria. The move by Fitch follows Moody's which put as much as USD600bn of banks' subordinated debt ratings on review in February for similar reasons. The proposals will also introduce much wider notching for new Basel 3-compliant Tier 1 instruments, likely to move the bulk of new issues into non-investment grade territory. Legacy Upper Tier 2 and Tier 1 securities will be downgraded by one or two notches, because resolution regimes could act against contractual terms restricting loss-absorption, although Fitch hasn't given details on the amount of paper involved. "We don't have a dollar number," said James Longsdon, co-head of EMEA banks at Fitch. "At some stage we will but this is still an exposure draft and we haven't aggregated the amount of debt that might be affected into a single currency yet, although we have identified an idea of how many issuers and issues that could be affected there are." A ratings advisory banker, who welcomed the clarity of the Fitch proposals on the rating of future hybrid instruments, said that the market would have to feel some pain first: "Existing hybrids will not be grandfathered so I would expect downgrades of hybrid securities across the board," he said. Fitch believes that investors in bank regulatory capital are more likely to suffer loss if they invest in Basel III-compliant issuance than they were before. It proposes to remove state support from dated subordinated debt - old-style Lower Tier 2 or Tier 2 under Basel III - by using a bank's viability rating rather than its issuer default rating (IDR) as the anchor rating for notching. Fitch said that for a limited number of issuers, it could result to multi-notch downgrades. The most equity-like Basel III-compliant Tier 1 securities could be rated as many as three notches lower than the issuer's viability rating, because of those increased concerns about the risk of non-performance, with an additional two-notch reduction for loss severity. But with the viability rating certain to be set below the IDR an additional five notches threatens to move this class of debt into Crossover or non-investment grade territory. Market participants have until September 15 to share their views with the agency. TRIPLE B OR BELOW "It's highly likely that most securities will end up very low Triple B or below," said the ratings advisory banker. "Obviously that won't be ideal when you're trying to market a transaction to the widest possible group of investors but that being said everyone knows that Basel III-compliant securities will be more risky. It's fair to reflect this in the rating and of course investors will be compensated for the loss-absorbing features." While some investors may choose not to participate or place smaller orders than before, sell-side bankers are confident that efforts some of the larger accounts have already made to accommodate loss-absorbing debt will guarantee a large investor base. "We've seen a few announcements from very large investors saying they've created dedicated funds for CoCos and I would expect them to be able to buy any form of Basel III-compliant debt, whether it converts into equity or even if it writes down," said one syndicate official. "Clearly investors know they're more risky and a lot are still willing to invest because the yield will reflect that extra risk. Whether that comes in the form of dedicated new funds or whether they will be able to sit in mainstream funds remains to be seen." The proposal confirms Fitch's proactive approach to rating hybrids and subordin
Aggiornamento a lunedì 11:
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Me la facevo io acquisendo screenshot dal PDF di Finanza&Mercati; ora però il periodo di prova è finito e sto valutando se fare l'abbonamento a settembre.Scusa , dove trovi questa lista cds ?![]()
Prima o poi anche la Franciaballerà :
France and Italy saw the biggest increase in net value of outstanding default insurance contracts throughout the euro zone according to data for the week ending July 29, released by the Depository Trust and Clearing Corporation.
French CDS net notional value up by 6.1 pct to $22.13 bln, Italian up 2.3 pct to $25.65 bln.......