ferdo
Utente Senior
BOI 482 se non erro è passata a cedole trimestrali o sbaglio? pagherà?
se non la opano prima a 20
Obbligazioni perpetue e subordinate Tutto quello che avreste sempre voluto sapere sulle obbligazioni perpetue... - Cap. 1 (2 lettori)
- Creatore Discussione negusneg
- Data di Inizio
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- Tags
- additional tier 1 bail in basilea 3 coco bonds crd iv genussscheine grandfathering hybrid bond loss absorption lower tier 2 make whole amount matusalem bond obbligazioni irredimibili obbligazioni perpetue obbligazioni subordinate perpetual bond preference shares restricted tier 1 tier 1 upper tier 2
- Stato
se non la opano prima a 20
discipline
Forumer storico
Articolo di EuroWeek su Aib e, in prospettiva, Boi
AIB double-stick buy-back puzzles market
Issue: 1204 - 13 May 2011
Market participants were left puzzled over the use of a double incentive for investors to tender Allied Irish Banks’ subordinated debt for repurchase this week.
The Irish bank is set to leave the carrots behind in favour of a stick and yet bigger stick approach to its capital generation exercise. AIB is expected to announce today (Friday) the launch of an any-or-all tender offer on some Eu2.7bn of outstanding subordinated paper.
AIB will offer to buy back the 18 subordinated issues denominated in euros, sterling and dollars at between 10%-25% of par.
It will offer to buy back eight dated tier two notes at 25% of par, and three at 22.5%. Seven perpetual issues will be bought back at 10% of par. JP Morgan is dealer manager on the exercise.
The liability management exercise could generate as much as Eu2.2bn of new capital, analysts at CreditSights calculated.
The deal contains a sweep-up clause similar to that used by Anglo Irish Bank in its liability management trade in December. The clause stipulates that bondholders that tender their securities in the buy-back also consent to amend the terms and conditions so that AIB can repurchase the remaining amount at 0.001% of face value.
The buy back also comes as a court dispute looms over an order to extend the tenor of the dated securities to 2035 and make coupon servicing discretionary. When that ruling — a Subordinated Liabilities Order (SLO) — was handed down by the high court in April, market participants said it would encourage investors to participate in any liability management exercise.
The use of both the sweep-up clause and the SLO left market participants puzzled.
A liability management expert not involved in the transaction told EuroWeek the deal came with "one of the strongest sticks we’ve seen".
Another liability management banker suggested the double-stick approach may be because the bank was uninterested in pursuing a protracted court battle on the subject.
"If you can use the sweeper clause, then you don’t have to worry about the court case," said the banker.
Simon Adamson, an analyst at CreditSights said the SLO and sweep-up clause would work in parallel. "The SLO makes the buy back more attractive," Adamson told EuroWeek. "The sweeper clause may be included because the SLO is being held up by legal challenges and there are questions over whether this is enforceable."
The terms offered on AIB’s buy back were lower than the market had been expecting, but the exercise was likely be successful, said a liability management expert. He said it was inevitable there would also be investors who would hold out as a matter of principle.
While the buy-back prices are close to where the issues have been trading in the secondary market, some are offered below such levels.
"The market was too optimistic in expecting to see a premium to the secondary market," said the liability management expert. "The market is a bit surprised."
SLO worries
While the use of the SLO is subject to a legal challenge, the effect it would have on CDS levels has also worried some market participants.
A question was put to International Swaps and Derivatives Association last month regarding whether the SLO constituted a restructuring credit event for Allied Irish, but it was withdrawn when the legal challenge was presented to the court.
Anglo Irish’s December 2010 liability management exercise, which included a similar sweeper clause but was not influenced by a court-issued SLO, was considered to be a restructuring credit event by ISDA.
"What I find amazing is that this could be considered a restructuring event, but, because they have been restructured, the CDS is no longer deliverable in the different buckets," said one hedge fund analyst. "If you hold a sub bond and have hedged with sub CDS, it’s not covered."
CreditSights’ Adamson also said there were question marks over the deliverables and the auctions process under the SLO.
"It’s all going to be quite messy," he said. "By changing the maturity, CDS deliverability could be a real problem."
A hearing on the legal challenge has been set down for four days starting from June 2.
Who’s next?
Irish finance minister Michael Noonan was clear in his support of AIB’s move, and hinted that other institutions were likely to follow.
"The offer prices and the terms of this liability management exercise are fair and balanced relative to the capital requirements of the bank and the level of financial support (in the form of equity, liquidity and guarantees) which the Irish state has so far provided to AIB," said Noonan.
"It is clear that without such significant financial support, AIB would have become insolvent and subordinated bondholders’ entire investment would have been irrecoverable. The proposed liability management exercise offers those investors the final opportunity of a market based exit at a return which is reasonable and fair considering the level of government support to date."
Referring to the court challenge to the subordinated liabilities order, Noonan said that "the challenges will in no way deter the government from achieving appropriate burden-sharing of levels broadly consistent with those provided for in this LME with the subordinated bondholders of AIB and of Bank of Ireland, Irish Life & Permanent and EBS which were also subject to the March 31, 2011 stress tests."
But observers said that the market was not pricing in a similar operation on Bank of Ireland’s subordinated securities, as they were trading much higher than AIB’s had been.
"Bank of Ireland is trading as much as the high 60s," said a liability management banker. "It could be a function of them not believing the SLO is legally enforceable. Or it could be that there is a market-based solution available."
The trading level raised questions over where any Bank of Ireland buyback offer might be targeted.
"Bank of Ireland’s sub debt is trading quite a lot higher than AIB’s has been," said Adamson.
"The question is whether they will go for a buy back based on where the debt is trading, which would imply a higher price. You have to assume it would be."
AIB double-stick buy-back puzzles market
Issue: 1204 - 13 May 2011
Market participants were left puzzled over the use of a double incentive for investors to tender Allied Irish Banks’ subordinated debt for repurchase this week.
The Irish bank is set to leave the carrots behind in favour of a stick and yet bigger stick approach to its capital generation exercise. AIB is expected to announce today (Friday) the launch of an any-or-all tender offer on some Eu2.7bn of outstanding subordinated paper.
AIB will offer to buy back the 18 subordinated issues denominated in euros, sterling and dollars at between 10%-25% of par.
It will offer to buy back eight dated tier two notes at 25% of par, and three at 22.5%. Seven perpetual issues will be bought back at 10% of par. JP Morgan is dealer manager on the exercise.
The liability management exercise could generate as much as Eu2.2bn of new capital, analysts at CreditSights calculated.
The deal contains a sweep-up clause similar to that used by Anglo Irish Bank in its liability management trade in December. The clause stipulates that bondholders that tender their securities in the buy-back also consent to amend the terms and conditions so that AIB can repurchase the remaining amount at 0.001% of face value.
The buy back also comes as a court dispute looms over an order to extend the tenor of the dated securities to 2035 and make coupon servicing discretionary. When that ruling — a Subordinated Liabilities Order (SLO) — was handed down by the high court in April, market participants said it would encourage investors to participate in any liability management exercise.
The use of both the sweep-up clause and the SLO left market participants puzzled.
A liability management expert not involved in the transaction told EuroWeek the deal came with "one of the strongest sticks we’ve seen".
Another liability management banker suggested the double-stick approach may be because the bank was uninterested in pursuing a protracted court battle on the subject.
"If you can use the sweeper clause, then you don’t have to worry about the court case," said the banker.
Simon Adamson, an analyst at CreditSights said the SLO and sweep-up clause would work in parallel. "The SLO makes the buy back more attractive," Adamson told EuroWeek. "The sweeper clause may be included because the SLO is being held up by legal challenges and there are questions over whether this is enforceable."
The terms offered on AIB’s buy back were lower than the market had been expecting, but the exercise was likely be successful, said a liability management expert. He said it was inevitable there would also be investors who would hold out as a matter of principle.
While the buy-back prices are close to where the issues have been trading in the secondary market, some are offered below such levels.
"The market was too optimistic in expecting to see a premium to the secondary market," said the liability management expert. "The market is a bit surprised."
SLO worries
While the use of the SLO is subject to a legal challenge, the effect it would have on CDS levels has also worried some market participants.
A question was put to International Swaps and Derivatives Association last month regarding whether the SLO constituted a restructuring credit event for Allied Irish, but it was withdrawn when the legal challenge was presented to the court.
Anglo Irish’s December 2010 liability management exercise, which included a similar sweeper clause but was not influenced by a court-issued SLO, was considered to be a restructuring credit event by ISDA.
"What I find amazing is that this could be considered a restructuring event, but, because they have been restructured, the CDS is no longer deliverable in the different buckets," said one hedge fund analyst. "If you hold a sub bond and have hedged with sub CDS, it’s not covered."
CreditSights’ Adamson also said there were question marks over the deliverables and the auctions process under the SLO.
"It’s all going to be quite messy," he said. "By changing the maturity, CDS deliverability could be a real problem."
A hearing on the legal challenge has been set down for four days starting from June 2.
Who’s next?
Irish finance minister Michael Noonan was clear in his support of AIB’s move, and hinted that other institutions were likely to follow.
"The offer prices and the terms of this liability management exercise are fair and balanced relative to the capital requirements of the bank and the level of financial support (in the form of equity, liquidity and guarantees) which the Irish state has so far provided to AIB," said Noonan.
"It is clear that without such significant financial support, AIB would have become insolvent and subordinated bondholders’ entire investment would have been irrecoverable. The proposed liability management exercise offers those investors the final opportunity of a market based exit at a return which is reasonable and fair considering the level of government support to date."
Referring to the court challenge to the subordinated liabilities order, Noonan said that "the challenges will in no way deter the government from achieving appropriate burden-sharing of levels broadly consistent with those provided for in this LME with the subordinated bondholders of AIB and of Bank of Ireland, Irish Life & Permanent and EBS which were also subject to the March 31, 2011 stress tests."
But observers said that the market was not pricing in a similar operation on Bank of Ireland’s subordinated securities, as they were trading much higher than AIB’s had been.
"Bank of Ireland is trading as much as the high 60s," said a liability management banker. "It could be a function of them not believing the SLO is legally enforceable. Or it could be that there is a market-based solution available."
The trading level raised questions over where any Bank of Ireland buyback offer might be targeted.
"Bank of Ireland’s sub debt is trading quite a lot higher than AIB’s has been," said Adamson.
"The question is whether they will go for a buy back based on where the debt is trading, which would imply a higher price. You have to assume it would be."
Peco
Forumer storico
Gallo Cedrone e Coche con DB hanno ricevuto la cedola BPCE 558 tassata al 27%
discipline
Forumer storico
L'IR di Boi in merito dice che:
se non la opano prima a 20
We expect to announce our plan to raise capital towards the requirements set by the Central bank of Ireland in the coming weeks. Prior to that I cannot comment on what may be in the plan. You will have seen the AIB announcement and also the statement from the Minister of Finance where he referred to his intention of seeking burden sharing from subordinated bond holders in the other Irish banks.
no perpetual no party
Forumer storico
Gallo Cedrone e Coche con DB hanno ricevuto la cedola BPCE 558 tassata al 27%
mi sembrava fosse fineco...
DB fino a qualche mese fa (ora non ce l'ho piu in ptf con DB) l'ha sempre tax al 12...
non mi risulta ci siano stati cambiamenti
colo
Forumer attivo
se non la opano prima a 20
quindi forse è meglio vendere adesso che quota alla mia banca 35? oppure andare fino in fondo a vedere?
ferdo
Utente Senior
quindi forse è meglio vendere adesso che quota alla mia banca 35? oppure andare fino in fondo a vedere?
avessi la sfera
non sarei quicolo
Forumer attivo
avessi la sfera
TENGO e vado a vedere il piatto.(poi vada come vada)
ferdo
Utente Senior
TENGO e vado a vedere il piatto.(poi vada come vada)
non volevo condizionare, tengo pure io
- Stato