Obbligazioni perpetue e subordinate Tutto quello che avreste sempre voluto sapere sulle obbligazioni perpetue... - Cap. 2 (4 lettori)
- Creatore Discussione caligola2005
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Onoff
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se mi segui sul fol, io sono un fanatico di dexia
negli ultimi mesi regalavano soldi a palate, bastava solo raccoglierli
pero' , anche se sono arrivato ad averne piu' del 90% del mio ptf (ma ovviamente diversificando su vari isin e scadenze), non ci ho mai capito niente dello "spezzatino" dexia come dicevo l'altro giorno...
quindi, non sapendo che fare...ho usato il metodo infallibile
la monetina ha detto "buy"
Eh eh.. un thread del forum già mi satura il tempo a disposizione
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possano riinvare l'ultimo aggiornamento.
discipline
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UPDATE 2-UBS opens books for first low-trigger CoCo issue
(Adds additional comments, writes through)
By Helene Durand
LONDON, Feb 14 (IFR) - The first European Tier 2 deal where bondholders could lose all principal via permanent write-down rather than the notes converting into equity could price on Wednesday after UBS opened books for the contingent capital issue.
As Tuesday's session got underway, the Swiss bank approached investors with price guidance of 7.5% area for the 10-year non-call five low-trigger CoCo via UBS (global coordinator), BNP Paribas, Commerzbank, Deutsche Bank and SG and had attracted well over USD1.5bn of orders from investors, a source familiar with the deal said.
Despite many institutional investors previously voicing strong reservations over permanent write-down structures, preferring instead an instrument that offers a chance to benefit from a bank's recovery, early indications of demand appear to confirm that there are willing buyers for this new form of bank capital.
"Everyone is eyeing this deal and its outcome," said a head of FIG syndicate. "Everyone hopes it will price tighter than the 7.5% guidance as otherwise other banks could be reluctant to replicate this trade as they will see it as expensive capital.
The banker said institutional investors suddenly become highly conservative when buying a security labelled as CoCo but would be more comfortable with a bond compliant with the Capital Requirements Directive 4. Basel 3 for EU area banks will be implemented through the CRD4.
The 7.5% coupon is around 200bp more than where UBS's traditional Lower Tier 2 capital trades. Some institutional investors hoped the deal would come a lot wider.
"The level is a good one if you are a private bank but horrible one if you are an institutional investor," another FIG syndicate banker. "This deal highlights the huge difference that remains between old style Lower Tier 2 and new style and we are no closer to answering the question of whether the old style is too cheap or new style too expensive given that everything somehow will end up having to absorb losses going forward."
According to a banker involved in the transaction, 60%/65% of the demand so far has come from retail/private banks while the rest has been from institutional buyers.
"The biggest challenge of the pricing on this trade is that it has to be attractive enough for institutional investors without giving away to much to retail," he said. "At 7.5%, investors are being more than compensated for what is a very remote risk."
Under the so-called Swiss finish, the country's large banks must have a 19% total capital ratio by 2019, divided into 10% of Common Equity Tier 1 capital, 3% of high-trigger contingent capital and 6% of low-trigger contingent capital.
Credit Suisse priced the first high-trigger contingent capital trade from Switzerland in February last year, attracting huge demand from private banks and institutional investors for the Tier 2 bond which converts into equity if the Tier 1 ratio falls below 7%.
The UBS CoCo is expected to be rated BBB- by both S&P and Fitch and fulfils some of the Swiss low-trigger requirements. Under the terms of the deal, if it is not called at the call date, the coupon resets to five-year US dollar mid-swaps plus the initial spread. Coupons are non-deferrable.
Under the terms of the deal the bonds can be written down permanently if the bank's common equity Tier 1 ratio falls below 5% or is considered non-viable. UBS's Tier 1 capital ratio under Basel 2.5 stands at 16%.
A non-viability event is described as the point at which without such write-down or extraordinary support to improve the bank's adequacy, the bank would otherwise be bankrupt, insolvent or unable to pay its debts, as determined by the Swiss regulator.
Investors have been wary of the non-viability concept as some have feared it would give regulators wide powers of intervention.
REMOTE TRIGGER
While the 5% trigger is likely very remote investors worry about the tail risk said one banker, who also think that a permanent write-down potentially subordinates them to equity.
However, bankers on the trade highlight the remoteness of the trigger and the fact that the deal is gone-concern capital, so that UBS would have to eat through large chunks of capital before hitting. They also add that if the bonds did write down, the equity would not be worth much at that stage.
UBS's management has argued against issuing notes that potentially convert into equity to meet the Swiss regulatory requirement. The bank has previously said it would not meet the high-trigger buffer with contingent capital but would instead fulfil it with equity. (Reporting by Helene Durand; editing by Alex Chambers)
UPDATE 2-UBS opens books for first low-trigger CoCo issue | Reuters
(Adds additional comments, writes through)
By Helene Durand
LONDON, Feb 14 (IFR) - The first European Tier 2 deal where bondholders could lose all principal via permanent write-down rather than the notes converting into equity could price on Wednesday after UBS opened books for the contingent capital issue.
As Tuesday's session got underway, the Swiss bank approached investors with price guidance of 7.5% area for the 10-year non-call five low-trigger CoCo via UBS (global coordinator), BNP Paribas, Commerzbank, Deutsche Bank and SG and had attracted well over USD1.5bn of orders from investors, a source familiar with the deal said.
Despite many institutional investors previously voicing strong reservations over permanent write-down structures, preferring instead an instrument that offers a chance to benefit from a bank's recovery, early indications of demand appear to confirm that there are willing buyers for this new form of bank capital.
"Everyone is eyeing this deal and its outcome," said a head of FIG syndicate. "Everyone hopes it will price tighter than the 7.5% guidance as otherwise other banks could be reluctant to replicate this trade as they will see it as expensive capital.
The banker said institutional investors suddenly become highly conservative when buying a security labelled as CoCo but would be more comfortable with a bond compliant with the Capital Requirements Directive 4. Basel 3 for EU area banks will be implemented through the CRD4.
The 7.5% coupon is around 200bp more than where UBS's traditional Lower Tier 2 capital trades. Some institutional investors hoped the deal would come a lot wider.
"The level is a good one if you are a private bank but horrible one if you are an institutional investor," another FIG syndicate banker. "This deal highlights the huge difference that remains between old style Lower Tier 2 and new style and we are no closer to answering the question of whether the old style is too cheap or new style too expensive given that everything somehow will end up having to absorb losses going forward."
According to a banker involved in the transaction, 60%/65% of the demand so far has come from retail/private banks while the rest has been from institutional buyers.
"The biggest challenge of the pricing on this trade is that it has to be attractive enough for institutional investors without giving away to much to retail," he said. "At 7.5%, investors are being more than compensated for what is a very remote risk."
Under the so-called Swiss finish, the country's large banks must have a 19% total capital ratio by 2019, divided into 10% of Common Equity Tier 1 capital, 3% of high-trigger contingent capital and 6% of low-trigger contingent capital.
Credit Suisse priced the first high-trigger contingent capital trade from Switzerland in February last year, attracting huge demand from private banks and institutional investors for the Tier 2 bond which converts into equity if the Tier 1 ratio falls below 7%.
The UBS CoCo is expected to be rated BBB- by both S&P and Fitch and fulfils some of the Swiss low-trigger requirements. Under the terms of the deal, if it is not called at the call date, the coupon resets to five-year US dollar mid-swaps plus the initial spread. Coupons are non-deferrable.
Under the terms of the deal the bonds can be written down permanently if the bank's common equity Tier 1 ratio falls below 5% or is considered non-viable. UBS's Tier 1 capital ratio under Basel 2.5 stands at 16%.
A non-viability event is described as the point at which without such write-down or extraordinary support to improve the bank's adequacy, the bank would otherwise be bankrupt, insolvent or unable to pay its debts, as determined by the Swiss regulator.
Investors have been wary of the non-viability concept as some have feared it would give regulators wide powers of intervention.
REMOTE TRIGGER
While the 5% trigger is likely very remote investors worry about the tail risk said one banker, who also think that a permanent write-down potentially subordinates them to equity.
However, bankers on the trade highlight the remoteness of the trigger and the fact that the deal is gone-concern capital, so that UBS would have to eat through large chunks of capital before hitting. They also add that if the bonds did write down, the equity would not be worth much at that stage.
UBS's management has argued against issuing notes that potentially convert into equity to meet the Swiss regulatory requirement. The bank has previously said it would not meet the high-trigger buffer with contingent capital but would instead fulfil it with equity. (Reporting by Helene Durand; editing by Alex Chambers)
UPDATE 2-UBS opens books for first low-trigger CoCo issue | Reuters
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Rottweiler
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La stessa notizia data da Bloomberg:
UBS Planning Contingent Capital Bond Sale
By John Glover and Ben Martin - Feb 14, 2012 3:29 PM GMT+0100
UBS AG (UBSN), Switzerland’s biggest lender, will be the latest issuer of contingent capital bonds meeting regulators’ demands that banks strengthen their protection against losses.
The dollar-denominated notes will be permanently written down if UBS’s core Tier 1 capital falls below 5 percent or if the bank reaches a point where it would require a bailout to avoid collapsing, according to two people with knowledge of the deal, who declined to be identified before it’s completed. The bonds, which mature in February 2022 and may yield about 7.5 percent, will switch to a floating interest rate if the bank doesn’t redeem them in 2017, the people said.
“The deal looks like it’s aimed at Asian retail,” said John Raymond, an analyst at research firm CreditSights Inc. in London. “That seems to be the place to go these days to find wealthy people willing to invest in banks.”
Swiss authorities are insisting the nation’s biggest banks hold about twice as much capital as demanded under the international Basel III rules after the government was forced to put up 6 billion francs ($6.5 billion) in 2008 to help UBS spin off toxic assets. Credit Suisse Group AG (CSGN), the country’s second- largest lender, and Rabobank Groep NV of the Netherlands have also sold similar contingent securities designed to inflict losses on investors when capital buffers deteriorate.
A UBS spokesman didn’t immediately respond to a request for comment.
Record Loss
Zurich-based UBS posted an operating loss of 25.4 billion francs the year it offloaded the toxic assets to a fund set up by the central bank, a record for a Swiss company.
Swiss regulators are forcing the country’s banks to issue loss-absorbing securities including equity and bonds equivalent to 19 percent of assets weighted by risk and have given them until 2019 to do so.
The banks must have a so-called common equity Tier 1 ratio of at least 10 percent. They also have to hold two sets of loss- absorbing bonds, one -- equivalent to 3 percent of assets --that triggers when the Tier 1 ratio falls below 7 percent and another, covering 6 percent of assets, that triggers at a level of 5 percent.
UBS plans to issue only low-trigger bonds, opting to hold common equity instead of the high-trigger notes, according to Chief Financial Officer Tom Naratil.
A year ago, Credit Suisse issued $2 billion of so-called high-trigger buffer capital notes, due 2041 and callable in August 2016, that convert into equity if capital drops below 7 percent.
BNP Paribas SA, Commerzbank AG, Deutsche Bank AG and Societe Generale SA are managing UBS’s bond with the Swiss bank.
fabriziof
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