Obbligazioni perpetue e subordinate Tutto quello che avreste sempre voluto sapere sulle obbligazioni perpetue... - Cap. 3
- Creatore Discussione Joe Silver
- Data di Inizio
Joe Silver
Forumer storico
Brit Insurance
Quali sono? Forse la 6,625% in sterline? Il taglio è 1k oppure 50K?
Grazie Cumulate
Quali sono? Forse la 6,625% in sterline? Il taglio è 1k oppure 50K?
Grazie Cumulate
European Central Bank President Mario Draghi said he’s ready to deploy another long-term refinancing operation to provide funds to Europe’s banking system if needed.
“We are ready to use any instrument, including another LTRO if needed, to maintain the short term money markets at the level that is warranted by our assessment of inflation in the medium term,” Draghi said in response to questions from lawmakers in the European Parliament in Brussels today.
Euro-area money-market rates rose to a level that Draghi described as “unwarranted” in July after the U.S. Federal Reserve signaled that it would begin to ease stimulus and signs emerged of a recovery in the 17-nation region. While those rates have since declined, excess liquidity in the financial system is approaching the 200 billion-euro ($270 billion) level the ECB has previously signaled as a lower limit.
In his opening remarks at the hearing, Draghi said while repayment of central bank credit is “certainly a sign of normalization, the resulting reduction in excess liquidity can reinforce upward pressures on term money market rates.”
As the buffer of excess cash held by the financial system falls, the rates that banks charge each other for liquidity can rise as they shoulder more risk. The ECB has also tried to keep money-market rates in check by issuing forward guidance on its official interest rates, saying that they will remain where they are or lower for “an extended period.”
ECB Reliance
The overnight rate that banks expect to charge each other by the ECB’s September 2014 meeting, as measured by Eonia forward contracts, is at 0.21 percent, having fallen from 0.3 percent on Sept. 5.
“Reliance on ECB funding support has been steadily declining,” Draghi said.
Europe’s banks will repay 7.91 billion euros of three-year loans this week, data released by the ECB on Sept. 20 showed. That’s the highest level of repayments since May. The ECB introduced two sets of loans of longer maturity than before, beginning in December 2011, as a credit crunch in Europe threatened.
The euro weakened after Draghi’s comments and was trading at $1.3493 as of 4:50 p.m. Frankfurt time, down 0.2 percent from yesterday.
Draghi Attentive
Draghi said the ECB will remain “particularly attentive” to the implications falling excess liquidity could have for monetary policy, echoing language from a Sept. 5 press conference.
“We are down from 800 billion euros to 250 billion euros in terms of excess liquidity, and that is all in all good news,” he said then. “I remember some time ago I mentioned a figure of 200 billion euros as the threshold, but in fact it is really context-dependent. It depends on the context; it depends on the degree of fragmentation that we have.”
The amount of extra liquidity that the region’s banks have been holding as an insurance against shocks to the financial system has fallen, in part due to returning confidence in the region’s economy and the presence of the ECB’s OMT bond-buying plan that has helped insure against the breakup of the currency union. Excess liquidity stood at 220.5 billion euros as of Sept. 20, and use of the ECB’s overnight deposit facility fell last week to the lowest since August 2011.
“Over the past twelve months, confidence in the euro area has returned,” Draghi said today. “As a consequence, fragmentation in euro-area funding markets has been receding. This improvement owes not only to the ECB’s non-standard measures, but also to progress by governments in improving the euro-area governance and in pursuing reform agendas.”
To contact the reporter on this story: Jeff Black in Frankfurt at [email protected]
To contact the editor responsible for this story: Craig Stirling at [email protected]
“We are ready to use any instrument, including another LTRO if needed, to maintain the short term money markets at the level that is warranted by our assessment of inflation in the medium term,” Draghi said in response to questions from lawmakers in the European Parliament in Brussels today.
Euro-area money-market rates rose to a level that Draghi described as “unwarranted” in July after the U.S. Federal Reserve signaled that it would begin to ease stimulus and signs emerged of a recovery in the 17-nation region. While those rates have since declined, excess liquidity in the financial system is approaching the 200 billion-euro ($270 billion) level the ECB has previously signaled as a lower limit.
In his opening remarks at the hearing, Draghi said while repayment of central bank credit is “certainly a sign of normalization, the resulting reduction in excess liquidity can reinforce upward pressures on term money market rates.”
As the buffer of excess cash held by the financial system falls, the rates that banks charge each other for liquidity can rise as they shoulder more risk. The ECB has also tried to keep money-market rates in check by issuing forward guidance on its official interest rates, saying that they will remain where they are or lower for “an extended period.”
ECB Reliance
The overnight rate that banks expect to charge each other by the ECB’s September 2014 meeting, as measured by Eonia forward contracts, is at 0.21 percent, having fallen from 0.3 percent on Sept. 5.
“Reliance on ECB funding support has been steadily declining,” Draghi said.
Europe’s banks will repay 7.91 billion euros of three-year loans this week, data released by the ECB on Sept. 20 showed. That’s the highest level of repayments since May. The ECB introduced two sets of loans of longer maturity than before, beginning in December 2011, as a credit crunch in Europe threatened.
The euro weakened after Draghi’s comments and was trading at $1.3493 as of 4:50 p.m. Frankfurt time, down 0.2 percent from yesterday.
Draghi Attentive
Draghi said the ECB will remain “particularly attentive” to the implications falling excess liquidity could have for monetary policy, echoing language from a Sept. 5 press conference.
“We are down from 800 billion euros to 250 billion euros in terms of excess liquidity, and that is all in all good news,” he said then. “I remember some time ago I mentioned a figure of 200 billion euros as the threshold, but in fact it is really context-dependent. It depends on the context; it depends on the degree of fragmentation that we have.”
The amount of extra liquidity that the region’s banks have been holding as an insurance against shocks to the financial system has fallen, in part due to returning confidence in the region’s economy and the presence of the ECB’s OMT bond-buying plan that has helped insure against the breakup of the currency union. Excess liquidity stood at 220.5 billion euros as of Sept. 20, and use of the ECB’s overnight deposit facility fell last week to the lowest since August 2011.
“Over the past twelve months, confidence in the euro area has returned,” Draghi said today. “As a consequence, fragmentation in euro-area funding markets has been receding. This improvement owes not only to the ECB’s non-standard measures, but also to progress by governments in improving the euro-area governance and in pursuing reform agendas.”
To contact the reporter on this story: Jeff Black in Frankfurt at [email protected]
To contact the editor responsible for this story: Craig Stirling at [email protected]
Monte Paschi Halts Coupon Payments on 3 Subordinated Notes
Banca Monte dei Paschi di Siena Bank Branch in Siena
Banca Monte dei Paschi di Siena SpA said it suspended interest payments on three hybrid notes after European authorities demanded bondholders contribute to the restructuring of the bailed out Italian lender.
The world’s oldest bank said in a statement that it won’t pay interest on about 481 million euros ($650 million) of outstanding hybrid notes issued through MPS Capital Trust II and Antonveneta Capital Trusts I and II. Under the terms of the undated notes, the Siena, Italy-based lender is allowed to suspend interest without defaulting and doesn’t have to make up the missed coupons when payments resume.
“In the new world we’re in, bondholders pick up the tab when they can be forced to,” said John Raymond, an analyst at CreditSights Inc. in London. “State aid rules impose losses where possible.”
European Union Competition Commissioner Joaquin Almunia told reporters on Sept. 7 the bank should receive final approval for its restructuring plan within two months. The lender, which received a 4.1 billion-euro bailout, submitted a revised plan that more than doubles the amount of new capital it intends to raise to 2.5 billion euros as it seeks to repay the aid.
Almunia recommended that “cash outflows from the beneficiary to hybrid capital holders and subordinated debt holders be prevented to the maximum extent possible,” in a letter sent to Italian Finance Minister Fabrizio Saccomanni dated July 16 and seen by Bloomberg News.
Pay Caps
He also called for executive pay caps and said he was concerned about the viability of the lender.
Monte Paschi’s 108 million euros of undated, non-cumulative trust preferred stock issued through Antonveneta Capital Trust II fell 5 cents on the euro to 41 cents, according to Bloomberg bond prices. That’s the lowest price since April 23, data compiled by Bloomberg show.
While the bank is halting payments on the bonds that make up its Tier 1 capital, the most-junior layer of debt capital instruments, it also has the equivalent of about 2.6 billion euros of more-senior Upper Tier 2 debt in three issues in euros and pounds.
While Monte Paschi is making payments on these notes, it isn’t clear that it will be able to go on doing so, said Raymond.
Payment ‘Baffles’
“Their continuing to pay these rather baffles me,” he said. “One would have thought they would defer payments and I’m not sure the price reflects that.”
The lender’s 591.5 million euros of 4.875 percent bonds due May 2016 were quoted at 92.9 cents on the euro, a loss of 0.23 cents today, according to Bloomberg prices. The yield on the notes was about 7.7 percent.
Investors may be betting the bank will buy back the debt “at or slightly below current trading levels,” according to Eva Olsson, an analyst at Mitsubishi UFJ Securities in London. Individual investors in Italy hold many of the bonds and have been an important source of funds for banks in recent years, she said.
The company’s plans may be given during a conference call to be held on Sept. 25, according to the note.
“Monte likely will have to raise capital next year and we view any capital raising exercise in the market as challenging,” Olsson wrote.
The cost of insuring against losses on Monte Paschi’s subordinated debt rose, with credit-default swaps covering 10 million euros of the bank’s junior bonds for five years costing 2.1 million euros in advance and 500,000 euros annually, according to data provider CMA. That signals a 49.5 percent probability of default within that time.
Swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.
To contact the reporter on this story: John Glover in London at [email protected]
To contact the editor responsible for this story: Shelley Smith at [email protected]
Banca Monte dei Paschi di Siena Bank Branch in Siena
Banca Monte dei Paschi di Siena SpA said it suspended interest payments on three hybrid notes after European authorities demanded bondholders contribute to the restructuring of the bailed out Italian lender.
The world’s oldest bank said in a statement that it won’t pay interest on about 481 million euros ($650 million) of outstanding hybrid notes issued through MPS Capital Trust II and Antonveneta Capital Trusts I and II. Under the terms of the undated notes, the Siena, Italy-based lender is allowed to suspend interest without defaulting and doesn’t have to make up the missed coupons when payments resume.
“In the new world we’re in, bondholders pick up the tab when they can be forced to,” said John Raymond, an analyst at CreditSights Inc. in London. “State aid rules impose losses where possible.”
European Union Competition Commissioner Joaquin Almunia told reporters on Sept. 7 the bank should receive final approval for its restructuring plan within two months. The lender, which received a 4.1 billion-euro bailout, submitted a revised plan that more than doubles the amount of new capital it intends to raise to 2.5 billion euros as it seeks to repay the aid.
Almunia recommended that “cash outflows from the beneficiary to hybrid capital holders and subordinated debt holders be prevented to the maximum extent possible,” in a letter sent to Italian Finance Minister Fabrizio Saccomanni dated July 16 and seen by Bloomberg News.
Pay Caps
He also called for executive pay caps and said he was concerned about the viability of the lender.
Monte Paschi’s 108 million euros of undated, non-cumulative trust preferred stock issued through Antonveneta Capital Trust II fell 5 cents on the euro to 41 cents, according to Bloomberg bond prices. That’s the lowest price since April 23, data compiled by Bloomberg show.
While the bank is halting payments on the bonds that make up its Tier 1 capital, the most-junior layer of debt capital instruments, it also has the equivalent of about 2.6 billion euros of more-senior Upper Tier 2 debt in three issues in euros and pounds.
While Monte Paschi is making payments on these notes, it isn’t clear that it will be able to go on doing so, said Raymond.
Payment ‘Baffles’
“Their continuing to pay these rather baffles me,” he said. “One would have thought they would defer payments and I’m not sure the price reflects that.”
The lender’s 591.5 million euros of 4.875 percent bonds due May 2016 were quoted at 92.9 cents on the euro, a loss of 0.23 cents today, according to Bloomberg prices. The yield on the notes was about 7.7 percent.
Investors may be betting the bank will buy back the debt “at or slightly below current trading levels,” according to Eva Olsson, an analyst at Mitsubishi UFJ Securities in London. Individual investors in Italy hold many of the bonds and have been an important source of funds for banks in recent years, she said.
The company’s plans may be given during a conference call to be held on Sept. 25, according to the note.
“Monte likely will have to raise capital next year and we view any capital raising exercise in the market as challenging,” Olsson wrote.
The cost of insuring against losses on Monte Paschi’s subordinated debt rose, with credit-default swaps covering 10 million euros of the bank’s junior bonds for five years costing 2.1 million euros in advance and 500,000 euros annually, according to data provider CMA. That signals a 49.5 percent probability of default within that time.
Swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.
To contact the reporter on this story: John Glover in London at [email protected]
To contact the editor responsible for this story: Shelley Smith at [email protected]
maxolone
Forumer storico
come é che questa trada cosí bassa ?
ha preso botte negli ultimi mesi...stava quasi a 100
ha preso botte negli ultimi mesi...stava quasi a 100
Cat XL
Shizuka Minamoto
Sapendo che una buona parte del business e' in Sud Africa ti spieghi il perche'...
Rottweiler
Forumer storico
Feuilleton Groupama: atto primo...
Ci avviciniamo alla data in cui Groupama l'anno scorso ha causato tante reazioni, e parecchi danni: il 5 ottobre.
Come ricordano tutti i frequentatori del nostro 3D, quel giorno Groupama annunciò che non avrebbe pagato la cedola della FR0010533414, in scadenza il 22 dello stesso mese.
Cosa succederà quest'anno?
Groupama pagherà oppure no? Quali motivazioni saranno alla base della decisione che sarà presa?
Quali conseguenze sui corsi, if any, sarà innescata dalla reazione che sarà presa?
Mi piacerebbe proprio che coloro i quali si sono occupati di Groupama, investendovi o standosene alla larga, dicessero la loro...
Ci avviciniamo alla data in cui Groupama l'anno scorso ha causato tante reazioni, e parecchi danni: il 5 ottobre.
Come ricordano tutti i frequentatori del nostro 3D, quel giorno Groupama annunciò che non avrebbe pagato la cedola della FR0010533414, in scadenza il 22 dello stesso mese.
Cosa succederà quest'anno?
Groupama pagherà oppure no? Quali motivazioni saranno alla base della decisione che sarà presa?
Quali conseguenze sui corsi, if any, sarà innescata dalla reazione che sarà presa?
Mi piacerebbe proprio che coloro i quali si sono occupati di Groupama, investendovi o standosene alla larga, dicessero la loro...
fabriziof
Forumer storico
La cedola è facoltativa, se non ci saranno dividendi.
Tuttavia, a pagina 5-6 del press release che ho postato sta scritto che Groupama si impegna a pagare la cedola 2013 sui subordinati.
Direi che carta canta
il 21 febbraio scorso sembravi sicuro
ecco la press release di febbraio.
ci sono stati altri pronunciamenti?
Ultima modifica:
solovaloreaggiunto
Forumer storico
E telecom passa a telefonica. Telefonica pagherà 1 euro per azione a soci telco
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