Mwah, DL 9% ben je m.i. te laat. En de CFO zit er pas net, dus beetje te veel eer om hem de verbetering vd kapitaalspositie te honoreren. Uit de FT vandaag:
Barclays is launching a coco bond, the latest in a wave of new issues, as the riskiest market for bank debt regains momentum.
The bond, which will be denominated in dollars, follows new dollar issues from Royal Bank of Scotland and Standard Chartered earlier this month. UBS also sold a $1bn bond at the start of the August, making it the busiest month of the year so far, writes Thomas Hale.
The market for coco bonds, which are sold by banks and take losses when the issuer runs into trouble, endured a brutal sell-off earlier this year. In February, the instruments were caught up in broader weakness across Europe’s banking sector and concerns over the complexity of regulation for the asset class.
That sell-off effectively closed the market for new issuance over a period of several months, though a handful of banks were able to issue.
Over recent months, the prices of the bonds have recovered. A Markit index for coco bonds, which was down 15 per cent in February, is now back to where it was at the start of the year.
The yields on coco bonds are significantly higher than for other areas of the credit markets, where rates have been depressed by central bank purchases. RBS’s $2.65bn bond this month came with a coupon of 8.725 per cent.
Bankers also pointed to the effect of divergent rate expectations in Europe and the US, making it more attractive for banks to issue in dollars and swap back into European currencies.