Today Finma, the Swiss bank supervisor posted its new Leverage Ratio requirement, see picture: Switzerland has decided to set a TLAC of 10% of total exposure for its global systemically important banks: 5% for going concern and 5% for gone concern, in line with the TLAC proposal of the FSB. Finma uses colourful language to… Read More The Swiss new capital requirements – why cheer?
Martin Taylor’s speech, The fence and the pendulum of last week will probably achieve the same hype-status as Andrew Haldane’s The dog and the frisbee. While the latter is kind of naive in that it is hopeful of bank regulation (albeit less complex preferably), the former is anything but. Moreover, Taylor pulls no punches in lashing… Read More BOE’s Financial Policy Committee – split on Cocos?
This week, the EBA held a public hearing on the 4 May report on AT1 issuances, see my previous posts on this. Click here for the PowerPoint that the EBA prepared. Apparently no surprises. On the hot topic of Contingent Clauses, the EBA reports that it “confirms its previous reserves, and recommends disallowing contingent clauses”.… Read More UPDATE 2: The EBA’s laudable effort to tame Additional Tier 1 issuances
Today, the EBA held a public hearing on the 4 May report on AT1 issuances, see my previous post on this. Click here for the PowerPoint that the EBA prepared. Apparently no surprises. On the hot topic of Contingent Clauses, the EBA reports that it “confirms its previous reserves, and recommends disallowing contingent clauses”. A… Read More UPDATE: The EBA’s laudable effort to tame Additional Tier 1 issuances
This week, the EBA issued its preliminary report on the monitoring of Additional Tier 1 (AT1) instruments of EU. It is a great document for outsiders to obtain a feel for what these instruments are like and how they behave in their regulated habitat. For example, an important critique pertains to the complexity of these… Read More The EBA’s laudable effort to tame Additional Tier 1 issuances
A Dutch public radio station asked me to comment on Contingent Convertible capital (in Dutch). My comments were in line with previous posts on CoCos: they tend to end in tears. Thanks Stefan Heijdendael, the main investigator and reporter, for explaining CoCos very well. On TLAC: Also thanks for anticipating on TLAC rules from the… Read More Jay! A public radio station in the Netherlands gave me some air-time to discuss CoCos
Last November, the Financial Stability Board (FSB) presented its consultation document on Total Loss Absorbency Capacity (TLAC). The document is a response to the request of G20 leaders to enhance the loss-absorbing capacity of global systemically important banks (G-SIBs) in resolution. It presents a term-sheet with requirements for TLAC. The document looks heavy-handed because of… Read More Good, bad, and ugly questions about TLAC
The EBA and the Basel committee just published the Basel III monitoring results. Click here to view the results of the EBA monitoring exercise. Click here to view the results of the BCBS monitoring exercise. Best is to describe the results using graphs, in this case from the EBA report. Note, these are results of… Read More Jay, the EBA and BCBS Basel III monitoring results are out
The EBA’s stress test data is can be downloaded from their site, but it is spread around across several files. For your convenience, please click here for an Excel file that offers a flat file with combined data. Click here to download the same file, but with pivot tables for your convenience.
BPCE (A2/A/A) announced a benchmark USD RegS/144A dated Tier 2 transaction with IPTs of UST+230bps area. HSBC Bank Plc (Aa3/AA-/AA-) is expected to issue its inaugural multi-currency AT1 transaction this week following a global investor roadshow. Credit Agricole (A2/A/A) is holding investor meetings in the US and Europe starting from 8 September for a possible… Read More The market for hybrids is open for business!