Santander tackles TLAC deficit with senior non
Canada Goose Coats On Sale LONDON, Jan 11 (IFR) Santander canada goose outlet us is considering ways to issue a new type of senior bond well in advance of the requisite legislation being passed, allowing it to chip away at an approximate 30bn issuance target over the next two years. Canada Goose Coats On Sale
canada goose clearance The Spanish bank said on Wednesday that it will issue 16bn 20bn in 2017 and another 12bn 15.5bn in 2018 of so called senior canada goose outlet in montreal non preferred, set to become a major new asset class as European banks respond to regulatory demands to beef up their loss absorbing buffers. canada goose clearance
canada goose clearance sale Though the European Commission endorsed the senior non preferred format late last year, canada goose outlet montreal the legislation permitting this type of canada goose outlet niagara falls issuance is only in place in France and is not expected to be passed elsewhere in canada goose jacket outlet sale Europe before the second half of 2017 at the earliest. canada goose clearance sale
canada goose coats But global systemically important banks (GSIBs) like Santander which must meet a global standard known as total loss absorbing capacity (TLAC) cannot necessarily afford to wait that long, and the lender may use contractual provisions to save time. canada goose coats
cheap Canada Goose notes would include a goose outlet canada contractual status clause which would contemplate a senior second ranking ( non preferred in resolution and insolvency, the issuer wrote in a presentation. cheap Canada Goose
The senior second ranking status would automatically be aligned with the Spanish law transposing the Insolvency Harmonisation Directive.
canada goose black friday sale It would not be the first time that a canada goose outlet washington dc European bank canada goose outlet store uk has tried to preempt changes in the regulatory arena. ING last year sold a Tier 2 bond buy canada goose uk with an optional redemption allowing it to flip from the opco to the holdco in anticipation of amendments to the Dutch resolution framework. canada goose black friday sale
canada goose coats on sale think that what Santander is doing is a variation of the flipper, said one FIG DCM banker. canada goose coats on sale
the European Commission talks about implementation by mid 2017, I think there are some countries where that may be a stretch for the domestic canada goose outlet locations in toronto legislative timetable, so this structure would allow banks to crack on earlier where they want to.
Canada Goose sale COMING AT A COST? 2017 is already poised to be the year of senior non preferred issuance, but Santander proposal indicates that this new market could take off more canada goose outlet store quebec quickly than expected. Canada Goose sale
canadian goose jacket UniCredit said in December that it plans to issue senior non preferred debt canada goose outlet winnipeg address in the coming years, but that issuance would be back ended given concerns around potential legislative delays, for example. canadian goose jacket
canada goose uk black friday A strong canada goose outlet mississauga start by the French banks should help quash any nerves about investor demand, but canada goose outlet toronto factory bankers warn that the buyside could force Santander to pay up. canada goose uk black friday
Canada Goose online think the contractual option does work https://www.canadagoosejacket-outlet.ca , but it will probably come at a cost, said another canada goose outlet online store review banker. Canada Goose online
Canada Goose Online size [they have to do] is another cost it a massive number. But Santander hasn really used the dollar market much in the past, so that a good pocket of demand they haven really used. Canada Goose Online
canada goose store Santander plans to issue 12bn 14bn of 2017 target out of the main issuing entity, with another 2bn 3bn apiece from Santander UK and Santander Holdings USA. canada goose store
Canada Goose Outlet Bankers are already pitching similar trades to other lenders canada goose outlet official though GSIBs go to my site , which have more pressing needs, are the prime candidates for issuance. Canada Goose Outlet
cheap canada goose uk think that non GSIB issuers are more likely to bide their time and wait for legislation to be approved, which canada goose jacket outlet at worst probably takes a year to implement, said canada goose jacket outlet uk a bank analyst. (Reporting by Alice canada goose outlet black friday sale Gledhill, editing canada goose factory outlet toronto location by Helene Durand, Ian Edmondson) cheap canada goose uk.