Archive

Monthly Archives: January 2019

31st January 2019

Big squeeze closes credit in January

Solid month but choppy waters ahead… Across all markets, January has been a good month in performance. Equities, commodities, rates and credit have all delivered surprisingly good returns. That’s not necessarily all good. It highlights a relief trade in equities after a damning 2018 where dovish policy keeps rates low and liquidity in plentiful supply. […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
30th January 2019

When the doves fly

Holding on to gains… After a difficult final quarter of 2018, we have got just what we needed in January as we corrected some the ills which so blighted 2018’s performance. Brexit might have dominated Tuesday’s session and led to a blank session for markets, but Wednesday was all about gauging the repercussions of the win […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
30th January 2019

SANTAN – Spain may be its home BUT… | Bank Capital Insights

LATAM is where it is growing… SANTAN delivered in line earnings this morning driven by growth in its LATAM franchises and consumer finance businesses in Europe. For the year 2018, net income increased by 18% to EUR 7.8 billion, translating to a ROE of 8%.   SANTAN is now becoming more and more reliant on […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
29th January 2019

Show Time! | Bank Capital Insights

European bank earnings are upon us… The large US banks reported much better than expected Q4 earnings and revenue growth (other than in FICC) and we saw a significant rally in their respective stock prices.  Now, a number of the large cap European banks are due to report earnings this week including Santander, DB, BBVA […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
28th January 2019

Tough get going

Timing is key The upcoming first FOMC meeting of the year, a ramp up in the earnings season, Friday’s non-farms payroll report and the next stage of the Brexit debate with a series of votes due (on Tuesday) will all make for this week to be a rather disjointed one – with opportunities to get […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
27th January 2019

Event-risk fraught week ahead

Yield is the key in 2019… Equity market valuations, when taken in isolation, seem to paint a picture that the macro outlook is bright…or that equities are cheap because rates are going nowhere. The earnings season is upon us and the flow of reports has been quite mixed, but the equity market is looking sprightly. […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
25th January 2019

BCP AT1 high coupon and high risk | Bank Capital Insights

BCP re-opens the EUR AT1 market – valuation thoughts Who would have imagined that the first AT1 deal of 2019 would come from a Portuguese Bank and that on the day of the ECB meeting?  BCP, Portugal’s largest private sector bank issued its debut EUR AT1 paying a coupon of 9.25% for a Perp NC5 structure […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
24th January 2019

Back with a vengeance

Primary going some, and some more… The ECB meeting had absolutely no impact on the credit primary market in a surprising session which saw over €8bn of IG non-financial deals. Most likely taking the view that the central bank wasn’t going to change anything apart from being more dovish – which is what happened – […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
24th January 2019

Want a nice trade to play SANTAN AT1 call decision? | Trade Ideas

Will they or won’t they?  SANTAN due to make decision on EURO AT1 callable in March 2019

Banco Santander (SANTAN) is due to report Q4 2018 earnings on 30 Jan 2019.   More importantly, for the bank capital market, would be the likelihood of a call decision on their 6.25% EUR AT1 (which is callable on 12 March 19).

Currently it trades with a cash price of €97 and if called at par, it translates to 3 points upside for 6 weeks risk.  But, if they don’t call, these bonds may drop to €90 or a lower cash price area..

Continue reading

23rd January 2019

We can’t have run out of steam already!

Dull as dishwater… Where have all the deals gone? The window is wide open and we’re screaming for corporate borrowers to get their skates on. Surely they are not still nervous about funding conditions. Maybe it’s just that they are punch drunk on the liquidity that they managed to hoard over the previous multi-year halcyon […]
Subscribers can log in to continue reading. Otherwise, purchase The Monthly Access Pass or One Year Subscription to become a subscriber.
1 2 3 4