Capital trades will choke unless issuers cough up

摘要

Pricing will be crucial for a wave of new bank capital deals as investors force issuers to pay up on trickier names, particularly against a choppier market backdrop. Tier 2 trades from ibercaja banco and banco popolaresocietacooperativa were pencilled in for potential execution last week, but neither emerged as broader volatility around Greece kept a lid on higher beta trades, permanent tsb's AdditionalTier 1 bond, also anticipated last week, was touted for Monday. Some thought the issuers had been caught out on timing, with a cooling market leading to some investor inertia. Added to that, national champion Intesa was forced to downsize a 10-year Tier 2 deal from €750m to€500m the week before last amid tough conditions.