MPS sub debt rallies as Italy to buy €2bn

The junior debt of Banca Monte dei Paschi di Siena rallied strongly on Wednesday on reports the Italian government was preparing to buy €2bn of subordinated bonds from retail investors, support which could potentially avoid the European Commission’s onerous state aid rules.

• 07 Dec 2016

MPS bail-in fears recede as hopes rise of state help

Banca Monte dei Paschi’s shares leapt 7% on Wednesday morning, on growing hopes that a way will be found for the Italian state to strengthen its balance sheet, enabling it to achieve a €5bn capital raising demanded by the European Central Bank and avoid a bail-in.

• 07 Dec 2016

MPS recap takes centre stage as BNPP and DB bag last minute funding

The focus was firmly on Italy this week. Despite the government’s failure to secure support for constitutional reform and the resignation of prime minister Matteo Renzi, financial bonds rallied across the board as shorts were covered and new risk was added.

• 07 Dec 2016

MPS tanks as rest of FIG rallies

The subordinated debt of embattled Italian lender Banca Monte dei Paschi di Siena (MPS) fell several points on Tuesday as the rest of the FIG market rallied.

• 06 Dec 2016

Clouds hang over Italian banks despite post-referendum calm

The 'no' vote in Italy’s referendum on constitutional reform was met on Monday morning with a muted reaction in credit and equity markets but, with profound uncertainty overhanging the political situation and Banca Monte dei Paschi di Siena’s rescue plan, analysts are not optimistic about the performance of the Italian financial sector in the short term.

• 05 Dec 2016

Monte dei Paschi cornerstones get a few more days after Renzi quits

Banca Monte dei Paschi di Siena and the underwriters of its €5bn capital raising have agreed with the prospective cornerstone investors in the deal to push back the launch of the sale by three or four days, after the resignation of Italy’s prime minister Matteo Renzi on Sunday night.

• 05 Dec 2016

GACs scheme questioned as Intesa opts for loan sale over ABS

Monte dei Paschi, UniCredit and Intesa will push ahead with non-performing loan sales after Sunday's Italian referendum result, but political turmoil and the slow pace of the government’s GACs guarantee scheme could lead to changes in the way NPL sales are structured.

• 05 Dec 2016

IG corporates make swift referendum recovery as investors eye year-end

Early morning volatility had largely retraced by mid-morning in investment grade euro corporate bonds on Monday, as market participants, for once this year, got the political result they expected from Sunday’s Italian referendum.

• 05 Dec 2016

SSA market steady after Italian ‘no’ vote, as bankers await ECB action

The public sector bond market rode out the widely expected ‘no’ result of the Italian constitutional referendum on Sunday night, as bankers looked at a possible silver lining in the form of a more dovish European Central Bank meeting on Thursday.

• 05 Dec 2016

MuHyp prices rare 20 year flat to covered curve

Muenchener Hypothekenbank (MuHyp) issued a €500m 20 year flat to fair value on Tuesday even though market conditions were volatile.

• 01.45 PM