Banks are THE biggest issuers of international bonds, accounting
for 60% of new issues captured by Dealogic in the past five years,
far outstripping corporates (23%) and sovereigns and supranationals
(10%). And for much of the first half of 2002, as credit markets
were rocked by a series of corporate misdeeds, banks, along with
agencies and supranationals, benefited from a flight to quality.
Recently, though, it's been their turn to suffer in unfavourable
markets.
In the spring of 2002 Crédit Lyonnais, Bradford & Bingley and
Royal Bank of Scotland managed to issue at very attractive levels.
Eamonn Price, head of UK institutions in debt capital markets at
Lehman Brothers, says: "In the second quarter, we were in a raging
bull market for bank capital, and a number of deals were done near
issuers' historical tights. Issuers that came to market in this
period are very pleased, and many achieved levels they probably
won't see again for some time." Buyers aren't so happy.
As the...
