Bonds
Crisis reshaping Australian bond market: RBA’s Debelle
Reserve Bank of Australia assistant governor Guy Debelle says regulatory reforms to change Australia’s bond market structure
ECB’s Bini Smaghi proposes single eurozone bond issuing agency
European Central Bank executive board member Lorenzo Bini Smaghi backs proposals for single eurozone government bond issuer; says agency could pave the way for a single European bond
Bundesbank slams idea of using ESM to buy government debt
Bundesbank says using enlarged European Stability Mechanism to buy government bonds of troubled countries will place more burden on taxpayers
Bond purchase frictions convinced Weber to drop out of ECB race
Bundesbank's Axel Weber says divergent views on ECB’s bond purchases meant he was no longer an acceptable candidate to succeed Trichet; stresses he was right to stick to his guns
Sovereign funds set to enter an active phase: State Street’s Nugée
Sovereign wealth funds ready to tackle postponed investment decisions and portfolio changes having ridden out crisis with a passive management strategy
Banking Commission chief makes case for ring-fencing retail operations
Independent Commission on Banking chief John Vickers rules out “radical narrow banking” but says some separation between investment and retail banks could help
Covered bond purchase programme a success: ECB paper
European Central Bank study says Eurosystem’s covered bond purchase was an effective policy tool
Portugal succeeds at auction but fails to sway analysts
Portugal sells $1.6 billion worth of government debt at auction, but commentators remain wary of fundamentals
Argentinean central bank okays $7.5 billion loan to state
Central Bank of Argentina approves loan of $7.5 billion of reserves to repay bondholders; move is central bank’s latest measure to bail out government
Brussels sets the stage for senior debt haircuts
Internal markets directorate publishes consultation paper calling for senior bondholder haircuts in resolution regimes; analysts worry move could further disrupt funding for troubled banks
Reasons behind offshore bond issuance: BIS
Bank for International Settlements research finds price differentials and access to overseas investors among key reasons to issue paper offshore
Italy’s Draghi: eurozone governments must step up
Bank of Italy governor Mario Draghi looks to eurozone governments to tackle fundamental issues; stresses ECB will not dabble in fiscal arena, echoing president Jean-Claude Trichet
ECB repos, not bond purchases best fix for debt woes: Deutsche Bank note
Deutsche Bank paper moots the use of targeted long-term repurchases to shore up peripheral bond markets, rather than more outright purchases
CoCos offer banks more hope than bail-in: CentralBanking.com panel
Contingent capital’s earlier trigger will set in before banks are on the brink of resolution, say panellists; reject narrow banking thesis
ECB bucks market expectation with silence on further bond purchases
European Central Bank extends liquidity operations but does not commit to more bond purchases; move comes against market anticipation, dividing analysts
Avoid too many rules on CoCo bonds: BoJ research
Bank of Japan paper says design of contingent capital instruments should not be overregulated; issuance should be encouraged owing to positive externalities
DMOs to Basel Committee: leave our bonds out of your buffers
New rules mean banks will have to load-up on government debt, but one apparent beneficiary - debt management offices - are against the idea
ADB launches landmark renminbi bond in Hong Kong
Asian Development Bank launches ground-breaking international renminbi bond in Hong Kong; Hong Kong Monetary Authority’s Peter Pang hails likely effects on renminbi trade, settlement
Irish bonds sixth riskiest: report
Credit default swap spreads on Irish bonds spike more than any other in third quarter; Portugal also among ten riskiest sovereign issuers
Ireland’s Elderfield rules out senior debt haircuts
Holders of senior debt must not be forced to shoulder losses, but issuing banks could negotiate with them, says Central Bank of Ireland’s Matthew Elderfield
Nigeria limits state bond holdings; cleans up microfinance
Central Bank of Nigeria places limits on banks’ holding of state government bonds; revokes over a quarter of microfinance licences after serious problems revealed in sector
IMF: bond issuance creates more effective monetary policy channel
IMF study says government bond issuance can help mop up excess liquidity, making monetary policy more effective
Basel bids to make bondholders pay price of failure
Basel Committee on Banking Supervision says all instruments classified as tier one and tier two capital bear some of the cost of taxpayer support
SEC makes landmark fraud charge against US state
Securities and Exchange Commission makes its first-ever case against a state, on grounds of securities fraud; New Jersey alleged to have misled bond investors on pension contributions it was making