FIG Weekly Monitor 16th October: US banks - the eye of the cyclone?

Sl ight widening this week on banks and insurance spreads with an outperformance of banks € Tier 2 and Senior preferred and low beta + German issuers. We observed a relatively low issuance activity for the last window before European banks blackouts. Santander was the only banking subordinated debt issuer this week, printing a €1bn 10y bullet Tier 2 at MS+195bp. On insurance, La Mondiale offered a quite rare €Tier 3 debt, with a 5.5y maturity very well rece ived by investors . This resulted in a strong orderbook, that exceeded €5bn during the process, enabling a 55 bps tightening vs IPT. Before the start of European banks’ Q3-20 results next week, we decided to elaborate on US banks Q3 figures, that beat expectations on Global Markets performance and lower than expected provisioning. This is the topic of the week. Topic of the week: US Banks : T he eye of the cyclone ?