4.66 -0.02 (-0.43%)
Pre-Market: 8:18AM EST
|Bid||4.66 x 27000|
|Ask||4.67 x 21500|
|Day's Range||4.6200 - 4.7100|
|52 Week Range||4.2100 - 7.1000|
|Beta (3Y Monthly)||0.75|
|PE Ratio (TTM)||9.71|
|Earnings Date||Jan 25, 2017 - Feb 1, 2017|
|Forward Dividend & Yield||0.30 (6.37%)|
|1y Target Est||6.10|
Brazil oil company Petroleo Brasileiro SA has hired the investment banking unit of Banco Santander Brasil SA to revive efforts to sell its liquefied petroleum gas (LPG) distribution unit, four sources with knowledge of the matter said on Tuesday. Petrobras, as the state-controlled company is known, had agreed in 2016 to sell Liquigas Distribuidora SA to local rival Ultrapar Participações SA in a process managed by the investment banking unit of Itau Unibanco Holding SA.
Buyers, it is easy to argue, should read the terms and conditions next time instead of relying on the issuer to follow market custom. Banco Santander is under no obligation to buy back the bonds on the first date allowed—next month—but it isn’t required to pay a coupon, either. This is no small matter: CoCos underpin bank capital in Europe and much of the world outside the U.S.
The rating action reflects the replacement of Banco Santander S.A. (Spain) (A2, LT Bank Deposits (Domestic)) with Bankia, S.A. (Baa2, LT Bank Deposits (Domestic)) as issuer account bank. The rating action is prompted by the change of issuer account bank provider in the transaction from Banco Santander S.A. (Spain) to Bankia, S.A. Bankia, S.A. was appointed as the new issuer account bank via an amendment to the original Treasury Account Agreement, taking over the function of issuer account bank for the transaction substantially under the same terms as agreed with the previous issuer account bank. The Credit Ratings for this rating action were assigned in accordance with Moody's existing Methodology entitled "Moody's Approach to Rating RMBS Using the MILAN Framework" dated 11 September 2017.
(Bloomberg) -- When Banco Santander SA skipped a call date on bonds this week, unnerving sentiment in the $340 billion market for risky bank debt, it also highlighted a conundrum that bedevils all CoCo issuers: refinancing them is a lot trickier than for plain-vanilla bonds.
Santander’s decision not to exercise its call seems to be based entirely on financial gain, and not on some vague dark motivations. AT1 holders are not only short a call, but also more gravely, they are short a put. If and when the euro area sovereign and banking crisis resurfaces, these investors will look back at Santander’s decision as the good old days.
Every Tuesday, alarms sound throughout San Francisco to test the city’s natural disaster warning system. Reassuringly, they’ve never been used in an actual emergency but the Bay Area is overdue a huge earthquake. Perhaps living with this knowledge is what makes San Franciscans such a hardy bunch.
Svenska Handelsbanken AB amassed more than $4.5 billion of bids as it became the first bank to offer new CoCos since Santander rattled markets a couple of days ago. “Whilst Santander’s approach to their AT1 instruments was shambolic, it has not spooked the market,” said Paul Smillie, a credit analyst at ColumbiaThreadneedle.
SA (SAN.MC) is poised to test the riskiest bank debt in the market for a second time in May, potentially triggering a significant repricing of the bonds as investors broadly realize they could be perpetually stuck with this type of banks’ debt. Santander sent shock waves across the Additional Tier 1 market after deciding late Tuesday not to repurchase 1.5 billion euros ($1.7 billion) in perpetual contingent-convertible bonds, known as CoCos, priced at a 6.25% coupon, at their first redemption date on March 12. Investors have traditionally priced CoCos with the expectation that they will be called at the first opportunity and Santander’s mixed communications prior to Tuesday’s deadline led many to think it would do so.
as its chief executive may have seized the headlines in recent weeks, but the Spanish lender’s decision to not honour a “gentleman’s agreement” in the bank bond market could prove more consequential. of a €1.5bn capital bond, defying the expectations of many analysts who had argued just a week earlier that such an outcome was a near certainty. against Santander over the bank’s rescinded offer, aggrieved bondholders who saw the value of their debt fall sharply have no such recourse: the bank had absolutely no obligation to repay — or “call” — the bond at this time.
The Spanish bank's 1.5 billion euro ($1.7 billion) contingent convertible bond, or CoCo bond, was eligible for early repayment which is usually exercised in the financial world. Santander's decision this week has left debt investors with a dilemma. Santander SAN-ES 's decision to not repay investors on a special type of bond this week may have surprised investors, but analysts have told CNBC that any fears of financial stress in the market are unfounded.
Spain’s biggest bank, Banco Santander SA, chose to wait until the last available moment to tell holders that it wasn’t going to redeem a particular 1.5 billion euro ($1.7 billion) bond after all. The note in question was a so-called Additional Tier 1 (an AT1 or CoCo for short) and it’s accepted practice in the market to call these bonds on their redemption date.
The rebound may reflect investors shifting focus to CoCos’ large yields and Santander’s capital position rather than the upending of market expectations that banks will call perpetual bonds at the first opportunity. Investors may also see little wider market impact from Santander’s decision due to pricing difference between banks’ CoCos and the fact that the Spanish bank wasn’t reacting to any company or market stresses. The overall cost works out at about 5.53 percent, as the new rate is 541 basis points above the five-year euro swap rate, which is currently 12.5 basis points.
Santander said it wouldn’t redeem a risky kind of bank debt, a move analysts said could ripple across a largely untested corner of the bond market.
This Deutsche bank bond no longer exists, but at the height of the financial crisis it sparked a controversy across European markets. What happened then is worth comparing with the furore this week over Santander’s failure to call – or repay – one of its bonds. The Deutsche bond was issued in 2004, and classified as “lower tier 2 capital”.
The announcement came late Tuesday, right at the deadline for a decision, after the bank kept investors in the dark for weeks regarding the call option and in the aftermath of another deal, a sale of dollar AT1 notes on Wednesday. “The handling of the situation was truly disastrous,” said Timothee Pubellier, a portfolio manager at Financiere de LA Cite SAS, which holds Santander CoCos. The Spanish bank opted against a call due to an “obligation to assess the economics and balance the interests of all investors,” a company spokesman said in an email.
DALLAS, Feb. 12, 2019 /PRNewswire/ -- Santander Consumer USA ("SC") and Chrysler Capital are offering eligible1 customers who sign up for paperless statements as of April 1, 2019, the chance to win a $10,000 grand prize or one of five $500 prizes for each brand. When eligible1 Santander Consumer USA and Chrysler Capital customers enroll in e-statements at the appropriate website, they will be automatically entered into the sweepstakes. Eligible Santander Consumer USA and Chrysler Capital customers who already are enrolled in e-statements, also known as electronic or paperless statements, will be entered as well.
BOSTON , Feb. 12, 2019 /PRNewswire/ -- Santander Bank today announced that Robert Cerminaro has been promoted to Commercial Banking market director for New England. He is responsible for managing and growing ...
Market shelves in the scruffy Colombian town of Puerto Santander are loaded with Venezuelan maize flour, rice, cheese spread and more, heavily subsidized consumer goods smuggled by government officials and ordinary citizens alike and sold at big mark-ups. Gasoline is ferried from Venezuela too, as people cash in on the arbitrage opportunities created by extreme price distortions. The spectacle of food being spirited out of a country where hunger is becoming epidemic shows in microcosm how Maduro’s socialist government has created an economic and humanitarian disaster.
The Spanish bank’s 1.5 billion euro ($1.7 billion) issue of contingent convertible is trading around 98.5 cents, suggesting investors are still unsure whether Santander will use an option to redeem the notes at par on March 12. Santander must issue a notice on Tuesday if it plans to exercise the call option. A Santander spokesman declined to comment when contacted by Bloomberg News.
February 12, 2019 - Sanofi has appointed Ameet Nathwani, M.D. as Chief Digital Officer in addition to his current role of Executive Vice President, Chief Medical Officer. As Chief Digital Officer, Dr. Nathwani will be responsible for enhancing Sanofi's strategy to integrate digital technologies and medical science to ultimately improve patient outcomes.
Santander has decided against early repayment of a €1.5bn capital bond, defying investors’ expectations in a move that threatens to rattle Europe’s $200bn market for riskier bank debt. At the same time, the hunt for yield has led fixed-income investors to take on the extra risk the bonds bring. The Spanish lender’s decision to not repay — or “call” — the bond is also the first such instance in the additional tier 1 (AT1) bond market, the riskiest class of bank debt that regulators introduced after the financial crisis to shore up banks’ balance sheets.
While Roberto Campos Neto, whose Senate approval for the leadership post is expected later this month, hasn’t made clear where he might take monetary policy in Latin America’s biggest economy, clues can be found by looking to his grandfather and namesake, Roberto Campos. “Campos Neto was very close to his grandfather, who was his main mentor,” said Alexandre Aoude, a friend of the nominee who used to run Deutsche Bank AG’s Brazil unit.
It would be especially surprising if Santander chose to disappoint bondholders after its separate issuance of a dollar-denominated $1.2 billion AT1 last week, with a 7.5 percent coupon. As Bloomberg News wrote, the sale was timed strangely, with many Asia investors away on the lunar holiday and the book closed before U.S. trading hours. Now this might all be coincidental, but one theory in the market is that European investors have bought into the new dollar AT1 in the hope that their participation will mean the controversial euro note is actually redeemed by Santander.