Sep. 12, 2014, 12:29 PM
- "Risks to fiscal consolidation in Greece have abated," says S&P, upgrading the country's credit rating to B from B-. S&P expects the economy to emerge from seven straight years of recession next year, enabling the government to have a primary surplus of 2% of GDP from 2014-2017 - less than the 4.5% target envisioned by the Troika, but "politically more feasible."
- "We also view as low the likelihood of additional step-rises in government debt due to bank recapitalizations," says the ratings agency, noting €8.4B in private capital raises by Greek lenders and the Hellenic Financial Stability Fund with a balance of €11B for any capital calls from the public sector.
- GREK -0.7%, NBG +0.3%
Sep. 4, 2014, 2:54 PM
- The Global X FTSE Greek 20 ETF's (GREK +1.2%) top two components are National Bank of Greece (NBG +2.8%) and Piraeus Bank (OTCPK:BPIRY +3.8%).
- The country's four largest lenders together are bidding for up to €5.4B of cash amid the ECB's first auction - known as targeted longer-term refinancing operations, or TLTRO - aimed at boosting lending in the economy, according to sources at the banks.
- Separately from that, the ECB today cut interest rates by 10 basis points and took the first steps towards its QE, announcing coming purchases of ABS.
- Previously: Draghi confirms ECB asset purchases
Aug. 5, 2014, 2:47 PM
- Goldman Sachs Asset Management (GS -1.3%) and DB Private Equity (DB -2.9%) are in talks to pay about $500M for NBGI Private Equity - the buyout arm of National Bank of Greece (NBG -2.7%), reports Bloomberg. That would be about one third less than the Greek lender originally invested in the business.
- The P-E arm has underperformed competitors, according to data seen by Bloomberg, with 10 of its 11 funds projected to lose about 25 cents for every dollar invested. Its high-living CEO Pavlos Stellakis, along with the rest of the management team, is in negotiations to remain with the firm after the deal has been completed.
Jul. 10, 2014, 9:17 AM
Jul. 10, 2014, 8:11 AM
- Greece cuts the size of its 3-year note sale by about half to €1.5B after the auction attracted only €3B in orders amid concerns over Portugal's Banco Espirito Santo. A number of other bond deals were canceled today.
- The yield, though, came in at 3.5% - the bottom end of the range guided by banks on the deal.
- Greece's €3B sale of 5-year notes in April attracted €20B in orders.
- Athens is lower by 2.9% today.
- GREK -1.4%, NBG -5.8% premarket
Jul. 8, 2014, 8:08 AM| 10 Comments
Jun. 5, 2014, 3:49 PM
- Europe's Stoxx 50 gained nearly 1% in wake of today's ECB rate cut and move towards QE, but the periphery outperformed, with the strongest market being the one furthest out - Athens +2.8%.
- The Global X FTSE Greece 20 ETF (GREK +3.4%) is now up 40% Y/Y.
- National Bank of Greece (NBG +6.5%) also enjoyed an upgrade to Buy from Deutsche Bank.
- Emerging European markets: Turkey (TUR +3.5%) and Poland (EPOL +1.6%).
- ETFs: GUR, ESR
- Previously: Negative rates not the end of moves for the ECB
May. 16, 2014, 7:06 AM
- Struggling amid a capital shortfall, including a 16.2% decline yesterday after announcing its profitable Turkish operation is now up for sale, National Bank of Greece (NBG) is upgraded to Overweight at JPMorgan. The pullback in the stock combined with the soon-to-be-improved capital position are cited as reasons.
- Shares +0.7% premarket
May. 15, 2014, 9:49 AM
- Istanbul-based Finansbank AS is likely one of National Bank of Greece's (NBG -13.9%) more robust operations, but the Greek lender is in capital-raising mode and investors demand looks decent. "We wouldn't rule out a full trade sale if the right offer is made," says bank analyst Alex Tsirigotis.
- National Bank of Greece - in a statement posted on its website - says part of a restructuring plan to be submitted later this year will include the sale of a "significant" minority stake in Finansbank.
May. 15, 2014, 9:15 AM
May. 14, 2014, 5:38 PM
May. 9, 2014, 2:16 PM
- BofA Merrill Lynch upgrades National Bank of Greece (NBG +1.7%) to Neutral.
- Raymond James boosts Valley National Bancorp (VLY +0.9%) to Market Perform and concurrently cashes in its Buy call on United Bancorp (FUBC +0.7%) after Valley National Bank agrees to acquire 1st United.
- MLV cuts Dynex Capital (DX -0.4%) from Buy to Hold.
May. 1, 2014, 10:43 AM
- Flushing Financial (FFIC +1.8%) is upgraded to Buy at Guggenheim.
- BofA Merrill Lynch upgrades National Bank of Greece (NBG +1.3%) to Neutral.
- Barclays (BCS +1.3%) is upgraded to Buy amid its plan to set up a “bad bank”.
- HSBC upgrades ING Groep (ING +0.1%) to Neutral.
- Morgan Stanley upgrades Synovus Financial (SNV +0.5%) to Equal Weight with a $3.30 PT.
- Provident Financial Holdings (PROV +0.5%) is upgraded to Buy at Sandler O'Neill after posting Q1 results.
Apr. 29, 2014, 9:39 AM
- Capital shortfalls will need to be covered within six months for those lenders failing under the EBA's baseline stress test scenario, while banks failing under the adverse scenario will have nine months to fix things.
- ECB Vice-President Constancio: "Banks should start to consider what private sources of capital could be raised as a result of this exercise and plan accordingly."
- Earlier: The EBA unveils stress test criteria. 124 banks from 28 EU states are subject to the exams. Among the larger ones: DB, BNPQF, BNPQY, SCGLY, SAN, BBVA, UNCFF, UNCFY, IRE, NBG, CRZBY, CRARY.
- European financial sector ETF: EUFN
Apr. 23, 2014, 10:57 AM
- The €750M 5-year unsecured note for National Bank of Greece (NBG -2.7%) is expected to come to market tomorrow maybe priced to yield as low as 4%. A recently government 5-year note is yielding 4.76%.
- Banks typically must offer a higher yield than the underlying sovereign due to the perceived added safety of government paper, but Greece's default kind of blew up that model. "The new institutional framework for banks in the eurozone could make a strong case for banks pricing through their sovereigns in the future," says L&G credit research head Georg Grodzki.
- "It doesn't make a lot of sense," says a syndicate banker, but people will buy the paper because they think it will perform.
- European financial sector ETF: EUFN
Apr. 17, 2014, 1:03 PM
- "There is vivid interest already from both hedge funds and institutional investors," says Petros Christodoulou, deputy CEO of National Bank of Greece (NBG +4.4%). The €750M senior unsecured bond will be the first such issue by the bank in nearly 5 years, and it's expected to have a 5-year maturity and be priced to yield around 4.5% (the government just sold 5-year paper last week at 4.95%).
- The bond sale comes alongside an expected €2.5B equity offering aimed at filling the large capital hole in the bank.
- The moves comes as Piraeus Bank - the largest Greek lender - last month raised €500M in debt, followed by a €1.75B equity sale. Third-ranked lender Alpha Bank has also raised €1.2B in capital and #4 Eurobank has an investor group ready to anchor a €2.9B stock sale later in April.
- Greek ETF: GREK
NBG vs. ETF Alternatives
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