Credit Suisse and BBVA issue bonds following stress test results

29 July 2010

Credit Suisse and BBVA are leading the way for European banks in issuing debt for sale following the positive results of the stress tests.

Last week's publication of the examinations showed that 84 of the 91 European banks tested passed, with institutions shown to only need around €3.5 billion ($4.5 billion) of new capital, a figure far below the estimates of analysts.

Credit Suisse is now selling Tier 1 bonds in dollars, while BBVA has publicly issued senior unsecured bonds - the first time a Spanish bank has done so since April, reports Bloomberg.

John Raymond, an analyst at independent research firm CreditSights, said: "Financials were waiting on the sidelines until after the stress test results.

"Investors feared there could've been something nasty, but with a generally positive outcome they're now flocking to the market."

Earlier this week, Steve Bernstein, chief executive officer of Oppenheimer Investment Asia, said that he did not believe the stress tests had been tough enough and they should have also examined each bank's investment portfolio.

By Claire Archer

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