Callable repack frenzy opens up new options market in Europe

Demand driven mainly by French life insurers looking for alternatives to low-yielding sovereign bonds

In 2017, four big banks set up the Spire platform for standardised issuance of repackaged notes outside of the US. The products include a relatively new callable version – and these hit the big time late last year.

For banks offering callable repacks, the benefits are multiple. On top of selling the notes, dealers are establishing a new market in long-dated European government bond options, exposure created as part of the repacks. The options can be offered to life insurers, asset managers and