BBVA Joins Spire Repack Platform Amid Investor Interest

BBVA has become the 19th dealer on the Spire multi-bank special purpose vehicle (SPV) issuer platform, signaling continued growth in investor demand for repackaged notes, according to Risk.net.

The Spanish bank’s addition marks the first expansion of the platform since RBC Capital Markets joined in April 2023. Spire facilitates the creation of structured trades that combine bonds with derivative overlays, allowing investors to customize risk and reward profiles.

Demand for repack issuance is reportedly rising, driving the need for a broader network of dealers. The platform now includes 19 banks offering access to this type of structured finance product.

BNP Paribas recently bolstered its inflation desk with new hires, as reported by Risk.net, indicating a broader trend of investment in derivatives and structured product capabilities within the financial sector. This move by BNP Paribas, alongside BBVA’s participation in Spire, suggests increased activity and sophistication in managing inflation risk and tailoring investment strategies.

Collateral agreements and derivatives pricing are key components of these types of transactions, as highlighted in a recent Risk.net article focusing on funding beyond discounting. The complexity of these instruments necessitates robust risk management and pricing models.