Callable repack frenzy opens up new options market in Europe

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