European Lenders Sell Record 10-Year-Callable AT1 Bonds as Non-Call 10s Reach 25% Share
Updated
Updated · Bloomberg · May 28
European Lenders Sell Record 10-Year-Callable AT1 Bonds as Non-Call 10s Reach 25% Share
1 articles · Updated · Bloomberg · May 28
Banco Santander and NatWest this week sold AT1 bonds callable after 10 years rather than the usual five, extending funding terms in a market hungry for risky bank debt.
25% of new major-currency AT1 issuance this year has come in these “non-call 10” structures, the highest share on Bloomberg-compiled records.
European lenders are using the strong demand to lock in AT1 funding costs for a decade, taking advantage of unusually favorable conditions in the sector.
Are banks using cheap 10-year debt to mask growing geopolitical risks, setting the stage for a future crisis?
After the Credit Suisse wipeout, are investors being paid enough for the decade-long risks they now face with new bank bonds?
With courts challenging the Credit Suisse bond wipeout, is the global banking safety net built on a shaky legal foundation?