Investors stuff themselves with AT1 after lean month
Additional tier one capital (AT1) yields have been squeezed to all-time lows in 2017 but bank debt investors were still eager this week to fill their stockings with the product in time for Christmas.
BNP Paribas priced $750m of perpetual non-call 10 year notes on Tuesday with a coupon of 5.125%, after more than a month without any AT1 supply from European banks.
The deal was arguably priced inside fair value and was extraordinarily tight, compared with where AT1s were valued
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