Pioneer BBVA proves euro demand with €14bn book as AT1 comes of age
Almost a year after blazing a trail with the first ever post-crisis additional tier one capital trade, Spanish banking giant BBVA this week proved just how far the asset class has come, moving into euros and finding just shy of €14bn of demand for its equity conversion deal, much of it from continental European institutional investors, writes Will Caiger-Smith.
Despite continued criticism of idiosyncratic loss-absorption structures in the AT1 market, demand for these high yielding deals has soared in 2014, with more and more investors changing their mandates to be able to buy it, or setting up dedicated funds for deeply subordinated bank capital instruments.
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