Crédit Agricole hints at enduring value of preferred senior

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Crédit Agricole hints at enduring value of preferred senior

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Moody's ratings agency said Wednesday Sept. 14, 2011, it had downgraded by one notch top French banks Societe Generale and Credit Agricole while leaving BNP Paribas on negative watch. Credit Agricole's rating slid from Aa1 to Aa2 while Societe Generale was cut from Aa2 to Aa3. Shares in all three banks have plummeted in recent weeks on exposure to Greek sovereign debt and turbulence caused by the eurozone debt crisis. File picture : Credit Agricole SA headquarters are pictured in Paris, France, on November 28, 2002. Photo by Lucas Schifres/ABACA. | Schifres Lucas/ABACA/PA Images

When Crédit Agricole looked long term for a new vanilla senior bond this week, it shed light on the future composition of bank funding structures. As central banks start to close the doors to their funding schemes, financial firms are going to want good access to the liquid markets for both preferred and non-preferred senior bonds alike.

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