Heeding the call: BNPP deal signals new direction for MREL

Hyejin Kang - stock.adobe.com

European banks have long been tipped to begin using call options as a way of making funding for the minimum requirement for own funds and eligible liabilities (MREL) more efficient. After a blowout deal for BNP Paribas this week, the one year call structure may finally take its place as the new standard for senior debt in the euro market.