Banks would be foolish to ‘do a Creval’

Last week, Italian bank Credito Valtellinese said it would not be calling its Eu150m lower tier two bond which is coming up to its first call date later this month. The reason was simple: it did not make sense cost-wise to do so. While Creval’s decision can easily by understood, any bank out there tempted to do the same thing would be foolish. Creval’s decision should very much remain an exception to the rule.