The great repricing: sub debt hit by SNS and Asian retreat

Subordinated bank debt is under pressure, hit by a double whammy of the fallout from the Dutch government’s nationalisation of SNS Reaal and a gradual waning of the Asian bid for European paper. Investors are being forced to reassess the risks of sub debt and the reward they should be demanding for buying it, just as the market is gearing up to absorb heavy supply in 2013, writes Will Caiger-Smith.