BES bonds begin recovery as investor sentiment improves

Troubled Portuguese lender Banco Espírito Santo looks to be taking the first steps on the path to rehabilitation, with subordinated debt prices recovering as investors reacted well to news of asset disposals and an influx of private sector money. Across the sector, FIG issuance is expected to remain muted, however, with borrowers well funded, and issuers investors alike wary of heightened geopolitical risk.