Popular writedown prompts sub debt rethink
Second tier banks could find it harder to access the market for debt capital following Banco Popular’s resolution, as investors think twice about whether the risks of holding subordinated bank bonds are really worth the rewards.
Authorities wrote down all of Banco Popular’s subordinated debt last week, in the first example of a resolution under Europe’s new bank recovery and resolution directive (BRRD).The process was swift and largely unexpected, and it showed financial institutions bond investors exactly what could happen to them ...
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