Relentless rally helps AT1 extension risk hit lows
European banks are expected to call the first generation of Basel III compliant additional tier one (AT1) instruments, as a prolonged rally in the asset class has made refinancing conditions very attractive for issuers.
When banks price new AT1s they calculate a back-end spread using the bond’s coupon and issue price. This is the level an issuer will have to pay to investors should it keep the instrument outstanding past its first call date.According to recent trading level data compiled by ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org