FIG investors look to fill stockings with AT1s next year

By Bill Thornhill, Jasper Cox
06 Dec 2017

Investors’ appetite for additional tier one (AT1) bonds is unlikely to diminish next year, while senior non-preferred issuance will come from new jurisdictions. Meanwhile, covered bond investors do not expect spreads to widen, and securitization investors are attracted to high yields.

“At the top of our list [for next year] once again are subordinated financials, in particular the maturing additional tier one sector,” said Mark Holman, CEO of TwentyFour Asset Management.

Holman mentioned the dollar CoCo index specifically. “We should see some spread compression in 2018, driven by valuations, ...

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