Libor cut-off raises the risk of AT1 extensions, says JP Morgan

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Libor cut-off raises the risk of AT1 extensions, says JP Morgan

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Martin Wheatley gives a speech on his recommendations for reforming the Libor system at Mansion House, London. | Lewis Whyld/PA Archive/PA Images

Analysts at JP Morgan believe that investors are underestimating the risk that banks will decide against calling their additional tier one instruments in the coming years, because of confusion around the reset rates that could apply past the scheduled end of Libor.

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