ECB dividend guidance forces reassessment of AT1 coupon risk

By David Freitas, Tyler Davies
30 Mar 2020

Market participants are debating whether the risks to additional tier one coupons have risen or fallen after the European Central Bank urged banks not to pay equity dividends for at least six months.

The European Central Bank said late on Friday that it was asking euro area banks to stop making dividend payments until October 2020.

This could free up €30bn of capital in the sector, according ECB supervisory head Andrea Enria, who urged that the additional resources be ...

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