Comeback banks open door for risky capital raises

By Tyler Davies
21 May 2020

A series of comeback trades has established firm demand for every debt class in the bank bond market. With credit spreads moving another leg tighter this week, issuers must now consider whether they have a precious opportunity to wheel out their riskiest transactions with the coronavirus pandemic still threatening society and capital markets. Tyler Davies reports.

Cash spreads have rallied strongly across every layer of the bank capital structure. The iTraxx senior financials index has tightened by 17bp since last Monday, while the subordinated index has come in by 33bp. These are the biggest weekly improvements since early April, putting the market at similar ...

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