RT1 outperforms as markets recover amid Covid-19 crisis

By David Freitas
21 May 2020

A strong performance in the restricted tier one (RT1) instruments has put the niche insurance bond market in the spotlight recently. Some investors have made strong returns from the asset class, as valuations have recovered during the coronavirus crisis.

Sales of RT1s, which share many of the qualities of bank additional tier ones, have been limited since they were debuted in the market by ASR Nederland in 2017.

But supply has built steadily year on year. According to Dealogic, issuers sold about €3.66bn in the format across all ...

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