Green shoots boost hopes of further AT1 supply

By Tyler Davies
11 Jun 2020

Weaker trading conditions have done little to shake expectations for a new wave of additional tier one (AT1) supply, writes Tyler Davies, with three banks having reopened the market in emphatic fashion this week, issuing €3.1bn-equivalent of debt into more than €20bn of demand.

AT1 spreads nearly trebled to about 1,400bp at the height of the coronavirus crisis in March.

Market participants had been expecting a very long and arduous process for rebuilding confidence around the product, which is the riskiest form of debt that banks can issue.

Even just ...

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