Investors embrace new AT1s as extension risk evaporates

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By Tyler Davies
07 Aug 2020

Investors have been more than happy to buy into new additional tier ones (AT1s) this year, with a rise in spreads having minimised the risk that deals could be extended beyond their first call dates.

AT1 yields have more or less recovered since early March, when they rose sharply on the back of fears about the coronavirus pandemic. 

But credit spreads in the asset class have remained slightly wider than where they started the year. 

These developments have been taken very ...

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