Markets expect EBA guidance will force action on legacy bank capital

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By Tyler Davies
23 Oct 2020

European banks could be set for a wave of calls and tenders on legacy debt instruments, after the European Banking Authority demanded a clean-up this week. Action may not be immediate, however, with markets still seeking clarity on a number of key issues.

The EBA set out its opinion on Wednesday on what should happen to legacy bank debt — bonds that no longer comply with up-to-date capital rules. 

Its paper delivered what was mostly a very clear message to European banks: get rid of your old instruments as soon ...

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