Markets expect EBA guidance will force action on legacy bank capital

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 ...Already a subscriber? Login