Bank senior market teeters on brink of first negative yielding print

By Frank Jackman, Tyler Davies
26 Nov 2020

European banks are running out of ways of selling senior bonds at positive yields. A near-miss from Svenska Handelsbanken this week was enough to convince the market that it’s only a matter of time before an issuer breaks the 0% barrier, write Tyler Davies and Frank Jackman.

An astonishing recovery in credit markets this year has left highly rated banks trading at negative yields in every asset class except subordinated debt. 

They have so far managed to keep their new senior issues in positive territory by pushing further and further along their maturity curves, ...

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