AT1 extension risk at rock bottom as Handelsbanken calls deal

By Tyler Davies
25 Jan 2021

Svenska Handelsbanken has become the latest European bank to put out a call notice for one of its additional tier ones. Market participants are expecting a clean sweep of redemptions for the asset class this year.

Svenska Handelsbanken filed a regulatory notice in which it said it would redeem its $1.2bn 5.25% additional tier one at its first call date on March 1. 

The deal would have otherwise reset to pay a spread of 333.5bp over US Treasuries — an implied coupon rate ...

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