AT1 extension risk at rock bottom as Handelsbanken calls deal

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 ...Already a subscriber? Login