Barclays faces more discerning investors ahead of AT1 debut

By Will Caiger-Smith
08 Nov 2013

Barclays is set to bring the UK’s first CRD IV-compliant additional tier one trade as early as next week, when it finishes a global roadshow for the dollar-denominated deal. The issuer is riding the coat-tails of other pioneering AT1 issuers, but as the asset class becomes more established, investors are becoming more concerned about when banks will skip coupons than about other loss-absorbing features like write-down and equity conversion.

It follows AT1 debuts this year from BBVA, Banco Popular Español, and Société Générale. They all used the basic 5.125% CET1 trigger level mandated by CRD IV, but Barclays has opted for a 7% fully-loaded trigger so that the deal will also count towards its leverage ratio under the UK ...

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