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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