The reality of bail-in was brought home to senior unsecured investors by comments by Eurogroup president Jeroen Dijsselbloem on Monday that Cyprus’s bail-out should serve as a template for other eurozone bank bail-outs.
Senior bondholders in Cypruss second largest lender, Laiki Bank, were bailed in as part of the countrys banking sector bail-out, agreed on Monday.
Dijsselbloem appeared to back-track
on Monday afternoon by saying Cyprus was a specific case with exceptional challenges. But the damage had been done: the