Harsh burden sharing fears set to ease if SNS Bank finds private recap

31 Jan 2013

A tough liability management exercise on SNS Bank subordinated paper would be less likely if the bank finds a private sector source for a recapitalisation, investors have said.

The bank might force heavy losses on bondholders if it is recapitalised by the state, investors told EuroWeek Bank Finance. But a private recapitalisation is more likely, they said. That will probably also involve burden-sharing on subordinated creditors — but of a friendlier variety, investors believed.

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