Retail accounts — an investor base not known for their propensity to taking haircuts — played an important role in Austrian banks’ capital generating buybacks over the past week. Bawag, Erste Bank and Raiffeisen Bank International bought back a combined €1.3bn in deals that closed last Friday (March 2) and on Monday.
Retail and private bank accounts tendered more bonds in the Bawag and RBI transactions than dealer managers had expected. Such investors tend not to mark bonds to market and have less inclination to tender notes below par.
"The retail aspect of the notes was always going to be