Mizuho picks on retail buyers with decision to skip UT2 call

29 Mar 2009

Mizuho Financial Group gave a confusing explanation on Monday for its decision not to call $1.5bn of upper tier two bonds, triggering a 15 point slide in the price of the perpetual notes and further clouding any hopes for a recovery in Asia’s subordinated debt market.

Investors sold the bonds heavily on the announcement, sending the price down from around 90 cents on the dollar in early morning trading to a bid/offer spread of 75/80 cents, according to a Hong Kong-based analyst.

Mizuho raised $1.5bn of upper tier two debt in January 2004, sold in ...

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