Additional tier one: pricing in the dark

By Graham Bippart, Jon Hay
27 Mar 2014

How much should you get paid to hold a deeply subordinated chunk of hybrid bank capital with idiosyncratic structural features from, sometimes, darkly storied credits?

Pin the tail on the donkey, how long is a piece of string, shooting in the dark — choose your favourite cliché but they all fit.

Additional tier one capital, willed into being by Basel III, is one of the most important capital market products of 2014. Most ...

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