BES bonds begin recovery as investor sentiment improves

By Nathan Collins
24 Jul 2014

Troubled Portuguese lender Banco Espírito Santo looks to be taking the first steps on the path to rehabilitation, with subordinated debt prices recovering as investors reacted well to news of asset disposals and an influx of private sector money. Across the sector, FIG issuance is expected to remain muted, however, with borrowers well funded, and issuers investors alike wary of heightened geopolitical risk.

BES’s November 2023 lower tier two paper was trading at a cash price of around 88.4 on Thursday afternoon, though it had touched above 90 that morning. Even with the dip on Thursday afternoon, the price has rebounded strongly from a low of around 71 last week.

The decline ...

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