BES subs dive to new lows as burden sharing risk grows

By Graham Bippart
31 Jul 2014

Banco Espírito Santo’s subordinated bonds sank to new lows on Thursday after the bank posted losses far worse than expected after close of business on Wednesday night.

The bank’s November 2023 tier two bonds fell to a cash price of 55.714 by close of market on Thursday after BES reported a loss of €3.58bn which took its core equity tier one ratio down to 5%, well below the regulatory minimum.

Those bonds, which had ...

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