AT1 market dealt blow after blow as issuers risk September lock-out

AT1
By Graham Bippart
07 Aug 2014

Prolonged weakness in the secondary market for additional tier one (AT1) securities was whipped up to become a full on correction on Wednesday. That drove market participants to say that prospects are dwindling for issuance until after the Asset Quality Review in October, meaning borrowers will miss the glut of early autumn liquidity — one of the busiest times in the issuance calendar.

Macroeconomic and geopolitical concerns, as well as some specific to the sector, collided with thin liquidity to send AT1 prices down around three points in a single session, followed by another half point on Thursday.

“I’m hanging up my boots for the summer,” said a syndicate manager on ...

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