Buyers emerge after days of price falls but little trading in AT1

By Graham Bippart
16 Oct 2014

After a week of seeing prices fall on geopolitical and macroeconomic concerns, but with little actual trading of bonds taking place, buyers began to emerge on Thursday for additional tier one securities on the secondary market. Prices are now at a level that both the buy and sell side said could attract new investors into the product — if they don’t recover too much once investors shake off their fears and resume the reach for yield.

AT1 bonds started up on Thursday, but later followed the direction of stock markets to tumble as much as three points, only to rally at the end of the day to end half a point to one point down on the day. And though market participants said little ...

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