![]() ![]() ![]() "The developments in the AT1 market mean that most European banks are incentivized at this point to issue common equity, which is diluting for shareholders and also the reason why banking stocks are being reset lower," said Peter Garnry, head of equity strategy at Saxo Bank. DILUTION CONCERNSĮuropean banks' Additional Tier 1 (AT1) debt - a $275 billion market of bonds that can be written off during rescues to prevent the costs of bailouts falling onto taxpayers - also came under further selling pressure.Īs part of the deal with UBS, the Swiss regulator determined that Credit Suisse's AT1 bonds with a notional value of $17 billion would be wiped out, stunning global credit markets.Īlthough authorities in Europe and Asia have said this week they would continue to impose losses on shareholders before bondholders, unease has lingered. ![]() The S&P 500 regional banks index (.SPLRCBNKS) recovered 1.75%, with PacWest Bancorp rallying more than 3% and First Republic Bank (FRC.N) falling 1.4%. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |