Bond investors attack design of new Tier I capital

Traditional bond buyers worry about tail risks in CRD IV-compliant capital instruments, but analysts are predicting up to €200 billion of issuance

A sign reading 'Wrong way - go back'

Bond investors have attacked the template laid out for new regulatory capital instruments in Europe's version of Basel III, arguing potential purchasers will shun so-called additional Tier I (AT1) products when they realise how risky they are. So far, the market has seen only one issuance since the criteria were laid out in the fourth Capital Requirements Directive (CRD IV) – from BBVA in April – but it was heavily oversubscribed, and analysts expect up to €200 billion of this new debt to be

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here