EU plans on bank resolution could hit bond investors
Investors holding uninsured bonds issued by banks in danger of failing may face haircuts or forced conversions to equity if European Commission proposals on bank resolution go ahead.
Hervé Goulletquer, head of fixed income markets research at Crédit Agricole Corporate and Investment Bank, says the plans would have a detrimental effect on investor appetite for bonds from financial institutions. “You have to consider long-term confidence, not just in terms of concerns investors may have about
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