Bankers warn first TLAC bail-in could spark market shock
Regulators urged to clarify treatment of bail-in bonds under both TLAC and NSFR rules
Bank debt markets could suffer a severe correction the first time a bank is bailed in using funding instruments eligible as total loss absorbency capacity (TLAC), two European bank capital structurers have warned.
“In the absence of a major systemic bank resolution in Europe, we really don’t know how these things are going to play out. For me, there is always a residual risk we will see a complete repricing of this paper at some point when we see the full effects of a resolution,” said Phil
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