Jan
03
Riskiest Bank Debt Pays Off as Safety Net Erected Under Lenders
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Contingent capital securities returned 8 percent this year
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Bank bond risk falls below investment-grade corporate risk
Regulators’ efforts to make banks safer are paying off for investors who prefer to live a little dangerously.
Buyers of bank debt that would be written off first in a crisis have earned an average of 8.2 percent this year, according to Bank of America Merrill Lynch’s contingent-capital index. The notes were the best-performing credit assets globally, according to Royal Bank of Scotland Group Plc…
Riskiest Bank Debt Pays Off as Safety Net Erected Under Lenders
