New Basel proposals threaten bank sub debt, investors warn

basel-committee-bis

Last week’s proposal on regulatory capital instruments by the Basel Committee on Banking Supervision could harm the market for subordinated bank debt, bond investors have warned.

Despite broad acceptance of the proposal’s aim to ensure that, in future, creditors pay for bank losses before taxpayers, investors are worried that the initial consultative paper lacks clarity in key areas and makes it hard for investors to run risk scenario tests on subordinated debt.

“It is quite a stance [the regula

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking 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 indvidual account here: