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The European bank capital market is not expected to build on its trio of 2016 transactions any time soon, as volatility in credit default swaps betrays lingering buyside fears about lenders' stability.
There have been just three subordinated debt transactions publicly sold by European banks this year -- a euro tier two from ABN Amro, and additional tier one (AT1) trades from Credit Agricole and Intesa Sanpaolo in dollars and euros, respectively.
The European FIG market was shut in early February, as bank paper suffered a sharp sell-off, on concerns ranging from the impact of negative interest rates to the potential suspension of certain lenders' AT1 coupons.
Senior unsecured supply staged a...