Barclays’s $3 Billion of Bonds Tumble in First Day of Trading

Barclays Plc (BARC)’s $3 billion of notes that can be written off in a crisis tumbled in their first day of trading, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The 7.625 percent subordinated 10-year notes sold yesterday by the U.K.’s second-largest lender dropped 1.75 cents to 98.75 cents on the dollar to yield 7.81 percent as of 2:21 p.m. in New York, Trace data show. Bonds of Barclays are the most actively traded dollar-denominated corporate securities today, with 221 trades of $1 million or more.

Investors in the contingent capital notes will lose all their money if Barclays incurs losses that reduce its so- called core Tier 1 equity to 7 percent or lower, said two people with knowledge of the sale who asked not to be identified because they’re not authorized to speak about the deal.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net