Banco Espirito Santo’s Junior Bonds Drop as Investors Face Loss
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Banco Espirito Santo SA’s subordinated bonds tumbled to a record as holders were left on the hook for losses after Portugal’s central bank took control of the failed lender.
The Lisbon-based bank’s 750 million euros ($1 billion) of 7.125 percent subordinated bonds fell 15.8 cents on the euro to 19.9 cents, to yield 41.5 percent, according to data compiled by Bloomberg at 10 a.m. in Lisbon. Its senior unsecured 4 percent notes due January 2019 surged 10.7 cents to 99.7 cents on the euro, to yield 4.1 percent.