Riskiest Bank Bond Sales Swell to Record in Europe
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Banks issued a record amount of their riskiest bonds in Europe last month as their efforts to bolster capital were aided by Mario Draghi’s attempts to revive the region’s economy by showering it with cheap cash.
HSBC Holdings Plc, Europe’s biggest lender, led sales of about $12 billion of additional Tier 1 notes which have no set maturity and give borrowers the option of missing an interest payment in times of trouble. Issuance of the contingent capital bonds, known as CoCos, totals about $51 billion this year, according to data compiled by Bloomberg.