Bank Holding Company Bonds Fray as Traders Fret Over Risk
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New rules that will govern the world’s biggest banks are already distorting Europe’s credit market at least five years before they take effect.
Senior bonds sold by Barclays Plc and Royal Bank of Scotland Group Plc yield as much as 38 basis points more than equivalent securities issued by the units they use to make loans. There was little difference in yields before this month.