Riskiest Bank Debt Wins Moody’s Favor in Sweden: Nordic Credit
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Sweden’s decision to impose tougher bank capital rules earlier than most other countries is proving to be a gift to the industry that keeps on giving.
The country’s biggest banks are set to win investor approval when they step up issuance of the riskiest bank bonds, additional Tier 1 capital, according to Moody’s Investors Service. The rating company predicts Swedish banks will sell as much as $2.9 billion of the securities by 2016.