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Draghi Breathes Life Into CoCo Market With Bank-Funding Move

  • ECB to start paying lenders to borrow from financing facility
  • Riskiest UniCredit, Deutsche Bank notes rise after 2016 drops
Updated on

Mario Draghi has come to the aid of bank-debt investors.

The riskiest type of bank bonds rose after the European Central Bank said it will start paying lenders to borrow from a four-year funding program. Notes issued by Intesa Sanpaolo SA and UniCredit SpA, the biggest users of the facility, were among the gainers. Deutsche Bank AG bonds, which have spearheaded a bank-debt rout this year, also advanced.