CoCo Coupons May Receive Payout Priority to Disarm Debt Grenade

  • `Dividend stoppers' allowed in jurisdictions outside of EU
  • Market turmoil prompts effort to ease conditions on AT1s

European regulators signaled they may be considering linking interest payments on banks’ riskiest debt to dividend payouts, investors and analysts said, as authorities seek ways of jamming the pin a little further into the hand grenade that’s attached to the securities.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.