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Santander CoCos Rebound as Investors Swallow Call Letdown

  • Euro AT1s nudge higher even as bank skips call option
  • Difference betweeen CoCos help limit wider market reaction
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Santander CoCos Tumble After Bank Skips Call Option
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Banco Santander SA contingent-convertible bonds bounced back as investors digested a surprise decision to skip a call option.

The bank’s 6.25 percent euro Additional Tier 1 notes rose more than 0.5 cents on the euro to about 98 cents, after tumbling late Tuesday in the wake of Santander’s decision to not use a March redemption option. Dollar AT1s, callable in May, gained almost a cent in U.S. trading after initially selling off. The bank’s shares were little changed in Madrid.