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CoCos Holders Get 25% Returns This Year From SocGen, Santander

  • AT1s return 15% marketwide in rebound from first annual loss
  • Global yield collapse boosts appeal of the high-coupon notes

Holders of some risky bank debt have achieved 25% total returns this year, as investors look to escape $17 trillion of negative-yields bonds worldwide.

A Societe Generale SA dollar note and a Banco Santander SA euro issue lead returns among Additional Tier 1 bank bonds, handing investors about 25% this year, according to data compiled by Bloomberg. Notes from ABN Amro Bank NV, Intesa Sanpolo SpA and UniCredit SpA have also returned more than 20%, the data show.