AT1 Yield Hunters Are Skewing the Arcane Math of Risky Bank Debt
Investors of all stripes are piling into new Additional Tier 1 debt, lured by some of the highest yields among existing bonds, and demand is far outstripping the flood of fresh sales. The problem, according to veterans like AllianceBernstein and NinetyOne is that the new buyers are focusing too much on the high coupons. While that may work for other markets, it doesn't for AT1s.
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