Ahead of Friday's first-quarter earnings, banco popular's Additional Tier 1 bonds plunged as concerns about the bank's liquidity position compounded worries about the state of its capital position. Its €750m 8.25% perpetual non-call 2020s tumbled over five points last Thursday to a cash price of 80, one of only a handful of euro AT1 securities trading below par despite a strong rally across the sector. Even after recovering to 82.40, they were bid at their lowest level since last June. Popular's AT1s nosedived in late January as it emerged the bank was dipping into reserves to ensure it could pay coupons on the debt, one of a number of recent damaging revelations.
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