Sub market soul-searching begins

摘要

The subordinated debt market stayed relatively sanguine in the face of the wipeout of Banco Popular's Additional Tier 1 and Tier 2 bonds last week, though the full impact of the biggest event faced by the asset class has yet to be fully digested. "The risk of write-down in these junior securities has been underpriced," said Puneet Sharma, head of credit strategy in investment management at Zurich Insurance.