Upfront

摘要

The hysterical anger from investors after Lloyds said last week it had won permission to call high-coupon bonds issued during the darkest days of the financial crisis was predictable, but not justified. Lloyds issued the Enhanced Capital Notes when it was in dire straits in 2009 - a £13.5bn rights issue followed to complete the recapitalisation - but regulators have moved the goalposts substantially since, meaning the bonds are no longer an efficient capital instrument. The bond included a clause - a capital disqualification event - for this very circumstance.