SEB helps calm AT1 waters

摘要

The Additional Tier 1 market passed an important test last week, when seb priced a successful transaction that attracted US$4.5bn orders from investors but which more importantly performed in the secondary market. Additional Tier 1 bonds have been rocked by volatility in recent months, with recent deals from Santander and UniCredit dropping below par immediately after pricing and failing to recover those losses. This has led investors to reassess the risk of the loss-absorbing capital. "This deal gave the market exactly what it was looking for," said Edward Mulderrig, a FIG syndicate official at UBS. "It's trading really nicely today and broadly it has calmed the market where certain deals have been struggling, with several issuers having accessed the market multiple times in quick succession."