Launch of new EU senior non-preferred debt raises questions

Author: | Published: 27 Mar 2017

This new asset class may classify as bail-in eligible debt, but teething problems have been felt in several EU jurisdictions

When the French government officially launched a new senior debt instrument in December 2016 – the so-called non-preferred senior bond – it became even more obvious that the senior unsecured bond asset class would become more and more fragmented. Global systemically important banks (G-Sibs), especially, need to issue debt that is eligible for bail-in....