Regional Bank Gets Wall Street Rates in This Little-Used Market bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Investor appetite for a type of debt issued mostly by banks to boost their capital is showing early signs of revival, just as interest rates on an estimated $120 billion of such securities are due to reset to much higher levels. So-called preferred securities, which are one of the riskiest forms of debt but also have some characteristics of stocks, are popular among banks as a way to boost their capital for regulatory purposes. Typically, these securities have no maturity date, but they can be redeemed, or called, in five or 10 years from the date they were issued.
Investor appetite for a type of debt
issued mostly by banks to boost their capital is showing early
signs of revival, just as interest rates on an estimated $120
billion of such securities are due to.