Investors position for spread tightening in ‘glaringly mispriced’ AT1 market

By Tyler Davies
19 Feb 2021

Fund managers are eyeing up opportunities in the additional tier one (AT1) market this year, with spreads still said to be well wide of their potential lows.

Euro AT1 spreads peaked at around 700bp last March, as investors began to panic about the economic effects of the coronavirus pandemic.

They have since rallied hard on the back of central bank stimulus, falling to a level of about 370bp this month.

But buy-side market participants are confident that ...

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